### Question
How does the law define contract for deed?


### Answer
Under *26 U.S.C. § 143*, **contract for deed** is defined as:

> a seller-financed contract for the conveyance of land under which—


(I) legal title does not pass to the purchaser until the consideration under the contract is fully paid to the seller, and


(II) the seller's remedy for nonpayment is forfeiture rather than judicial or nonjudicial foreclosure

#### Citation:
  - *26 U.S.C. § 143*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART IV-TAX EXEMPTION REQUIRE- > Subpart A-Private Activity Bonds**

