Mandatory Disclosure(s) for the Resale of Condominium Unit(s) in Accordance with La. R.S. 9:1124:107

Whenever a person purchases a condominium in Louisiana, from someone other than a declarant,, there are mandatory documentation, disclosures and certifications a seller must provide to a purchaser. The information to complete the disclosure and certification is available following a request to and receipt of the seller’s request to the condominium association. The seller is required to perform and make the statutorily required disclosures and certification prior to any contract to purchaser or other conveyance. Critically, until such time as the document, disclosure and certification are made to the purchaser, the purchaser is not bound to the contract. Meaning, until the seller completes the required disclosures and certification, the purchaser may terminate the contract at any time.

The disclosures and certification is a statutory creature and is a requirement of the seller. A purchaser is not obligated or required to request the information, rather the onus is on the seller to perform to ensure proper disclosure and to remove the ability of the purchaser to terminate the contract based upon the failure to comply with the statute.

The statute is La R.S. 9:1124:107. The statue is a punch list of sorts. The statue enumerates the required documents to provide to the purchaser as well as a certificate of information, relating to the condominium association. The list is as follows:

Documents to be provided include:

1. Copy of Condominium Declarations creating and establishing the condominium regime, excluding plans and/or plats;

2. Articles of Incorporation or other documents creating the condominium;

3. The Bylaws of the condominium association, if any; and

4. Any amendments to the Condominium Declarations, Articles of Incorporation, and Bylaws, if any.

The information that must be contained in the seller’s certification are as follows:

1. A statement setting forth the amount of any current common expense assessments.

2. A statement of any capital expenditures approved by the association for the current and two next succeeding fiscal years.

3. A statement of the amount of any reserves for capital expenditures and of any portions of those reserves designated by the association for any specified projects.

4. The most recent balance sheet and income and expense statement of the association, if any.

5. The current operating budget of the association, if any.

6. A statement of any unsatisfied judgments against the association and the status of any pending suits to which the association is a party.

7. A statement describing any insurance coverage provided by the association, and

8. A statement of the remaining term of any ground lease affecting the condominium and provisions governing any extension or renewal thereof.

The mandatory disclosures provide a purchaser critical information regarding financial and physical requirements a purchaser is buying into when purchasing a unit which is part of the condominium association, a similar disclosure to the mandatory residential property disclosures for 1-4 residential properties required under Louisiana law. 

There is no form prescribed by law, meaning the statute does not provide one nor has the LREC, the governing regulatory body for real estate professionals in Louisiana. As such, what constitutes a proper disclosure is one that a seller must look to the statute and ensure strict compliance therewith. 

If you have any questions regarding any of the condominiums, please contact Joseph Marriott at joseph@qtsnola.com or by telephone at (504)834-7171