It is a contract whereby the owner(s) of Real Estate agree to sell the real estate to a purchaser(s).
Normally Possession of the property will be given upon execution of the Contract for Deed, but Title will not pass to the purchasers until after the property is paid for. i.e. The Seller still owns the property subject to the equitable claim of the purchaser
The Contract for Deed serves the purposes of an agreement to sell; the terms of payment for the property; and security for the money owed on the purchase - all in one instrument.
Since the owner(s) of the property remains the owner(s) after the execution of the Contract for Deed the purchaser cannot sell or grant a valid decurity interest on the property without the permission of the owner(s).
The Contract for Deed must be recorded in the office of County Clerk of the County where the real estate is located to protect the interest of the parties.
In the event the Puchaser defaults the Contract For Deed must be foreclosed the same as a mortgage. 16 O.S, Section 11A