What exactly is a Bond for Deed?

As a general rule, Louisiana does not recognize a conditional sale contract; or one in which the seller retains title to the property until the buyer has paid for it.

Other states recognize such a sale, but Louisiana does not. Instead, Louisiana has a procedure called a Bond for Deed. It allows the parties involved in the sale to utilize the advantages of a delayed transfer of ownership until the property is paid for in full or paid down to an agreed upon level.

The bond for deed is defined as 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 payments of a stipulated sum, agrees to deliver title to the buyer.