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About Eviction in Bond for Deed and Rent to Own Agreements in Louisiana

Authored By: Lagniappe Law Lab

About Bond for Deed

bond for deed contract is like a cross between a lease and a mortgage. 

How a bond for deed contract is like a lease:

  • the buyer will make monthly payments on a property they will not yet own;

  • the buyer will be able to take immediate possession of the property.

How a bond for deed contract is like a mortgage:

  • the buyer will need to make a "down payment";

  • the buyer will pay the purchase price in monthly installment payments; 

  • the seller agrees to transfer ownership by title after completion of all payments. 

  • A bond for deed has to be by authentic act or act under private signature.

A bond for deed, like all mortgages and some leases, will be recorded in the Mortgage and Conveyance Records of the parish where the property is locate. Once the buyer completes all payments, the seller will transfer ownership by title to the buyer. 

The seller can "cancel" the bond for deed contract. In the case of a bond for deed, "cancel" describes a formal legal process. The seller will have to ask the Clerk of Court to make an entry in the Mortgage and Conveyance Records that reflects that the contract is no longer effective; it is "cancelled".

Before cancelling the contract, the seller in the bond for deed contract must give the buyer "notice of default", which must be:

  • sent by registered or certified mail, return receipt requested; and

  • inform the buyer "that unless payment is made as provided in the bond for deed within forty-five days from the mailing date of the notice, the bond for deed shall be cancelled." (La. R.S. 9: 2945

Forty-five (45) days' notice to pay is much longer than the time a tenant is permitted to pay late rent. It is also much less time than most foreclosure processes. Again, the bond for deed is like a "cross" between a lease and a mortgage. 

If the buyer makes all of the outstanding payments within the 45 day period, the bond for deed will remain in effect. If not, the seller can ask the Clerk of Court to make an entry in the Mortgage and Conveyance Records that reflects that the bond for deed contract has been canceled. 

If the buyer is unable to make the payments after receiving the "notice of default," they should prepare to move within the 45-day period or shortly after that period ends. If the buyer fails to vacate the property by the time the bond for deed contract is canceled, the seller can have the buyer evicted.

Not exactly. The general process is similar to the eviction process used when a lease agreement exists, which you can read about in this guide "Eviction Process in Louisiana (Guide)". 

Once the bond for deed contract is cancelled, the buyer no longer has a right to possession of the property. Just like a landlord with a tenant, the seller in a bond for deed transaction can file a rule to evict a buyer in a bond for deed agreement. The rule to evict will not allege a lease agreement. Instead, it should allege:

  • a bond for deed contract existed;

  • the buyer failed to make payment under the terms of the bond for deed; 

  • the seller sent notice of default to the buyer by registered (or certified) mail;

  • the seller allowed at least 45 days to pass from the mailing date of the notice of default; and

  • the seller has cancelled the bond for deed contract from the Mortgage and Conveyance Records. 

The seller will need to prove each of the allegations. 

An eviction can be defeated if the seller did not follow the legal steps required to cancel a bond for deed. The steps required to cancel a bond for deed are:

  • sending the buyer a notice of default by registered or certified mail;

  • waiting 45 days from the date of mailing of default; 

  • cancelling the bond for deed contract from the Mortgage and Conveyance Records. 

About Rent to Own (Lease Purchase) Agreements

What is a lease purchase or rent to own agreement?

lease purchase or rent to own agreement is a lease agreement that gives a person the option to buy certain property within a specified time. In Louisiana, options to buy have a 10 year limit. If the lessee (tenant) elects to exercise the option (chooses to buy the property), their past rental payments are applied to the purchase price of the property. 

What happens if the lessee (tenant / buyer) fails to make their payments?

Because the lease purchase or rent to own agreement is a lease agreement with an option to purchase, the lessee's failure to make their payments creates a breach of the lease agreement. When there is a breached lease agreement, a lessor (landlord / seller) can start the eviction process

Last Review and Update: Oct 29, 2021
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