Selling a House in Louisiana

Selling a house is one of the most significant legal transactions you'll ever participate in. It's important to know your legal rights and understand the process.

Working With a Real Estate Agent

In Louisiana, real estate agents are presumed to be the designated agent of the party they are working with, unless there is a written agreement providing otherwise. Real estate agents may represent sellers, buyers, or act as dual agents, representing both parties. In Louisiana, real estate agents have a "fiduciary duty" to the party they are representing, in this case, the seller.

In addition to duties or obligations that are stated in a listing agreement or other contract, a fiduciary's duties include:

• To obey all lawful requests
• To promote the seller's best interests
• To exercise reasonable skill and care
• To keep information that could materially harm the seller's negotiation position confidential
• To present all offers in a timely manner
• To seek a transaction at the price and terms acceptable to the seller
• To account for all money or property received in a timely manner

Under Louisiana law, you must complete a property disclosure statement indicating the following potential house defects:

• Plumbing and sewage problems
• Water leakage of any type, including in basements
• Termites or other infestations
• Roof defects
• Heating or air conditioning system and electrical system problems
• Property drainage problems
• Foundation instabilities or cracks or structural problems
• Problems with title to the property
• Neighbor issues that aren't obvious
• Lead paint (required under the federal Residential Lead-Based Paint Hazard Reduction Act of 1992 for homes built prior to 1978) and environmental hazards including asbestos and radon

Purchase Agreements

When you've got a serious buyer, you'll receive a written offer to purchase your home, sometimes called a "binder agreement," "contract of purchase" or "purchase agreement," which states the finalized terms and conditions for the sale.

You won't have very long to decide whether or not to take the offer or propose a counteroffer so it's important to be informed ahead of time.

Common counter-proposal items include:

• A higher purchase price
• A higher deposit
• Giving buyer less time to remove contingencies
• Excluding certain items from the sale
• Providing you move in time to vacate the house after the sale is closed
• A clause making it a contingency that your attorney approve the contract
• A "liquidated damages clause" that details how much money the buyer will owe you if the buyer backs out of the deal for reasons other than the contingencies listed in the contract

Legal Title Issues

Your Louisiana real estate lawyer or title company will investigate the legal title of the property you want to sell, and may find issues you'll need to understand.

In Louisiana, for example, an implied easement may be present where a person grants lands to which there is no accessible right-of-way except over her or his land or retains land that is inaccessible except over the land which the person conveys. In such instances a right-of-way is presumed to have been granted or reserved. Such an implied grant or easement in lands or estates exists where there is no other reasonable and practicable way of accessing the property, and it is reasonably necessary for the beneficial use or enjoyment of the part granted or reserved.

Your property may also be subject to a "lien," which is a charge on the property to satisfy a debt or other obligation. A lien encumbers property as long as it exists and has been recorded in the public records.

In Louisiana, liens on a piece of property may include:

• Mortgages
• Construction or mechanics' liens
• Judgment liens
• Tax liens

Closing Costs

In Louisiana, you can expect to pay for some or all of the following charges - called "closing costs"-at the time you sell your home:

• Broker's commission
• Survey
• Title insurance
• Recorded release of mortgage
• Transfer taxes
• Attorney's fee
• Home inspections

Specific Performance

In Louisiana, a seller who agrees to sell a particular property must do so unless the buyer fails to meet all the terms of the purchase agreement. This is called "specific performance," which is a legal action to compel performance of a contract. For this contract remedy, a court can order the parties to complete the contract. The buyer must then deliver the purchase price and the seller must then deliver the deed. If you have second thoughts on a particular sale, you'll want to immediately contact an attorney.