contracts

vendor

A vendor is the seller of property, particularly in a purchase contract or an installment land contract. In a land contract, the vendor keeps legal title while the buyer, called the vendee, makes payments and receives possession and equitable title. The vendor typically delivers a deed once the buyer pays the full price or reaches a specified threshold. The term is common in legal documents and on licensing exams.

Exam tip: Memory aid: vendor sells, vendee buys. In a land contract, the vendor holds legal title and the vendee holds equitable title.
Example: Under a five-year land contract, the vendor keeps the deed while the vendee pays $1,500 monthly and lives in the house.

1. A broker pays a vendor for the brokerage's office rent from the trust account, intending to repay the money the next day from earned commissions. This is best described as:

Answer & explanation

Answer: D. Using client funds for the broker's own expenses is conversion, a serious violation whatever the intent to repay. Commingling is mixing funds; spending them on the broker's obligations goes further.

Related terms & state variants

equitable title installment contract land contract legal title vendee

Sources

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Last verified: 2026-10-23