Bond for Deed
General Information
The Non-Depository Division
of the Office of Financial Institutions regulates the licensing of Bond for Deed
escrow agents operating within the state of Louisiana. A "Bond for Deed escrow
agent" is defined as a person designated by the parties to a Bond for Deed
transaction who distributes payments made by the buyer, on behalf of a seller,
to the holder of a mortgage or privilege (if any) in the real property subject
to the Bond for Deed in accordance with a written Bond for Deed escrow agent
agreement.
A "Bond for Deed" is a contract to sell real
property in which the purchase price is to be paid by the buyer to the seller in
installments and in which the seller, after payment of a stipulated sum, agrees
to deliver title to the buyer.
The term includes a "contract for deed" or any
other transaction operating as a conditional sale of real property however
labeled.
Requirements for licensure as a Bond for Deed escrow
agent include:
A surety bond or a deposit in trust in the amount of
$10,000 for the initial licensure with said bond or deposit to be adjusted
annually based upon the business activity of the preceding calendar year.
A net worth of at least $25,000.
An initial license fee of
$150 with and annual renewal fee of $100.
Penalties are provided for delinquent
renewals.
Records must be maintained at
the licensed location for three years unless otherwise permitted in writing by
the commissioner.
A complaint file must be maintained.
Return to Bond for Deed
Updated
September 19, 2017