Property Ownership

In NJ, a 'purchase money mortgage' (PMM) is a mortgage given by the buyer to:

AA third-party lender only
BThe seller to secure all or part of the purchase price, often used in seller-financing arrangements✓ Correct
CThe title company
DThe real estate broker

Explanation

A purchase money mortgage (PMM) is given by the buyer to the seller as part of the financing of the purchase price (seller financing). PMMs generally have favorable lien priority treatment in NJ.

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