When does title transfer in a contract for deed?

In a contract for deed, also known as a land contract, the title to the property transfers to the buyer only after they have fulfilled all the terms and conditions outlined in the agreement. This means that the buyer must complete their payment obligations in accordance with the contract before they can obtain legal title to the property.

The essence of a contract for deed is that it allows the buyer to occupy and utilize the property while making payments to the seller, but legal ownership (title) remains with the seller until all payments are made. This structure is beneficial for both parties as it provides the buyer with access to the property and allows the seller to retain a degree of security until the contract terms are satisfied.

The timing of the title transfer is a crucial distinguishing feature of these agreements, impacting the rights and obligations of both parties involved. Understanding this sequence helps clarify the nature of property ownership in real estate transactions structured this way.