Stay At Home Extended Through May 15 - How Does It Impact Real Estate?
LOUISIANA REALTORS • May 1, 2020
GOVERNOR EDWARDS EXTENDS STAY AT HOME ORDER THROUGH MAY 15, 2020 – HOW DOES IT IMPACT REAL ESTATE?[1]
By: Patricia B. McMurray, JD and Melissa M. Grand, JD Baker, Donelson, Bearman, Caldwell & Berkowitz, PC450 Laurel Street, Chase Tower North, 21st FloorBaton Rouge, Louisiana 70801
On April 30, 2020, Governor John Bel Edwards extended the statewide Stay at Home Order (the “Order”), so that the Order is now effective through May 15, 2020.[2] A discussion of the key provisions in the Order relevant to real estate is below.
1. How does the new Order impact my business?
Short Answer:
Under the new Order, real estate services are still permitted to continue operations because they are “essential” under the Order and CISA guidance; however, gatherings of 10 people or more are still not allowed, and social distancing must still be maintained. An important change in the Order is that all businesses must require that any owner or employee having interaction or contact with the public must wear a mask or face covering, which likely means that brokers, agents, and property managers are required to wear masks or face coverings when interacting when their clients, tenants, or other members of the public.[3]
The new Order is almost identical to the Governor’s previous Stay at Home Orders. Residential and commercial real estate services, including settlement services, are still classified as an “essential activity” under the Order.[4] This means that real estate services are permitted to continue, and real estate brokers and agents have the ability to continue to work while following safety precautions to prevent the spread of coronavirus. The Order’s prohibition on gatherings of 10 people of more people is still in place.[5] Also, social distancing guidelines should continue to be followed.
A noteworthy change in the new Order which is relevant to the real estate industry is that “all businesses shall require that any owner or employee having interaction or contact with the public shall wear a mask or face covering.”[6] So, under the Order, a broker, agent, or property manager is required to wear a mask or face covering when interacting with a client, a tenant, or other members of the public. Additionally, both the CDC[7] and the Louisiana Department of Health[8] strongly urge everyone to wear masks or face coverings when in public
Brokers and managers are encouraged to continue communicating with their agents and support staff regarding a plan of action on how best to serve their clients through remote and virtual methods and how to conduct business while also following the Governor’s Order and the CDC’s guidelines on group gatherings.
2. Can I conduct real estate closings now?
Short Answer: Real estate closings can occur as long as the gathering is limited to less than 10 people, social distancing requirements are maintained, and masks or face coverings are worn by individuals interacting with the public. However, at this time, it is still advisable to consider postponing closings or conducting closings via mail with counterpart signatures to the extent possible because of the current impact of COVID-19 on Louisiana.
Because real estate and settlement services are specifically covered in CISA’s guidance[9] and fall within one of the “essential” work classifications, real estate closings are permitted to go forward under Section 2 of the Order. A gathering should must be limited to less than 10 people, social distancing requirements should still be maintained, and anyone having interaction or contact with the public must wear a mask or face covering.[10]
The Governor continues to implore Louisianans to stay home whenever possible. Further, consider impact of and the lack of the availability of other services your clients may need if the transfer of property goes forward such as movers and house cleaners. So, to the extent possible, consider postponing closings. Closings can also be conducted through mail or overnight delivery of counterparts of closing documents to minimize the actual need to have a meeting. Some closing documents however will still require signature before a notary and two witnesses. See Coronavirus Amendment to the Louisiana Residential Agreement to Buy or Sell.
3. Can I hold open houses on listed properties or show houses now?
Short Answer: Open houses are still strongly discouraged. We encourage you to use virtual means to conduct showings at this time.
It is still advisable that open houses and showings be postponed or conducted virtually. As the Governor’s Order explains, while the number of new cases of COVID-19 in Louisiana has decreased significantly, and there has been significant evidence that Louisiana has flattened the curve of the virus, there are several regions in the state where the number of incidences have increased in recent days.[11] The Order also states that Louisiana continues to have the sixth highest number of per capita cases in the country with over 28,000 infected, and thus far, Louisiana has not yet met the criteria set by the White House Coronavirus Task force to move into Phase 1.[12]
There is no way to ensure that the gathering can be limited to 10 people and social distancing requirements can be maintained when the general public is invited to a location for an open house. Additionally, in-person showings put you and your clients in risk of being infected with the virus.[13] This situation is evolving rapidly. Continue to monitor the CDC's website for up-to-date information.
DISCLAIMER
Information and additional guidance and orders regarding the pandemic are being issued daily. The information is the article was last updated on April 30, 2020 at 4:30 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.
[1] Information and additional guidance and orders regarding the pandemic are being issued daily. The information is the article was last updated on April 30, 2020 at 4:30 p.m.
[2] The Governor’s original Stay at Home Order was dated March 22, 2020, and the first renewed Stay at Home Order was dated April 2, 2020. See LR’s previous articles and guidance on the Governor’s Stay at Home Orders: https://www.larealtors.org/publications/2020/3/23/governor-edwards-issues-statewide-stay-at-home-order-how-does-it-impact-real-estate and https://www.larealtors.org/publications/2020/4/3/gov-edwards-renews-stay-at-home-order. See also gov.louisiana.gov.
[3] See Order, Section 2(E).
[4] See Order, Section 2(A)(3).
[5] See Order, Section 2(A).
[6] See Order, Section 2(E).
[7] See https://www.cdc.gov/coronavirus/2019-ncov/prevent-getting-sick/cloth-face-cover.html.
[8] See http://ldh.la.gov/index.cfm/page/3940.
[9] See Identifying critical infrastructure during COVID-19.
[10] See Order, Section 2(E).
[11] See recitals of the Order.
[12] See id.
[13] See larealtors.org.
This week, the Legislature remained in high gear, and several items relevant to Louisiana’s real estate market moved into focus. The biggest headline for our industry this week was HB 468 by Rep. Troy Hebert , our wholesaling/consumer-protection bill, was slated to be heard on the House floor, however was bumped due to floor congestion and out-of-order bills. It is now expected to be reset for next Tuesday. This bill remains one of the clearest “market integrity” efforts on the board with clearer rules for non-traditional transactions, stronger transparency and better consumer protections. We also continued substantive policy work behind the scenes. We are actively engaging with Rep. Carver on a vacant land disclosure bill he has authored, and we appreciate that he is welcoming our input and guidance as the language is refined. Our goal is straightforward: ensure any vacant land disclosure framework is practical, reduces confusion and avoids unintentionally shifting liability or enforcement burdens onto real estate professionals. In addition, we were pleased to deepen our relationships at the Capitol this week. We had the privilege of hosting a lunch for the Governor’s Office, enjoyed meeting Governor Landry’s team, and look forward to working with them in a constructive, solutions-oriented manner as the session continues. Finally, Rep. Hebert also filed an additional measure that aligns with our legislative agenda and speaks directly to transaction risk management: HB 1027 , which would limit liability for licensed real estate appraisers in situations involving smoke and carbon monoxide detector compliance. The current law already provides that real estate agents are not liable for a seller’s failure to comply with Louisiana’s detector requirements in one- or two-family dwellings. HB 1027 would extend that same liability protection to licensed appraisers by amending R.S. 40:1581(F). This is a clean, common-sense clarification that helps prevent appraisers from being pulled into compliance disputes that properly belong with the seller’s statutory obligations. Next week, committees are scheduled to hear multiple bills relevant to real estate, including measures involving construction and roofing standards (often tied to insurance and mitigation), property rights/expropriation, and property tax and adjudicated property issues that can influence housing supply and neighborhood reinvestment. We will stay closely engaged and will flag any bills or amendments that materially affect transactions, homeownership costs or private property rights. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.
Louisiana REALTORS® is compiling a cookbook of Louisiana flavor with a REALTOR® heart in support of the REALTORS® Relief Foundation . And we have two ways for you to get involved: Join us in contributing your favorite recipe using this online form. If you want to include a picture with your recipe, send to info@larealtors.org and reference recipe title in email subject. Or share your creativity by designing the cover artwork for the cookbook. A small committee will review all entries and choose one to print on the cover. Stay tuned for more details on when you can grab your own copy of the cookbook! Cover artwork and recipes are due by April 17th.
Week three of the Regular Session kept real estate issues in the conversation, even as lawmakers continued to focus heavily on workforce, tax and insurance policy. On the property tax front, measures to reshape assessments and exemptions, including proposals for a new blight rehabilitation exemption and additional relief for seniors, remain parked in the House Ways and Means Committee as stakeholders work through fiscal and local government concerns. These bills matter because they will influence long-term carrying costs, redevelopment incentives and how tax burdens are shared across residential and commercial property. Homestead related legislation, including parish level authority to increase the exemption amount, is also in the queue, signaling that the broader structure of Louisiana’s homestead system is officially on the table, not just the dollar figure. For homeowners and buyers, this debate goes directly to affordability. For local governments, it raises revenue stability and service delivery questions. There also has been movement on several identical pieces of legislation that would instruct parish assessors to develop a process for homeowners to permanently register for the homestead exemption for the duration that they own and live on the property. We are actively tracking legislation that will directly shape how investor activity and non-traditional transactions are recognized and regulated in Louisiana’s real estate market. This includes HB 468 by Troy Hebert , a key component of the Louisiana REALTORS® legislative package that targets the wholesale of residential real estate, which was heard in the House Commerce Committee on Monday. The bill is currently positioned for a floor vote early next week. As drafted, HB 468 represents a major step in the right direction for consumer protection in Louisiana, advancing needed guardrails through potential disclosure, registration, and practice standards that could redefine how assignment contracts and “off-market” transactions intersect with licensed brokerage activity. In parallel, HB 292 by Delisha Boyd passed the House on final reading, 86-3, and is on its way to the Senate. Together, these measures represent a coordinated policy effort to bring greater structure and transparency to emerging transaction models, while preserving the integrity of the traditional brokerage framework. Finally, the broader policy backdrop remains important: the Governor continues to push income tax changes and cost of living relief, while business and industry groups are prioritizing insurance, workforce and energy — each a key driver of long run housing demand and investment. As these debates evolve, we’ll keep you updated on what moves, what stalls and what it all means for your clients, your pipeline and private property rights across Louisiana. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.
