Bond for Deed
Frequently Asked Questions
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.
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.
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.
How much does a license cost?
The initial nonrefundable license fee is $150.
Annually, thereafter, the fee is $100.
When are the renewal fees due?
March 15th of each year.
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.
May a licensee operate in more than one location?
Yes, but your application must include all addresses
from which you operate.
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.
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.
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.
What other requirements must a licensee meet?
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.
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.
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.
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 Michelle Jeansonne oversees all operations in the
Non-Depository Division. Deputy
Chief Examiner Kellie Mule handles questions regarding examinations and 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 Kellie Mule at (225)
925-1985.
Return to Bond for Deed
Updated
February 24, 2020