2.2 Louisiana Property Disclosure Document
Key Takeaways
- Louisiana law (R.S. 9:3196-3200) requires the seller of residential property to deliver a Property Disclosure Document
- The disclosure must be given to the buyer on or before the buyer makes an offer (before acceptance)
- Sellers disclose KNOWN defects; the form does not require investigation, but knowing falsehoods create liability
- Redhibition (Civil Code arts. 2520 et seq.) lets a buyer rescind or reduce the price for a hidden defect, generally within one year of discovery
- Federal lead-based-paint disclosure applies to most pre-1978 housing regardless of Louisiana's rules
Louisiana requires the seller of residential immovable property to provide a Property Disclosure Document under R.S. 9:3196-3200 (the Louisiana Residential Property Disclosure Act).
Mandatory Seller Disclosure
| Requirement | Detail |
|---|---|
| Form | Louisiana Property Disclosure Document (LREC/LR form) |
| Who completes it | The seller (not the licensee) |
| Standard | Disclose defects actually known to the seller |
| Timing | Delivered to the buyer on or before the buyer makes an offer |
| Applies to | Residential immovable property (1-4 family dwellings) |
The seller answers each item Yes (aware of a problem), No (not aware), or No Knowledge/Not Applicable. The duty is to disclose known conditions - the act does not force the seller to inspect or hire experts - but a knowing false answer exposes the seller to rescission and damages.
Important: This is a meaningful difference from pure caveat-emptor states. The buyer must receive the disclosure before the offer is accepted, giving real decision-making information up front.
What the Disclosure Covers
| Category | Examples |
|---|---|
| Structural | Foundation, roof, walls, slab movement, prior repairs |
| Mechanical | HVAC, plumbing, electrical, water heater, appliances |
| Environmental | Flooding history, drainage, termites/WDIR, mold, asbestos |
| Water | Flood zone, prior flood claims, sewer/septic, well |
| Legal | Servitudes, encroachments, HOA dues, zoning, title issues |
Because much of Louisiana sits in flood-prone terrain, flooding and drainage history is among the most consequential items - sellers should disclose prior flood events, flood-insurance claims, and whether the property is in a FEMA flood zone.
Redhibition - the Civil-Law Hidden-Defect Remedy
Layered on top of the disclosure form is redhibition (Louisiana Civil Code arts. 2520 et seq.), the civil-law equivalent of a hidden-defect warranty.
| Element | Description |
|---|---|
| Redhibitory defect | A hidden defect that renders the thing useless or so inconvenient the buyer would not have bought, or would have paid less |
| Remedy | Rescission of the sale, or a reduction of the price (quanti minoris) |
| Knowledge | A seller in bad faith (who knew and concealed) faces broader liability, including damages and attorney fees |
| Prescription (time limit) | Generally one year from discovery of the defect (and bad-faith rules can extend exposure); special rules apply to new-home/builder situations |
Exam Tip: Redhibition is the civil-law concept students miss. It is separate from the disclosure form: even a seller who completes the form can face a redhibition claim for a concealed hidden defect. Tie redhibition to "hidden defect / one year from discovery / rescind or reduce price."
When Disclosure Is Not Required
Certain transfers are exempt from the Property Disclosure Document:
- Transfers by executors, administrators, succession representatives, or trustees
- Sheriff's sales, foreclosures, and tax sales
- Transfers between co-owners or to a spouse/relative in certain family transfers
- The first sale of a newly built home not yet occupied (builder warranties apply)
- Many commercial transactions
Federal Lead-Based-Paint Disclosure
For most housing built before 1978, federal law (the Residential Lead-Based Paint Hazard Reduction Act) requires:
| Requirement | Detail |
|---|---|
| Disclose | Known lead-based paint and hazards; provide any records/reports |
| Pamphlet | EPA booklet "Protect Your Family From Lead in Your Home" |
| Opportunity to inspect | A 10-day period for a lead assessment (the buyer may waive it) |
| Form | Signed Lead-Based Paint Disclosure with the required Lead Warning Statement |
Note: Lead disclosure is federal and applies on top of Louisiana's rules. It does not replace the Property Disclosure Document.
Licensee Responsibilities
A licensee must not actively conceal known material defects and must disclose known material defects to the buyer even when representing the seller. If a seller refuses to disclose a known defect, the licensee should counsel disclosure and, if necessary, withdraw rather than participate in concealment. Failing to deliver the disclosure, or helping hide a defect, is both a license-law violation and potential civil liability under redhibition.
"As-Is" Sales, Waivers, and Stigmatized Property
Louisiana sales are frequently written "as is" with a waiver of redhibition. A properly drafted, clear, and conspicuous waiver - one the buyer understands - can limit redhibition for defects the seller did not know about. However, an as-is clause does not protect a seller who knew of a defect and concealed it (a seller in bad faith): fraud and bad-faith nondisclosure survive an as-is waiver, and the seller can still face rescission and damages.
| Situation | Effect of an "as-is" waiver |
|---|---|
| Seller unaware of defect | Waiver generally limits redhibition |
| Seller knew and concealed (bad faith) | Waiver does not shield the seller |
| Licensee knew of defect | Must still disclose - waiver does not excuse the agent |
Stigmatized property (such as a death, alleged haunting, or a prior occupant's illness) generally involves psychological rather than physical conditions. These are typically not required disclosures and are not redhibitory defects, though an agent must still answer direct questions honestly and never misrepresent. The licensee's duty centers on material physical defects, not on stigma.
Exam Tip: Pair "as-is" with bad faith. The recurring trap is assuming an as-is sale ends all liability - it does not when the seller knowingly hid a defect, and it never excuses the licensee's own disclosure duty.
Civil-Law Items the Disclosure Must Flag
Because Louisiana is a civil-law state, the Property Disclosure Document and the surrounding duty of candor reach title features that common-law states label differently. A seller and listing agent should surface, where known:
| Civil-law feature | Plain-English meaning | Why it must be disclosed |
|---|---|---|
| Predial servitude | Louisiana's "easement" burdening one estate for another | Limits the buyer's use; a material title fact |
| Usufruct | A right to use and enjoy property owned by another (often a surviving spouse) | The buyer may not get full possession |
| Community vs. separate property | Whether one or both spouses must sign | A one-signature sale of a community immovable is defective |
| Redhibitory defect | A hidden defect making the thing useless or that the buyer would not have bought knowing of it | Can trigger rescission or price reduction under the Civil Code |
Exam point: the disclosure obligation is not a substitute for the buyer's own inspection, but concealing a known material defect — including a known redhibitory defect such as a chronic foundation or flooding problem — exposes the seller and agent to rescission, damages, and LREC discipline. When a fact pattern mentions a spouse, usufruct, or servitude, expect a disclosure-or-consent issue, and remember the document must reach the buyer before the offer is accepted.
When must the Louisiana Property Disclosure Document be delivered to the buyer?
What is 'redhibition' under Louisiana civil law?
Which Louisiana civil-law term corresponds to a common-law 'easement'?
Federal lead-based-paint disclosure applies to housing built before which year?