What type of agreement involves a seller retaining title until the property is paid in full?

The type of agreement in which a seller retains the title to the property until it has been paid in full is known as a contract for deed. In this arrangement, the buyer agrees to make installment payments to the seller over time, and the seller retains the legal title until the buyer fulfills their payment obligations. Once the final payment is made, the title is transferred to the buyer.

This structure allows buyers to take possession of the property and use it while they are making payments, which can be beneficial for those who may have difficulty obtaining traditional financing through a mortgage. It also provides sellers with a form of security since they retain ownership until the purchase price is satisfied, reducing their risk.

Other types of agreements, such as lease agreements, mortgage agreements, and rental agreements, do not operate under the same principle of seller title retention until payment completion. For instance, in a mortgage agreement, the buyer obtains title but secures financing through a lender, who has a lien on the property. A lease agreement allows a tenant to use and occupy the property for a period without transferring any ownership rights, and a rental agreement typically outlines the terms of occupancy without a purchase agreement involved. Therefore, the contract for deed is specifically designed to address the scenario described in the question