While a property is under a contract for deed, the seller, or vendor, mortgages her equity in the property, and has a separate j
udgment lien placed on the property. Faced with financial loss, the vendor assigns the contract to another party, then leaves town. What can the vendee do in this case?a. comply with the contract and take legal title when its terms are fulfilled. b. rightfully cancel the agreement and reclaim all deposits.
c. sue the creditor for removal of the judgment lien.
d. disclaim the lien and the mortgage due to homestead rights.
The correct answer is A; Comply with the contract and take legal title when it's terms are fulfilled.
Further Explanation:
A contract for deed is another type of real estate deal that is used when the buyers can't get a traditional mortgage. The person who is selling the property will keep the deed/title in their name until the terms of the contract have been completely fulfilled.
These types of sales are usually done privately and contracts are made up online or from a local lawyer. The down payments may be lower than a normal home loan. In this case, the vendee must comply with the terms of the contract and then get the legal title after all the terms are fulfilled.
