Virginia State Real Estate Exam Practice Question
A seller is interested in providing financing to the buyer of a home, but the seller wants to retain title until the loan balance is paid off. Which of the following would be the best loan option?
Correct Answer: C
Rationale: A contract for deed allows the seller to retain title to the property while the buyer makes payments, ensuring the seller retains control until the loan is fully paid. This arrangement aligns with the seller's desire to maintain ownership during the financing period.
An asset integrated mortgage does not specifically address title retention and is not commonly used for seller financing. A wraparound mortgage involves the seller financing the buyer's mortgage, which may not guarantee title retention until full payment. Subordination of deed relates to loan priority and does not pertain to title retention in seller financing.
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