Stay At Home Extended Through May 15 - How Does It Impact Real Estate?
LOUISIANA REALTORS • May 1, 2020
GOVERNOR EDWARDS EXTENDS STAY AT HOME ORDER THROUGH MAY 15, 2020 – 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 30, 2020, Governor John Bel Edwards extended the statewide Stay at Home Order (the “Order”), so that the Order is now effective through May 15, 2020.[2] A discussion of the key provisions in the Order relevant to real estate is below.
1. How does the new Order impact my business?
Short Answer:
Under the new Order, real estate services are still permitted to continue operations because they are “essential” under the Order and CISA guidance; however, gatherings of 10 people or more are still not allowed, and social distancing must still be maintained. An important change in the Order is that all businesses must require that any owner or employee having interaction or contact with the public must wear a mask or face covering, which likely means that brokers, agents, and property managers are required to wear masks or face coverings when interacting when their clients, tenants, or other members of the public.[3]
The new Order is almost identical to the Governor’s previous Stay at Home Orders. Residential and commercial real estate services, including settlement services, are still classified as an “essential activity” under the Order.[4] 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. The Order’s prohibition on gatherings of 10 people of more people is still in place.[5] Also, social distancing guidelines should continue to be followed.
A noteworthy change in the new Order which is relevant to the real estate industry is that “all businesses shall require that any owner or employee having interaction or contact with the public shall wear a mask or face covering.”[6] So, under the Order, a broker, agent, or property manager is required to wear a mask or face covering when interacting with a client, a tenant, or other members of the public. Additionally, both the CDC[7] and the Louisiana Department of Health[8] strongly urge everyone to wear masks or face coverings when in public
Brokers and managers are encouraged to continue communicating with their agents and support staff regarding 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. Can I conduct real estate closings now?
Short Answer: Real estate closings can occur as long as the gathering is limited to less than 10 people, social distancing requirements are maintained, and masks or face coverings are worn by individuals interacting with the public. 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.
Because real estate and settlement services are specifically covered in CISA’s guidance[9] and fall within one of the “essential” work classifications, real estate closings are permitted to go forward under Section 2 of the Order. A gathering should must be limited to less than 10 people, social distancing requirements should still be maintained, and anyone having interaction or contact with the public must wear a mask or face covering.[10]
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 signature before a notary and two witnesses. See Coronavirus Amendment to the Louisiana Residential Agreement to Buy or Sell.
3. Can I hold open houses on listed properties or show houses now?
Short Answer: Open houses are still strongly discouraged. We encourage you to use virtual means to conduct showings at this time.
It is still advisable that open houses and showings be postponed or conducted virtually. As the Governor’s Order explains, while the number of new cases of COVID-19 in Louisiana has decreased significantly, and there has been significant evidence that Louisiana has flattened the curve of the virus, there are several regions in the state where the number of incidences have increased in recent days.[11] The Order also states that Louisiana continues to have the sixth highest number of per capita cases in the country with over 28,000 infected, and thus far, Louisiana has not yet met the criteria set by the White House Coronavirus Task force to move into Phase 1.[12]
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.[13] This situation is evolving rapidly. Continue to monitor the CDC's website for up-to-date information.
DISCLAIMER
Information and additional guidance and orders regarding the pandemic are being issued daily. The information is the article was last updated on April 30, 2020 at 4:30 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 April 30, 2020 at 4:30 p.m.
[2] The Governor’s original Stay at Home Order was dated March 22, 2020, and the first renewed Stay at Home Order was dated April 2, 2020. See LR’s previous articles and guidance on the Governor’s Stay at Home Orders: https://www.larealtors.org/publications/2020/3/23/governor-edwards-issues-statewide-stay-at-home-order-how-does-it-impact-real-estate and https://www.larealtors.org/publications/2020/4/3/gov-edwards-renews-stay-at-home-order. See also gov.louisiana.gov.
[3] See Order, Section 2(E).
[4] See Order, Section 2(A)(3).
[5] See Order, Section 2(A).
[6] See Order, Section 2(E).
[7] See https://www.cdc.gov/coronavirus/2019-ncov/prevent-getting-sick/cloth-face-cover.html.
[8] See http://ldh.la.gov/index.cfm/page/3940.
[9] See Identifying critical infrastructure during COVID-19.
[10] See Order, Section 2(E).
[11] See recitals of the Order.
[12] See id.
[13] See larealtors.org.
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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.
The Louisiana REALTORS® Board of Directors will elect six (6) LR At-Large Directors at its October 1st meeting. Qualifications and an application for the position can be found below.
