The mortgage is widely used when a lending institution is involved, the contract for deed is frequently used in transactions between private parties. A contract for deed is also known as a land contract or installment land contract. In a contract for deed, the seller, rather than a lending institution, finances the buyer’s purchase of the property. The buyer takes immediate possession of the property and agrees to pay the purchase price of the property in monthly installment. The seller retains the legal title to the property until the last payment is made and the contract is fulfilled.