Changes to Residential Buy or Sell Agreement & Property Disclosure
Updated forms and addenda to be available for REALTORS® to use in the new year
Louisiana REALTORS® and the Louisiana Real Estate Commission (LREC) worked jointly to review and make updates and changes to several forms REALTORS® use in their business. The video featuring LREC Commissioner, Rick Roberts, provides a quick overview of what changes you can see. The forms are available for download from the LREC website: https://lrec.gov/forms/mandatory-forms/.
The following detailed articles provide a good analysis of the documents and explanation of changes. LR suggests REALTORS® do a thorough review in order to understand and be knowledgeable on the differences from the 2020 forms revisions.
Legal Line: Guide to Louisiana Residential Agreement to Buy or Sell
Louisiana law requires all real estate licensees to use a mandated Louisiana Residential Agreement to Buy or Sell (“Agreement”) as the starting point for a contract to purchase residential property. The Louisiana Real Estate Commission ("LREC") mandated the first Agreement in 2009. Since this time, multiple revisions have been made to the form. The 2022 Agreement will be required to be used by all real estate licensees commencing on January 1, 2022.
LR released an overview recording (as viewed above) and in addition have produced a detailed guide and look at the redline changes along with explanation to reflect the significant additions and deletions between the 2020 version and 2022 version. We recommend a thorough review of the information provided so that you can be best prepared and knowledgeable.
Legal Line: Guide to Property Disclosure Document Revisions
In 2003 the Louisiana State Legislature passed a statute requiring all SELLERS of residential real property, with certain exclusions, to provide a written disclosure to potential BUYERS of “known defects” to the property being sold. The Louisiana Real Estate Commission (“LREC”) prepared a disclosure form to assist SELLERS in providing that information to BUYERS known as the Property Disclosure Document (the “PDD”). Since 2003, the PDD has been revised several times. The 2022 PDD Form is best obtained from the LREC website and will be required beginning January 1, 2022.
LR is providing REALTORS® with a detailed guide and look at the redline changes along with explanation to reflect the significant additions and deletions between the 2020 version and 2022 version. We recommend a thorough review of the information provided so that you can be best prepared and knowledgeable.
LR held an information session on December 1 featuring Rick Roberts on behalf of LREC and Patty McMurray with Baker Donelson. This one-hour video provides a more detailed review and discussion on changes to the mandated forms as well as responses to questions that came up during the session. NOTE: Line items noted and highlighted in the presentation will not be exactly referenced to the published forms so viewers need to watch and apply the information in the appropriate context. REALTORS® are encourage to use this page as a training resource.
DISCLAIMER: These materials are to be used for informational purposes and should not be construed as specific legal advice. These materials are not designed to cover every aspect of a legal situation for every factual circumstance that may arise regarding the subject matter included.
This publication is for reference purposes only and Louisiana REALTOR® members or other readers are responsible for contacting their own attorneys or other professional advisors for legal or contract advice. The comments provided herein solely represent the opinions of the author and not a guarantee of interpretation of the law or contracts by any court or by the Louisiana Real Estate Commission.
