I payment terms addendum regarding a land contract states that the buyer will cash out the seller in five years. This means that:
A. The buyer and seller will sign a new land contract in 5 years
B. The buyer will pay off the principal balance as a balloon payment at the end of 5 years
C. The buyer will begin making payments on the property in 5 years
D. The buyer will make amortize payments with the intent of paying off the land contract over 5 years
Answer: B. The buyer will pay off the principal balance as a balloon payment at the end of 5 years
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