Coronavirus Q&A: Brokerage Issues
Louisiana REALTORS • March 20, 2020
Patricia B. McMurray, JD and Melissa M. Grand, JD
Baker, Donelson, Bearman, Caldwell & Berkowitz, PC
450 Laurel Street, Chase Tower North, 21st Floor
Baton Rouge, Louisiana 70801
Many aspects of the home buying and selling process are being impacted by the outbreak of the COVID-19 pandemic (coronavirus). Below are questions related to the potential impact of the coronavirus outbreak affecting Brokers. The governmental response to the coronavirus is rapidly evolving. It is important to refer to the CDC’s website for up-to-date information about the coronavirus's current impact in the United States. Daily updates about the coronavirus are also available from the World Health Organization.
1. Has the Governor, local government or Louisiana Real Estate Commission issued any new rules regarding real estate activity and licensees since the coronavirus pandemic declaration?
Short Answer: Not specifically, except that certain actions regarding property management (Landlord/Tenant) may potentially be the subject of these orders. We will further address these issues in a separate article. See also “Impact of the Executive Order on Purchase Agreements and Closings”
2. Are my listing agreements impacted by Governor Edward’s recent order or any local governments’ orders?
Short Answer: Not specifically; however, force majeure clauses may be important in determining if delayed or excused performance of contracts is allowed. There is a more detailed discussion of this issue on LR’s website: https://www.larealtors.org/publications/2020/3/19/impact-of-the-executive-order-on-purchase-agreements-and-closings.
3. Can I still hold open houses on listed properties?
Short Answer: Currently there is no governmental order prohibiting open houses. However, the most recently issued CDC guidance and President Trump’s “Guidelines for America -- 15 Days to Slow the Spread of Coronavirus (COVID-19)” provide that, events of 10+ people should be canceled or held virtually. See https://www.cdc.gov/coronavirus/2019-ncov/community/large-events/index.html
and https://www.whitehouse.gov/wp-content/uploads/2020/03/03.16.20_coronavirus-guidance_8.5x11_315PM.pdf. Brokers should continue to assess whether open houses are advisable based the current facts and rapidly changing circumstances.
The National Association of REALTORS® (NAR) issued guidance on this topic. See https://www.nar.realtor/coronavirus-a-guide-for-realtors. Brokers should talk to their clients about conducting open houses and consider possible health risks. Further, the Broker and Seller should consider what steps can be taken to limit the potential risk of infection. For example, should everyone be required to wash their hands or use hand sanitizer when entering the property? What is your procedure if someone wants to visit the property and appears ill? Cleaning and disinfecting the property after an open house should be considered, as well as who will pay for the cost of the cleaning.
Many real estate industry groups are recommending against holding open houses. Some MLS’s in other states, like Washington, have eliminated the ability of members to schedule open houses until further notice. This has not occurred in Louisiana, as of the writing of this article. However, careful consideration should be given to postponing open houses, in light of the rapid rise in known coronavirus cases in Louisiana. Also, it is important to continue monitoring the CDC’s website, as well as any Orders issued by Governor Edwards, which may impose further restrictions on in-person gatherings.
4. Can I still show houses?
Short Answer: Currently yes; there is no governmental prohibition against showing the property. However, Brokers should review their listing agreements for specific contract provisions and continue to assess whether showings are allowed and/or advisable based on the current facts and circumstances.
NAR has provided guidance on this topic. See https://www.nar.realtor/coronavirus-a-guide-for-realtors. You should work with your Sellers to determine if they are willing to have their home or property open for showings, as discussed above, or virtual tours and virtual meeting may be an alternative. We now know the coronavirus may live on surfaces for some time, and some Sellers will not want to have visitors in their homes or properties at this time.
Be mindful and diligent in monitoring updates from the CDC, as well as State and local health authorities for additional information and guidance on holding meetings or events. The Louisiana Department of Health’s website may be found here: http://ldh.la.gov/coronavirus/. Another helpful resource is the CDC’s Interim Guidance for Businesses and Employers.
5. May I refuse to meet with or drive potential clients to see homes?
Short Answer: Yes; however, it is important to make sure that any change in a Broker’s business practices is applied equally to all clients. You can ask clients if they have traveled to affected countries if they are experiencing any signs of respiratory illness or running a fever. See https://www.nar.realtor/coronavirus-a-guide-for-realtors. Also, if a Broker does drive clients to showings, it will be advisable to frequently clean and disinfect the vehicle. The Broker may also ask the clients to use hand sanitizer before entering the car.
6. Should Brokers consider taking any precautions in his or her office?
Short Answer: Yes.
Based on what is currently known about coronavirus, spread from person-to-person usually happens among close contacts (within about 6 feet). See https://www.cdc.gov/coronavirus/2019-ncov/community/organizations/cleaning-disinfection.html. According to the CDC, the coronavirus may remain viable for hours to days on surfaces made from a variety of materials. So, the CDC recommends cleaning of visibly dirty surfaces followed by disinfection as a best practice measure for the prevention of coronavirus. See https://www.cdc.gov/coronavirus/2019-ncov/community/organizations/cleaning-disinfection.html. In addition to performing regular environmental cleaning with special attention paid to frequently touched surfaces, Brokers should implement a mandatory “stay home” policy for any staff member or agent exhibiting any sign of illness. See https://www.nar.realtor/coronavirus-a-guide-for-realtors. In addition, with CDC guidance that recommends limiting or canceling gatherings and events, Brokers should take measures to hold virtual meetings when possible, and potentially postpone or cancel in-person meetings or events at this time.
DISCLAIMER
Information and additional guidance and orders regarding the pandemic are being issued daily. The information is the article was last updated on March 19, 2020 at 4:00 p.m.
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] Information and additional guidance and orders regarding the pandemic are being issued daily. The information is the article was last updated on March 19, 2020 at 4:00 p.m.
Louisiana REALTORS® wraps up 2025 and looks forward to 2026! Louisiana REALTORS® gathered in Baton Rouge from October 7–8 for the 2025 Fall Governance Meetings, a dynamic two-day event filled with professional development, strategic planning and member engagement. The day before the conference offered the conclusion to the 2025 LR Leadership Program with participants graduated from the yearlong program after a half-day session. The 2025 graduates include: Torri Byrd, Shawn Carter, Bradley Cook, Stefany Deroche, Mignon Richard Díaz, Alfra Dixon, Thaddeus Dixon, Glen Elliott, Yvonne Graham, Charlotte Johnson, Michelle LaBanca, Slagle McGuffee, Ellen Monroe, Matt Noel, Ros Pack, Tiffany Pellerin, Latonia Riggs, Shannon Rodi Nash, Trish Skellham, Rebecca Slone and Charlotte St. Romain. Additionally, a sold-out, full-day AI-Powered Real Estate Professional Certification course led by industry expert Matthew Rathbun blew away attendees and had them leaving the session with such invigoration. The first official day of the conference held focus on professional development and networking. Tuesday opened with an informative session entitled Professional Liability 101 from Rice Insurance Services Center, offering critical insights into E&O and risk management. RPR's session brought a wealth information to attendees and offered a hands-on learning experience for the tools offered online. Targeted sessions like the Local AE Meeting and the YPN Advisory Council Open Meeting provided space for peer exchange and innovation. The day concluded with a festive Opening Reception sponsored by Louisiana YPN, bringing members together to celebrate and connect. The next day offered collaboration and celebration with Closing the Affordability Gap, presented by the Louisiana Housing Corporation, equipping REALTORS® with tools to better serve clients in today’s market. Regional caucuses followed, allowing members from across Louisiana to discuss local issues and share best practices. The Board of Directors Meeting brought the governance portion of the event to a close with strategic decisions for the year ahead. At the Board Meeting, Chris Brock, Northeast REALTORS® of Louisiana; Trish Leleux, Greater Central LA REALTORS® Association; Synde Devillier, Bayou Board of REALTORS®; Scott McCubbin, Bayou Board of REALTORS®; Amber Morrow, Greater Fort Polk Area REALTORS®; and David Moses, Greater Central LA REALTORS® Association; were elected as 2026 At-Large Directors. The grand finale? A spirited LSU Pregame Fan Experience and the highly anticipated Installation Ceremony, where new leadership was formally welcomed in a celebration of community and commitment. Louisiana REALTORS® looks forward to hosting REALTORS® from around the state at the Winter Leadership Conference, March 3-4, 2026, at the Live! Casino & Hotel in Bossier City. We would like to thank our sponsors Greater Baton Rouge Association of REALTORS® (GBRAR) , Zillow , Dax Roy Appraisals, Supra, American Home Shield, Guard Home Warranty fo r their generous support in helping make this conference happen!
Open letter from Nykia Wright, CEO of the National Association of REALTORS®
Professional etiquette can make or break your real estate career. Learn essential tips to build trust, impress clients, and stand out in your market.
