What is the term for a sales contract in which the buyer pays for the property in multiple installments while the seller holds the title until full payment is made?

The term used for a sales contract where the buyer makes multiple installment payments while the seller retains the title until the total purchase price is fully paid is known as a Contract for Deed. This arrangement allows the buyer to take possession of the property and utilize it while making payments, but the seller maintains the legal title until the buyer has paid the agreed-upon amount in full. This is often utilized in scenarios where the buyer may not qualify for traditional financing, allowing for a more flexible payment structure.

In contrast, an Installment Agreement generally refers to a broader category of agreements for payments over time, which may not specifically involve the transfer of property title like in a Contract for Deed. A Purchase Agreement is a preliminary document outlining the terms and conditions of a property sale but doesn't necessarily reflect installment payment arrangements or title retention. Lastly, a Lease Option includes a lease agreement with an option to purchase the property later, which is a different structure altogether. Therefore, the correct understanding of the specific context of retaining title during installment payments clearly identifies the Contract for Deed as the appropriate label for this type of sales contract.