A Contract for Deed is sometimes called a Land Contract, Agreement for Deed, Contract Sale or Real Estate Installment Agreement. With this type of transaction, the Seller of the Property retains legal title to the Property and agrees to convey title to the Buyer after the Buyer makes all the required payments under the Agreement and all other obligations are satisfied. In essence the Seller finances the purchase and holds the title or deed as security.

When the Buyer completes the required payments, the Seller must deliver valid legal title by way of a deed to the Buyer. During the period of the contract, the Buyer makes installment payments on the purchase price and is entitled to possession and equitable title to the property. The Seller holds legal title and continues to be liable for payment of any underlying mortgage.

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