Legal Question in Real Estate Law in Louisiana

Home Ownership

I am in a contract purchasing a home with a Bond for Deed. (Rent-to-own) Basic contract, no interest, all monies paid go towards purchase price. The Seller wants me to pay for Homeowner's insurance, payable to his bank to cover the amount of his loan, since he has a loan on the house.

Also, the Seller has been using this house for collateral to remortgage for purchases of cars, etc.

Can he do that & am I responsible for paying the insurance premiums?


Asked on 7/14/08, 5:00 pm

1 Answer from Attorneys
Nick Pizzolatto, Jr. Pizzolatto Law Office

Re: Home Ownership

Since you want this to be your home, I say pay for the insurance. Also, you should find out where this house is held as collateral, because you could be caught having it sold out from under you. Also, think about paying the money directly to the mortgage company, because if that is not paid you are screwed and will end up just "renting" the house.

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Answered on 7/15/08, 7:53 am


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