Which item is a basic element of a contract for deed?

• A. Description of the deed for the property
• B. Mortgage insurance requirement
• C. Borrower's loan interest rate
• D. Title transfer by deed immediately

Answer: (A)

In a contract for deed, the buyer makes payments to the seller while the seller retains legal title until the terms are fully met. Because of this arrangement, it’s essential to clearly identify exactly what property is being sold. A precise description of the property ensures there’s no ambiguity about what’s being contracted for and what will be transferred when the contract is satisfied. Other terms like mortgage insurance requirements or the interest rate are part of the financing details, but they aren’t what define the contract itself. Also, title does not transfer immediately in a contract for deed, so language stating that title transfers by deed right away doesn’t fit how these agreements typically work.