In a contract for deed (land contract), the seller:
Correct Answer
B) Retains legal title until the buyer has fully paid the purchase price
In a contract for deed (also called a land contract or installment sale contract), the seller retains legal title to the property while the buyer receives equitable title and takes possession. The buyer makes installment payments directly to the seller over time. Legal title does not transfer to the buyer until the full purchase price has been paid. This arrangement can benefit buyers who may not qualify for traditional financing, but carries risk — in Delaware, if the buyer defaults, the seller may be able to reclaim the property, though the specific remedies depend on the contract terms and applicable law.
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Related Topics & Key Terms
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Related Concepts
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
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