HLS 10RS-1306 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2010
HOUSE BILL NO. 370
BY REPRESENTATIVE ARNOLD
REAL ESTATE: Provides for changes to definitions regarding agency relations in real
estate transactions
AN ACT1
To amend and reenact R.S. 9:3891(8) and (9) and to enact R.S. 9:3891(14), relative to2
agency relations in real estate transactions; to provide for a change in the definition3
of "designated agency" and "designated agent"; to provide for a definition of4
"substantive contact"; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 9:3891(8) and (9) are hereby amended and reenacted and R.S.7
9:3891(14) is hereby enacted to read as follows: 8
ยง3891. Definitions9
* * *10
(8) "Designated agency" means a contractual relationship between a broker11
and a client under which one or more licensees affiliated with the broker are12
designated as agents of the client the agency relationship that shall be presumed to13
exist when a licensee engaged in any real estate transaction, except as otherwise14
provided in this Chapter, is working with a client, unless there is a written agreement15
providing for a different relationship.16
(9) "Designated agent" means a licensee named by a broker as who is the17
agent of a client.18
* * *19 HLS 10RS-1306 ORIGINAL
HB NO. 370
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(14) "Substantive contact" means that point in any conversation where1
confidential information is solicited or received. This includes any specific financial2
qualifications of the consumer or the motives or objectives in which the consumer3
may divulge any confidential, personal, or financial information, which, if disclosed4
to the other party to the transaction, could harm the party's bargaining position. This5
includes any electronic contact, electronic mail, or any other form of electronic6
transmission.7
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Arnold HB No. 370
Abstract: Provides for changes in the definitions of "designated agency" and "designated
agent" and provides for a definition of "substantive contact".
Present law provides that a "designated agency" means a contractual relationship between
a broker and a client under which one or more licensees affiliated with the broker are
designated as agents of the client.
Proposed law changes present law to provide that a "designated agency" means the agency
relationship that shall be presumed to exist when a licensee engaged in any real estate
transaction is working with a client, unless there is a written agreement providing for a
different relationship.
Present law provides that a "designated agent" means a licensee named by a broker as the
agent of a client.
Proposed law changes present law to provide that a "designated agent" means a licensee who
is the agent of a client.
Proposed law provides that "substantive contact" means that point in any conversation where
confidential information is solicited or received. This includes any specific financial
qualifications of the consumer or the motives or objectives in which the consumer may
divulge any confidential, personal, or financial information, which, if disclosed to the other
party to the transaction, could harm the party's bargaining position. This includes any
electronic contact, electronic mail, or any other form of electronic transmission.
(Amends R.S. 9:3891(8) and (9); Adds R.S. 9:3891(14))