<P> A land contract--often described by other terminology listed below--is a contract between the buyer and seller of real property in which the seller provides the buyer financing in the purchase, and the buyer repays the resulting loan in installments . Under a land contract, the seller retains the legal title to the property, while permitting the buyer to take possession of it for most purposes other than legal ownership . The sale price is typically paid in periodic installments, often with a balloon payment at the end to make the timelength of payments shorter than in the corresponding fully amortized loan (i.e., a loan without a final balloon payment). When the full purchase price has been paid including any interest, the seller is obligated to convey (to the buyer) legal title to the property . An initial down payment from the buyer to the seller is usually also required . </P> <P> The legal status of land contracts varies between jurisdictions . </P>

Who retains legal title of real property in an installment contract