Under a contract for deed, when does the buyer receive legal title to the property?

Under a contract for deed, also known as a land contract or installment sale agreement, the buyer typically receives possession of the property upon execution of the contract but does not obtain legal title until certain conditions are met, usually the final payment is made.

In this case, the answer indicates that possession is granted as specified in the contract, allowing the buyer to use and occupy the property. However, legal title—meaning the legal ownership of the property—only transfers to the buyer upon making the final payment as delineated in the contract. This aligns with the fundamental nature of contracts for deed, where the seller retains legal title until the full agreed amount is paid, ensuring that the seller has a measure of security in the transaction.

This system allows buyers to occupy and benefit from the property while paying for it over time, effectively functioning similarly to a loan arrangement but without transferring legal ownership until all obligations are fulfilled. Thus, the explanation supports the conclusion that title is acquired only after the final payment, emphasizing the importance of completing the payment term to gain full ownership rights.