In real estate, an Installment Sales Contract is an agreement in which the buyer agrees to purchase property by making periodic payments to the seller over time, rather than paying the full purchase price at closing. The buyer typically receives possession of the property, while legal title remains with the seller until the contract terms are fully satisfied.
Once the buyer completes all required payments, the seller transfers legal title to the buyer, usually by deed. Installment sales contracts are often used when traditional financing is not available, but they can carry risks for both parties and are governed by specific legal requirements under state law.
