Crucial Exams

Multistate Bar Examination Practice Question

A buyer and a seller enter into an installment land contract for the sale of a piece of undeveloped land. Under the agreement, the buyer will make monthly payments for 15 years, at the end of which the seller will transfer a deed to the buyer if the buyer has fulfilled all payment obligations. Four years into the agreement, the buyer defaults on payments for five consecutive months. Which course of action is most consistent with the seller’s remedies under traditional law governing installment land contracts?

  • The seller must refund the buyer’s prior payments as a condition of retaking possession of the property.

  • The seller may declare the contract forfeited, retain all payments made by the buyer, and take back possession of the property.

  • The seller may treat the buyer as a tenant and initiate eviction proceedings to regain possession of the property.

  • The seller must initiate foreclosure proceedings to recover title to the property, similar to a mortgage foreclosure.

Multistate Bar Examination
Real Property
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