A real estate contract or land contract is described as a method of financing often substituted for mortgage or trust deed financing. Consequently a land contract can be:1. the same as a mortgage

2. a security device

3. similar to a lease

4. a lease with an option to buy

The correct answer is the option 2: a security device

Explanation:

To begin with, a land contract or also known as a real state contract is the type of contract that is usually used in substitution of a mortgage in order to buy a real estate where the seller provides the buyer financing in the purchase and the buyer repays the resulting loan in installments. Moreover, this type of contract allows the buyer to retail the legal title of the property while permiting the buyer to take possesion of the real estate. In addition, it represents a security device due to the fact that the seller do not lose his property until the full purchase price has been paid and in the other hand the buyer do not risk his entire money in case something happens to the real estate and also do not put in risk any other asset that he possesses in order to buy the new property.