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Gov. Edwards Renews Stay At Home Order

LOUISIANA REALTORS • Apr 03, 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.  
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