What is the primary purpose of a Bond for Deed contract?

The primary purpose of a Bond for Deed contract is to defer full payment until specific conditions are met, allowing the buyer to obtain equitable title to the property while the seller retains the legal title until the completion of the payment and any other contractual obligations. This arrangement benefits both parties; the buyer gains access to the property while working towards full ownership, and the seller can secure a promise of payment over time. It acts as a bridge between a simple sales transaction and traditional financing, where the buyer might not yet be in a position to secure full funding or meet all conditions for immediate ownership transfer.

This unique structure of the Bond for Deed provides flexibility and can be particularly appealing in situations where conventional financing is challenging to obtain. The other options focus on immediate ownership, securing financing, or protecting investment, which do not capture the essence of how a Bond for Deed operates in deferring payment until all agreed-upon terms are satisfied.