2018 Legislative Session Recap
LOUISIANA REALTORS • May 29, 2018
LOUISIANA REALTORS® RECAP OF THE 2018 REGULAR LEGISLATIVE SESSION
Louisiana REALTORS® is happy to report that the real estate industry came out of the 2018 Regular Legislative Session unscathed once again. In large part, the bills that Louisiana REALTORS® supported are awaiting action on the part of the governor and bills that Louisiana REALTORS® opposed were either heavily amended to remove our opposition or stalled in the legislative process.
Below is a summary of key bills tracked by Louisiana REALTORS® and where they stand in the process at of the time of this post. For further information on these or any other pieces of legislation, please contact Kim Callaway, kim@larealtors.org, (225) 923-2210.
HB NO. 383/ VOLUNTARILY DEFERRED IN HOUSE COMMITTEE
This bill was Louisiana REALTORS® first-time home buyer rebate proposition.
· While the bill did not reach the finish line due to budget constraints, it did allow Louisiana REALTORS® to promote the benefits of homeownership and highlight the struggles first-time home buyers face in today’s environment.
· These discussions with legislators will better position Louisiana REALTORS® with future legislation filed to help first-time home buyers pursue the American dream of home ownership.
HB NO. 372/SENT TO THE GOVERNOR
House Bill No. 372 would require administrative rules sought to be promulgated by boards and commissions, including but not limited to the Louisiana Real Estate Commission (LREC), to undergo additional review to ensure that members who sit on occupational licensing will avoid liability under federal antitrust laws.
· At the request of the author, Louisiana REALTORS® was at the table at every meeting where associations representatives negotiated committee amendments for the bill.
· Louisiana REALTORS® worked tirelessly with representatives of a coalition of 50+ national and state associations to ensure that amendments were adopted to put the bill in a posture that Louisiana REALTORS® and most associations accepted.
HB NO. 617/SENT TO THE GOVERNOR
Representative Hilferty filed this bill on behalf of Louisiana REALTORS® to clarify some matters following the Valobra v. Nelson case pertaining to the residential property disclosure form.
· The bill clarifies that the residential property disclosure form is required to be executed for all subsequent transfers following the property being transferred through a succession.
· The bill further clarifies that the seller must disclose whether there was a meth lab on the property to be sold that is still on the list of contaminated properties maintained by the Department of Environmental Quality.
HB NO. 659/INVOLUNTARILY DEFERRED IN HOUSE COMMITTEE
This bill would have put additional requirements on property owners who have vehicles towed off their lots for parking violations.
· Louisiana REALTORS® raised several concerns and the bill’s author had amendments adopted to address those concerns.
· However, the bill still failed to pass due to opposition from the towing industry.
Louisiana REALTORS® is proud that we were able to convince the author and the committee of the need to preserve property rights and that the bill was changed to address our concerns.
HB NO. 748/SENT TO THE GOVERNOR
This bill would have potentially given the state authority over certifications and designations that REALTORS® are awarded by the National Association of REALTORS® and certifications issued by private organizations in other professions and occupations.
· The author stated that this was not her intent and had amendments adopted to remove this portion of the bill.
· However, the bill also sought to establish questionable policy regarding the standards by which the state could legitimately regulate any occupation or profession.
· Due to the concerns of Louisiana REALTORS® and almost 50 other organizations of professions and occupations, the bill was largely amended in the Senate Committee on Commerce, Consumer Protection and International Affairs to only require a review of all agencies that issue professional and occupational licenses and a timeline for that review.
SB NO. 462/VETOED
Louisiana allows municipalities and parishes to pass inclusionary zoning ordinances to promote the development of affordable housing.
· Inclusionary zoning requires housing developers to sell or rent a proportion of their units below market rate, regardless of the economics of a project or whether the developer receives just compensation.
· Senate Bill 462 would have instead allowed municipalities and parishes to offer VOLUNTARY economic incentive policies to promote the development of affordable housing.
Governor Edwards vetoed this bill stating that it may jeopardize federal funding available to local governments for affordable housing programs. However, in his veto message Governor Edwards stated that he is not opposed to signing similar legislation next year if local governments do not actively pursue inclusionary zoning strategies within the next year.
SB NO. 466/ACT NO. 416
As filed, this legislation proposed a law change on security deposits for residential leases and potentially placed many additional burdens on residential lessors. Therefore Louisiana REALTORS® was initially opposed to the bill.
· However, after amendments were put on the bill it now only provides that a tenant would have the right to recover the amount of the portion of any security deposit wrongfully withheld and $300 or twice any portion of the security deposit wrongfully withheld, whichever is greater.
· Prior law allowed the tenant to recover actual damages or $200, whichever was greater.
· These amendments significantly altered the bill and removed not only Louisiana REALTORS® opposition but also the opposition of the Apartment Association of Louisiana.
As previously noted in our 2026 legislative session update, HB 468 by Rep. Troy Hebert was adopted with no opposition and was effective August 1, 2026, as Act 807. The Act amends portions of the Louisiana Real Estate License Law (La. R.S. 37:1430, et seq.) to regulate the practice of wholesaling with respect to residential property. Specifically, the Act establishes newly defined terms of “residential real property”, “wholesaler” and “wholesaling” (La. R.S. 37:1431(35) through (37)) and enacts La. R.S. 37:1448.5 to specifically address wholesaling of residential real properties, including required disclosures, written agreements, notices and deposits and also provides for enforcement of the new law. The Act does not prohibit real estate wholesaling. Rather, there are certain requirements for “wholesalers” solely with respect to “wholesaling” of “residential real property.” Each of those terms are defined below. The intent is to make sure that sellers (homeowners) understand the true nature of the wholesaling transaction. To accomplish that, the law requires wholesalers to clearly disclose whether they intend to assign, transfer, or market any rights they have under a purchase agreement for financial gain. The wholesaler must prominently disclose that intent along with advising the seller to seek legal advice before signing each contract and that the seller has the right to cancel the wholesaling contract for any reason and without penalty for at least five calendar days after the execution of the contract. The law expressly requires that each wholesaling contract include the following: "NOTICE REQUIRED BY LOUISIANA LAW: You may cancel this contract at any time before 11:59 PM of [Insert Date]. [Insert Name of Wholesaler] CANNOT ask you to sign or have you sign any cash sale, conveyance or deed, or any other document until your right to cancel this contract has ended. See the attached notice of cancellation form for an explanation of this right. It is advisable that you find your own attorney before signing the contract. The law requires this contract to contain the entire agreement. You should not rely upon any other written or oral agreement or promise." The “notice of cancellation form” referenced above has been published by the Louisiana Real Estate Commission as the “Wholesaling Residential Real Property Mandatory Cancellation Notice” and can be found here . Failure to include that notice renders the contract void and terminable by the seller and in the event of such a termination due to failure to include the notice or other non-compliance by the wholesaler, the seller will receive the deposit. However, if the contract is terminated within the 5-day rescission period, the wholesaler receives the deposit in full. Notably, the Act requires a minimum deposit equal to at least 1% of the purchase price, with funds properly held in escrow, in all wholesaling transactions. In addition, wholesalers are also prohibited from: (a) acting or purporting to act on behalf of the seller whether pursuant to a mandate, power of attorney, or otherwise; (b) representing himself as holding any license or certification or being a member of a licensed profession without the license or certification; (c) placing any lien or other encumbrance on the property; and (d) engaging in any deceptive or unfair trade. Louisiana REALTORS ® is proud to have supported this Act to promote transparency and consumer protection in the real estate industry while allowing for continued investment in our communities through real estate transactions. Definitions: "Residential real property" means real property consisting of one or not more than four residential dwelling units, which are buildings or structures each of which is occupied or intended for occupancy as single family residences. "Wholesaler" means any person or entity that is either engaged in or intends to engage in the wholesaling of residential real property. "Wholesaling" means securing, negotiating, or facilitating the purchase or sale of residential real property with the purpose of transferring, assigning, or selling a contractual right to purchase or any other equitable interest in the residential real property, whether directly or indirectly, for financial gain. The marketing for sale of the contractual rights or other equitable interests constitutes a presumption that the person or entity marketing or selling the rights or interests is engaged in wholesaling. "Wholesaling" includes but is not limited to the following: (a) Entering into a contract to purchase residential real property with the intent of assigning or selling the contractual rights to another party before taking possession or legal ownership of such residential real property. (b) Simultaneously consummating or closing two separate transactions relative to the same residential real property, including one transaction with the original owner and seller of the residential real property and another transaction with the end buyer, without the purchaser providing all funds needed to close the sale transaction with the original owner and seller and without the intent to reside in, occupy, or otherwise materially improve the residential real property.
NAR is sharing its latest consumer guide, Seller Handoff Checklist . Sellers can create a smooth transition for the new owners using the new one-page guide. It offers a handy checklist of information and resources that sellers can pass along—from appliance manuals to paint colors to garbage pickup schedules—as well as suggestions for goodwill gestures that will help buyers feel they made a great purchasing decision. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow up to two weeks for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: Seller Handoff Checklist Defining Home Buying Needs vs. Wants 10 Tips For Unpacking Smartly After A Move UPDATED: Multiple Listing Services Overcoming Roadblocks to a Sale or Purchase Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their home buying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Check out the next consumer guide on condominium insurance.
NAR Community and Transportation Preference Survey reinforces need for housing choices and shows support for community design to easily access daily destinations.
