Gov. Edwards Renews Stay At Home Order
LOUISIANA REALTORS • April 3, 2020
GOVERNOR EDWARDS RENEWS STAY AT HOME ORDER –
HOW DOES IT IMPACT REAL ESTATE?[1]
By: Patricia B. McMurray, JD and Melissa M. Grand, JD
Baker, Donelson, Bearman, Caldwell & Berkowitz,
PC450 Laurel Street, Chase Tower North,
21st FloorBaton Rouge, Louisiana 70801
On April 2, 2020, Governor John Bel Edwards extended the statewide Stay at Home Order
(the “Order”), so that the Order is now effective through April 30, 2020.[2] Also, the U.S. Department of Homeland Security, Cybersecurity & Infrastructure Security Agency (CISA) issued updated guidance
which now provides that residential and commercial real estate services, including settlement services, are “essential.” A discussion of these changes and the impact on your business is below.
1. How does the new Order and CISA guidance impact my business?
Short Answer:
Under the new Order and CISA guidance, “real estate” is an “essential activity” permitted to continue operations; however, gatherings of 10 people or more are still not allowed, and social distancing must still be maintained.
Residential and commercial real estate services, including settlement services, are now classified as an “essential activity” under the Order.[3] This means that real estate services are permitted to continue, and real estate brokers and agents have the ability to continue to work while following safety precautions to prevent the spread of coronavirus. However, the Order’s prohibition on gatherings of 10 people of more people is still in place.[4] Also, social distancing guidelines should continue to be followed. Continue to monitor the CDC’s website for up-to-date information about the coronavirus' current impact in the United States.
We encourage brokers and managers to continue communicating with their agents and support staff to determine a plan of action on how best to serve their clients through remote and virtual methods and how to conduct business while also following the Governor’s Order and the CDC’s guidelines on group gatherings.
2. Does the new CISA guidance mean I can conduct real estate closings now?
Short Answer:
Real estate closings can still occur as long as the gathering is limited to less than 10 people and social distancing requirements are maintained. However, at this time, it is still advisable to consider postponing closings or conducting closings via mail with counterpart signatures to the extent possible because of the current impact of COVID-19 on Louisiana.
Real estate and settlement services are now specifically covered in CISA’s guidance[5] and fall within one of the “essential” work classifications. So, real estate closings are permitted to go forward under Section 2 of the Order. A gathering should still be limited to less than 10 people, and social distancing requirements should still be maintained.
The Governor continues to implore Louisianans to stay home whenever possible. Further, consider impact of and the lack of the availability of other services your clients may need if the transfer of property goes forward such as movers and house cleaners. So, to the extent possible, consider postponing closings. Closings can also be conducted through mail or overnight delivery of counterparts of closing documents to minimize the actual need to have a meeting. Some closing documents, however, will still require a signature before a notary and two witnesses. See Coronavirus Amendment
to the Louisiana Residential Agreement to Buy or Sell.
3. Does the new CISA guidance mean I can hold open houses on listed properties or show houses now?
Short Answer:
Even considering the new CISA guidance, we still strongly discourage open houses and encourage you to use virtual means to conduct showings.
Considering the rapid spread of the coronavirus in Louisiana, and the Governor’s orders for individuals to stay home whenever possible, it is advisable that open houses and showings be postponed or conducted virtually. There is no way to ensure that the gathering can be limited to 10 people and social distancing requirements can be maintained when the general public is invited to a location for an open house. Additionally, in-person showings put you and your clients in risk of being infected with the virus.[6] This situation is evolving rapidly, and the CDC's website
should be monitored for up-to-date information.
NAR’s latest consumer guide, “10 Tips for Unpacking Smartly After a Move,” was developed to help ease the burden buyers may feel when surrounded by boxes. For your clients on the cusp of a move, the guide suggests establishing a priority unpacking order, wiping down each room before unpacking, discarding boxes quickly, having garbage and donation bags at the ready, and more. Share the new guide along with the companion guide “10 Tips for Packing Smartly for a Move.” 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: 10 Tips For Unpacking Smartly After A Move UPDATED : Multiple Listing Services Overcoming Roadblocks to a Sale or Purchase How Solar Impacts a Real Estate Transaction Navigating Interest Rate Shifts 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 identifying homebuying wants vs. needs.
Thinking about buying a home? Discover how homeownership can help build wealth, increase financial stability, and create lasting value.
From the Louisiana Department of Insurance: During a press conference today with Governor Jeff Landry, Insurance Commissioner Tim Temple announced that registration for the next round of the Louisiana Fortify Homes Program (LFHP) will open at 8 a.m. on Monday, June 1, and will include 3,000 grants. The registration period for this lottery will be open for three weeks, closing at 5 p.m. on Friday, June 19. During the press conference, Gov. Landry signed HB 1187 by Rep. Paul Sawyer, which will allow Louisiana Citizens Property Insurance Corporation to transfer $50 million in additional Katrina bond assessment funds to the LFHP. Combined with the $30 million in funding the program will receive through taxes and fees on insurance entities, the LFHP will receive a total of $80 million this year. “By lowering overall losses, we can reduce insurance and reinsurance costs, draw more insurers into the market, motivate existing companies to write additional policies and lower insurance premiums,” said Commissioner Temple. “That is exactly what the Louisiana Fortify Homes Program is designed to do.” The list of coastal parishes that are eligible to participate is expanding to include Acadia, Jefferson Davis and Lafayette parishes. Additionally, homeowners who live in the portions of Ascension, Calcasieu, Iberia, Livingston, St. Martin, St. Tammany, Tangipahoa and Vermilion parishes that were previously not included in the program will now be eligible to participate. A map showing the full list of eligible parishes is available on FortifyHomes.La.Gov . “Louisiana is the fastest growing state in the country for Fortified roofs, and that growth is not by accident—it is the result of strong support from Governor Landry and legislators like Chairman Talbot, Chairman Firment and Representative Sawyer, targeted program design, and a clear recognition that strengthening homes is one of the most effective ways to reduce insurance losses,” said Commissioner Temple. “At the end of the day, this program is about more than just roofs. It is about protecting families, it is about strengthening communities, and it is about putting Louisiana in a stronger position—both physically and economically—to face the challenges ahead.” To participate in the lottery, homeowners must register during the June registration period. Homeowners who registered for a previous round but were not selected must register again to participate. People who register on the last day of the registration period have the same chance of being selected as those who register on the first day, so there is no need to rush to register as soon as the period opens. When registering, homeowners will need to upload their homestead exemption, insurance policy declarations page that includes wind coverage, and flood insurance declarations page if the residence is in a flood zone. Homeowners who need assistance obtaining a copy of their homestead exemption should contact their parish tax assessor. Homeowners can contact their homeowners and flood insurance companies or agents for a copy of their policy declarations page. Homeowners are required to create a profile in the LFHP system before registering for the lottery and may do so by visiting the LFHP website and clicking the Login button. Homeowners who previously created a profile may use the same one for this and future rounds. Once the lottery registration period closes, the LFHP will randomly select 3,000 participants and send email notifications to registrants about whether they were selected to participate. These selection notices will be sent via email beginning on Monday, June 22. There are several program requirements that homeowners should be aware of before registering. Those interested in the program are encouraged to review eligibility information and frequently asked questions at FortifyHomes.La.Gov to determine whether their home meets the requirements for the program. If selected to participate in the grant program, homeowners will be financially responsible for having the home evaluated by a FORTIFIED-certified Evaluator as well as costs for the roof upgrade including permits, inspections and construction costs beyond the amount of the grant The LFHP provides grants of up to $10,000 for homeowners to upgrade their roofs to standards set by the Insurance Institute for Business & Home Safety. The program helps Louisiana homeowners strengthen their roofs to better withstand hurricane-force winds.
