Final answer:
A contract for deed serves the purpose of transferring ownership and securing an income stream for the seller.
Step-by-step explanation:
A contract for deed serves two primary purposes for a seller:
- Transfer of Ownership: A contract for deed allows the seller to transfer ownership of a property to the buyer without requiring full payment upfront. It is a financing arrangement where the buyer makes regular payments to the seller over a specified period, and the seller retains legal title until the final payment is made.
- Secure Income Stream: By entering into a contract for deed, the seller ensures a steady income stream as the buyer makes periodic payments. This can be advantageous for sellers who are looking for a consistent flow of income, especially if traditional financing options may be limited for the buyer.