What type of purchase financing allows the seller to take immediate possession while delaying the transfer of title?

The type of purchase financing that allows the seller to take immediate possession while delaying the transfer of title is known as an installment sales contract. In this arrangement, the buyer agrees to pay the seller a series of payments (installments) for the property over time. The seller retains legal title to the property until the buyer has fulfilled all payment obligations, which allows the seller to maintain possession even though the buyer may be using the property.

This structure is beneficial for both parties—the buyer can occupy the property without having to secure traditional financing upfront, and the seller can ensure that they continue to have ownership rights until the contract's conditions are fully met. The arrangement is especially useful in scenarios where buyers may face challenges obtaining a conventional mortgage.

In contrast, a lease option would typically involve a lease agreement coupled with an option to purchase, but it does not inherently delay the transfer of title in the same way an installment contract does. A traditional mortgage involves the immediate transfer of title to the buyer as they purchase the property with a loan. Lastly, a short sale agreement is a separate transaction usually initiated by the seller facing foreclosure, where the lender agrees to allow the property to be sold for less than the amount owed, and it does not delay a title transfer in the