Final answer:
The seller (Stan) holds legal title to the property in a contract for deed in Minnesota until the buyer (Melanie) completes payments, at which point legal title is transferred to her.
Step-by-step explanation:
In the context of a contract for deed in Minnesota, the legal title to the property remains with the seller during the term of the contract. Thus, the correct answer to who holds the legal title is (B) The seller (Stan). A contract for deed, also known as a land contract or installment sale agreement, is a real estate transaction in which the buyer agrees to pay the purchase price of the property in installments over time. While the buyer, in this case, Melanie, has equitable title which allows her to live in and use the property, the seller, Stan, maintains legal title to ensure that the buyer adheres to the terms of the contract. Once the contract is fully paid off, legal title is transferred to the buyer.