When it comes to buying or selling real property, installment contracts can be a great option for both parties involved. In an installment contract, the buyer agrees to make monthly payments to the seller over a certain period of time, while the seller retains legal title to the property until the full payment is made. However, it is important to understand who retains legal title in an installment contract to avoid any confusion or disputes.

In an installment contract, legal title of the property remains with the seller until the buyer has made all payments as specified in the contract. This means that if the buyer defaults on any payments, the seller can retain legal possession of the property until the full payment is made. The buyer, on the other hand, holds equitable title to the property, which means they have the right to use and occupy the property as if they were the legal owner.

It is important to note that even though the seller retains legal title to the property, they are still responsible for paying property taxes, mortgages, and other liens on the property until the buyer completes all payments. Once the buyer has made all the payments, the seller will transfer legal title to the buyer, and the buyer will become the legal owner of the property.

Additionally, it is important to have a clear and detailed installment contract that outlines all terms and conditions of the sale, including the purchase price, payment schedule, and consequences for default. The contract should also outline the rights and obligations of both parties, including what happens in the event of a default.

In conclusion, an installment contract can be a great option for buying or selling real property. However, it is crucial to understand who retains legal title of the property in an installment contract. The seller retains legal title until the buyer completes all payments, while the buyer holds equitable title to the property. To avoid any confusion or disputes, it is important to have a detailed contract that outlines all terms and conditions of the sale.