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Louisiana's 2026 disclosure act did not create an HOA disclosure duty — it extended one to vacant lots

Louisiana's 2026 disclosure act did not create an HOA disclosure duty — it extended one to vacant lots
Louisiana · Compliance

Louisiana's 2026 disclosure act did not create an HOA disclosure duty — it extended one to vacant lots

What happened. Act 708 of the 2026 Regular Session — House Bill 1166 by Representative Kim Carver — was signed on June 2, 2026 and takes effect January 1, 2027. It has been summarised, including by the community-association industry's own trade body, as newly requiring that “sellers must disclose whether a property is subject to an HOA or restrictive covenants as part of the property disclosure statement.”

That is not what changed. Louisiana sellers of residential real property have owed that disclosure for years. What Act 708 does is bring the sale of an unimproved residential lot inside the regime for the first time.

The Act's own title says so

The Legislature's bill record describes HB 1166 as “REAL ESTATE: Requires property disclosures for vacant residential property.” The enrolled Act's purpose clause is in the same terms — amendments to R.S. 9:3196, 3197, 3198, 3198.1 and 3199 and R.S. 37:1432 and 1455, “relative to real estate; to provide for definitions; to require certain disclosures … to provide for an effective date.”1

What the operative paragraph looks like now

“(2)(a) Included with the property disclosure documents required by this Section shall be statements of notification to the purchaser as to whether he is obligated to be a member of a homeowners' association as a homeowner in the community in which he is purchasing property and whether the residential property or vacant residential property he is purchasing is subject to a common regime of restrictive covenants or building restrictions, or both.”

The five words “or vacant residential property” are the 2026 addition. The rest — the homeowners association membership notification and the restrictive-covenant notification — was already there.2

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The receipt: the statute's own amendment history

The credits line the Legislature prints at the foot of R.S. 9:3198 reads:

“Acts 2003, No. 308, §1, eff. June 13, 2003; Acts 2004, No. 452, §1, eff. July 1, 2005; Acts 2004, No. 546, §1; Acts 2008, No. 681, §1; Acts 2013, No. 369, §1; Acts 2018, No. 559, §1; Acts 2022, No. 581, §1, eff. Jan. 1, 2023; Acts 2026, No. 708, §1, eff. Jan. 1, 2027.”

The section's own heading has referred to “required disclosure of information relative to homeowners' associations” since well before this window; the words “and restrictive covenants” were added to the heading by Acts 2022 No. 581, effective January 1, 2023. Act 708 is the eighth amendment, not the first.

Why the distinction matters more than it sounds

Louisiana subdivisions are frequently sold as lots before they are sold as houses. Under the pre-2027 regime, a buyer purchasing a bare lot in a restricted subdivision received no statutory disclosure statement at all — because the whole Chapter applied to “residential real property,” and a vacant lot was not that. The buyer most likely to be surprised by an association, a building restriction and an assessment obligation was precisely the buyer outside the statute.

From January 1, 2027 that buyer is inside it. The seller must complete a property disclosure document “in a form prescribed by the Louisiana Real Estate Commission or a form that contains at least the minimum language prescribed by the commission,” and the association and covenant notification travels with it.

What the disclosure actually tells a buyer — and what it does not

Two further paragraphs of the section define the limits, and they are worth quoting because they set expectations low on purpose:

“(3) The statement shall inform the purchaser that the information included in the disclosure statement relative to any homeowners' association is summary in nature and that restrictive covenants and building restrictions are a matter of public record. The statement shall also include notification to the purchaser that homeowners' association governing documents may be requested from the seller and how to obtain documents regarding any restrictive covenants and building restrictions governing the property to be purchased.”

So the duty is to point, not to produce. Governing documents “may be requested from the seller” — this creates no production duty on the association. And the statute supplies its own definition of what it is talking about:

“(4) As used in this Subsection, 'homeowners' association' or 'association' means a nonprofit corporation, unincorporated association, or other legal entity which is created pursuant to a declaration whose members consist primarily of lot owners, and which is created to manage, maintain, or otherwise affect the association property or which otherwise governs the use of association property.”

Note that this definition, unlike the Planned Community Act's, expressly contemplates an unincorporated association — which the Planned Community Act does not, since R.S. 9:1141.19 requires a lot owners association to be organised as a nonprofit corporation.

The rest of the Act, and the exemptions that carry over

Act 708 also runs the phrase “or vacant residential property” through the exemption list in R.S. 9:3197(B), so the familiar carve-outs now apply to vacant-lot sales in the same terms — transfers by a mortgagee following a power-of-sale or foreclosure sale or by deed in lieu; transfers of property “that will be converted by the purchaser into a use other than residential use”; transfers “to a spouse or relative in the line of consanguinity”; and transfers from a relocation-assistance entity that makes the prior owner's disclosure statement and inspection reports available.

The Act also amends R.S. 37:1432 and R.S. 37:1455 — membership of the Louisiana Real Estate Commission and its penalty provisions — and Section 3 of the Act provides that the change “shall not be construed to change the existing term of appointment for any member of the Louisiana Real Estate Commission who is serving as a commissioner on the effective date of this Act.” Section 4: “This Act shall become effective January 1, 2027.”

What this means for an association

Nothing directly. Act 708 imposes duties on sellers and licensees, not on associations. The practical consequence is second-order: a lot buyer who receives the notification is a buyer who arrives already knowing there is a declaration, and who has an independent route to the documents — because R.S. 9:1141.36(B) gives “persons with a valid contract of sale” the same records access as an owner.

What to watch next

January 1, 2027 for the effective date, and the Louisiana Real Estate Commission's disclosure form, since the statute keys the duty to “a form prescribed by the Louisiana Real Estate Commission.” The Commission noticed a top-to-bottom rewrite of its administrative rules in April 2026 that had still not been adopted as a Rule as of the August 2026 Louisiana Register.

Related Louisiana HOA Topics

← All Louisiana HOA Topics

  1. Act No. 708, 2026 Regular Session (HB 1166) — enrolled Act text
  2. La. R.S. 9:3198 — Duties of the seller; property disclosure document, current text with amendment history
  3. HB 1166 (2026 Regular Session) — bill record and action history
  4. CAI, 2026 Louisiana End of Legislative Session Report (June 15, 2026)

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