Recent Lessons

Show all results for ""

Feature Overview

Ace your exams with our all-in-one platform for creating and sharing quizzes and tests.

Quizzes

Create quizzes and tests automatically from your content using AI.

Flashcards

Automatically turn your notes into digital flashcards.

Share, Export & Embed

Share with classmates or export to Excel and your learning management system.

Stats & Reporting

Auto-grading quizzes and tests with detailed stats and reports.

Mobile Apps

The smarter way to study – wherever you are.

Pricing

Search...

10 Questions

0 Views

13. Seller Financing M/C

Choose a study mode

Play Quiz

Study Flashcards

Spaced Repetition

Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which type of seller financing involves the buyer giving the seller a deed of trust?

Purchase money loan

Land contract (correct)

Wraparound loan

Assumption

What is NOT a reason for a seller to use seller financing?

It may allow the seller to charge a higher price for the house in exchange for other benefits

It provides tax benefits

It can help attract a buyer at times when interest rates are very high

It provides a seller who needs to be cashed out with a large lump sum (correct)

What significant tax benefit can seller financing provide for a seller?

Recapture

An installment sale (correct)

Depreciation

Casualty loss

A seller second is used to supplement which type of loan?

Either B or C Signup and view all the answers

When might a seller be affected by the IRS's imputed interest rule?

Seller second uses an interest rate that is too far below market rates Signup and view all the answers

In a land contract, what is the seller also known as?

Vendor Signup and view all the answers

What is one factor a buyer should consider when contemplating a seller second financing option?

The seller's cash flow and yield Signup and view all the answers

What aspect should a seller think about when considering a seller second financing?

Possible negative tax consequences Signup and view all the answers

How long may a second loan's balloon payment be required to be after closing to meet a conventional loan requirement?

Not less than five years Signup and view all the answers

What could be a possible consequence of the imputed interest rule for a seller considering a seller second financing?

Negative tax consequences Signup and view all the answers