"Real estate installment contract" means any agreement or contract for a deed under which the purchase price is to be paid in installments with title to the real estate to be conveyed to the buyer upon payment of the purchase price or a specified portion thereof. For the purpose of this definition, an earnest money deposit shall not be considered an installment.
15-1214.Real Estate Installment Contract.
Article XV. Mortgage Foreclosure · Part 12. Definitions · Not amended since adoption on record · Last verified July 20, 2026
In one sentenceThis section defines “real estate installment contract” as an agreement or contract for deed under which the purchase price is paid in installments and title passes once the purchase price, or a specified portion of it, is paid.
Full Text of 735 ILCS 5/15-1214
Plain-English Summary
Section 15-1214 defines real estate installment contract as any agreement or contract for a deed in which the buyer pays the purchase price in installments, with title to the real estate conveyed to the buyer once the purchase price, or a specified portion of it, has been paid.
The section adds one clarifying rule: an earnest money deposit does not count as an installment for purposes of this definition. That distinction matters because Section 15-1106 measures whether a residential real estate installment contract must be foreclosed under Article XV by looking at how much of the original purchase price, including principal and due, unpaid interest, remains outstanding when the foreclosure complaint is filed.
Frequently Asked Questions
What is a real estate installment contract under this Article?
Any agreement or contract for a deed under which the purchase price is paid in installments, with title conveyed to the buyer once the purchase price, or a specified portion of it, is paid.
Does an earnest money deposit count as an installment?
No, this section specifically excludes an earnest money deposit from being considered an installment.
When is title transferred under this kind of contract?
Upon payment of the purchase price, or a specified portion of it, as the contract provides.
How does this definition connect to the 80% payoff threshold in Section 15-1106?
Section 15-1106 requires foreclosure under this Article for a qualifying residential real estate installment contract when less than 80% of the original purchase price remains unpaid at the time the complaint is filed.
Is every real estate installment contract automatically foreclosed under Article XV?
No. Section 15-1106 sets specific conditions, including the type of real estate and the unpaid balance, that determine when foreclosure under this Article is required or elective.
Amendment History
(Source: P.A. 84-1462.)
Source & verification. Section text and amendment history are
reproduced verbatim from the Illinois Compiled Statutes, published by the
Illinois Compiled Statutes, Illinois General Assembly / Legislative Reference Bureau. Last verified July 20, 2026.
· Official source
Also known as: illinois real estate installment contract definitioncontract for deed foreclosure illinoisearnest money installment contract illinois