What occurs in a contract known as "Contras for Deed" when the buyer completes their payment?

In a contract known as "Contract for Deed," the seller maintains ownership of the property until the buyer has made all the required payments as outlined in the agreement. This structure allows the buyer to occupy and use the property while they are making installment payments. However, the transfer of the deed—and therefore the legal title—occurs only once the buyer has fulfilled their payment obligations in full.

This approach offers a level of security for the seller, as they retain ownership until the full purchase price has been satisfied. It also provides the buyer with a pathway to homeownership without needing to secure traditional financing upfront. Once all payments are completed, the seller is obligated to deliver the deed to the buyer, transferring ownership officially at that point. This contractual arrangement is particularly useful in scenarios where buyers may face challenges in securing immediate financing or for those preferring a rent-to-own setup.