BC Real Estate Trading Services Licensing Exam Practice · Question
A buyer is negotiating to purchase a commercial property in Kelowna for $1,200,000. The seller agrees to provide a portion of the financing, specifically $250,000, with specified interest rates and terms. What is this type of financing arrangement called?
A vendor take-back mortgage (also known as a seller-financed mortgage) occurs when the seller of a property acts as the lender to the buyer for some or all of t
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Question: A buyer is negotiating to purchase a commercial property in Kelowna for $1,200,000. The seller agrees to provide a portion of the financing, specifically $250,000, with specified interest rates and terms. What is this type of financing arrangement called?
Answer options:
- A bridge loan.
- A conventional mortgage. ✅ A vendor take-back mortgage.
- A chattel mortgage.
Correct answer: A vendor take-back mortgage.
Explanation: A vendor take-back mortgage (also known as a seller-financed mortgage) occurs when the seller of a property acts as the lender to the buyer for some or all of the purchase price.
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Question explanations
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