What best defines a contract for a deed?

A contract for a deed, also known as a land contract or installment sale agreement, is best defined as a legally binding, written contract between a buyer and seller allowing installment payments. This type of agreement involves the buyer making payments to the seller over time while taking possession of the property, but the seller retains the title until the full purchase price is paid. The contract specifies the terms of the sale, including the purchase price, the payment schedule, and other conditions, making it a formalized legal instrument that protects the rights of both parties.

This structure is particularly beneficial for buyers who may not have sufficient financing to secure a mortgage upfront, as it provides them an opportunity to take possession of the property sooner. Sellers, on the other hand, may find it advantageous as they can receive regular income from the payments while maintaining a security interest in the property until it is fully paid off.