Louisiana · owner financing
Louisiana owner financing, explained.
A plain-English guide to owner financing (also called seller financing) in Louisiana — statute, recording, default remedies, interest caps, and where deals actually happen.
La. Civ. Code arts. 2623-2630 (contract to sell); La. R.S. 9:2941 et seq. (bond for deed contracts)
La. R.S. 9:2941 requires the bond-for-deed contract to be recorded in the conveyance records of the parish where the property is located. Without recording, the contract is not effective against third parties.
Statutory cancellation procedure under La. R.S. 9:2945: written notice by registered mail giving the buyer at least 45 days from mailing to cure default. If buyer fails to cure, seller may cancel and retake possession. Buyer has clear cure right by statute.
Is owner financing legal in Louisiana?
Uniquely codified. Louisiana civil-law system uses 'bond for deed' (La. R.S. 9:2941-9:2948) as its specific installment-land-contract analog. Bond for deed is a contract whereby a seller agrees to deliver title after receiving payment in installments.
How do you record a owner financing agreement in Louisiana?
La. R.S. 9:2941 requires the bond-for-deed contract to be recorded in the conveyance records of the parish where the property is located. Without recording, the contract is not effective against third parties.
What happens if the buyer defaults?
Statutory cancellation procedure under La. R.S. 9:2945: written notice by registered mail giving the buyer at least 45 days from mailing to cure default. If buyer fails to cure, seller may cancel and retake possession. Buyer has clear cure right by statute.
What is the maximum interest rate?
12% per annum conventional rate cap (La. Civ. Code art. 2924), but many real-estate and commercial transactions are exempt under La. R.S. 9:3500 et seq.
What disclosures are required?
If property is encumbered by a mortgage, La. R.S. 9:2941.1 requires written consent of the mortgagee before the bond-for-deed can be recorded; Louisiana Residential Property Disclosure Act (La. R.S. 9:3196 et seq.) for residential 1-4 unit; lead-paint federal disclosure.
Who's protected — buyer vs. seller
Buyer protections
Mandatory 45-day statutory cure period under La. R.S. 9:2945; mortgagee-consent requirement; recordation requirement; mandatory residential disclosures.
Seller protections
Clear statutory cancellation procedure that is fast and cost-effective; title retention; statutorily defined remedy structure.
Where in the state do these deals happen?
Common throughout Louisiana, particularly in rural parishes, intra-family transfers, owner-financed homes in non-metropolitan areas, and as a recognized civil-law alternative to mortgage financing.
Notable case law
Thomas v. King, 535 So. 2d 431 (La. App. 2d Cir. 1988); Montz v. Theard, 818 So. 2d 1059 (La. App. 1st Cir. 2002).
Looking at a Louisiana deal?
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Talk to WyattEducational content only. Statute citations are public-record research, not legal advice. Louisiana contracts and remedies are fact-specific — consult a licensed Louisiana real-estate attorney before signing anything.