Veteran uses Cal-Vet residential loan program with installment sales contract. Who gives deed to property?
Correct Answer
B) Cal-Vet
In the CalVet program, the California Department of Veterans Affairs purchases the property from the prior owner and holds legal title by receiving the deed directly. CalVet then enters into an installment sales contract with the veteran, who is the vendee, and only conveys the deed to the veteran upon full repayment of the loan. This means CalVet — not the previous owner and not the veteran — is the party that gives the deed to the property during and at the conclusion of the transaction.
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Related Concepts
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
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.
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