When Is Seller Financing NOT Used

question 17

Multiple Choice

When is seller financing NOT used?

• A) The seller desires to take advantage of the installment method of reporting the gain from sale
• B) The buyer does not qualify for long term mortgage credit because of low down payment or difficulty meeting monthly payments
• C) Third-party mortgage financing is less expensive or easily available
• D) The seller desires to artificially raise the price of the property by offering a lower-than-market interest rate on the mortgage

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Definitions:

Commercializing Innovation

The process of bringing new and innovative products or services to the market, turning ideas into commercial successes.

New Ideas

Original or innovative thoughts, concepts, or approaches that have not been previously implemented or explored.

Reduced Costs

refers to decreases in expenses or outlays, often achieved through efficiency improvements, negotiations, or adopting new technologies.

Competitive Advantage

Conditions or aspects that confer on a business a superior or more advantageous situation compared to competitors.