Title,Refinance - Seller Finance

[Melody Xing]

let's say I have an agreement with a seller who is willing to sell me the property for $80,000. And he agrees to let me put down a $3000 deposit at first, give me three months to renovate the property. And three months later, the appraisal comes out to $150,000. Then I will have money to pay $80,000 to the seller and keep 25% in the property, and take the loan for the rest. Perfect right? 

But my question is what about the title and how does the bank handle this three months later? If I don't have the title, three months later, it will be a new purchase, then I will have to put 20% down which I won't have. In that case, I will need to have the title from the beginning and be able to refinance 6 months later. But I don't think the seller will give me the title just by me giving him $3,000. So how does this work? Thank you all in advance for your input!!