In an installment land contract, what type of title does the seller retain?

In an installment land contract, the seller retains legal title to the property until the buyer fulfills the terms of the contract, typically by making all required payments. This means that the seller still has ownership rights and can enforce the terms of the agreement, while the buyer gains equitable title, which allows them to obtain the benefits of the property, such as use and possession, despite not having full legal ownership.

Legal title is crucial in this context as it reflects the formal, recorded ownership of the property that remains with the seller until the contract is completed. This arrangement allows for a level of security for the seller while offering the buyer an opportunity to purchase the property over time, creating a balance between their respective rights.

The other types of titles mentioned do not accurately represent the seller's retained interest in this agreement. Equitable title refers to the buyer's interest and rights to the property during the payment period. Fee simple title entails complete, unconditional ownership, which the seller does not relinquish until all terms are met. Possessory title involves the right to occupy and use property, but does not confer ownership, which again is retained by the seller until the contract is completed.