Contract for Deed (Land Contract) - Louisiana

BOND FOR DEED CONTRACT (CONTRACT FOR DEED)

(State of Louisiana)

1. PARTIES

This Bond for Deed Contract (this "Contract") is made as of [__/__/____] by and between:

Seller: [SELLER LEGAL NAME], of [SELLER ADDRESS] ("Seller"); and

Buyer: [BUYER LEGAL NAME], of [BUYER ADDRESS] ("Buyer").

Escrow Agent: [ESCROW AGENT / BANK NAME], of [ESCROW AGENT ADDRESS] ("Escrow Agent").

Seller and Buyer are each a "Party" and together the "Parties."

2. LEGAL DESCRIPTION AND PROPERTY

Seller agrees to sell, and Buyer agrees to buy, on the terms in this Contract, the following immovable property located in [PARISH] Parish, Louisiana (the "Property"):

Municipal address: [________________________________]

Legal description:

[INSERT COMPLETE LEGAL DESCRIPTION (lot, square, subdivision, plat reference, or metes and bounds) — attach as Exhibit A if lengthy]

together with all buildings, improvements, component parts, and appurtenances, and the following movable property included in the sale (if any): [________________________________].

3. PURCHASE PRICE, DOWN PAYMENT, AND INSTALLMENT TERMS

Interest accrues on the unpaid principal balance from [__/__/____]. Each payment shall be applied first to accrued interest, then to principal, unless otherwise required by law.

☐ Prepayment permitted in whole or in part at any time without penalty.
☐ Prepayment subject to the following terms: [________________________________].

Upon payment of the stipulated sum / purchase price in full, Buyer may demand specific performance and delivery of title (La. R.S. 9:2941).

4. ESCROW AND PAYMENT THROUGH ESCROW AGENT

4.1 Payments to Escrow Agent. Where the Property is or becomes encumbered by a mortgage or privilege, all payments by Buyer shall be made to the Escrow Agent, a bank authorized to do business in Louisiana, which shall distribute payments between Seller and the holder of the mortgage or privilege in proportion to the secured obligation as required by La. R.S. 9:2943, so as to ensure Buyer an unencumbered title when all payments are made.

4.2 Encumbered-property release guarantee. Under La. R.S. 9:2942, it is unlawful to sell encumbered property by bond for deed without first obtaining a recorded written guarantee from the mortgage/privilege holder to release the Property upon payment of a stipulated mortgage-release price. Seller represents that [☐ the Property is unencumbered ☐ the recorded release guarantee required by R.S. 9:2942 has been obtained and recorded in the mortgage records of [PARISH] Parish].

4.3 Foreclosure protection. Timely payment of all installments precludes the holder of the secured notes from foreclosing; Buyer's failure to pay secures the lienholder's right to foreclose (La. R.S. 9:2944).

5. TITLE; DELIVERY AT PAYOFF

5.1 Retention of title. Seller retains title to the Property as security until Buyer has paid the full purchase price. Buyer holds the rights of a bond-for-deed purchaser and is entitled to possession as provided below.

5.2 Delivery of title at payoff. Upon full payment and performance, Seller shall transfer title to Buyer by authentic act of sale conveying merchantable title, free of liens except those of record at signing that the Parties agree to assume and those created or permitted by Buyer. Seller shall provide evidence of title at execution of this Contract.

5.3 Title insurance. Seller shall furnish, at [☐ Seller's ☐ Buyer's] expense, a commitment for an owner's title insurance policy showing merchantable title in Seller, subject only to the permitted exceptions.

6. RECORDING

This Bond for Deed Contract shall be recorded in the conveyance records of [PARISH] Parish, Louisiana. Recording protects Buyer's interest against third persons, including Seller's creditors; an unrecorded bond for deed may not be enforceable against third parties. Recording fees are paid by [________________].

7. POSSESSION

Buyer is entitled to possession of the Property on [__/__/____]. Buyer shall maintain the Property in good condition and shall not commit waste.

8. TAXES, INSURANCE, AND MAINTENANCE

8.1 Taxes and assessments. Beginning [__/__/____], Buyer shall pay before delinquency all ad valorem taxes and assessments on the Property. [☐ Buyer shall remit estimated taxes/insurance to the Escrow Agent monthly.]

8.2 Insurance. Buyer shall keep the improvements insured against fire and extended-coverage hazards for not less than $[____________], naming Seller (and any lienholder) as additional insured / loss payee as their interests may appear.

8.3 Maintenance and utilities. Buyer shall maintain the Property, comply with all laws, and pay all utilities and charges.

9. DEFAULT AND CANCELLATION (La. R.S. 9:2945)

9.1 Events of Default

Buyer is in default if Buyer (a) fails to make payments in accordance with this Contract; (b) fails to pay taxes or maintain insurance; (c) commits waste; or (d) breaches any other material term.

9.2 Statutory 45-Day Cure Before Cancellation

Seller may not cancel this bond for deed except in compliance with La. R.S. 9:2945. If Buyer fails to make payments, Seller, at his option, may have the bond for deed cancelled by proper registry in the conveyance records only after Seller has first caused the Escrow Agent to serve notice upon Buyer, by registered or certified mail, return receipt requested, at Buyer's last known address, that unless payment is made as provided in this bond for deed within forty-five (45) days from the mailing date of the notice, the bond for deed shall be cancelled. Where there is no mortgage or privilege on the Property and Buyer is in default, Seller shall exercise the right of cancellation in the same manner (La. R.S. 9:2945(B)).

If Buyer cures within the 45-day period, the bond for deed is not cancelled and remains in force.

9.3 Effect of Cancellation

Upon a valid statutory cancellation, the Escrow Agent and clerk shall proceed as provided by law.

9.4 Grace; Late Charge

A [____]-day courtesy grace period applies to monthly installments before a late charge of [____]% / $[____] is assessed. This grace period does not shorten the statutory 45-day cure period.

10. DUE-ON-SALE / GARN-ST. GERMAIN NOTICE

If any mortgage encumbers the Property, it may contain a "due-on-sale" clause permitting the lienholder to accelerate the debt upon transfer. The federal Garn-St. Germain Act (12 U.S.C. § 1701j-3) exempts certain transfers but a bond-for-deed sale may trigger acceleration. The R.S. 9:2942 release guarantee and R.S. 9:2943 escrow mechanism are intended to address an existing lien. The Parties acknowledge this risk.

11. ASSIGNMENT

Buyer shall not assign this Contract or convey Buyer's interest without Seller's prior written consent, not to be unreasonably withheld. Seller may assign Seller's interest subject to Buyer's rights and the escrow arrangement.

12. RISK OF LOSS

Risk of loss passes to Buyer upon possession. If the Property is materially damaged or expropriated, insurance or expropriation proceeds shall be applied as the Parties agree or as required by law, with any balance credited to the purchase price.

13. DISCLOSURES

13.1 Property condition. Seller shall deliver the Louisiana Residential Property Disclosure required by La. R.S. 9:3196 et seq. for residential sales.

13.2 Lead-based paint (pre-1978 housing). If the Property is covered target housing, federal law (42 U.S.C. § 4852d; 24 C.F.R. pt. 35; 40 C.F.R. pt. 745) requires Seller to disclose known lead-based paint and hazards, provide the EPA pamphlet "Protect Your Family From Lead in Your Home," provide available records, and give Buyer a 10-day inspection opportunity. The signed Lead Warning Statement must be attached.

☐ Property is covered target housing (lead disclosure attached).
☐ Property is not covered target housing or is exempt (lead disclosure not required).

13.3 Other disclosures: [________________________________].

14. GENERAL PROVISIONS

14.1 Governing law. This Contract is governed by the laws of the State of Louisiana, including La. R.S. 9:2941 et seq.

14.2 Entire agreement; amendment. This Contract is the entire agreement and may be amended only in a writing signed by both Parties (and acknowledged by the Escrow Agent where applicable).

14.3 Severability. If any provision is held invalid, the remainder remains in effect.

14.4 Notices. Notices must be in writing and delivered to the addresses above. Cancellation notices must additionally comply with La. R.S. 9:2945 (escrow-agent service; 45-day cure).

14.5 Successors. This Contract binds and benefits the Parties' heirs, successors, and permitted assigns.

15. SIGNATURES AND ACKNOWLEDGMENT

IN WITNESS WHEREOF, the Parties have executed this Contract as of the date first written above, in the presence of the undersigned competent witnesses.

WITNESSES:

_________________________________ _________________________________

SELLER:

Signature: _________________________________ Date: [__/__/____]

Printed name: [SELLER LEGAL NAME]

BUYER:

Signature: _________________________________ Date: [__/__/____]

Printed name: [BUYER LEGAL NAME]

ESCROW AGENT (acknowledging appointment):

Signature: _________________________________ Date: [__/__/____]

By: [ESCROW AGENT / BANK NAME]

ACKNOWLEDGMENT

On this [____] day of [____________], 20[____], before me, the undersigned Notary Public, and in the presence of the witnesses named above, personally appeared [NAME(S)], known to me to be the person(s) who executed the foregoing instrument and who acknowledged executing the same as their free act and deed.

_________________________________
Notary Public, State of Louisiana
Notary/Bar Roll No.: [____________]
My commission expires: [__/__/____ or "at death"]

16. CONSUMER-PROTECTION GUIDANCE

SOURCES AND REFERENCES

• La. R.S. 9:2941 (Bond for deed defined): https://legis.la.gov/legis/Law.aspx?d=107307
• La. R.S. 9:2942 (Release guarantee for encumbered property): https://legis.la.gov/legis/Law.aspx?d=107308
• La. R.S. 9:2943 (Method of payment through escrow agent): https://legis.la.gov/legis/Law.aspx?d=107309
• La. R.S. 9:2944 (Timely payment precludes foreclosure): https://legis.la.gov/legis/Law.aspx?d=107310
• La. R.S. 9:2945 (Cancellation upon default; 45-day notice): https://legis.la.gov/legis/Law.aspx?d=107311
• Louisiana Unfair Trade Practices Act, La. R.S. 51:1403
• Louisiana Legal Services Pro Bono Desk Manual, "Buyers' Rights" (bond for deed): https://probonodeskmanual.loyno.edu/louisiana-landlord-tenant-law/1021-buyers-rights
• Federal lead disclosure: https://www.epa.gov/lead/real-estate-disclosure