HB 1166

ENROLLED
 2026 Regular Session
  ACT No. 708
 HOUSE BILL NO. 1166
 BY REPRESENTATIVE CARVER
1AN ACT
2 To amend and reenact R.S. 9:3196(introductory paragraph), (2), (4), and (6), 3197(A),
3(B)(introductory paragraph), (3), (8), (9), and (12), 3198 (A)(1) and (2)(a), 3198.1(A)
4and (B), and 3199(A), and R.S. 37:1432(A) and 1455(A)(introductory paragraph)
5and (33), and to enact R.S. 9:3196(7), relative to real estate; to provide for
6definitions; to require certain disclosures; to provide for the duties of sellers and real
7estate agents; to provide for applicability and exemptions; to provide for the
8membership of the Louisiana Real Estate Commission; to provide for penalties; to
9provide for an effective date; and to provide for related matters.
10 Be it enacted by the Legislature of Louisiana:
11Section 1.     R.S. 9:3196(introductory paragraph), (2), (4), and (6), 3197(A),
12 (B)(introductory paragraph), (3), (8), (9), and (12), 3198 (A)(1) and (2)(a), 3198.1(A) and
13 (B), and 3199(A) are hereby amended and reenacted and R.S. 9:3196(7) is hereby enacted
14 to read as follows:
15     CHAPTER 8. RESIDENTIAL PROPERTY DISCLOSURE REQUIREMENTS
16§3196. Definitions
17As used in this Chapter, the following terms have the following meanings
18hereinafter ascribed to them:
19*       *  *
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1(2) "Property disclosure document" means a document in a form prescribed
2by the Louisiana Real Estate Commission, or a form that contains at least the
3minimum language prescribed by the commission, which is presented by the seller
4to the purchaser in the manner set forth in R.S. 9:3198(B) and which discloses, at a
5minimum, known defects in the either residential real property or vacant residential
6property.
7*       *  *
8(4) "Real estate contract" means any written agreement, entered into prior
9to the perfection of the contract of sale or contract to lease or otherwise with an
10option to purchase, which relates to the sale, offer for sale, purchase, offer to
11purchase, lease with option to purchase, offer to lease with option to purchase, any
12other option to purchase, or any other offer which includes an option to purchase any
13residential real property, vacant residential property, or improvements thereon.
14*       *  *
15(6) "Seller" means an owner of residential real property or vacant residential
16property, whether an individual, partnership, corporation, or trust, who sells or
17attempts to sell residential real property or vacant residential property in a manner
18described in R.S. 9:3197(A).
19(7)(a) "Vacant residential property" means any land that is either legally
20authorized to be used solely for residential purposes or is otherwise classified or
21intended for residential use and may include uninhabitable improvements or no
22improvements including but not limited to slabs, utility connections, driveways,
23walkways, fencing, wells, septic systems, sheds, and agricultural or storage
24structures.
25(b) "Vacant residential property" does not include the following:
26(i) Residential real property as defined in this Section.
27(ii)   Any land that is legally authorized to be used for agricultural,
28commercial, industrial, or other nonresidential purposes.
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1§3197. Applicability; exemptions
2A. The provisions of this Chapter shall apply to the transfer of any interest
3in residential real property or vacant residential property, whether by sale, exchange,
4bond for deed, lease with option to purchase, or any other option to purchase,
5including transactions in which the assistance of a real estate licensee is utilized and
6those in which such assistance is not utilized.
7B. The provisions of this Chapter shall do not apply to any of the following:
8*        *        *
9(3) Transfers by a mortgagee who has acquired the residential real property
10or vacant residential property at a sale conducted pursuant to a power of sale under
11a mortgage or a sale pursuant to decree of foreclosure, or who has acquired the
12vacant or residential property by a deed in lieu of foreclosure.
13*        *        *
14(8) Transfers of residential real property or vacant residential property that
15will be converted by the purchaser into a use other than residential use.
16(9) Transfers of residential real property or vacant residential property to a
17spouse or relative in the line of consanguinity.
18*        *        *
19(12) Transfers from an entity that has acquired title or assignment of a real
20estate contract to a piece of residential real property or vacant residential property
21to assist the prior owner in relocating, as long as the entity makes available to the
22purchaser a copy of the property disclosure statement, any inspection reports if any
23furnished to the entity by the prior owner, or both.
24*        *        *
25§3198. Duties of the seller; delivery of property disclosure document; termination
26of real estate contract; information contained in document and inaccuracies;
27required disclosure of information relative to homeowners' associations and
28restrictive covenants; liability of seller
29A.(1) The seller of residential real property or vacant residential property
30shall complete a property disclosure document in a form prescribed by the Louisiana
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1Real Estate Commission or a form that contains at least the minimum language
2prescribed by the commission. The promulgation of this form shall be conducted in
3accordance with the Administrative Procedure Act no later than April 1, 2004.
4(2)(a) Included with the property disclosure documents required by this
5Section shall be statements of notification to the purchaser as to whether he is
6obligated to be a member of a homeowners' association as a homeowner in the
7community in which he is purchasing property and whether the residential property
8or vacant residential property he is purchasing is subject to a common regime of
9restrictive covenants or building restrictions, or both.
10*       *  *
11§3198.1. Duties of governmental entities; contaminated property
12A. Whenever a state or local law enforcement agency becomes aware that
13residential real property or vacant residential property has been contaminated by its
14use as a clandestine methamphetamine drug lab, the agency shall report the
15contamination to the Department of Environmental Quality, hereinafter referred to
16in this Section as the "department", and to the local sheriff's office.
17B. The department shall maintain a listing of residential real property or
18vacant residential property that has been reported as contaminated, and the list shall
19be made available to the public through a website.
20*       *  *
21§3199. Duty of real estate licensees; liability
22A. A real estate licensee representing a seller of residential real property or
23vacant residential property shall inform the seller of the duties and rights under
24established in this Chapter. A real estate licensee representing a buyer of residential
25real property or vacant residential property shall inform the buyer of the duties and
26rights under established in this Chapter.
27*       *  *
28Section 2. R.S. 37:1432(A) and 1455(A)(introductory paragraph) and (33) are
29 hereby amended and reenacted to read as follows:
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1§1432. Louisiana Real Estate Commission; qualifications; terms of office
2A. The Louisiana Real Estate Commission is hereby created within the office
3of the governor. The commission shall consist of eleven members appointed by the
4governor. One member shall be appointed from each of the seven supreme court
5districts. Two members shall be appointed at large. Two members shall be
6appointed from the following districts: one appointee from either the Fourth
7Congressional District or the Fifth Congressional District and one appointee from
8either the First, Second, Third, or Sixth Congressional District. One member shall
9be appointed from each congressional district, and the remaining members shall be
10appointed at large. Each appointment by the governor shall be submitted to the
11Senate for confirmation.
12*       *  *
13§1455. Causes for censure, suspension, or revocation of license, registration, or
14certification
15A. The commission may censure a licensee, registrant, or certificate holder
16or conditionally or unconditionally suspend or revoke any license, registration, or
17certificate issued under pursuant to this Chapter, levy fines, or impose civil penalties
18not to exceed five thousand dollars, or impose continuing education requirements on
19licensees, registrants, or certificate holders if, in the opinion of the commission, a
20licensee, registrant, or certificate holder is performing or attempting to perform or
21has performed or has attempted to perform any of the following acts:
22*       *  *
23(33) Failure by a licensee to provide who represents a buyer or seller with
24a written property disclosure form for sales and certain leases involving residential
25real property pursuant to of residential real property or vacant residential property
26to inform such buyer or seller of the duties and rights regarding the written property
27disclosure form requirements pursuant to R.S. 9:3196 et seq.
28*       *  *
29Section 3. R.S. 37:1432(A) as amended and reenacted by Section 2 of this Act shall
30 not be construed to change the existing term of appointment for any member of the
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1 Louisiana Real Estate Commission who is serving as a commissioner on the effective date
2 of this Act.
3Section 4. This Act shall become effective January 1, 2027.
  SPEAKER OF THE HOUSE OF REPRESENTATIVES
  PRESIDENT OF THE SENATE
  GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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