In which type of agreement does the seller hold the title while the buyer pays in installments?

The correct answer is that a land contract is the type of agreement in which the seller retains the title to the property while the buyer makes installment payments. In a land contract, the seller essentially acts as the lender, allowing the buyer to occupy and use the property while they pay for it over time. The buyer does not receive full ownership or title until they have completed all payments as outlined in the contract. This type of arrangement provides some protection for the seller, as they maintain legal ownership until they are fully compensated.

In contrast, a lease agreement typically involves renting property without the intention of purchasing it, meaning the title is not held by the lessee (tenant) at any time. A deed of trust is a security instrument used in financing, where a third party holds the title until the debt is fully paid, which does not align with the installment payment scenario described. Lastly, a sales agreement generally signifies a full purchase with the title transferring to the buyer upon payment, making it distinct from the installment method characteristic of a land contract.