Bond for Deed

In depth

Bond for deed is the Louisiana equivalent of a contract for deed and is governed by Louisiana Revised Statutes 9:2941. The contract must be recorded, and the original mortgage holder must consent if the property is encumbered. The buyer takes possession and pays installments, with the seller retaining title until the bond is satisfied. Misconception: bond for deed is sometimes thought to be lease-only; it is actually a true purchase contract that transfers ownership upon completion. Practically, Louisiana law gives buyers strong cure rights and requires specific cancellation procedures, including a 45-day notice to cure recorded with the parish. Sellers should use a licensed bond-for-deed escrow agent, and buyers should verify that the property is properly insured and that the underlying mortgage holder has consented in writing.