Finance
A Montana buyer who uses seller financing structured as a contract for deed (land contract) should be aware that:
AThey receive fee simple title immediately upon signing
BLegal title remains with the seller until the purchase price is fully paid, which means the buyer could lose the property if the seller defaults on an underlying mortgage✓ Correct
CContract for deed financing has no risks compared to bank financing
DMontana prohibits seller financing for residential properties
Explanation
In a contract for deed, the seller retains legal title as security. If the seller has an underlying mortgage and defaults on it, the lender could foreclose, affecting the buyer's equitable interest. Montana buyers using contract for deed should conduct due diligence on the seller's mortgage status and consider title insurance.
Related Montana Finance Questions
- In Montana, a borrower seeking a rural home loan might benefit from a USDA Rural Development (Section 502) loan because it offers:
- In Montana, a 'participation mortgage' differs from a standard mortgage in that the lender receives:
- In Montana, a 'deed in lieu of foreclosure' from a borrower benefits the lender because:
- In Montana, a 'buy-down' mortgage program (where the seller or developer pays points to reduce the buyer's interest rate) is structured so that:
- In Montana, a 'seasoned funds' requirement for a mortgage down payment means the buyer must show:
- In Montana, 'seller concessions' in a real estate transaction refer to:
- A Montana lender who engages in 'predatory lending' practices may violate which laws?
- In Montana, the 'annual percentage yield' (APY) on a savings account differs from the interest rate because APY:
Practice More Montana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Montana Quiz →