What risk does a vendee face if they fail to record a contract for deed according to MN Statute 507.235?

The correct answer highlights that if a vendee fails to record a contract for deed, they face potential penalties for delayed recording. In Minnesota, recording a contract for deed is a crucial step in ensuring that the vendee's interest in the property is legally recognized. If the contract is not recorded, the vendee could encounter complications, especially if the vendor or seller later sells or encumbers the property. Failing to record the contract can lead to a situation where the vendee's rights may be challenged, potentially exposing them to financial loss or loss of rights in the property, rather than simply incurring a minor penalty. This recognition emphasizes the importance of compliance with recording statutes to protect one’s investment in real estate effectively.