Contracts

In Tennessee, a 'land contract' (contract for deed) is characterized by:

AThe seller conveying title immediately upon signing
BThe buyer receiving equitable title while the seller retains legal title until the purchase price is paid✓ Correct
CA third-party trustee holding title during the contract period
DNo interest accruing on the unpaid balance

Explanation

Under a land contract (installment land contract), the seller retains legal title while the buyer receives equitable title and makes installment payments. Legal title is conveyed only when the full purchase price is paid.

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