Final answer:
The seller retains fee ownership of the property under land contract for deed until the buyer completes the payment terms of the contract, at which point the deed is transferred to the buyer.
Step-by-step explanation:
Under a land contract for deed, the seller retains fee ownership of the property until the buyer fulfills the terms of the contract, typically by making a series of installment payments. Once the entire purchase price has been paid, the seller conveys the deed to the buyer. A land contract is a form of seller financing and is different from traditional purchase methods where the buyer obtains immediate ownership through a deed upon closing.
Historically, various methods have been used to transfer land ownership, including public auctions by the government. However, with a land contract for deed, the buyer does not initially receive full ownership but has an equitable title, allowing them to use and improve the property as if they were the owners. The actual legal title remains with the seller until contract conditions are met.