Real Estate Licensing NCREC-Broker-N Exam - Topic 1 Question 7 Discussion

Actual exam question for Real Estate Licensing's NCREC-Broker-N exam

Question #: 7
Topic #: 1

[Listing Price and Terms -- Types of Financing]

A buyer bought a house on an installment land contract, also called a contract for deed. Which statement about this transaction is TRUE?

AThe buyer cannot live at the property until the seller is paid the full sales price.

BThe buyer holds equitable title to the property.

CThe buyer will receive legal title to the property immediately.

DThe buyer is financing only the purchase of the land, not the house.

Show Suggested Answer

Suggested Answer: B

In an installment land contract (contract for deed), the buyer receives equitable title upon signing and possession of the property. Legal title remains with the seller until the full purchase price is paid or the contract conditions are met. The buyer typically takes possession and lives in the property during the installment period. This is a form of seller financing covering both land and improvements. Therefore, the correct answer is B.

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by Natalie at Nov 21, 2025, 09:19 AM

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Shawna

1 day ago

C is definitely wrong. Legal title comes later.

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Filiberto

6 days ago

A is misleading. Buyers usually occupy the property.

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Bettye

11 days ago

Agreed! B makes sense. They can live there while paying.

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Mozell

17 days ago

D seems misleading; they usually finance both land and house, right?

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Holley

22 days ago

A is definitely false; buyers can live there during the contract.

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Kassandra

27 days ago

Wait, are you sure about that? I thought they had to wait for legal title.

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Lili

2 months ago

Totally agree, B is the right answer!

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Markus

2 months ago

B is true! The buyer gets equitable title.

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Marci

2 months ago

B) The buyer holds equitable title to the property. Easy peasy, lemon squeezy!

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Raelene

2 months ago

I'm going with B. Installment land contracts are all about the buyer getting equitable title, not legal title right away.

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Michel

2 months ago

B is the correct answer. The buyer has equitable title, which means they have the right to possess and use the property.

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Elbert

2 months ago

Definitely B. The buyer has a beneficial interest in the property, even if the legal title is still held by the seller.

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Detra

3 months ago

B) The buyer holds equitable title to the property.

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Rochell

3 months ago

I remember discussing that the buyer is financing both the land and the house, so option D seems incorrect to me.

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Margurite

3 months ago

I practiced a similar question, and I believe that option C is definitely wrong since legal title usually transfers only after full payment.

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Melda

3 months ago

I'm not entirely sure, but I feel like the buyer can actually live in the property even if they haven't paid the full price yet.

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Richelle

3 months ago

I remember learning about land contracts in class. The buyer has equitable title but not legal title, so B is the correct statement.

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Ligia

3 months ago

For a land contract, the buyer doesn't get legal title right away, so C is definitely wrong. I'm leaning towards B as the best answer.

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Celestina

4 months ago

I think option B is correct because I remember that in an installment land contract, the buyer gets equitable title while making payments.

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Tawny

4 months ago

I think B is the right answer. The buyer has equitable title.

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Rory

4 months ago

I'm a little confused on the details of a land contract. Let me re-read the question and think through the options carefully.

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Louann

5 months ago

Okay, I've got this. The buyer holds equitable title, so B has to be the right answer.

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Vanesa

5 months ago

Hmm, this seems like a tricky one. I'll need to think through the key differences between a land contract and a traditional mortgage.

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Malcom

4 months ago

C is definitely wrong. Legal title comes later.

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Odelia

4 months ago

Agreed! The buyer can live there while paying.

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