What type of agreement allows a seller to finance part of a property sale while retaining the property title?

A land contract, also known as a contract for deed or installment sale agreement, is a legal agreement where the seller finances part of the purchase price while retaining the title to the property until the buyer fulfills their payment obligations. In this arrangement, the buyer makes regular payments to the seller over time, and the seller retains legal title to the property until the buyer pays the full amount owed. This type of agreement benefits buyers who may not qualify for traditional financing, as they can often negotiate terms directly with the seller.

In contrast, a lease agreement typically allows a tenant to use a property for a specific period without transferring ownership or title. A mortgage is a loan secured by the property itself, where the lender holds a security interest in exchange for financing the purchase. An option to purchase gives a potential buyer the right, but not the obligation, to buy a property at a predetermined price within a specified timeframe, without involving payment installments like a land contract does.