Ace the California Real Estate Exam 2025 – Your Key to Property Success!

The correct answer is the land contract. A land contract, also known as a contract for deed or installment sale agreement, allows a buyer to obtain possession of a property and make payments over time without having to immediately change the title deed. In this arrangement, the seller retains the title until the buyer fulfills the payment obligations stipulated in the contract. This means that while the buyer can use and control the property, the ownership title remains with the seller until the contract terms are completed.

In contrast, a grant deed, quitclaim deed, and warranty deed all involve transferring ownership rights. A grant deed transfers the title from seller to buyer, a quitclaim deed relinquishes any claim the seller has to the property without guaranteeing clear title, and a warranty deed guarantees that the seller holds clear title to the property and has the right to sell it. All these options require a change in the title, which is not the case with a land contract.