A Cal-VET loan recipient in California wants to sell the property before the land contract is fully paid off. What must happen for the sale to proceed?
Correct Answer
D) The veteran must pay off the Cal-VET contract so the state transfers legal title, then convey title to the buyer
Since the state holds legal title under a Cal-VET land contract, the veteran must pay off the contract balance so the state transfers legal title to the veteran. Only then can the veteran convey clear, marketable title to a buyer through a standard sale.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
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