Which type of contract allows the buyer to pay the purchase price in installments while the seller retains title until paid in full?

The correct answer is the type of contract known as a Land Installment Contract. This type of agreement is specifically designed for situations where the buyer can make incremental payments toward the purchase price of the property, while the seller maintains legal title to the property until the buyer fulfills their obligation by paying the total purchase price in full.

This structure provides distinct benefits for both parties. For the buyer, it allows them to acquire the property and occupy it without needing to secure full financing at the outset. For the seller, retaining the title until full payment can offer a form of security, as they still hold legal ownership of the property until the contract obligations are satisfied.

In contrast, the other options do not fit the described scenario. Marketable Title refers to a title that is free from defects and can be transferred without issues, but it does not relate to the payment structure. A Leasehold is an arrangement where a lessee pays rent for the right to use a property owned by another, without any installment purchase components. Lastly, a Fee Simple Estate represents the highest form of property ownership, where the owner has full rights to the property without any continuing obligations to the seller, which does not involve installment payments or retention of title by the seller.