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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.
As previewed last week, NAR is pleased to share the latest consumer guide focused on preparing for homeownership. This guide covers what prospective buyers should consider as they kick off the home purchase process, including the importance of credit scores, mortgage pre-approval, down payments, budgeting, and educational resources. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow a few days 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: Preparing for Homeownership Escrow and Earnest Money Pricing Your Home Preparing to Sell Your Home Fire Damage and Policy Coverage Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with potential clients to ensure they have the information they need to be successful in their homebuying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Be on the lookout for next week’s guide on Wednesday, which will cover property taxes.
As previewed last week, NAR is pleased to share the latest consumer guide focused on escrow. This guide covers what homebuyers should know about earnest money deposits, including the general terms and use cases in real estate transactions. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow a few days 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: Escrow and Earnest Money Pricing Your Home Preparing to Sell Your Home Fire Damage and Policy Coverage Flood Insurance 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 homebuying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Be on the lookout for next week’s guide on Wednesday, which will cover preparing prospective buyers for homeownership.
The Louisiana REALTORS® Board of Directors will conduct several elections this Spring. Interested candidates that meet the qualification who are looking to serve at either the state association level or the national association level are encouraged to view the criteria and submit an application. An application that is not submitted on the appropriate form or not submitted pursuant to the instructions shall not be considered as submitted timely.
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