contracts
installment contract
A sales arrangement, also called a land contract or contract for deed, in which the buyer makes payments to the seller over time and receives possession and equitable title, while the seller keeps legal title until the price, or a specified portion, is paid. It is a form of seller financing. Rules about buyer protections and forfeiture vary by state.
- Exam tip
- During an installment contract, the buyer (vendee) holds equitable title and the seller (vendor) holds legal title. Deed delivery comes at the end.
- Example
- A buyer pays $1,200 a month to the seller for ten years under a land contract; the seller delivers the deed after the final payment.
Related terms & state variants
Sources
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Last verified: 2026-10-23