During a contract for deed, what does the vendor retain?

In a contract for deed, also known as a land contract, the vendor, or seller, retains legal title to the property throughout the duration of the contract. Even though the vendee, or buyer, typically takes possession of the property and may have rights comparable to ownership, it is the vendor who legally holds title until the contract's terms are fulfilled, usually through the completion of payment.

This retained legal title allows the vendor to maintain a security interest in the property, protecting their investment until the buyer has paid the full purchase price as agreed in the contract. Should the buyer default on the contract, the vendor is in a better position to reclaim the property.

The other options involve different concepts in real estate transactions. For example, equitable title refers to the buyer's rights to obtain legal title upon fulfilling the conditions of the contract, which is not something retained by the vendor. Possession of the property generally goes to the buyer once the contract is executed. A right of first refusal pertains to the seller's obligation to offer the property to a potential buyer before selling it to another party and is not typically associated with contracts for deed. Therefore, understanding these distinctions highlights the vendor's retention of legal title as the correct answer.