New Jersey Real Estate Practice Exam Practice Question
A land contract is sometimes known as an
Correct Answer: A
Rationale: A land contract is often referred to as an installment contract because it allows buyers to pay for the property in installments over time, rather than in a lump sum. This arrangement benefits both parties by providing the buyer with time to secure financing while ensuring the seller receives regular payments.
Option B, an option contract, grants a buyer the right to purchase a property at a future date but does not involve installment payments. Option C, an implied contract, is formed by actions rather than written agreements, which does not apply to land contracts. Option D, an express contract, is clearly stated but does not specifically describe the installment nature of land contracts.
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