337 [ ] Condominium Addendum
PROPERTY DISCLOSURE DOCUMENT:
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Attached to this offer is the SELLER’S completed property disclosure document dated ___________.402
The property disclosure agreement is issued pursuant to LA R.S. 9:3196 et seq. and was completed in
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good faith to the best of the SELLER’S knowledge. This document sets forth the minimum disclosure
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requirements for sellers of residential real estate as to the condition of the Property. THIS DOCUMENT
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IS NOT TO BE CONSIDERED A WARRANTY BY THE SELLER, AND IT IS NOT TO BE USED AS A
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SUBSTITUTE FOR ANY INSPECTIONS OR WARRANTIES THAT THE BUYER MAY OBTAIN. Nothing in the
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document precludes the rights or duties of the BUYER to inspect the physical condition of the Property.
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The property disclosure document is not a part of this Agreement.
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The SELLER’S completed property disclosure document is not attached.411
Comments:
Line 402 – This line provides a checkbox to select if the Seller’s completed property disclosure document will be attached to the purchase offer. A blank is also provided on this line for the date of the Seller’s property disclosure document.
Line 403 – This lines states that the property disclosure document was completed by the Seller in compliance with Louisiana State law. The document sets forth the
minimum disclosure required for a Seller of residential real property as to the condition of the Property.
Lines 405 – 407 – These lines further advise the Buyer that the property disclosure document is not to be considered a warranty by the Seller of the condition of the Property. The property disclosure document is not to be used in lieu of any inspections that the Buyer may wish to conduct.
Lines 407 – 408 – These lines provide that receipt of the property disclosure document does not prohibit the Buyer from a physical inspection of the Property. Line 409 – This line provides that the property disclosure document itself is not incorporated into the Statewide Purchase Agreement Form. This is a separate document.
Line 411 – This line provides a checkbox to select if the Seller’s property disclosure document is not attached to the Statewide Purchase Agreement Form.
II. FREQUENTLY ASKED QUESTIONS
1. Who is required to use the Statewide Purchase Agreement
Form?
All licensees representing either the Buyer or Seller of residential real property shall complete the Statewide Purchase Agreement Form prescribed by the LREC in making an offer to purchase or sell residential real property.
2. When do real estate licensees need to start using the Statewide Purchase Agreement Form?
The Statewide Purchase Agreement Form shall be used by licensees on all sales of residential real property on or after January 1, 2008.
3. What is the definition of “residential real property”?
“Residential real property” for purposes of this law means real property consisting of one or not more than four residential dwelling units which are buildings or structures each of which are occupied or intended for occupancy as single family residences.
4. Do all Buyers and Sellers have to use the new Statewide
Purchase Agreement Form?
Buyers and Sellers who do not use the licensed real estate agents or brokers are not required to use the Statewide Purchase Agreement Form.
5. Where can I obtain a copy of the Statewide Purchase Agreement Form?
The form is available on the LREC website at http://www.lrec.state.la.us/ Further, the Louisiana REALTORS® has copies of the form available on its website http://www.larealtors.org/.
6. Do I need to use this Statewide Purchase Agreement Form for undeveloped land?
No. This Statewide Purchase Agreement Form only needs to be used for residential real property and not undeveloped nonresidential land.
7. Do I need to use this Statewide Purchase Agreement Form for commercial property?
No. This Statewide Purchase Agreement Form only needs to be used for residential real property.
8. Do I need to use this Statewide Purchase Agreement Form for condominiums?
Yes. Condominiums are generally included in the definition of residential real property.
9. Do I need to use this Statewide Purchase Agreement Form for new construction of homes?
Yes. Residential real property generally includes new homes.
10. What type of addendum can I attach to the Statewide Purchase Agreement Form?
Any addendum desired by the Buyer or Seller making their offer or counteroffer can be attached to the Statewide Purchase Agreement Form. The LREC has plans to have certain addendums as samples available on its website. These addendums shall not be mandated, but are just forms for use if desired by licensees.
11. Is there a limit on what I can include on an addendum to the Statewide Purchase Agreement Form?
No. The legislation mandating the form did not include a limit on addendums. Any term of an offer or counteroffer may be included on an addendum.
12. Can the Statewide Purchase Agreement Form be altered?
No. The pre-printed portions of the Statewide Purchase Agreement Form itself cannot be altered. No strike-through of the pre-existing portions of the Statewide Purchase Agreement Form is allowed and no handwritten or typed additions to the pre-printed form itself such as in margins is allowed. There are blank lines in the Statewide Purchase Agreement Form for handwritten or typed additional terms. Lines 288 through 297 of the Statewide Purchase Agreement Form also provide blank lines for adding additional terms. All other revisions to the Statewide Purchase Agreement Form shall be made in the form of addendums or amendments to the Statewide Purchase Agreement Form.
13. Is there a possible sanction if a licensee fails to use the Statewide Purchase Agreement Form?
Yes, as with any other provision of the license law, potentially the failure of a licensee to comply with the statute can result in a licensee being sanctioned or other penalty.
14. Does the Statewide Purchase Agreement Form count deadlines by calendar or business days?
The Statewide Purchase Agreement Form uses calendar days throughout the agreement. This means all days count. There are no days that are not counted such as holidays or weekends. A calendar day ends at 12:00 midnight in Louisiana.
15. Is the Statewide Purchase Agreement Form on letter or legal size paper?
The Statewide Purchase Agreement Form will print on letter size paper from the LREC website. There is no LREC rule requiring a specific page size.
16. What about font size for the Statewide Purchase Agreement Form?
The font size should be at least 12 type per LREC rule.
17. The Statewide Purchase Agreement Form provides circumstances when the deposit will be returned to the Buyer, by the Seller. Does this mean licensees can return the deposit without complying with the LREC rules?
No, the LREC rules on deposit still apply. See LREC Rules Chapter 29.
18. Do I need to wait until after January 1, 2008 to begin using the Statewide Purchase Agreement Form?
No. You can start using the form now if you want to use it.
19. What happens if the Statewide Purchase Agreement Form is electronically transmitted (faxed) and through the transmission process the font is reduced below 12pt type as required by the Louisiana Real Estate Commission? Is this still a valid purchase agreement?
The Louisiana Real Estate rule is that the Louisiana Statewide Purchase Agreement form shall be in 12 pt font or greater. The intent of the rule from the discussion of the LREC on the date the rule was enacted was to address the initial font size of the contract. We do not believe that the LREC commission addressed the reducing type size through the transmission process. Further, the mandate of a statewide contract does not change the general obligations laws of the Louisiana Civil Code and therefore it is very unlikely a Court would rule that a contract was unenforceable merely because upon the transmission of the document the font size was reduced from 12 pt font.
20. Does the Statewide Purchase Agreement Form use Central Standard Time or Daylight Savings Time?
The form uses “Louisiana time.” The time it is in Louisiana, whether Central Standard Time or Daylight Savings Time, prevails.