Which type of contract is characterized by the buyer paying the seller for property in multiple installments, with the seller holding the title until full payment is made?

The type of contract characterized by the buyer paying the seller for property in multiple installments, with the seller holding the title until full payment is made, is known as a contract for deed. This arrangement allows the buyer to take possession and use the property while gradually making payments. The seller retains legal title to the property until the buyer fulfills the payment terms, at which point the title is transferred to the buyer.

This method can be attractive to buyers who may not qualify for traditional financing and offers sellers a means to secure payment over time. It also provides a level of security to sellers, as they maintain ownership until the contract is fully executed. The structure of the contract for deed is distinct in its installment payment process and the retention of title, which sets it apart from other types of agreements.

In contrast, a land lease typically involves the lessee paying rent for the use of a property without any ownership transfer, while contingency clauses relate to conditions that must be met for a contract to be valid. A counteroffer, on the other hand, occurs during negotiations when one party responds to an offer with modifications.