### Question
How is the term contract for deed defined?


### Answer
The term **contract for deed** is defined in *26 U.S.C. § 143* as the following:

> 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 REQUIREMENTS FOR STATE AND LOCAL BONDS > Subpart A-Private Activity Bonds**

