Escrow & Title
In Oregon, what is a 'contract for deed' (land sale contract) and how does it differ from a mortgage?
ABoth are identical methods of financing a property purchase
BIn a contract for deed, the seller retains legal title until the buyer pays off the purchase price; the buyer has equitable title — different from a mortgage where title transfers at purchase✓ Correct
CA contract for deed is only used for commercial properties
DA contract for deed requires the same disclosure as a deed of trust
Explanation
An Oregon land sale contract (contract for deed) allows a buyer to purchase a property by making installment payments directly to the seller. Legal title remains with the seller until the contract is paid off. The buyer has equitable title and possession. Default remedies differ significantly from mortgage foreclosure — Oregon has specific forfeiture procedures for land sale contracts (ORS 93.905–959).
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