Installment Sales Contract (“Equitable Mortgage”)
When a buyer finances the purchase price for property with the seller directly, instead of using a bank, by entering into an installment sales contract that allows the buyer to take possession of the property while paying off the total purchase price. The seller agrees to execute a deed only after the purchase price is fully paid.
- Example : Anthony wants to purchase a property from Hayley. The purchase price is $300,000. Anthony agrees to pay Hayley $1,250 every month for the next 20 years. Hayley agrees that once the full $300,000 purchase price is paid in full, she will execute a deed giving Anthony title to the property.