Once a contract for deed is signed, what does the buyer immediately receive?

When a contract for deed is signed, the buyer immediately receives equitable title. This means that while the buyer does not have legal title to the property, they have a right to obtain that title upon fulfilling the terms of the contract. Equitable title gives the buyer a beneficial interest in the property, allowing them to possess and enjoy the property, even though the legal title remains with the seller until the contract conditions are fully met. This arrangement enables the buyer to treat the property as their own and grants them certain rights associated with ownership, such as the ability to sell or transfer their equitable interest.

In contrast, full legal title refers to complete ownership rights, which the buyer does not receive until they have satisfied all obligations under the contract. A leasehold interest represents a temporary right to occupy and use property without ownership, which is not applicable in this context. Therefore, the correct answer, equitable title, accurately reflects the nature of the buyer’s rights upon signing a contract for deed.