Which contract for real property involves the seller relinquishing possession but keeping title until the full price is paid?

Which contract for real property involves the seller relinquishing possession but keeping title until the full price is paid?

• A. Deed of Trust
• B. Wraparound Mortgage
• C. Contract for Deed
• D. Subject to Loan

Answer: (C)

In a contract for deed, the seller finances the sale and keeps the legal title to the property until the buyer has paid the full purchase price. The buyer takes possession (and often gains equitable title) right away and makes installment payments over time. When the final payment is made, the seller delivers the deed and transfers full ownership to the buyer. This setup protects the seller by using the title as security, while the buyer can live in and use the property during the payment period. Other arrangements involve different security structures where the title isn’t held by the seller in the same way, so they don’t fit the description of relinquishing possession while keeping title until payoff.

In a contract for deed, the seller finances the sale and keeps the legal title to the property until the buyer has paid the full purchase price. The buyer takes possession (and often gains equitable title) right away and makes installment payments over time. When the final payment is made, the seller delivers the deed and transfers full ownership to the buyer. This setup protects the seller by using the title as security, while the buyer can live in and use the property during the payment period. Other arrangements involve different security structures where the title isn’t held by the seller in the same way, so they don’t fit the description of relinquishing possession while keeping title until payoff.