Contracts
Under North Dakota law, an 'installment land contract' (contract for deed) is an arrangement where:
AThe buyer receives the deed immediately at signing
BThe seller retains title until the buyer pays off the contract, at which point the deed is conveyed✓ Correct
CA lender holds the deed during repayment
DThe county holds title until all taxes are paid
Explanation
In a contract for deed (installment land contract), the seller retains legal title while the buyer has equitable interest and makes installment payments. The deed is not delivered until 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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