Scan QR code or get instant email to install app
Question:
Property developer Joaquin would like to purchase 175 acres of raw land as the site of a future subdivision. The property is being sold for $800,000 cash. Joaquin lacks the funds to purchase the property and is unable to obtain traditional financing. Joaquin convinces his friend Davidson to purchase the land for him. Davidson acquires the land with his own funds. After closing, Davidson executes a land sales contract of the property to Joaquin for $825,000. This is an example of a ____
A
valid purchase and resale of a property.
explanation
This scenario describes a valid and legitimate purchase and resale of a propety. Here, a colleague purchased a property at the request of his friend. In return, the friend agreed to purchase the property from his colleague under a land sales contract at a higher price. No deceit or improper conduct occurred.
Take more free practice tests for otherReal Estate topics with our real estate practice exam now!
Related Information
Comments