Contracts
A Missouri land contract (contract for deed) differs from a purchase money mortgage in that:
AThe seller retains legal title until the contract is paid in full✓ Correct
BThe buyer receives title at the start
CNo interest is charged
DOnly the government can issue land contracts
Explanation
In a land contract (contract for deed), the seller retains legal title and the buyer gets equitable title. The seller only conveys legal title when the purchase price is paid in full.
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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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