The Non-Depository 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:
- 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.
- A net worth of at least $25,000.
- 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.