Key Takeaways
- Louisiana REQUIRES sellers to complete the Property Disclosure Document for residential sales
- The disclosure must be provided to buyers BEFORE acceptance of an offer
- Sellers must disclose known material defects affecting the property
- Louisiana's civil law heritage means property transfers follow different rules than common law states
- Lead-based paint disclosure is required for pre-1978 homes (federal law)
Louisiana Property Disclosure Document
Louisiana requires sellers to provide a Property Disclosure Document to buyers of residential real estate.
Mandatory Seller Disclosure
Under Louisiana law (R.S. 9:3198), sellers of residential property must disclose known defects:
Key Requirements
| Requirement | Details |
|---|---|
| Form required | Property Disclosure Document |
| When provided | BEFORE buyer's offer is accepted |
| Who completes | Seller |
| What's disclosed | Known material defects |
Important: This is a significant difference from states like Alabama that do not require seller disclosure.
What Must Be Disclosed
The Louisiana Property Disclosure Document covers:
Property Systems and Conditions
| Category | Items |
|---|---|
| Structural | Foundation, roof, walls, floors |
| Mechanical | HVAC, plumbing, electrical, appliances |
| Environmental | Flooding history, termites, mold, asbestos |
| Legal | Easements, encroachments, HOA, zoning issues |
| Other | Pool equipment, septic, well, property boundaries |
Disclosure Responses
Sellers respond with:
| Response | Meaning |
|---|---|
| Yes | Seller is aware of the condition/defect |
| No | Seller is not aware of any issues |
| Unknown | Seller does not know |
| N/A | Not applicable to this property |
When Disclosure is NOT Required
Certain transactions are exempt from disclosure:
- Sales by executors, administrators, or trustees
- Sheriff's sales and foreclosures
- Sales between co-owners
- New construction (covered by builder warranty)
- Commercial property sales
Louisiana Civil Law and Property
Louisiana's civil law system (Napoleonic Code) affects property disclosure and ownership differently than common law states:
Key Civil Law Concepts
| Concept | Louisiana Term | Common Law Equivalent |
|---|---|---|
| Property rights | Usufruct | Life estate |
| Easements | Servitudes | Easements |
| Co-ownership | Indivision | Tenancy in common |
| Warranty of title | Warranty against eviction | Covenant of quiet enjoyment |
Redhibition (Hidden Defects)
Under Louisiana civil law, redhibition allows a buyer to rescind a sale due to hidden defects:
| Element | Description |
|---|---|
| Hidden defect | Defect not known to buyer at sale |
| Material | Defect renders property unfit for use |
| Time limit | Action must be filed within 1 year |
| Remedy | Buyer may seek rescission or price reduction |
Exam Tip: Redhibition is unique to Louisiana's civil law system. Understanding this concept is important for the state exam.
Lead-Based Paint Disclosure
For homes built before 1978, federal law requires:
| Requirement | Details |
|---|---|
| Disclosure | Known lead-based paint hazards |
| Pamphlet | EPA pamphlet "Protect Your Family From Lead" |
| Inspection period | Buyer has 10 days to inspect (waivable) |
| Form | Lead-Based Paint Disclosure form |
Note: Lead disclosure is federal law and applies regardless of state disclosure requirements.
Consequences of Non-Disclosure
If a seller fails to disclose known defects:
| Consequence | Description |
|---|---|
| Rescission | Buyer may cancel the sale |
| Damages | Buyer may recover repair costs |
| Redhibition | Civil law remedy for hidden defects |
| License discipline | If licensee knew and didn't disclose |
Licensee Liability
Licensees who know of defects must:
- Advise seller to disclose
- If seller refuses, agent may withdraw
- Agent cannot actively conceal known defects
- Agent must disclose known material defects to buyers
When must the Louisiana Property Disclosure Document be provided to the buyer?
What is "redhibition" under Louisiana law?
Which Louisiana civil law term is equivalent to "easement" in common law?