In a contract for deed (land contract), who retains legal title to the property until the purchase price is fully paid?
Correct Answer
B) The seller retains legal title until the buyer completes all payments
In a contract for deed (also called a land contract or installment sales contract), the seller retains legal title to the property throughout the payment period. The buyer receives equitable title and takes possession, but legal title does not transfer until the buyer has made all required payments in full. In Mississippi, this arrangement is recognized and the buyer's equitable interest is still a protectable property right, but the seller's retention of legal title provides security in the event of buyer default.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
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.
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