You and the seller agree on a purchase price, down payment, and interest rate.
You move in immediately, but the seller keeps the legal title until you pay the full purchase price. The Process: how to buy a house under contract
You make monthly payments directly to the seller, often including a large final "balloon payment". You and the seller agree on a purchase
Once the final payment is made, the seller signs a warranty deed to transfer ownership to you. Pros & Cons: Once the final payment is made, the seller
A Contract for Deed (or land contract) is a setup where you pay the seller in installments instead of getting a bank mortgage.
Both parties sign a written agreement. To be legally enforceable, this must be in writing .
✅ Faster closing with no bank approval needed and more flexible credit requirements.