Which is the largest legal obstacle to a fireworks dealer recovering real property after financing from a lender with a deed transferring title to the lender?

• A. Parol evidence rule prohibiting contradictory evidence
• B. Statute of frauds prohibiting oral transfer
• C. Equitable mortgage recognized; good faith purchaser could block return
• D. Recording provides no protection against a security transfer to lender when recovered by the borrower

Answer: (C)