Contract for Deed

Definition: A contract for deed is an installment purchase arrangement in which the seller retains legal title until the buyer completes the agreed requirements for receiving the deed.

Example

A buyer makes installment payments to the seller, who will deliver the deed after the specified balance is paid.

Keep the distinction clear

Also called a land contract or agreement for deed, it does not mean no down payment is required. The buyer's equitable interest and default rights must be distinguished from the seller's legal title.

Related terms

Equitable Title · Vendor · Vendee

Keep studying

Deeds, Abstracts, Title Opinions, and Title Insurance

References: California DRE: real estate glossary

Pronunciation (US): KAHN-trakt fer deed (capitals show stress)

Pronunciation reference: Merriam-Webster