Contracts
An Iowa land contract (contract for deed) differs from a mortgage because:
AThe seller retains legal title until the buyer pays in full✓ Correct
BThe buyer takes legal title at the beginning of the contract
CNo interest can be charged under a land contract
DLand contracts are not enforceable in Iowa courts
Explanation
Under an Iowa land contract (contract for deed), the seller retains legal title until the purchase price is paid in full. The buyer receives equitable title during the contract term.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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