Which statement about land contracts is true?

In a land contract, the vendor (the seller) retains legal title to the property while the vendee (the buyer) receives equitable title. Equitable title provides the vendee with rights to the property, such as the right to possess and use the land, as well as the obligation to make payments according to the terms of the contract. The legal title remains with the vendor until the full purchase price is paid, at which point the vendor is required to transfer the legal title to the vendee.

This arrangement allows the vendee to have ownership rights in a sense, but it does not give them full legal ownership until the terms of the contract are fulfilled. This distinction between legal and equitable title is crucial in understanding how land contracts operate and the interests of both parties involved in the transaction.