A
sale of an
asset in which the
buyer assumes possession and may have use of the asset, but the
seller retains
title until the buyer
pays its full
price and may repossess the asset if the buyer does not. In exchange for the right to use the asset, the buyer makes
payments over an agreed-upon period of time, whether months or years. This arrangement is most common with heavy equipment, machinery, and
real estate. See also:
Beneficial ownership,
Lease.