contracts

land contract

A land contract, also called an installment contract or contract for deed, is a seller-financing arrangement in which the buyer (vendee) takes possession and makes payments to the seller (vendor), but the seller keeps legal title until the price is paid in full or to an agreed point. The buyer holds equitable title in the meantime. Default remedies and buyer protections vary by state and can be harsher than mortgage foreclosure.

Exam tip: Key trap: during a land contract the vendor keeps legal title; the vendee has equitable title and possession. The deed is delivered at the end.
Example: A buyer pays $1,200 a month to a seller for 10 years on a land contract; only after the final payment does the seller deliver the deed.

1. Under a land contract (contract for deed), during the payment period the buyer holds:

Answer & explanation

Answer: D. In an installment/land contract the buyer has equitable title and possession; the seller keeps legal title until the final payment.

Related terms & state variants

equitable title installment contract seller financing vendee vendor

Sources

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Last verified: 2026-10-23