Bond for Deed Services in Louisiana

Title and closing services for Louisiana's unique installment sale arrangement, governed by La. R.S. 9:2941.

What Is a Bond for Deed?

A bond for deed (also known as a contract for deed or installment land contract) is a Louisiana-specific arrangement governed by La. R.S. 9:2941 in which the buyer takes possession of the property and makes payments directly to the seller over time. The seller retains title to the property until the buyer has paid the full purchase price, at which point the seller transfers ownership through an act of sale.

Bond for deed contracts are commonly used when buyers cannot qualify for traditional bank financing, or when both parties prefer a direct sale arrangement. Louisiana law provides specific protections for both buyers and sellers in these transactions.

Happy client after bond for deed closing at Southern Title Louisiana

Key Legal Requirement

Under Louisiana law, a bond for deed contract must be recorded in the parish conveyance records to protect the buyer's interest. An unrecorded bond for deed may not be enforceable against third parties, including the seller's creditors.

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How Southern Title Supports Bond for Deed Transactions

Title Search & Examination

Before a bond for deed contract is signed, we conduct a thorough title search to verify that the seller has clear title to the property and that there are no outstanding liens or encumbrances that could jeopardize the buyer's future ownership.

Document Preparation

We prepare the bond for deed contract and related documents in compliance with La. R.S. 9:2941, ensuring that the terms of the agreement are clearly stated and that the contract meets all legal requirements for recording.

Escrow Services

We can serve as the escrow agent for the transaction, holding earnest money deposits and facilitating the orderly transfer of funds between buyer and seller according to the contract terms.

Final Closing & Title Transfer

When the buyer has completed all payments under the contract, we conduct the final closing, prepare the act of sale to transfer title, and issue title insurance to protect the buyer's ownership.

Important Considerations

For Buyers

•Ensure the bond for deed contract is recorded in the parish conveyance records to protect your interest.

•Verify that the seller has clear title before entering into the contract. A title search is essential.

•Understand that you do not own the property until the final act of sale is completed. The seller retains title during the contract period.

•Confirm that the seller is maintaining any existing mortgages on the property. If the seller defaults on their mortgage, the lender's lien takes priority over your bond for deed interest.

•Consider obtaining a title insurance binder to be converted to a full policy at the final closing.

For Sellers

•Louisiana law provides specific cancellation procedures that must be followed. You cannot simply evict a bond for deed buyer who defaults.

•The contract should clearly address property insurance, taxes, maintenance responsibilities, and default remedies.

•Consider using a loan servicing company to manage payment collection, escrow, and record-keeping throughout the contract period.

•If you have an existing mortgage on the property, check your loan documents for a due-on-sale clause that may be triggered by a bond for deed contract.

•Consult with an attorney to ensure the contract terms comply with all applicable Louisiana laws and protect your interests.

Analyze Your Bond for Deed Deal

Use our free Bond for Deed & Wrap Seller Analysis tool to see your monthly spread, cash flow, balloon alignment, and a side-by-side amortization comparison.

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Need Loan Servicing for Your Bond for Deed?

Our sister company, Southern Loan Servicing, provides payment collection, escrow management, and record-keeping for bond for deed and owner-financed transactions. Having both title and servicing under the Southern family means a seamless experience from contract to final closing.

Frequently Asked Questions

What is the difference between a bond for deed and a mortgage?+

With a mortgage, the buyer receives title at closing and the lender holds a lien. In a bond for deed, the seller retains title until the buyer completes all payments. The buyer occupies the property but does not own it until the final act of sale.

What happens if the buyer defaults on a bond for deed in Louisiana?+

Louisiana law (La. R.S. 9:2945) requires the seller to follow specific cancellation procedures before terminating the contract. The seller must provide written notice and allow the buyer a cure period. Simply evicting the buyer without following these steps is not permitted.

Does a bond for deed contract need to be recorded?+

Yes. Under Louisiana law, the bond for deed contract should be recorded in the parish conveyance records to protect the buyer's interest. An unrecorded contract may not be enforceable against third parties, including the seller's creditors.

Can I get title insurance on a bond for deed property?+

A title insurance binder can be issued at the time the bond for deed contract is signed and converted to a full policy when the final act of sale is completed and title transfers to the buyer.