Trial Court Decision Affecting Property Disclosure Document Reversed
LOUISIANA REALTORS • January 25, 2019
By: Patricia B. McMurray, JD
Baker, Donelson, Bearman, Caldwell & Berkowitz, PC
450 Laurel Street, Chase Tower North, 20th Floor
Baton Rouge, Louisiana 70801
Background
In Valobra v. Nelson, the buyer sued the seller alleging the seller misrepresented the condition of the property by checking the "no" box on the Property Disclosure Document ("PDD") instead of the "no knowledge" box as to questions regarding the condition of the property.[1] The buyers allege because of this misrepresentation by the sellers on the PDD, the buyers agreed to buy the property "as is" and waive redhibition rights in the Act of Sale. Redhibition is a warranty required by state law to be given to a buyer unless waived by the buyer. Redhibition means the buyer can sue to return the property to the seller or get a refund of a portion of the purchase price after the sale if the buyer discovers a defect in the property that if the buyer had known about prior to the sale he would not have bought the property.[2] The Valobra buyers alleged that the sellers checked the box marked "no" in response to questions on the PDD regarding whether the property had certain defects. Defects in the property were later discovered. The sellers then claimed they did not know of the defects in the property.[3] The buyers argued that the sellers checking the box marked "no" instead of the box marked "no knowledge" on the PDD and therefore intentionally misled the buyers into believing that the sellers had knowledge that there were no defects in the property. The buyers alleged the sellers were in bad faith and fraudulently induced the sellers to execute a waiver of redhibition contained in the Act of Sale by stating "no" instead of "no knowledge" of the defects.[4]
24th Judicial District Court
The trial court, the 24th Judicial District Court denied the motion for summary judgment filed by the Seller on March 25, 2018. The Seller alleged in the motion that there appears to be no controversy over whether the Buyer was aware of the alleged "defects" at the time of execution of the waiver of redhibition included in the Act of Sale as the Seller and Buyer had agreed to a price concession to compensate the Buyer for the "defects" noted by the home inspection prior to sale. The Seller filed a Writ to the Court of Appeal requesting the Court of Appeal revise the trial court's denial of the motion for summary judgment.
Louisiana REALTORS® filed an amicus brief in support of the Seller's Writ. The Court of Appeal held that the
"Plaintiff's (Buyers) argument failed to recognize that the Property Disclosure required by the RPDA (property disclosure form) does not provide a guaranty that no defects exist in the property, but rather requires disclosures of known defects to the best of the seller's information, knowledge or belief. La. R.S. 9:3198(D) specifically states a property disclosure document is not a warranty and is not part of any contract between the buyer and seller. In addition, buyers, such as plaintiffs, cannot rely on the property disclosure document as a substitution for inspections. Therefore, plaintiffs cannot use their alleged reliance on the Property Disclosure as an excuse for failing to obtain a comprehensive home inspection or failing to follow the advice of the inspectors to obtain more extensive inspections." (explanation supplied)
The Writ was granted by the Court of Appeal and the reversal of the denial of the motion for summary judgment was granted. All claims against the Seller by the Buyers were dismissed. A full copy of the Court of Appeal's Judgment can be found here.
Louisiana Supreme Court
The Buyers filed an Application for Writ of Certiorari with the Louisiana Supreme Court on January 16, 2019 requesting a review of the Fifth Circuit Court of Appeal Judgment. We will provide information on the outcome of the appeal to the Louisiana Supreme Court when available.
[1] Nancy Williams wife of/and Franco Valobra vs. Robert Allan Nelson and Jerome Garfield Smith, III as Co-Trustees of the Allan R. & Louise S. Nelson Revocable Trust & The Allan R. Nelson Marital Trust, Suit No. 720-048, 24th Judicial District Court for Jefferson Parish
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[2] La. Civil Code 2520
[3] Id.
[4] Id.
Week seven of the 2026 Regular Session was one of the most active weeks yet for legislation affecting the real estate industry. Louisiana REALTORS® remained heavily engaged as lawmakers advanced bills dealing with property disclosures, appraiser liability, rent regulation, insurance, blight, redevelopment and other issues that directly affect real estate professionals, property owners and consumers across the state. One of the most important bills this week was HB 1166 by Rep. Kim Carver , which would require disclosures for vacant residential property. The bill was reported from House Commerce with amendments on a 14-0 vote and then amended on the House floor, ordered engrossed, and passed to third reading. Louisiana REALTORS® testified on the bill in committee and worked closely with the author to better posture the legislation. Amendments advanced by our team were accepted by the author, helping improve the bill while preserving a practical disclosure framework that increases transparency without creating unnecessary confusion in the transaction process. Another closely watched issue this week was consumer-fee disclosure legislation. HB 617 by Rep. Mandie Landry moved this week, advancing from House Commerce and then the House floor, while HB 580 , another hidden-fee disclosure bill touching real estate transactions, remains pending. Louisiana REALTORS® is opposed to these measures in their current form to the extent they apply to real estate professionals because they are not well-tailored to the realities of real estate transactions, where many costs are negotiated, variable or controlled by third parties. Louisiana REALTORS® testified in opposition to the bills we oppose and is actively working with the author to better posture the legislation and remove real estate professionals from its scope altogether. On HB 472 by Rep. Alonzo Knox , the rent stabilization bill, the author is expected to try to bring the measure back before the committee next week with amendments. Even so, Louisiana REALTORS® remain opposed to the bill on principle. Price gouging is already illegal under existing law, and government-imposed rent regulation is not the right answer to housing affordability challenges. Louisiana REALTORS® testified in opposition to the bill and continues to oppose the measure because policies like this risk discouraging investment, reducing housing supply, and creating further market distortions rather than solving the underlying problem. HB 468 by Rep. Troy Hebert , which regulates the wholesale of residential real property, remains pending in the Senate Commerce Committee and continues to be an important bill for the industry. Likewise, HB 1027 by Rep. Troy Hebert , dealing with appraiser liability, had a strong week, passing the House 90-0 and moving to the Senate. Both measures are significant because they promote greater clarity, consumer protection and confidence in the real estate marketplace. Blight and redevelopment issues also remained active. HB 284 by Rep. John Wyble , which would allow certain local governments to expropriate blighted property through a declaration-of-taking process, remains subject to call and continues to raise serious concerns about private property rights. By contrast, HB 214 and HB 217 by Rep. Chance Henry , which create tax incentives for the rehabilitation of blighted property, represent a more constructive redevelopment approach by encouraging reinvestment rather than expanding government taking authority. Insurance legislation also remained a major focus this week, with multiple bills heard that could affect homeownership costs, market stability and post-storm recovery. Measures dealing with Louisiana Citizens assessments, pre-suit insurance claim review, the Fortified Homes Program and insurance market transparency all carry real implications for affordability and transaction viability. In Louisiana, insurance remains one of the most important issues affecting the real estate market, and Louisiana REALTORS® continues to closely track that legislation. Taken together, week seven showed that Louisiana REALTORS® remains actively engaged where it matters most: supporting practical transaction standards, protecting private property rights, testifying for and against legislation when necessary, pushing back on unworkable regulation and rent-control-style policies, and advancing policies that strengthen housing opportunity and market stability across Louisiana. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.
NAR is pleased to share the latest consumer guide helping buyers navigate shifting interest rates. The one-page guide covers how lenders set rates, the impact of small shifts on monthly payments and strategies to get the lowest rate possible. 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: Navigating Interest Rate Shifts Financing a Renovation When You Buy Staging Your House for a Sale Spotting Deepfake Scams in Real Estate Are You Ready to Invest in Real Estate? 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. Be on the lookout for the next consumer guide, which looks at how solar installations may impact home sales transactions.
Louisiana REALTORS® spent week six of the Legislative Session actively engaged on several bills at the Capitol impacting core industry priorities, including private property rights, affordability, redevelopment and transaction-related regulations. Most of the meaningful activity remained in the House, where lawmakers continued advancing measures with direct implications for the real estate market. HB 284 by Rep. John Wyble , which would authorize certain local governments to expropriate blighted property by declaration-of-taking, failed on final passage in the House Tuesday by a 48-47 vote, and remains subject to reconsideration. Meanwhile, HB 472 by Rep. Alonzo Knox , which would authorize rent stabilization at the local level, was voluntarily deferred in committee following testimony from Louisiana REALTORS® and our partners at the Louisiana Apartment Association effectively ending its path this session. This marks a significant win, as rent control policies do not address housing supply challenges and instead risk further market distortion. In House Commerce, several key bills moved forward. HB 1027 by Rep. Troy Hebert , which clarifies that appraisers are not liable for a seller’s failure to meet smoke and carbon monoxide detector requirements, passed committee unanimously and is now slated for a House floor vote. This common-sense measure protects appraisers and helps preserve efficiency in the transaction process. HB 673 by Rep. Tammy Phelps , which would have imposed new security camera mandates on certain blighted properties, was also voluntarily deferred following industry opposition. Additionally, HB 426 by Rep. Phelps , which addresses criminal blighting and expands enforcement liability, remains under consideration. Louisiana REALTORS® is monitoring this bill closely to ensure efforts to address blight do not unintentionally discourage investment or redevelopment. We continue to track broader market integrity and redevelopment efforts. HB 468 by Rep. Hebert , addressing residential wholesaling, has now moved to the Senate after unanimous House passage. HB 217 by Rep. Chance Henry , which provides tax incentives for the rehabilitation of blighted property, also remains active in the Senate and represents a constructive approach to redevelopment. Looking ahead, the House Commerce Committee will consider HB 1166 by Rep. Kim Carver next week, which addresses disclosure requirements for vacant residential property. Louisiana REALTORS® supports clear, consistent consumer disclosures and have been working closely with the author and the Louisiana Real Estate Commission to ensure the bill is structured to promote transparency while maintaining practical standards and avoiding unintended liability for real estate professionals. Overall, the House carried the bulk of real estate activity this week, while the Senate saw limited movement on major REALTOR® priorities. As the session continues, Louisiana REALTORS® remains focused on protecting private property rights, opposing harmful market interventions, supporting responsible redevelopment and advancing policies that strengthen real estate transactions for both consumers and our members. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.
