Conditional Sales Contract

Agreement commonly used in real estate finance and commercial finance, whereby the seller retains title to the equipment through a purchase money security interest. Ownership passes to the purchaser when installments are fully paid. See also Finance Lease.

A contract for the sale of property stating that the seller retains Title until the conditions of the contract have been fulfilled.
Example: A Contract for Deed or a Land Contract is a conditional sales contract. Until the buyer makes full payment, the seller retains title to the property.