An installment contract (land contract) for the sale of real estate does not give the buyer which of the following?

• A. Equitable title to the property.
• B. Legal title to the property.
• C. Possession of the property.
• D. The right to enjoy the property.

Answer: (B)

In a land contract, the buyer’s interests are split: the buyer typically has equitable title and possession, while the seller retains legal title as security for payment. Because the deed transferring legal ownership is not delivered until the contract is fully paid, the buyer does not hold legal title during the installment period. The buyer does, however, have the right to possess and enjoy the property and to benefit from equitable title, with the legal title remaining with the seller until performance. Therefore, the statement that the buyer does not receive legal title under an installment contract is correct.