Under a contract for deed, what remedy may the seller have if the buyer defaults?

• A. Accelerate the entire purchase price
• B. Extend the loan
• C. Cancel the contract
• D. Sell the property at once

Answer: (A)

When a buyer defaults under a contract for deed, the seller commonly uses acceleration as a remedy. Acceleration means the seller can declare the entire remaining balance of the purchase price due immediately rather than waiting for the rest of the scheduled installments. This protects the seller’s financial position by ending the time-based risk and allowing immediate collection or legal action to recover the debt.

Think of it this way: the seller’s risk is tied to the length of time before full payment is made. If the buyer falls behind, continuing to wait for monthly payments can increase risk and complicate recovery. By accelerating, the seller puts the debt on a single, due-now footing, which is a straightforward path to recoup the money or to proceed with remedies to reclaim the property if allowed by the contract and local law.

Other options don’t align as directly with the typical response to default. Extending the loan after default undermines the warning that a breach has occurred. Canceling the contract is a separate remedy that may be used, but it’s not the same as declaring the remaining balance due immediately. Selling the property right away isn’t the immediate remedy described by acceleration, since acceleration focuses on the financial due date rather than an immediate sale.