California Real Estate Practice Exam

A types of purchase financing that delays transfer of title while allowing immediate possession is known as?

1. Bridge financing

2. A land contract

3. Lease to own

4. Secondary financing

The correct answer is: A land contract

A Bridge financing is a short-term loan used to bridge the gap between the purchase of a new property and the sale of an existing one. This type of financing is not primarily focused on delaying transfer of title, but rather on providing the necessary funds for the purchase of a new property. B: The correct answer. A land contract, also known as a contract for deed, is a type of purchase financing where the seller retains ownership of the property until the buyer completes all the required payments. This allows for immediate possession of the property while delaying the transfer of title. C: Lease to own is a type of financing where the buyer leases the property for a set period of time with the option to purchase the property at the end of the lease. This does not involve delay of transfer of title, as the buyer does not take ownership until the purchase is made. D: Secondary financing refers to additional