Under a contract for deed, who holds the title to the property?

In a contract for deed, the vendor, or seller, retains the title to the property while the vendee, or buyer, makes payments towards the purchase. This arrangement allows the vendor to hold onto legal title until the vendee has completed all terms of the agreement, including payment in full. Essentially, the vendor maintains ownership rights, while the vendee has equitable title and the right to use and possess the property.

This structure is designed to protect the seller's interests, as they can reclaim the property if the buyer defaults on the terms of the contract. The vendee, although having use of the property, does not obtain full legal ownership until all conditions are satisfactorily met, making the relationship between both parties unique within real estate transactions. The other roles mentioned in the incorrect options—such as trustor and trustee—relate to different types of property agreements where a trust is involved, rather than a direct purchase contract like that of a contract for deed.