Bond for Deed


What Is a Bond For Deed?  A contract to sell real property, or a Movable like a car or truck, where the purchase price is paid to the vendor in installments, and the title remains in the name of the vendor until the purchase price is paid in full.  

In a recent transaction, I will use two clients, whom I will call John and Theodore.  (Not their real names, by the way). So John has a Ford truck, valued at $8,000, and Theodore wants to purchase it, but does not have $8,000 lying around in his bank account.  So John used a BOND FOR DEED, to sell it to Theodore.  

They came to an agreement that Theodore could spend $343.33 per month, to pay John for 24 months, beginning the 1st of July, 2019, and Theodore would continue to pay John each month without fail until the last payment was made.  To make it come out correctly, the final payment would have to be $343.41, since John was charging 1.5% interest on this, to finance for 24 months, or two years.

Just in case anything would happen to the truck during those 24 months, John requires an insurance policy to be carried on the truck, in his name, since the title would remain in John’s name until the truck is paid.  The payments will be considered rental payments until the last payment is made, upon which John agrees to transfer the title over to Theodore using any Notary of Theodore’s choice, at Theodore’s expense.  

If Theodore  defaults on any payments, John will have 45 days to notify Theodore by registered or certified mail.  In any event, if Theodore can not, or will not make the defaulted payments good, then John will have the right to cancel the contract by giving Theodore written notice, and Theodore would be required to peacefully return the vehicle to John.

If Theodore cancels the contract, then Theodore will need to pay John the fair rental amount due for the period of time it is used, minus any payments already made, of course.  

This arrangement, or agreement works equally well for Immovable, or Real Property.

* If this situation fits with something you want to do, it may work for you as well.  If you are not certain, you may need to seek the advice and/or services of one of the many excellent attorneys in Louisiana.



DEFINITION: A servitude is a charge or burden upon a thing, usually an immovable(real estate), for the benefit of another person or another estate.  Black’s Law Dictionary, 6th edition (1990).  It is closely related to the common law concept of easement.

Kinds of servitudes
Servitudes are either personal or predial.  La. C.C. art 533.  A personal servitude is a charge on a thing for the benefit of a particular person and terminates with his life.  La. C.C. arts. 534,734, Cf., La. C.C. art 607.  A predial servitude is a charge on a thing for the benefit of the owner of another thing.  La. C.C. arts 646,733.  A predial servitude does not terminate with the death of the owner of the thing in whose favor the servitude runs, but extends to any owner, whether the original or a successor.

Art. 533.  Kinds of Servitudes
There are two kinds of servitudes: personal servitudes and predial servitudes.

Art. 534. Personal servitude
A personal servitude is a charge on a thing for the benefit of a person.  There are three sorts of personal servitudes:  usufruct, habitation, and rights of use.

Art. 646. Predial servitudes definition.
A predial servitude is a charge on a servient estate for the benefit of a dominant estate.

The two estates must belong to different owners.

Art. 733. Interpretation: benefit of dominant estate.
When the right granted be of a nature to confer an advantage on an estate, it is presumed to be a predial servitude.

Act. 734. Interpretation: convenience of a person.
When the right granted is merely for the convenience of a person, it is not considered to be a predial servitude, unless it is acquired by a person as owner of an estate for himself, his heirs and assigns.


Matrimonial Regimes in Louisiana

This is also called the Legal Regime: The Community of Acquets and Gains.   The legal regime applies to spouses domiciled in this state regardless of their original matrimonial domicile or whether the marriage was contracted in Louisiana.   For the purposes of this law, the following applies to Community Property.

Property that comprises the community of acquets and gains is referred to as “community property”  This is covered under Civil Code (CC) article 2338.  Community property is

a) Property acquired during the legal regime
b)  generally, property acquired with community things, or acquired with community and separate things.
c)  property donated to the spouses jointly
d)  natural and civil fruits of community property
e)  damages awarded for loss or injury to community things
f) all other property not classified as separate property.

Aside from a duly executed and legal Prenuptial Agreement, these tenants and laws apply.  For more details, call Joe’s Notaries at (985) 870-8896 or Email us at