Which of the following is NOT another name for an agreement for sale?

Which of the following is NOT another name for an agreement for sale?

• A. Contract for deed
• B. Installment sale
• C. Land contract
• D. Wraparound contract

Answer: (D)

An agreement for sale is a type of real estate transaction where the seller finances the purchase for the buyer, allowing the buyer to make payments over time while gaining equitable title to the property. The correct answer, which is not another name for an agreement for sale, is a wraparound contract. A wraparound contract is a specific financing arrangement that enables one property owner to finance the purchase of a property while simultaneously keeping the original mortgage in place. This differs from an agreement for sale, which primarily outlines the terms of the sale itself without direct reference to the underlying financing arrangements. In contrast, the other terms—contract for deed, installment sale, and land contract—are commonly recognized as synonymous with an agreement for sale, focusing on the mechanics of installment payments and the gradual transfer of equitable interest in the property. Understanding these distinctions is crucial in identifying the specific terms and their applications in real estate transactions.

An agreement for sale is a type of real estate transaction where the seller finances the purchase for the buyer, allowing the buyer to make payments over time while gaining equitable title to the property. The correct answer, which is not another name for an agreement for sale, is a wraparound contract.

A wraparound contract is a specific financing arrangement that enables one property owner to finance the purchase of a property while simultaneously keeping the original mortgage in place. This differs from an agreement for sale, which primarily outlines the terms of the sale itself without direct reference to the underlying financing arrangements.

In contrast, the other terms—contract for deed, installment sale, and land contract—are commonly recognized as synonymous with an agreement for sale, focusing on the mechanics of installment payments and the gradual transfer of equitable interest in the property. Understanding these distinctions is crucial in identifying the specific terms and their applications in real estate transactions.