Contract for Deed (Land Sale Contract, Installment Sale Contract)

In real estate, a contract for deed is an installment agreement for the sale of property in which the seller retains legal title until the buyer has paid the purchase price in full. During the term of the contract, the buyer takes possession of the property and holds equitable title, gaining the right to use and benefit from the property while making periodic payments to the seller. Legal title is transferred to the buyer only after all contract terms have been satisfied. Also known as a land sale contract or installment sale contract, this arrangement can offer financing alternatives for buyers but may carry greater risk, as default can result in loss of the buyer’s interest without the same protections as traditional mortgage financing.