Question

The vendor in a land sales contract in Oregon

I. retains legal title as security for payment of the purchase price.
II. lacks recourse to foreclosure if the buyer defaults.
A) I only
B) II only
C) Both I and II
D) Neither I nor II

Answer 1

In Oregon, the vendor in a land sales contract retains legal title as security until the purchase price is fully paid, providing them recourse to foreclosure if the buyer defaults. Option A is correct.

Step-by-step explanation:

The question deals with a land sales contract in Oregon and addresses two specific points regarding the vendor's rights and options for recourse in the event of a buyer's default. We need to determine whether:

1. The vendor retains legal title as security for payment of the purchase price.
2. The vendor lacks recourse to foreclosure if the buyer defaults.

The truth is:

• Under a typical land sales contract, the seller (or vendor) does indeed retain legal title to the property until the buyer (vendee) pays the purchase price in full. This serves as security, ensuring that the vendor has a form of collateral should the buyer fail to meet their payment obligations.
• If the buyer defaults, the vendor is not left without recourse. In fact, the vendor can often pursue foreclosure to reclaim the property, just as a lender would in the case of a mortgage default. This is because the legal title is still in the hands of the vendor, and the contract generally contains provisions that allow for such actions in the event of non-payment.

Therefore, the correct answer to the question is: A) I only.