Louisiana's New Home Warranty Act

Louisiana REALTORS® • August 4, 2022

By: Eric B. Landry, Partner

Breazeale, Sachse & Wilson, L.L.P.

301 Main Street, One American Place, Suite 2300

Baton Rouge, Louisiana, 70801


Purchasers of a newly constructed home have the right to hold the builder accountable for most construction defects for a specified period of time after purchasing under the Louisiana New Home Warranty Act (the “Act”).  The Act requires builders to make certain warranties “defining the responsibility of the builder to [the] purchaser and subsequent purchasers.” Although the duration of the warranty cannot be extended, the Act permits transfer of the warranty to anyone who purchases the home within the warranty period. The warranty period begins on either the date that the legal title to the home is conveyed to the purchaser or the date that the purchaser first occupies the home, whichever occurs first.


There are three different warranties the builder statutorily provides—each differs in the substance warranted and the time period for which the warranty lasts.  Read on below for more information.


  • One Year Warranty

    For one year from the commencement date, the builder warrants that “the home will be free from any defect due to noncompliance with the building standards or due to other defects in materials or workmanship not regulated by building standards.”  In addition to violations of applicable building codes, deviations from the plans and specifications for construction of the home are also recoverable under the Act. Thorn v. Caskey, App. 2 Cir.1999, 745 So.2d 653, 32,310 (La.App. 2 Cir. 9/22/99).  


    One instance where an appellate court found noncompliance with building standards stemmed from  evidence of smoke damage from fireplace where the fireplace came with installation manuals containing detailed standards, and contractor admitted these were “installation procedures” for fireplace that were not followed. Craig v. Adams Interiors, Inc., App. 2 Cir.2001, 785 So.2d 997, 34,591 (La.App. 2 Cir. 4/6/01).  Likewise, another court found there was sufficient evidence that recently built home contained defects caused by noncompliance with the building standards or due to other defects in materials or workmanship not regulated by building standards to support recovery for breach of warranty under the Act when an expert in home construction who conducted inspection testified that home was built out of level, causing walls to lean, chimney to slant, and sheetrock to crack, and that there were serious problems with the foundation system. Sowers v. Dixie Shell Homes of America, Inc., App. 2 Cir.2000, 762 So.2d 186, 33,390 (La.App. 2 Cir. 5/15/00), writ denied 768 So.2d 1286, 2000-1770 (La. 9/22/00).  


  • Two Year Warranty

    For two years from the relevant commencement date, the builder warrants “the plumbing, electrical, heating, cooling, and ventilating systems exclusive of any appliance, fixture, and equipment will be free from any defect due to noncompliance with the building standards or due to other defects in materials or workmanship not regulated by building standards.”  This warranty takes the one-year warranty, and extends it to specific issues related to plumbing, electrical, heating, cooling and ventilating systems. To the extent a purchaser seeks to recover under this warranty, the same standard required for recovery on the one-year warranty applies.

  • Five Year Warranty

    For five years from the commencement date, the builder warrants that “the home will be free from major structural defects due to noncompliance with the building standards or due to other defects in materials or workmanship not regulated by building standards.”  Louisiana law defines “major structural defect” to mean “any actual physical damage to the following designated load-bearing portion of a home caused by the failure of the load-bearing portions which affects their load-bearing functions to the extent the home becomes unsafe, unsanitary, or is otherwise unlivable: (a) Foundation systems and footings; (b) Beams; (c) Girders; (d) Lintels; (e) Columns; (f) Walls and partitions; (g) Floor systems; [and] (h) Roof framing systems.” 


    It is important that a purchaser looking to recover under this five-year warranty pay close attention to the definition of “major structural defect.” Courts will readily distinguish between what falls under the one- and two-year warranties and what is a “major structural defect” triggering the five-year warranty. For example, one court held that the one-year warranty against defects in materials of workmanship in a new home, rather than the five-year warranty against major structural defects, applied to homeowners' claim that defective outdoor fireplace caused fire that destroyed their home because the alleged cause of the fire was defect in workmanship or materials surrounding the construction and installation of the outdoor fireplace, and there was no evidence that the fire was caused by a major structural defect in the home. Shields v. Alvin R. Savoie & Associates, Inc., App. 1 Cir.2017, 214 So.3d 27, 2016-0825, 2016-0826 (La.App. 1 Cir. 2/1, writ denied 220 So.3d 750, 2017-0506 (La. 5/19/17). On the other hand, another court found the five-year period applied to a purchasers’ claim against a builder, even though that claim involved plumbing (which would generally trigger the two-year warranty), given that the alleged defect was the failing foundation, which was a major structural defect, and the plumbing repairs were a consequence, or resulting damages, from that defect. Campo v. Sternberger, App. 5 Cir.2015, 179 So.3d 908, 15-52, 15-53 (La.App. 5 Cir. 11/19/15), rehearing denied, writ denied 190 So.3d 1196, 2016-0085 (La. 3/24/16).  


  • Exclusions and General Provisions

    Each of the three warranties identified above contemplate defects “due to noncompliance with buildings standards or due to other defects in materials or workmanship not regulated by buildings standards.”  The purchaser or owner of the home may not waive the required warranties, and the builder may not reduce them, by contract or otherwise. That is, these three warranties exist by operation of law and cannot be derogated.  


    The same statute that lists out the warranties also provides an exhaustive list of items that, unless the builder specifically agrees to warrant, are exempt from the warranties provided under the Act. This list includes items such as fences and landscaping, normal wear and tear, normal deterioration, insect damage, or any damage caused or made worse by someone other than the builder or an employee, agent, or subcontractor of the builder.  It is notable to mention that the exclusions listed in Footnote 10 are mere statutory exclusions from the minimum warranties required – because the Act provides minimum required warranties, it does not prohibit a builder from agreeing to increase, rather than reduce, his warranties to the owner of a new home; thus, a builder may contractually assume greater obligations or warranties than those afforded by the Act, and under those circumstances, the owner presumably has a separate cause of action based on the breach of those specific contract provisions rather than breach of the Act itself.  Allemand v. Discovery Homes, Inc., App. 1 Cir.2010, 38 So.3d 1183, 2009-1565 (La.App. 1 Cir. 5/28/10).


    If a builder fails to make a required warranty, the purchaser/owner of the home has a legal cause of action against the builder and may be entitled to actual damages, including attorney’s fees and court costs. Damages for all defects may not exceed the home’s purchase price, and damages for a single defect are limited to the reasonable cost to fix the defect by repair or replacement.  La. Rev. Stat. § 9:3149(A).  

Update from 2025 REALTORS® Legislative Meetings

By Louisiana REALTORS® • June 6, 2025
The National Association of REALTORS® Board of Directors approved a 2026 budget with no dues increase and passed a Professional Standards Recommendation to clarify language in NAR Code of Ethics Standard of Practice 10-5, which prohibits harassment of any person or persons protected under Article 10 of the Code. A day earlier, the Executive Committee approved another Professional Standards change, revising language for Policy Statement 29 designed to ensure state and local associations can fairly and consistently enforce the Code of Ethics. Learn more about the changes. Read the revised Code of Ethics and Standards of Practice. Board members also approved a consent agenda to elect the 2026 officers and regional vice presidents . Christine Hansen of Ft. Lauderdale, Fla., was elected 2026 President-Elect, and Colin Mullane of Ashland, Ore. was elected 2026 First Vice President. The meeting opened with a video message from President Donald Trump, who welcomed REALTORS® to Washington and thanked them for support of the House-passed tax reform. NAR routinely invites the U.S. president to address REALTORS® at the Washington meetings. Over NAR's history, nine sitting presidents have addressed the association. Board Actions Approved a series of Finance Committee recommendations, accepting the association’s financial statement, approving the 2026 operating and advocacy budgets, and keeping dues at $156. The board actions also redirect $35 of the $45 Consumer Advertising Campaign assessment to operating funds. This change positions NAR to make its next settlement payment in February 2026 and maintain a balanced budget without raising total dues. The remaining $10 for the Consumer Advertising Campaign will fund optimized, metrics-driven activities that reach and engage consumers in critical markets. NAR CEO Nykia Wright and President Kevin Sears explained the shift at the opening session of the conference . Amended Standard of Practice 10-5 to give state and local associations greater clarity in how to fairly and consistently enforce Article 10 of the Code of Ethics. The amended Standard of Practice says that REALTORS®, in their capacity as real estate professionals, in association with their real estate businesses, or in their real estate-related activities, shall not harass any person or persons based on race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity. Made a series of recommendations to the Standards of Practice to bring the language in line with the terms of NAR’s 2024 settlement. Approved a motion to make one member of the Executive Committee a commercial practitioner who has served as chair, vice chair or liaison of an NAR commercial-related committee or forum to serve a two-year term and be independent of the 10% commercial representation requirement outlined in the NAR Constitution. Approved a recommendation from the Credentials and Campaign Rules Committee to amend qualifications for president-elect, first vice president and treasurer effective Jan. 1, 2026. Qualifications for top-line officers are now aligned with those already in place for regional vice presidents. Approved recommendations from the Member Accountability Committee related to applications for volunteer leadership and the Statement of Appropriate Event Conduct. The goal of the recommendations is to ensure members found in violation of the NAR Member Code of Conduct are properly disclosed. Award Winners NAR President Kevin Sears announced the 2025 Distinguished Service Award winners James P. Cormier , AHWD, C2EX, of Minneapolis-St. Paul, and Brooke S. Hunt , AHWD, E-PRO, SFR, SRS, C2EX , of Flower Mound, Texas. In addition, the group recognized the winner of the 2024 William R. Magel Award, Anne Marie DeCatsye , CEO of the Canopy REALTOR® Association and Canopy MLS in the Charlotte, N.C., metro area. REALTORS® Relief Foundation  During the meeting, REALTORS® Relief Foundation President Greg Hrabcak appealed to board members to make a tax-deductible donation. The fund provides housing assistance to victims in the immediate aftermath of a disaster; 100% of funds donated go to disaster relief. “We’ve had devastating wildfires in California, tornadoes in Missouri and Kentucky and flooding in West Virginia, and we’re still in the first half of this year,” Hrabcak said. Before the meeting ended, directors had donated more than $41,000.
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