What is another name for a contract for deed?

A contract for deed is commonly referred to as an installment sales contract because it allows the buyer to make payments over time for the purchase of a property, with the seller retaining the title until the terms of the contract are fulfilled. This financial arrangement is particularly useful in situations where the buyer may not have access to traditional financing options, as it provides a structured way to pay for the property in installments.

The key aspect of an installment sales contract is that it outlines the total purchase price, the interest rate, the payment schedule, and other terms associated with the sale. Once the buyer completes their payment obligations, ownership of the property is transferred to them, thus making it essential for both parties to understand and agree on the specifics defined in the contract for deed.

In contrast, a purchase agreement typically refers to the initial agreement outlining the primary terms of a sale, which may lead to a contract for deed but is not interchangeable with it. A rent-to-own agreement involves leasing property with the option to purchase, which is a different arrangement compared to an installment sale. Similarly, a title transfer agreement usually refers to a document that finalizes the transfer of ownership once a sale is completed, rather than the ongoing payment structure seen in a contract for deed.