No transfer of title occurs until the loan is fully paid, and thus no equity is established until the debt is completely paid off. Most loans of this type have below-market interest rates and a balloon payment of principal at the end of the term. The land is sold several times in quick succession among persons acting in concert, with the price increasing each time the land is sold. In a land flip, multiple sales of the same property can occur within a few days. A legal entity, under the law, is responsible for its actions and can be sued for damages.
Loan is the noun.
The policy must adhere to applicable law and regulations. When real estate is rented, the lessee is known as the tenant. When real estate is rented, the lessor is known as the landlord. It gives the buyer the prestige and financial backing of the issuing institution and satisfies the requirements of the seller in completing the transaction. The accepting institution has a prior agreement as to how the buyer will pay for the drafts as they are presented.