Which instrument is the security interest that would have the seller retain title until the final payment?

• A. Installment land contract
• B. Mortgage
• C. Deed of trust
• D. Absolute deed

Answer: (A)

Retaining title until the final payment is a feature of seller‑financed arrangements like an installment land contract. In this setup the buyer may take possession and have equitable title, but legal title stays with the seller until all payments are made. The seller’s retention of legal title creates a security interest for the seller, who can terminate or reclaim the property if the buyer defaults and only passes full ownership once the last payment has been made. By contrast, a mortgage or deed of trust involves a lien on the property while the borrower may hold title, and an absolute deed transfers full ownership immediately with no reservation of title. So the instrument that keeps title in the seller until final payment is the installment land contract.