Illinois 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: In this scenario, a contract for deed is the most suitable option as it allows the seller to retain the title of the property while the buyer makes payments. Ownership transfers only after the full loan balance is paid, ensuring the seller's security.
Option A, an asset integrated mortgage, is not relevant here as it typically involves integrating various financial assets, not retaining title during financing.
Option B, a wraparound mortgage, involves a seller financing the buyer's purchase while still holding an existing mortgage, which does not meet the seller's requirement to retain title.
Option D, subordination of deed, pertains to the priority of liens and does not address the seller's desire to keep the title until payment completion.
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