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.
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Candidate qualifying for Louisiana’s November 3 election began Wednesday, August 5, and concludes Friday, August 7. The three-day qualifying period will establish the candidates for all six U.S. House districts, as well as judicial, parish and municipal races across the state. This election cycle includes several changes to Louisiana’s congressional races and election calendar. The state’s U.S. House primaries, originally scheduled for May 16, were canceled following the U.S. Supreme Court’s decision in Louisiana v. Callais. The Louisiana Legislature subsequently adopted a new congressional map that reduced the number of Black-majority congressional districts from two to one. Under the revised election calendar, the November 3 U.S. House contests will use an open primary system. All qualified candidates will appear on the November ballot, regardless of party affiliation. A candidate receiving more than 50% of the vote will be elected. If no candidate receives a majority, the two candidates receiving the most votes will advance to a December 12 runoff. U.S. Senate The November general election will feature Republican nominee U.S. Rep. Julia Letlow and Democratic nominee Jamie Davis. Letlow's Senate campaign has also created an open seat in Louisiana's 5th Congressional District. 5th Congressional District Several candidates have announced campaigns for the 5th Congressional District seat: State Sen. Stewart Cathey State Rep. Michael Echols Louisiana Board of Regents Chair Misti Cordell State Rep. Gabe Firment Cathey, Echols and Firment currently serve in the Louisiana Legislature. Additional candidates may qualify before the deadline on Friday. The 5th District covers portions of northeastern and central Louisiana and extends into the Florida Parishes. 6th Congressional District Congressman Cleo Fields has announced that he will not seek reelection in the newly redrawn 6th Congressional District. Instead, Fields is running in a special election for his former state Senate seat, which became vacant following the death of Sen. Larry Selders of Baton Rouge. The newly drawn 6th Congressional District extends around the Baton Rouge area and includes portions of rural communities surrounding the capital region. State Sen. Rick Edmonds has announced his candidacy. State Sen. Blake Miguez has also been discussed as a potential candidate, although the candidate field will not be finalized until qualifying closes Friday. Federal law requires congressional candidates to reside in the state they seek to represent but does not require them to reside within the specific congressional district. 2nd Congressional District Congressman Troy Carter currently represents the 2nd Congressional District, which extends from the Baton Rouge area toward New Orleans. Under the newly adopted congressional map, the 2nd District remains Louisiana's sole Black-majority congressional district. East Baton Rouge Parish Judiciary All 15 judgeships on the 19th Judicial District Court are scheduled for election following the Legislature's creation of two new judicial election subdistricts. Each subdistrict will elect seven judges, with an additional judgeship elected parishwide. Litigation challenging the new judicial map remains pending. Judicial races are among the contests being monitored by Louisiana REALTORS® and local Political Action Teams. Judicial decisions can have implications for property rights, business activity, litigation and the overall legal environment in Louisiana. Local Elections Voters across Louisiana will also consider candidates for mayors, city and parish councils, school boards, police chiefs and other local offices. While these races typically receive less statewide attention than congressional and statewide contests, local elected officials make decisions affecting land use, zoning, permitting, infrastructure, taxation and housing policy. These issues can directly affect real estate activity and development within local communities. Candidate Lists and Election Information The candidate field will not be final until qualifying closes Friday, August 7. The official list of qualified candidates is available through the Louisiana Secretary of State's Candidate Inquiry portal. The complete election schedule, including key dates for voting, registration and absentee ballots, is available through the Secretary of State's election calendar. For Louisiana REALTORS®, the qualifying period provides an early look at the candidates who will appear on the November ballot and the races that may affect real estate, property rights, development and local communities across the state.
