An arrangement where the seller finances the sale and deeds the property to the buyer at closing is called what?

The arrangement described, where the seller finances the sale and deeds the property to the buyer at closing, is known as a purchase money mortgage. In this context, the buyer receives the title to the property right away while simultaneously securing a loan from the seller to cover a part or all of the purchase price. The purchase money mortgage is specifically tailored for a situation where the financing is provided by the seller directly as part of the transaction.

This is distinct from other financing methods. Seller financing typically refers to any scenario where a seller provides financing to the buyer, but it doesn't inherently describe the specific mechanism of the mortgage used in the closing. A lease purchase agreement involves renting the property with the option to buy later, which does not transfer title at closing. A wrap-around mortgage is a specific type of seller financing that involves creating a new mortgage that "wraps around" the existing mortgage, allowing the seller to continue making payments on that existing mortgage while also including the new buyer in the payment structure, which is not the same as a straightforward purchase money mortgage transaction.