Finance
In South Dakota, a 'purchase money mortgage' is one in which:
AThe seller uses the buyer's purchase money to pay off existing debts
BThe mortgage proceeds are used to finance the purchase of the property it secures✓ Correct
CThe buyer purchases the property for cash and later mortgages it
DA lender provides funds to purchase another's mortgage
Explanation
A purchase money mortgage is a mortgage given to secure the purchase price of a property — the mortgage is taken at the same time as the property is acquired and the proceeds are used to purchase the property. It can be a loan from a traditional lender or seller financing.
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