What characterizes an installment land contract?

An installment land contract is characterized by the arrangement where the buyer, often referred to as the debtor, makes regular payments over time toward the purchase price of the property, typically until the total amount is paid in full. During this payment period, the buyer is allowed to take possession of the property and can use it, often resembling ownership, but does not hold full legal title until the final payment is made.

This mechanism ensures that the seller (vendor) retains some level of security since they do not have to transfer full legal title until the payments are complete. This process is particularly beneficial for buyers who may not qualify for traditional financing options but still wish to secure property.

While immediate possession is granted to the debtor, this does not mean that they hold full legal title, nor does it imply that the vendor will retain indefinite possession. The essence of an installment land contract is the structured payment plan leading to the eventual transfer of title after all payments have been completed.