2025 UOG Real Estate State Practice Exam – Complete Prep Guide

A contract for deed is best described as an agreement where the buyer pays the seller over time. In this type of arrangement, the seller retains the legal title to the property while the buyer makes periodic payments. The buyer acquires equitable title, meaning they have the rights to use and occupy the property, but they do not gain full ownership until the completion of payments as outlined in the contract. Once the buyer has paid the agreed-upon amount, the seller transfers the legal title to the buyer.

This structure allows buyers to obtain property without needing to secure traditional financing from a bank, making it a unique alternative in real estate transactions. It's important to understand that unlike an outright sale where the title transfers at closing, a contract for deed delays that transfer, creating a specific legal relationship between the parties involved.

In contrast, the other choices present different concepts. Receiving title immediately suggests a traditional sale rather than a contract for deed. Leasing encompasses a rental arrangement rather than a purchase agreement. A contract for property management services relates to managing real estate on behalf of the owner and does not involve transferring property ownership or financing payments.