Finance
In Minnesota, a land contract (contract for deed) differs from a conventional mortgage because:
AThe lender holds title until the loan is paid
BThe seller retains legal title until the contract is paid in full, while the buyer holds equitable title✓ Correct
CThere is no interest charged on a land contract
DA land contract is not legally enforceable in Minnesota
Explanation
In a Minnesota contract for deed (land contract), the seller retains legal title while the buyer takes possession and holds equitable title. Upon full payment, the seller conveys legal title. If the buyer defaults, the seller may cancel the contract through a statutory cancellation process. This is an alternative to conventional financing.
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