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Bond for Deed

Louisiana Bond for Deed

"credit requirements and down payment can be eliminated or greatly reduced as compared to conventional financing"

One valuable real estate financing technique is to use a "Bond for Deed" contract.  Louisiana law defines and sets the parameters of the Bond for Deed contract in Title 9 of the Louisiana Civil Code Revised Statutes (See. LARS:9:2941 et seq). In a Bond for Deed transaction the buyer contracts with the seller to make payments towards the purchase of the property while the seller retains title to the property.  The buyer may take possession of the property and may also make improvements to the property subject to the conditions outlined in the Bond for Deed contract. After a stipulated number of payments, the seller is obligated to transfer the title to the buyer in a separate transfer agreement.  The major advantage for sellers in a Bond for Deed transaction is that they retain title to the property, so if the buyer defaults on their payments the seller does not incur the costs associated with a standard foreclosure. The process by which the seller regains possession of the property is similar to that of a rental eviction. Also, the seller is not obligated to return any payments made by the buyer. Many buyers are attracted to a Bond for Deed transaction because the credit requirements and down payment can be eliminated or greatly reduced as compared to conventional financing. Buyer can gain possession and rights in title to property without having to secure traditional financing. Bond for Deed contacts may not be a good option for sellers who have outstanding mortgages o their property that they are trying to sell. Sellers must carefully read and understand the obligations of their mortgages to see if they are required to notify and receive authorization from their mortgagor prior to transferring possession of the encumbered property under a Bond for Deed transaction.  Careful attention and counsel is critical for any buyer or seller looking to enter into a Bond for Deed contract.  At Tribute Real Estate, we specialize in finding buyers properties offered for sale through a bond for deed, and our broker Thad D. Ackel, Jr. is qualified to provide legal counsel to clients looking to pursue or offer property through a Bond for Deed contract.  Contact us today to begin a search for properties offered for sale through a bond for deed.

Bond for Deed

Louisiana real estate transactions

Louisiana Bond for Deed Contracts
Buyers or sellers who are interested in using a bond for deed contract should definitely seek legal counsel before offering for sale or purchasing real estate.  There are specific rules that  parties in a real estate transaction must follow, and it is important to pick the right escrow company to facilitate  installment payments.  The Louisiana legislature often amends the law …

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