Under a land contract, who typically holds the legal title until the contract is fully paid?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Prepare for the Michigan Salesperson Exam with detailed questions. Study with flashcards and multiple choice questions including hints and explanations. Ace your test!

Multiple Choice

Under a land contract, who typically holds the legal title until the contract is fully paid?

Explanation:
In a land contract, the seller holds the legal title while the buyer makes payments. This setup provides security for the seller—the legal title stays with the seller until the contract is fully paid. The buyer, meanwhile, has equitable title and the right to possession, and once all payments are made, the seller conveys the legal title to the buyer by deed. The lender or trustee would only hold title in a different financing arrangement (like a mortgage or deed of trust), not in a standard land contract.

In a land contract, the seller holds the legal title while the buyer makes payments. This setup provides security for the seller—the legal title stays with the seller until the contract is fully paid. The buyer, meanwhile, has equitable title and the right to possession, and once all payments are made, the seller conveys the legal title to the buyer by deed. The lender or trustee would only hold title in a different financing arrangement (like a mortgage or deed of trust), not in a standard land contract.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy