A contract of deed is also known as which of the following?

• A. Installment land contract
• B. Deed of reconveyance
• C. Mortgage
• D. Deed in lieu of foreclosure

Answer: (A)

A contract of deed is a seller-financed arrangement in which the buyer pays the purchase price in installments and the seller retains the deed (title) until the final payment is made. This setup is commonly called an installment land contract. The buyer typically takes possession and uses the property, while the title stays with the seller as security for performance. It’s different from a mortgage, where the borrower receives clear title upfront and the lender holds a lien; it’s also not a deed in lieu of foreclosure, where the borrower gives the deed to the lender to avoid foreclosure, nor a deed of reconveyance, which is used to return title to the borrower after a loan is paid. Therefore, installment land contract is the term that best fits a contract of deed.