A Bond for Deed (also known as a land contract or purchase money mortgage) is a means by which a seller can help a buyer purchase a home by providing owner financing. This is how it works:
- The Bond for Deed is not a sale contract or a transfer. It's basically an agreement to sell, meaning that the property will be conveyed to the buyer once all the terms and conditions have been fulfilled.
- In essence, the seller takes the place of a mortgage lender by allowing the buyer to pay off the purchase price of the real estate property over time.
- Once the final payment is made, the seller will provide the buyer with an executed warranty deed to transfer ownership of the property to the buyer.
- If the buyer fails to make the payments as set out in the agreement, the seller is entitled to keep all payments made and to take possession of the property. The seller is also entitled to keep all improvements made to the property by the buyer.
When it's difficult to get a traditional mortgage loan, the Louisiana Bond for Deed can be a great alternative. Download the template, fill it in, and print it for signature.
Last Updated: 14-April-2016