Which of the following best describes a land contract?

A land contract, also known as a contract for deed, is a seller-financed purchase agreement where the buyer makes payments directly to the seller over a specified period. This type of contract allows the buyer to take possession of the property while they are still making payments, and the title to the property is retained by the seller until the full purchase price is paid. This arrangement can be advantageous for buyers who may not qualify for traditional financing.

In contrast, the other options do not accurately represent the nature of a land contract. For instance, requiring full payment upfront does not align with the payment structure typical of land contracts, where payments are extended over time. A lease with an option to buy indicates a different type of agreement that involves renting a property with an option to purchase later, which is not the same as a land contract. Similarly, a traditional mortgage agreement requires involvement from a financial institution, with the buyer receiving loan funds to purchase the property outright, differing fundamentally from the seller-financing approach used in land contracts.