Bond for Title Law and Legal Definition
Bond for title is a real estate term. It is seller’s retention of legal title until the buyer pays the purchase price. It is also known as bond for deed or a contract for deed.
A financing method whereby you pay for a home in installments and the title is transferred to you only after the payments are made in full is an example of a bond for title. Under such a title, buyers are considered 'equitable' owners of the property under such a sales agreement. They receive all the tax and other benefits of owning a home, except possession of the deed.
Bond for title loans are also often beneficial for short-term financing as it allows you to use the contract period to find and qualify for conventional and longer-term loans.
