Necessary Documentation and Privacy Considerations
LOUISIANA REALTORS • April 1, 2020
CORONAVIRUS: NECESSARY DOCUMENTATION AND PRIVACY CONSIDERATIONS[1]
By: Patricia B. McMurray, JD and Melissa M. Grand, JD
Baker, Donelson, Bearman, Caldwell & Berkowitz, PC
450 Laurel Street, Chase Tower North, 21st Floor
Baton Rouge, Louisiana 70801
In this uncertain time, it is critical that REALTORS® consider what paperwork related to COVID-19 they should be maintaining. Federal loan programs, like the new CARES Act, and other grant programs require that certain documents be submitted in the application process to prove the loss sustained as a result of the pandemic. You might have business interruption insurance or be eligible for other new programs that are still being formulated if you can show your lost income. Not having proper documentation may mean not being able to apply for or receive certain loans, grants, or other funds. Additionally, REALTORS® may be collecting confidential documentation, such as health information in a coronavirus screening questionnaire from clients, employees, and independent contractors. REALTORS® also store personal and confidential information of clients and employees during the regular course of their business. Maintaining the confidentiality and security of this information obtained by your business is important.
1. What documentation should I be keeping as I consider applying for various reimbursement programs, loans, grants, business interruption insurance or other sources of funding?
Short Answer:
In addition to your general record-keeping practices, we suggest that you maintain documentation of any COVID-19 related expenses or losses separately from other payments and expenses, if possible.
The CARES Act created two new Small Business Administration (SBA) initiatives: the SBA 7(a) “Payroll Protection Program” and the SBA “Economic Injury Disaster Loan” (EIDL) grant program. Visit SBA's Disaster Assistance website for more detailed information on these programs. See also, the National Association of REALTORS®’ (NAR) guidance on the CARES Act
and REALTOR® Magazine article on new small business loans. As the U.S. Chamber of Commerce guidance
explains, in evaluating eligibility under the CARES Act, lenders will ask for a good faith certification that the uncertainty of current economic conditions makes the loan request necessary to support ongoing operations. It is a best practice to maintain detailed documentation of your COVID-19 related payments and expenses separately from your regular business payments and expenses, for your use in demonstrating the economic impact of COVID-19 on your business. For example, emails, copies of texts or correspondence related to closings which were canceled because of delays related to the Governor’s Stay Home Orders, documentation of canceled open houses, etc. should be retained.
Other information you may be asked to provide in applying for a loan under the CARES Act includes basic identifying information for your business, your business TIN number, your average monthly payroll, the number of jobs supported by your company and what specifically you want to use the loan money for. See Treasury.gov. You will also be asked to list all owners who hold at least a 20 percent ownership stake in the company and affirm that they are not party to federal crimes. See id. Also, you may be asked to provide the lender with documentation regarding your employee headcount over time, as well as your payroll costs. Tax returns may also be required.
2. I am requesting that all clients complete a coronavirus questionnaire before they enter a property I am showing. I am also asking my employees and independent contractors to complete a coronavirus questionnaire form and self-report if they have been exposed to coronavirus. What should I do with these completed forms?
Short Answer: You should maintain a copy of the screening forms when completed. Keep the completed forms secure and confidential such as in a locked filing cabinet or password-protected electronic file.
The information collected on the screening forms may contain medical information and should be treated as confidential. The National Association of REALTORS® guidance on general document retention may be found here. Also Louisiana REALTORS® (LR) discussed coronavirus screening questionnaires and provided sample questions in LR’s article on hold harmless agreements, here.
3. What are my obligations to generally maintain documents?
Short Answer: You must maintain certain records for 5 years pursuant to the real estate license law. Keep the documents properly indexed, and secure (physically secure, for example in locked cabinets, and/or electronically secure) to preserve client privacy and confidentiality.
LA. R. S. §1449D1 provides:
D. (1) Individual real estate brokers shall retain all of the following records, readily available and properly indexed, for a period of five years:
(a) Bank statements, copies of deposit slips, and canceled checks on all escrow or trust accounts.
(b) Copies of all documents that pertain in any way to real estate transactions wherein the individual real estate broker or licensees sponsored by the individual real estate broker have appeared in a licensing capacity.
(2) The requirement regarding copies shall not be altered by the transfer of a broker to that of an associate broker, an unlicensed person, or an inactive licensee.
E.(1) Partnerships, limited liability companies, associations, corporations, or other legal entities, foreign or domestic, and real estate brokers shall retain the following records, readily available and properly indexed, for a period of five years:
(a) Bank statements, copies of deposit slips, and canceled checks on all escrow or trust accounts.
(b) Copies of all documents that pertain in any way to real estate transactions wherein the partnership, limited liability company, association, corporation, or other legal entity, foreign or domestic, the designated qualifying broker, or licensees sponsored by same, have appeared in a licensing capacity.
(2) This requirement, regarding copies, shall not be altered by the partnership, limited liability company, association, corporation, or other legal entity, foreign or domestic, transferring the broker license to the inactive status or failure to renew such license.
All businesses, including real estate firms, should have policies and procedures in place for keeping client information secure and disposing of consumer information in a manner that preserves client privacy and confidentiality. A comprehensive data security plan will ensure that businesses collect only the consumer information needed, keep the information safe, and dispose of the information securely.
There is no one-size-fits all approach to data security and compliance, but many resources exist to assist businesses in complying with their legal responsibilities. Available resources include:
DISCLAIMER
Information and additional guidance and orders regarding the pandemic are being issued daily. The information is the article was last updated on April 1, 2020 at 12:30 p.m.
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 association 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 authors and is not a guarantee of interpretation of the law or contracts by any court or by the Louisiana Real Estate Commission.
Learn how to lower your debt-to-income ratio before buying a home in Louisiana and why working with an experienced real estate agent can help.
NAR is pleased to share the latest new consumer guide, “Overcoming Roadblocks to a Sale or Purchase,” which helps buyers and sellers prepare for the most common potential pitfalls so their transaction closes smoothly. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow up to two weeks for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: Overcoming Roadblocks to a Sale or Purchase How Solar Impacts a Real Estate Transaction Navigating Interest Rate Shifts Financing a Renovation When You Buy Staging Your House for a Sale Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their home buying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. On June 3, we’ll have a new consumer guide on unpacking after a move and a refreshed guide in the value of MLS.
Louisiana REALTORS® remained deeply engaged during Week 11 of the 2026 Regular Session as several priority bills moved into the final stretch of the session. With adjournment approaching, the focus has shifted from early-stage committee positioning to Senate floor votes, conference committee negotiations, and final action at the Governor’s desk. This week, the biggest development was HB 468 by Rep. Troy Hebert moving into conference committee after the House rejected Senate amendments by a 91-0 vote on May 20. At the same time, HB 1027 and HB 292 remain positioned for the Governor’s signature, HB 1166 and HB 1187 moved into Senate floor posture, and Louisiana REALTORS® continued defensive work on HB 617 and HB 750 to keep real estate, property management, and nonprofit activity from being swept into overly broad consumer-protection language. The most immediate priority now is HB 468 , the residential wholesaling bill, which remains the last major Louisiana REALTORS® package bill in active negotiation. The bill passed both chambers unanimously on the underlying policy, including House final passage 96-0 and Senate final passage 34-0 , but differences in amendment language still have to be resolved before adjournment. The House's rejection of Senate amendments did not kill the bill; it simply sent it to a conference committee, where conferees must now reconcile the two versions. This remains a critical measure for the industry because it brings greater transparency and accountability to residential wholesaling, strengthens consumer protections, and gives the Louisiana Real Estate Commission enforcement authority over the new framework. Another major win for the industry is HB 1027 , also by Rep. Troy Hebert , which has now completed the legislative process and is awaiting the Governor’s signature. The bill passed the House 90-0 , passed the Senate 35-0 , and was sent to the Governor on May 14. This measure provides important liability protections for real estate appraisers in certain circumstances and represents a strong legislative win for transaction certainty, appraisal professionalism, and fairness in the marketplace. On disclosure and property management issues, HB 1166 by Rep. Kim Carver remains one of the most important real estate bills still moving. The bill, which requires disclosures for vacant residential property, cleared the Legislative Bureau without amendment and was scheduled for final passage in the Senate on May 21. If passed by the Senate without amendment, it can go directly to the Governor. This bill remains important because it closes an existing gap in Louisiana law regarding vacant residential properties and should help reduce late-stage surprises related to condition issues, access problems, utility status, and other material facts that can derail transactions. HB 292 by Rep. Delisha Boyd , dealing with the return of security deposits, is already at the Governor’s desk and remains another meaningful property-management bill nearing final enactment. Insurance remained front and center in Week 11 as well. HB 1187 by Rep. Paul Sawyer , dealing with Louisiana Citizens for emergency assessments, cleared the Senate Legislative Bureau and was scheduled for Senate final passage on May 21. HB 759 by Rep. Gabe Firment , relating to fortified roof endorsement offers, was also in Senate floor posture. These measures continue to matter because insurance affordability, mitigation incentives, and policy stability remain central to homeownership, transaction viability, and broader housing-market confidence across Louisiana. Other insurance-related bills, including HB 408 on nonrenewal protections for homeowners who timely mitigate risks and HB 1210 on pre-suit claim review for residential property insurance, remain low-movement items but remain relevant to the broader insurance affordability discussion. Week 11 also required continued defensive work by Louisiana REALTORS®. HB 750 , dealing with automatic renewal subscriptions, remained on the Senate floor subject to call, and HB 617 , dealing with hidden fees, remained in a posture requiring close monitoring. Louisiana REALTORS® has worked to prevent both bills from being interpreted or applied in ways that would improperly include leases, property management agreements, association activity, nonprofit operations, or real estate professionals within frameworks that do not fit the realities of housing and real estate transactions. On HB 617 , the concern remains that broad fee-disclosure language can unfairly place liability on real estate professionals for charges they do not control, including fees set by lenders, title companies, insurers, government entities, or other third parties. However, our governmental affairs team successfully negotiated an amendment on the House side that exempted real estate transactions from this legislation. The bill died in the Senate Commerce Committee this week. On HB 750 , another bill that includes an exempting clause for real estate and property managers, the concern is that broad automatic-renewal language could bleed into leases, property management, and nonprofit or association activities if not carefully limited. This defensive block-and-tackle work has mattered because late-session consumer bills can create real unintended consequences if left unchecked. Broader property rights, housing, and tort reform bills also continued moving. HB 214 and HB 217 , both dealing with tax exemptions for rehabilitated blighted or derelict property, advanced through the Senate and remain part of the broader redevelopment and neighborhood revitalization conversation. HB 472 , the rent stabilization bill, remains stopped after being involuntarily deferred earlier in the session, but it stays on the watch list for any attempt to revive similar language through another vehicle before adjournment. On the civil justice side, HB 437 on expert witness fees and HB 1089 on CARE Accounts remain active and relevant to the broader insurance-cost and litigation environment affecting property owners and small businesses. Additional housing-related bills, including HB 297 on early lease termination for stalking and cyberstalking victims and HB 300 on appraisal thresholds for bank-owned property, are also near the finish line and remain part of the broader policy picture. The bottom line for Week 11 is straightforward: the session is now in its final stretch, and several Louisiana REALTORS® priorities are either on the Governor’s desk, on the Senate floor, or in late-stage negotiations. HB 468 is now the top late-session advocacy priority because it must emerge from the conference committee and receive final approval from both chambers before adjournment. At the same time, HB 1166 , HB 1187 , and HB 759 were all in Senate floor posture, while HB 1027 , HB 292 , HB 297 , and HB 300 remain in executive-approval posture. Louisiana REALTORS® will remain ready for fast movement, late-session amendment strategy, and defensive monitoring through final adjournment, especially on bills affecting real estate transactions, insurance affordability, property management, private property rights, and housing supply across Louisiana. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.
