Final answer:
The contract described in the question is a Land Contract, where possession is with the buyer but the title remains with the seller until payment completion. The correct option is b.
Step-by-step explanation:
The type of sales contract described, where the buyer takes possession of the property but the seller retains title until all or a prescribed portion of the purchase price has been paid, is known as a Land Contract.
This is also referred to as a conditional sale contract or contract for deed. In a Land Contract, the seller may offer additional agreements such as a warranty or a service contract.
A warranty is a guarantee that the seller will fix or replace the item within a certain time frame if necessary, while a service contract involves an additional cost for the buyer, but ensures that the seller will take care of any issues for a set period.
In contrast, the other options provided: a lease option gives a renter the choice to purchase at the end of a lease period, a purchase agreement is a general contract to buy, and a quitclaim deed is a legal instrument to transfer interest in real property with no guarantees. The correct option is b.