§ 9:3198 — Duties of the seller; delivery of property disclosure document; termination of real

Louisiana § 9:3198

• Jurisdiction: Louisiana
• Title 9: Civil Code-Ancillaries

Text

§3198. Duties of the seller; delivery of property disclosure document; termination of real
estate contract; information contained in document and inaccuracies; required
disclosure of information relative to homeowners' associations and restrictive
covenants; liability of seller
A.(1) The seller of residential real property shall complete a property disclosure
document in a form prescribed by the Louisiana Real Estate Commission or a form that
contains at least the minimum language prescribed by the commission. The promulgation
of this form shall be conducted in accordance with the Administrative Procedure Act no later
than April 1, 2004.
(2)(a) Included with the property disclosure documents required by this Section shall
be statements of notification to the purchaser as to whether he is obligated to be a member
of a homeowners' association as a homeowner in the community in which he is purchasing
property and whether the residential property he is purchasing is subject to a common regime
of restrictive covenants or building restrictions, or both.
(b) Included with the property disclosure documents required by this Section shall
be a statement as to whether or not an illegal laboratory for the production or manufacturing
of methamphetamine was ever located on the property.
(c) Included with the property disclosure documents required by this Section shall
be a statement as to whether or not a cavity created within a salt stock by dissolution with
water lies underneath the property and whether or not the purchasing property is within two
thousand six hundred forty feet of a solution mining injection well.
(3) The statement shall inform the purchaser that the information included in the
disclosure statement relative to any homeowners' association is summary in nature and that
restrictive covenants and building restrictions are a matter of public record. The statement
shall also include notification to the purchaser that homeowners' association governing
documents may be requested from the seller and how to obtain documents regarding any
restrictive covenants and building restrictions governing the property to be purchased.
(4) As used in this Subsection, "homeowners' association" or "association" means
a nonprofit corporation, unincorporated association, or other legal entity which is created
pursuant to a declaration whose members consist primarily of lot owners, and which is
created to manage, maintain, or otherwise affect the association property or which otherwise
governs the use of association property.
(5) Forms used for compliance with Paragraph (1) of this Subsection on and after
April 1, 2005, shall also include a clause for the seller to indicate whether the property has
been zoned commercial or industrial.
B.(1) The seller shall complete the property disclosure document in good faith to the
best of the seller's belief and knowledge as of the date the disclosure is completed and signed
by the seller. If the seller has no knowledge or information required by the disclosure
document, the seller shall so indicate on the disclosure statement and shall be in compliance
with this Chapter.
(2) The seller shall deliver or cause to be delivered the completed and signed
property disclosure document to the purchaser no later than the time the purchaser makes an
offer to purchase, exchange, or option the property or exercises the option to purchase the
property pursuant to a lease with an option to purchase.
(3)(a) If the property disclosure document is delivered to the purchaser after the
purchaser makes an offer, the purchaser may terminate any resulting real estate contract or
withdraw the offer no later than seventy-two hours, excluding federal and state holidays and
weekends, after receipt of the property disclosure document. Notwithstanding any other
agreement between the purchaser and seller, if the purchaser terminates a real estate contract
or withdraws an offer in accordance with this Chapter, the termination or withdrawal of offer
is without penalty to the purchaser and any deposit or earnest money shall be promptly
returned to the purchaser.
(b) Any rights of the purchaser to terminate the real estate contract provided by this
Chapter are waived if not exercised prior to transfer of title or occupancy, whichever is
earlier, by the purchaser in the case of a sale or exchange, or prior to the transfer of title in
the case of a purchase pursuant to a lease with option to purchase.
(c) A transfer subject to this Chapter is not invalidated solely due to the failure of any
person to comply with this Chapter.
(d) The provisions of this Chapter shall not affect any other rights of a purchaser to
terminate a real estate contract for reasons other than those set forth in this Chapter.
C. If information disclosed in accordance with this Chapter becomes inaccurate as
a result of any action, occurrence, or agreement after delivery of the property disclosure
document, the resulting inaccuracy does not constitute a violation of this Chapter.
D.(1) A property disclosure document shall not be considered as a warranty by the
seller. The information contained within the property disclosure document is for disclosure
purposes only and is not intended to be a part of any contract between the purchaser and
seller.
(2) The property disclosure document may not be used as a substitute for any
inspections or warranties that the purchaser or seller may obtain. Nothing in this Chapter
precludes the rights or duties of a purchaser to inspect the physical condition of the property.
E. A seller shall not be liable for any error, inaccuracy, or omission of any
information required to be delivered to the purchaser in a property disclosure document if
either of the following conditions exists:
(1) The error, inaccuracy, or omission was not a willful misrepresentation according
to the best of the seller's information, knowledge, and belief.
(2) The error, inaccuracy, or omission was based on information provided by a public
body or by another person with a professional license or special knowledge who provided
a written or oral report or opinion that the seller reasonably believed to be correct and which
was transmitted by the seller to the purchaser.

Legislative History

Acts 2003, No. 308, §1, eff. June 13, 2003; Acts 2004, No. 452, §1, eff. July 1, 2005; Acts 2004, No. 546, §1; Acts 2008, No. 681, §1; Acts 2013, No. 369, §1; Acts 2018, No. 559, §1; Acts 2022, No. 581, §1, eff. Jan. 1, 2023.