Finance
A Montana borrower has a 'land contract' (contract for deed) to purchase agricultural property. They should understand that under a land contract:
AThey immediately receive fee simple title upon signing
BThe seller retains legal title until the purchase price is paid in full, with the buyer holding equitable title✓ Correct
CNo interest can be charged on the unpaid balance
DThe contract must be recorded to be valid
Explanation
In a land contract (contract for deed), the seller retains legal title to the property as security for the purchase price, while the buyer holds equitable title and possession. Upon full payment, the seller conveys legal title through a deed.
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