Which type of title does the buyer hold during the period of a contract for deed?

During the period of a contract for deed, the buyer holds equitable title. In this arrangement, the buyer obtains the right to possess and use the property while making payments, but the seller retains legal title until the contract terms are fulfilled. This means the buyer has a financial interest in the property and benefits from its use, but does not have full legal ownership until the final payment is made.

Equitable title is significant because it provides the buyer with certain rights, such as the ability to enjoy the property, make improvements, and, in many cases, obtain certain protections under the law. However, since legal title remains with the seller, the seller has the authority to enforce the contract and regain possession if the buyer fails to meet the payment obligations. This distinction between equitable and legal title is essential in understanding the dynamics of a contract for deed and the rights of each party involved in the transaction.