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In this video, Michelle explains the concept of a contract for deed in real estate transactions. When buying property (such as land, houses, or businesses), there are several options: outright purchase, lease with a purchase option, or contract for deed. A contract for deed involves the buyer making payments to the current owner or a financial entity, such as a bank, over a specified period. Payments may vary, including regular monthly payments or a lump sum at the end. The key distinction is that the buyer does not own the property until all payments are completed, unlike an outright purchase where ownership is immediate at closing.