What does an Installment Land Contract entail for the buyer?

An Installment Land Contract, often referred to as a contract for deed, creates a situation where the buyer does not receive full legal rights to the property until all payments have been made. Instead, the buyer agrees to make periodic payments to the seller over time, and only upon the completion of these payments does the buyer gain full ownership and title to the property.

While the buyer is making payments, they may have some form of possession or equitable interest in the property, but they lack legal title until the contract terms are fully met. This is a key characteristic of installment contracts, distinguishing them from traditional sales where ownership is transferred at the outset. Therefore, it is important for buyers to understand that they are effectively landlords' tenants with rights to occupy the property, but they do not yet own it or have complete legal rights until the transaction is fully executed.