The Louisiana Real Estate Commission has revised the Residential Agreeement to Buy or Sell Property in the State of Louisiana.
All transactions must be completed on the new 2013 Louisiana Residential Agreement to Buy or Sell.
Louisiana Residential Agreement to Buy or Sell by Marilyn Milliken Boudreaux
INTERESTING FACTS RELATING TO THE LOUISIANA CONTRACT:
- If any line of the contract is marked though (even if initialed) the contract may be deemed "unenforceable" No pre-printed language may be altered.
- Louisiana is one of the only states that allows a Real Estate Agent to fill out the Purchase Contract without the requirement of an Attorney.
- The deposit is not necessary to be a "legal contract" and is automatically specific performance
- A Counter is really a Rejection of the Offer and is considered "new terms"
- Reasonable time is allowed for "acceptance" What is considered "reasonable time" is left to judgment however, a contract is NOT accepted (received) by either party until delivered by designated agent.
- Louisiana does not have Consideration Contract- only Cause Contract
Louisiana Real Estate Contracts is the Mandatory Continuing Education Topic 2013.
Changes made to the 2013 fom include:
- Date on each page of the contract
- Rural Development financing and "Other" added as choices of financing
- Added language to the Financing Clause
The new addition of language in lines 74-87 go into detail regarding Buyer's obligation to apply for loan and obtain a pre-approval within ____days.
BUYER has made written application for a loan, or agrees to make written application for a loan, no later
74 than _____ days after the Date of Acceptance (“Loan Application Period”). BUYER agrees to provide SELLER
75 with a letter of Preliminary Loan Approval from a lender no later than _____ days after the Date of Acceptance
76 (“Financing Approval Period”). BUYER authorizes and instructs lender to release written verification of the loan
77 application and final loan approval to SELLER or SELLER’S Broker or Designated Agent. Preliminary Loan
78 Approval must stipulate that (1) a loan application has been made; (2) a credit report has been obtained and
79 reviewed by a lender; (3) a preliminary loan commitment has been secured from the same lender; (4) financing
80 equal to the loan amount provided is available to complete the transaction. In the event BUYER does not provide
81 SELLER with a letter of Preliminary Loan Approval from a lender, within___________ days after acceptance of
82 this agreement by all parties, the SELLER, at SELLER'S option, may terminate this agreement by giving BUYER
83 written notice of their intent to terminate.
84
85 In the event BUYER is not able to secure financing, SELLER reserves the right to provide all or part of mortgage
86 loan(s) under the terms set forth above. The BUYER acknowledges and warrants that he has available the funds
87 which may be required to complete the sale of the Property including, but not limited to, the deposit, the down
Changes were also made to the Sewerage Clause Lines 194-199 that now allows a Seller to obtain Sewer/Water Inspection from a private contractor it is no longer limited to government entity.
PRIVATE WATER/SEWERAGE: In the event there is a private water system or private sewerage system on
194 the Property, the SELLER shall provide, at SELLER’s expense, approval of the private water or sewerage
195 system operation, in accordance with the appropriate governmental entity or duly licensed private entity.
196 An approved sewerage and/or water inspection report will be issued within thirty (30) days prior to the Act
197 of Sale by the appropriate governmental agency or duly licensed private entity. The approved inspection
198 and test on the water and/or sewerage system are to be furnished and paid for by the SELLER. Any
199 private water system or private sewerage system repairs necessary to obtain approved inspection
One of the most interesting changes is the addition to allow email communication exchange during the transaction, Lines 337-346
NOTICES AND OTHER COMMUNICATIONS: All notices, requests, claims, demands, and other communications
337 related to this Agreement shall be in writing. Notices permitted or required to be given (excluding service of
338 process) shall be deemed sufficient if given by (a) registered or certified mail, postage prepaid, return receipt
339 requested; (b) private courier service; or (c) facsimile addressed to the respective addresses of the parties as first
340 above written or at such other addresses as the respective parties may designate by like notice from time to time.
341
342 BUYER further authorizes notices and other communications to be delivered electronically to the following
343 address(es): ________________________________________________________________________________
344
345 SELLER further authorizes notices and other communications to be delivered electronically to the following
346 address(es): ________________________________________________________________________________
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