Bond for Deed
Frequently Asked Questions


  1. Who must be licensed under this Act?

Any person, other than a financial institution or other person subject to the general supervision or regulation of the commissioner pursuant to Title 6 or Title 9 of the Louisiana Revised Statutes of 1950, as amended, who engages in business as a Bond for Deed escrow agent.

  1. Who is eligible for a license? 

Each applicant shall possess and maintain a net worth of $25,000.  Further, the financial condition, business experience and background of the applicant shall be such as to reasonably warrant the commissioner's belief that the applicant's business shall be conducted honestly, carefully, and efficiently.

  1. How long does it take to get licensed?

If all information and documentation are submitted correct at the initial receipt of the application then normal licensure time is approximately 4 to 6 weeks.  It is imperative for all applicants to be as thorough and timely in the submission of their application for licensure in order for the Office to efficiently expedite the licensing time.   Please remember that you, the applicant, control the licensure time by your thoroughness and correctness in filing the initial application. 

  1. How much does a license cost?

The initial nonrefundable license fee is $150.  Annually, thereafter, the fee is $100.

  1. When are the renewal fees due?

March 15th of each year.

  1. May an applicant operate while waiting for licensure?

No person shall engage in the business of Bond for Deed escrow agent without first having been licensed by this office.

  1. May a licensee operate in more than one location?

Yes, but your application must include all addresses from which you operate.

  1. What if a licensee wishes to change his name, business location or ownership? 

All licenses are nontransferable.  A licensee shall give 30 days prior written notification to the Office of Financial Institutions of any change in name, business location or any ownership changes of 25 percent or more of its outstanding voting securities or equity ownership.  A change in ownership of more than 50 percent shall require the acquiring person to apply for a new license.

  1. What if I cease doing business as a Bond For Deed agent?

No licensee shall cease doing business without providing 30 days prior written notification to the commissioner and shall also provide therewith evidence of full compliance with all applicable laws and regulations.

  1. What are the bonding requirements?

The initial surety bond, irrevocable letter of credit, OR deposit in escrow with any federally-insured financial institution shall be written in favor of the Office of Financial Institutions for the amount of $10,000.  The amount of the bond may fluctuate in future years depending upon several factors relating to the business activities of the licensee but never less than $10,000.

  1. What other requirements must a licensee meet?

    1. There are record keeping and retention rules to be followed.  Books, records and accounts shall be maintained separate and apart from any other business in which the Bond for Deed escrow agent is involved and shall be kept at the licensed location unless otherwise permitted in writing by the commissioner.  Each licensed Bond for Deed escrow agent shall maintain a record of all Bond for Deed transactions and escrow agent agreements effected by him/her for a period of 3 years following the expiration or termination of such escrow agent agreement.

    2. An escrow deposit account must be established for the sole purpose of receiving the proceeds of monthly payments paid to the licensee by a buyer.

  2. Are there fees assessed by the Office of Financial Institutions for the examination of my company?

Yes.  The examination and/or visitation fee is $50 per hour per examiner payable within 30 days of the assessment.

  1. Who are the people with whom I'll be interacting?

The Commissioner of Financial Institutions, John Ducrest, is responsible for all the facets of the agency.  Chief Examiner Darin Domingue oversees all operations in the Non-Depository Division.  Deputy Chief Examiner Barry Boutte handles questions regarding examinations.  Deputy Chief Examiner Michelle Jeansonne is in charge of the administrative review of the application.  Of course, all employees are willing to assist you in any way possible.  If you have any questions, please call Michelle Jeansonne at (225) 925-3828.


Return to Bond for Deed
Updated
September 21, 2017