Installment Contract
The Installment Contract also known as a “Contract for Deed” or in some parts of the country, “installment contract” is designed as an agreement between the Seller and the Buyer for the purchase of real property in which the payment of all or a portion of the purchasing price is deferred.
The purchase price may be paid in installments over the period of the contract, with the balance due at maturity. When the Buyer completes the required payments, the Seller must deliver valid legal title by way of a deed. During the period of the contract, the Buyer makes installment payments on the purchase price and is entitled to possession and equitable title to the property. The Seller holds legal title and continues to be liable for payment of any underlying mortgage or loans.
The Buyer may assign and convey his/her interest in this “Contract” or any part thereof provided, however, that such assignment or conveyance should not result in any impairment of Seller’s position. Under no circumstances shall any assignment or conveyance release Buyer from his/her obligations under this “Contract” unless Seller specifically releases Buyer in writing.
