Louisiana law regulates Bond for Deed contracts in Title 9 of the Louisiana Civil Code Revised Statutes (LARS:9:2941 et seq).
A Bond for Deed contract is a legal instrument in a real estate transaction where a purchaser contracts with a seller to purchase property by making installment payments while the seller retains title. The seller then becomes obligated to transfer title to the property after the purchaser completes making payments on the negotiated sum.
Bond for Deed Contract Statutes provide criminal and civil fines in the event of violation. Case law and Supreme Court cases also set forth procedures that mandate Bond for Deed Contracts.
According to a charge filed in Baton Rouge by Assistant U.S. Attorney Richard L. Bourgeois Jr., Fruchtnicht destroyed records of property sales sought by the FBI through a grand jury subpoena. In a plea agreement signed with Bourgeois and her Harahan attorney, Provino Mosca,Fruchtnicht admitted destroying the records. She also admitted her participation “in a property-flipping scheme to defraud various mortgage lenders.”
“This is an extraordinary case,” Polozola said. The judge added that no victims, including mortgage lenders, would come forward to claim reimbursement for the $1.1 million in losses. click here to read the full article