One of the main differences between a land sales contract and a purchase money mortgage is
A) the passing of title.
B) interest charged.
C) time between payments.
D) the term of the loan.

Question

Quizplus · Accepted Answer

The main difference between a land sales contract and a purchase money mortgage is the passing of title. In a land sales contract, the buyer does not receive legal title to the property until the contract is fully paid. In a purchase money mortgage, the buyer receives legal title immediately and the lender holds a lien on the property until the loan is fully paid. The other options (B, C, and D) may be different between the two types of financing, but they are not the main difference.

One of the Main Differences Between a Land Sales Contract