Finance
A Wisconsin land contract (contract for deed) differs from a mortgage in that:
AThe buyer receives title immediately upon signing
BThe seller retains legal title until the contract is paid in full✓ Correct
CNo interest may be charged on the balance
DDSPS must approve the terms before it is binding
Explanation
Under a Wisconsin land contract, the seller (vendor) retains legal title and the buyer (vendee) holds equitable title. Legal title transfers to the buyer only when the contract balance 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).
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
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