A more thorough explanation:

A contract for deed is a type of real estate contract where the seller provides financing to the buyer to purchase the property. The buyer takes immediate possession of the property and pays the purchase price in installments over a period of time. However, the seller retains legal title until all payments are made.

For example, John wants to buy a house from Jane, but he doesn't have enough money to pay the full purchase price upfront. Jane agrees to sell the house to John through a contract for deed. John makes an initial down payment and pays the remaining balance in monthly installments. Once John has paid the full purchase price, Jane will transfer legal title to the property to John.

Another example is when a developer sells a piece of land to a buyer through a contract for deed. The buyer can use the land to build a house or a commercial building. The buyer makes monthly payments to the developer until the full purchase price is paid. Once the purchase price is paid, the developer transfers legal title to the land to the buyer.

These examples illustrate how a contract for deed works. The buyer takes possession of the property and makes payments over time, while the seller retains legal title until the full purchase price is paid. Once the purchase price is paid, the seller transfers legal title to the property to the buyer.