Which scenario best describes a land contract?

A land contract is best summarized by the scenario in which a vendee makes payments to the vendor in exchange for the right to occupy, use, and enjoy the property, with the significant aspect being that no deed or title transfers until all, or a specified portion of, the payments have been made. In this arrangement, the vendor retains legal title to the property, while the vendee obtains equitable title. This means that the vendee has the right to live in and utilize the property, but they do not officially own it until they fulfill the terms of the contract. This structure serves to protect the vendor’s interest while allowing the vendee to work toward eventual ownership.

The other scenarios do not accurately represent a land contract. For example, maintaining an existing loan while offering another loan to the buyer does not embody the characteristics of a land contract. Similarly, taking over a seller's loan without a formal transfer of title or the specific payment structure found in a land contract doesn't reflect the unique arrangement that defines these contracts. Lastly, leasing a property to a buyer with an option to purchase differs from a land contract because it involves a lease agreement rather than a financing and ownership contract that is typical in land contracts.