Which of the following is NOT a common method to finance real estate?

Study for the Appraiser III Exam. Unlock comprehensive flashcards and multiple choice questions, each with hints and detailed explanations. Prepare to excel in your exam!

A lease agreement is not considered a method of financing real estate in the same way that cash, mortgage, and trust deed are. Financing refers to acquiring funds to purchase or invest in real estate, and typically involves a borrowing mechanism where a lender provides capital based on an agreement to repay over time, often with interest.

Cash represents the most straightforward method of financing, where the buyer pays the full purchase price upfront without needing to borrow. A mortgage is a loan specifically secured by the property being purchased, making it a standard financing method. Similarly, a trust deed involves a real estate loan where the property is used as collateral and conveys some control to the lender until the debt is repaid.

In contrast, a lease agreement is a contract between a lessor and lessee, allowing the lessee to use the property for a specified period while making regular payments. It does not involve acquiring ownership of the property nor is it a financing method that enables the purchase of real estate. Therefore, lease agreements are seen as a means of occupancy rather than a way to finance real estate transactions.

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