LREC Revises Property Disclosure Document
Amy P. Fennell • January 5, 2018
Louisiana REALTORS® worked with the Louisiana Real Estate Commission (LREC) on changes to the Residential Property Disclosure form following a recent Louisiana Supreme Court decision. The revised form is now finalized and available for use immediately, but will not be required to be used until March 1, 2018.
LR has prepared this Legal Line article highlighting key changes to the form. In addition to these articles, Louisiana REALTORS® is providing a clean copy of the new form and a “red-lined” version of the form so you can see what changes were made.
*the following documents are provided as reference to see the changes in the document. LREC website is the official location that the form should be downloaded from and used.
By: Patricia B. McMurray, JD | Baker, Donelson, Bearman, Caldwell & Berkowitz, PC
The Property Disclosure Document ("PDD") form required to be completed by all residential seller(s) has been revised by the Louisiana Real Estate Commission ("LREC").[1] Use of the new form is mandatory on March 1, 2018.
The LREC updated the PDD form partially in response to a decision by the Louisiana Supreme Court in a case which highlighted the possible ambiguity in completing the PDD form in choosing between the "no" or "no knowledge" selections on the existing form.[2] The revised PDD eliminates the choice of "no" and limits the seller's possible selections to "yes" or "no knowledge". All information about the property completed by the seller on the PDD form is completed "to the best of the seller's knowledge".
HIGHLIGHTS OF THE CHANGES TO THE PDD FORM
1. Property Disclosure Exemption Form
Page one of the PDD form is revised to be a "Property Disclosure Exemption Form". Certain sellers by law are exempt from the requirements to provide a PDD form to buyers. Those sellers claiming to be exempt from completing the PDD form should complete page 1 by selecting the exemption from the list of exemptions and completing the blank and signing page 1. The buyer also signs this page upon receipt of the PDD form.
All other sellers (those who do not claim an exemption to the requirement to complete the PDD form) should complete the following box on page 1. The buyer also signs this page upon receipt of the PDD form.
All buyers and sellers should initial each page of the PDD form, regardless of whether an exemption is claimed.
2. WARRANTY INFORMATION
Page two of the revised PDD form further explains that the PDD is intended to provide information about the property for the buyers and is not intended as a warranty of any kind. Buyers are encouraged to obtain inspections as they deem prudent. Added to the previous PDD information is the following notice:
This notice tracks the Louisiana statute.[3]
3. RESPONSE TO QUESTIONS ABOUT THE PROPERTY
All responses made by the seller on the form are to the "best of your (the Seller's) knowledge, information or belief."[4]
In order to eliminate potential confusion by the buyers that a "no" response to a question on the PDD was as an affirmation that that property did not have a certain defect as opposed to the seller did not know of such a defect in the property, the choice of "no" on the PDD form has been eliminated. The only response as to whether or not a "known defect"[5] to the property exists is "yes" or "NK" (not known). If the seller marks "yes", the seller should provide an explanation of the known defect. If the seller marks "NK", no explanation is required.
Although most of the questions on the form remain the same, some questions have been clarified or the order of the questions has been changed to better align the sections of the form.
4. ROAD HOME AND OTHER FEDERAL GRANTS AND LOANS
Other additional new sections on the PDD form is on page 4 and 5 regarding federal grants and loans. If a seller has been the recipient of federal grants, the requirements regarding these grants may provide restrictions on the property, such as the requirement to "obtain and maintain" flood insurance.[6] Sellers should take care to correctly complete this section to include the amount of the grant received.
OBTAIN AND MAINTAIN INSURANCE REQUIREMENTS
If the seller has been a recent recipient of these types of grants, a copy of the covenants and requirements should be provided to the buyer if possible.
DISCLAIMER
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] The PDD form or a similar form is required to be completed by sellers of residential property pursuant to LSA-R.S. 9:3196 - 3200
[2] Valobra v. Nelson, 14-0164 (La. 04/11/14), 136 So. 3d 793
[3] La. R.S. 9:3198(c)
[4] Explanation supplied
[5] A "known defect" is a condition found within the property that was actually known by the seller and that results in any of the following: (a) has a substantial adverse effect on the value of the property; (b) significantly impairs the health or safety of future occupants of the property; (c) if not repaired, removed or replaced, significantly shortens the expected normal life of the premises.
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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