Installment contracts are an alternative to traditional mortgage financing and can benefit both the seller and buyer in a real estate transaction. The seller delivers the deed to the buyer once the final payment is made.
Upon execution of the contract the buyer immediately takes possession, but the seller retains legal title to the property until the buyer pays the full purchase price. An installment contract (also called a land contract or articles of agreement for warranty deed or contract for deed) is an agreement between a real estate seller and buyer, under which the buyer agrees to pay to the seller the purchase price plus interest in installments over a set period of time.
