Rent to own agreements in Louisiana: what to know before you sign

What kinds of rent to own agreements are there in Louisiana?

There are two common forms: a bond for deed, and a lease with an option to buy. People call both "rent to own," but they work differently, and the name on the sign doesn't decide which one you have. The wording of the contract does.

This page explains how the law generally treats each one. We are not lawyers and this is not legal advice. For your own deal, talk to a Louisiana attorney.

The bond for deed

A bond for deed is a contract where the seller agrees to transfer title to you after you have paid the price in installments. Louisiana has a specific set of laws for it, found in La. R.S. 9:2941 and the sections that follow. Because the buyer pays over time before getting title, the law sets rules to protect the buyer.

In general terms, those rules include the following. Check each one against the law, or with a lawyer, for your own deal.

• Recording. The contract is generally supposed to be recorded in the parish public records, so there is a public record of your interest in the house.
• When the house has a mortgage. If the seller still owes a mortgage on the house, the law has added rules about a written guarantee from the lender, and about payments going through an escrow agent at a bank. The point is to make sure the seller's mortgage is being paid and your payments are not lost.
• Written and specific. A bond for deed has to be in writing, and it should state the price, the payments and the property.

If a seller offers you a bond for deed, ask whether it will be recorded, and ask who pays the mortgage if there is one.

The lease with an option to buy

A lease with an option to buy is a lease, plus a separate right to buy the house later. You rent the home, and you get the right to buy it at the price and under the conditions in the contract. You are not required to buy unless the contract says so, so read it closely.

Louisiana's Civil Code deals with both halves. Leases are covered in the lease articles, and an option to buy is covered in the articles on options. For land and houses, an option must be in writing, and it generally can't last longer than ten years. The articles to look up are Civil Code articles 2620 and 2628, which you can search at legis.la.gov.

Two things matter most here. First, find out what you pay for the option itself, and whether it is credited to the price. Second, find out what happens if you don't use the option by the deadline, because you may lose it.

Questions to ask any seller

Ask these in any rent to own deal, with any seller, and write down the answers. A good seller will answer plainly.

• Is this a bond for deed or a lease with an option to buy? Which words in the contract show it?
• Who owns the house now, and is there a mortgage on it? If so, who pays it?
• Will the contract be recorded?
• What do I pay up front, what do I pay each month, and how much of it goes toward the price?
• Who pays for repairs? Who pays property taxes and insurance?
• What happens if I am late on a payment?
• What happens if I can't finish? Do I get anything back?
• What is the price, and can it change?
• When do I get title, and how do I get it?

Get it in writing

Anything that matters needs to be in the signed contract. A promise made by phone, by text or in person isn't something you can rely on later. Louisiana law requires some of these agreements to be in writing, and it is a good habit for all of them.

Read all of it, and take your time. If something is unclear, ask for it to be changed in writing. Keep a signed copy.

Read it with a lawyer, if you want

You can have a Louisiana lawyer read your agreement before you sign. That is a good idea for any large purchase, and a fair seller will not rush you. You can find lawyers through the Louisiana State Bar Association lawyer referral service.

We go over every term with you, in writing, before you sign. We don't post our terms here, because they depend on the house. If you want to see how the process works from the first call, read how rent to own works with The LN Co.

Updated October 21, 2026