General Information

The Nondepository Division of the Office of Financial Institutions regulates the licensing of bond for deed escrow agents operating within the state of Louisiana. A “bond for deed escrow agent” is defined as a person designated by the parties to a bond for deed transaction who distributes payments made by the buyer, on behalf of a seller, to the holder of a mortgage or privilege (if any) in the real property subject to the bond for deed in accordance with a written bond for deed escrow agent agreement.  A “bond for deed” is 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 payment of a stipulated sum, agrees to deliver title to the buyer.  The term includes a “contract for deed” or any other transaction operating as a conditional sale of real property however labeled.

Requirements for licensure as a bond for deed escrow agent include: 

1)      A surety bond or a deposit in trust in the amount of $10,000 for the initial licensure with said bond or deposit to be adjusted annually based upon the business activity of the preceding calendar year.  

2)      A net worth of at least $25,000.  

3)      An initial license fee of $150 with and annual renewal fee of $100.  Penalties are provided for delinquent renewals.

Records must be maintained at the licensed location for three years unless otherwise permitted in writing by the commissioner.  A complaint file must be maintained.

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          Updated November 26, 2013