Contracts

Under Minnesota law, a contract for deed must contain which element to comply with statutory requirements?

AA minimum 5% down payment
BA 30-year maximum term
CDisclosure of the vendor's interest in the property✓ Correct
DA fixed interest rate

Explanation

Minnesota statutes require contract for deed documents to include disclosure of the vendor's (seller's) interest, including any existing mortgages or encumbrances on the property. This protects the vendee (buyer) from unknown superior liens. Contracts for deed are common in Minnesota for properties that do not qualify for conventional financing.

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