Legislative Update Regarding Information Builders Are Now Required to Provide to Homebuyers

Question

I am a real estate agent who represents Buyers and Builders.  I heard at the office today there is a new law that was passed requiring Builders to provide to Homebuyers some kind of information.

Do you know what the other real estate agents at my office were talking about?

Answer/Recommendation

The two laws that come to mind are Act 231 of the 2017 Regular Legislative Session and the Louisiana New Home Warranty Act.

Act 231 went into effect on August 1, 2017.

According to Act 231, licensed residential contractors of new construction shall provide in writing to the Homebuyer the following information:

  1. Name of Contractor;
  2. Contracting license number;
  3. Classification (i.e. what type of Contractor’s license); and
  4. Current insurance certificates evidencing the amount of liability insurance maintained and proof of workers’ compensation coverage

 

If you are dealing with a home improvement contractor, according to Act 231 the following needs to be provided in writing to the home owner:

  1. Name;
  2. Registration number; and
  3. Current insurance certificates evidencing the amount of liability insurance maintained and proof of workers’ compensation coverage.

 

According to Act 231, the above information shall be provided to the Homebuyer or homeowner regardless of whether the Homebuyer or homeowner requests the information.

The Louisiana New Home Warranty Act isn’t quite as new as Act 231.  The Louisiana New Home Warranty Act has been around since 1986 and is found in Louisiana Revised Statutes 9:3141, et. seq.

According to Louisiana Revised Statutes 9:3145, the builder shall give the owner written notice of the requirements of this Chapter at the time of the closing.

Essentially, what the above means is the Builder is required to give the Homebuyer a copy of the Louisiana New Home Warranty Act at the closing.

So, whether you represent a Builder or a Homebuyer, it’s good for you to be aware of the above so you can advise and direct your client accordingly.

It’s also a good idea for you to bring a copy of the Louisiana New Home Warranty Act to every closing.  (If you need a copy, please email Tuten Title and we’ll get you a copy!!).

Often times, Builders forget to bring to closing a copy of the Louisiana New Home Warranty Act.  If a real estate agent shows up with a copy of the Louisiana New Home Warranty Act, both the Homebuyer and the Builder will be impressed!!