A Louisiana residential real estate purchase agreement (“Contract for Sale and Purchase of Real Estate”) is a contract which commits a buyer to an offer to purchase real estate, according to specific terms agreed by the buyer and seller. Negotiated specifics include the purchase price, financing method, closing date, and more.
Do Sellers in Louisiana Have To Disclose Property Defects?
Louisiana does require real estate sellers to disclose any material defects with the property. In most cases, this is through a standardized disclosure form provided by the state Real Estate Commission.
By mutual agreement, it often may be possible to waive the use of a standard form and handle required disclosures another way. However, the seller always has a duty to disclose all material defects that are not obvious on a standard inspection of the property, even if the buyer agrees to take the property “as-is.”
The basic duty to disclose cannot be waived under any circumstances, unless the sale falls under a recognized legal exemption. Louisiana exempts the following common cases, among others, from the disclosure form requirement before transfer of residential real estate:
- Court-ordered sales and transfers
- Sales by foreclosure or other debt default
- Transfer as part of the execution of a will or estate
- Transfer to a purchaser who will not use the property for residential purposes
- Transfer to a spouse, parent, or child
- Transfers to or from a government entity
Required Seller Disclosures in Louisiana
Louisiana sellers of residential real estate must make the following disclosures, as appropriate, in order for a real estate purchase agreement to be considered legally binding:
- Property Disclosure Document: Discloses material defects with a property that are known to the seller at the time of sale, and details any potential issues and conditions that may affect the value of the property.
- Lead-Based Paint Disclosure: Any home constructed earlier than 1978 must come with a disclosure upon the transfer of the property which includes any information about the presence of lead on the premises, as well as educational materials that communicate the health risks associated with lead exposure.
Sources
- 1 La. Stat. tit. 9 § 3197
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A. The provisions of this Chapter shall apply to the transfer of any interest in residential real property, whether by sale, exchange, bond for deed, lease with option to purchase, or any other option to purchase, including transactions in which the assistance of a real estate licensee is utilized and those in which such assistance is not utilized. B. The provisions of this Chapter shall not apply to any of the following: (1) Transfers ordered by a court, including but not limited to a transfer ordered by a court in the administration of an estate, a transfer pursuant to a writ of execution, a transfer by any foreclosure sale, a transfer by a trustee in bankruptcy, a transfer by eminent domain, and any transfer resulting from a decree of specific performance. (2) Transfers to a mortgagee by a mortgagor or successor in interest who is in default. (3) Transfers by a mortgagee who has acquired the residential real property at a sale conducted pursuant to a power of sale under a mortgage or a sale pursuant to decree of foreclosure, or who has acquired the residential property by a deed in lieu of foreclosure. (4) Transfers by a fiduciary in the course of administration of a decedent’s estate, guardianship, conservatorship, or trust. (5) Transfers of newly constructed residential real property, which has never been occupied. (6) Transfers from one or more co-owners solely to one or more of the remaining co-owners. (7) Transfers from the succession executor or administrator pursuant to testate or intestate succession. (8) Transfers of residential real property that will be converted by the purchaser into a use other than residential use. (9) Transfers of residential real property to a spouse or relative in the line of consanguinity. (10) Transfers between spouses resulting from a judgment of divorce or a judgment of separate maintenance or from a property settlement agreement incidental to such a judgment. (11) Transfers or exchanges to or from any governmental entity. (12) Transfers from an entity that has acquired title or assignment of a real estate contract to a piece of residential real property to assist the prior owner in relocating, as long as the entity makes available to the purchaser a copy of the property disclosure statement, any inspection reports if any furnished to the entity by the prior owner, or both. (13) Transfers to an inter vivos trust. (14) Acts that, without additional consideration and without changing ownership or ownership interest, confirm, correct, modify, or supplement a deed or conveyance previously recorded.
