HLS 10RS-721 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2010
HOUSE BILL NO. 803
BY REPRESENTATIVE TIM BURNS
MORTGAGES: Provides relative to bond for deed contracts
AN ACT1
To amend and reenact R.S. 9:2941 and 2941.1(A), relative to bond for deed contracts; to2
provide for definitions; to provide relative to recordation and priority; and to provide3
for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 9:2941 and 2941.1(A) are hereby amended and reenacted to read as6
follows: 7
§2941. "Bond for deed" defined 8
A bond for deed is a contract to sell real property, in which the purchase price9
is to be paid by the buyer to the seller in installments and in which the seller after10
payment of a stipulated sum agrees to deliver title to the buyer. A bond for deed may11
include but is not limited to a contract for sale, an installment sales contract, an12
option or memorandum of option, an escrow agreement or agreement to purchase or13
sell under Louisiana escrow agreement, or any agreement, the intent of which is the14
transfer of title by the seller to a purchaser at a future date.15
§2941.1. Recordation; subsequent filings; interest prohibited; cancellation of16
mortgage records17
A. Upon the recordation in the mortgage and conveyance records of a bond18
for deed contract as defined in R.S. 9:2941, any sale, contract, counter letter19
counterletter, lease, or conventional or collateral mortgage executed by the bond for20 HLS 10RS-721 ORIGINAL
HB NO. 803
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
deed seller, and no any lien, privilege, or judgment relating to or purporting to affect1
immovable property that has not been filed previously for registry or recorded in the2
mortgage records shall be subject to the rights created by the bond for deed contract.3
* * *4
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Tim Burns HB No. 803
Abstract: Provides examples of bond for deed contracts and makes any lien, privilege, or
judgment filed after the bond for deed contract subject to the rights created by the
bond for deed contract.
Present law defines a bond for deed 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
payment of a stipulated sum, agrees to deliver title to the buyer.
Proposed law retains present law and provides that a bond for deed may include but is not
limited to a contract for sale, an installment sales contract, an option or memorandum of
option, an escrow agreement or agreement to purchase or sell under La. escrow agreement,
or any agreement, the intent of which is the transfer of title by the seller to a purchaser at a
future date.
Present law provides that upon the recordation in the mortgage and conveyance records of
a bond for deed contract, any sale, contract, counterletter, lease, or conventional or collateral
mortgage executed by the bond for deed seller shall be subject to the rights created by the
bond for deed contract. Further provides that no lien, privilege, or judgment relating to or
purporting to affect immovable property that has not been filed previously for registry or
recorded in the mortgage records shall be subject to the rights created by the bond for deed
contract.
Present law provides that following registry of the bond for deed contract, any instrument
that was filed in the mortgage records after the filing of the bond for deed contract shall be
cancelled by the clerk of court upon request by affidavit of any interested party, but only
insofar as it affects the property described in the bond for deed and subsequent sale, after the
noteholder or lienholder has been given 30 days written notice and fails to execute a release.
Proposed law retains present law, except that the reference to conventional or collateral
mortgages is changed to apply to any mortgage, and proposed law provides that any lien,
privilege, or judgment relating to or purporting to affect immovable property that has not
been filed prior to the bond for deed contract shall be subject to the rights created by the
bond for deed contract.
(Amends R.S. 9:2941 and 2941.1(A))