A land installment contract is primarily characterized as an agreement that allows a buyer to occupy the property while making payments towards the purchase price without receiving immediate title transfer. This arrangement typically involves the buyer making regular payments over time, and the title to the property is only transferred once the final payment is made. This method can be beneficial for buyers who may not qualify for traditional financing immediately but want to start occupying the property.
In this type of contract, the seller retains the title until certain conditions are met, protecting their interest in the property until the buyer completes the payment obligations. This leads to the buyer enjoying possession and use of the property while still working towards full ownership, making the agreement distinct from other forms of real estate contracts.
The other options do not accurately describe the nature of a land installment contract. For example, transferring full ownership upon signing would imply immediate title transfer, which is not typical in this arrangement.