What type of agreement allows a buyer to occupy and use a property while making payments?

A land contract is indeed the type of agreement that allows a buyer to occupy and use a property while making payments. This agreement, also known as a contract for deed, involves the seller financing the purchase directly, allowing the buyer to take possession of the property even though they do not yet hold the legal title.

In a land contract, the buyer makes periodic payments to the seller over time, which typically includes both principal and interest. Once the buyer has fulfilled the terms of the contract, they receive legal title to the property. This arrangement is particularly beneficial for buyers who may not qualify for traditional financing or who want to secure a property before fully paying for it.

In contrast, an installment purchase agreement is similar but generally refers to a broader category of financing that doesn't always provide immediate occupancy or usage rights. A property lease allows a tenant to occupy and use a property, but it does not involve purchasing that property. A sales contract documents the terms of the sale and typically transfers ownership after the purchase price has been paid but does not allow for the occupancy before closing unless otherwise stated.