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Regular Session, 2010
HOUSE BILL NO. 804
BY REPRESENTATIVE TIM BURNS
CIVIL/MANDATE: Provides relative to a presumptive authority in an act of transfer of
immovable property
AN ACT1
To enact R.S. 9:2730, relative to acts of transfer of immovable property; to provide for a2
presumption of authority; to provide for a limitation of actions; to provide for3
applicability; to provide for retroactive application; to provide for definitions; to4
direct the Louisiana State Law Institute to redesignate certain statutory provisions5
relative to acts of transfer of immovable property; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 9:2730 is hereby enacted to read as follows: 8
ยง2730. Authority of representative of legal entity9
A. A declaration in an act of transfer of immovable property as to the10
authority of the representative of a legal entity creates a presumption that the11
authority as declared is correct and, except as provided by Subsection B of this12
Section, any subsequent alienation, encumbrance, or lease of the immovable shall not13
be attacked on the ground that the authority of the representative was not as stated14
in the declaration.15
B. Any person may file an action to attack the subsequent alienation,16
encumbrance, or lease of the immovable property on the ground that the authority17
of the representative of the legal entity as stated in the initial act of transfer was false18
or incorrect; however, such action to attack the alienation, encumbrance, or lease19 HLS 10RS-722 ENGROSSED
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shall not affect the rights acquired by third parties entitled to rely upon the public1
records.2
C. The presumption provided by Subsection A of this Section is hereby3
declared to be remedial and made retroactive to apply to any alienation, lease, or4
encumbrance made prior to August 15, 2010. Any person who has a right under5
Subsection B of this Section which right has not prescribed or otherwise been6
extinguished on August 15, 2010, and who is adversely affected by the provisions7
of Subsection B of this Section shall have six months from August 15, 2010, to8
initiate an action to attack the transaction or otherwise be barred forever from9
exercising his right or cause of action.10
D. As used in this Section, "legal entity" means a corporation, partnership,11
limited liability company, limited liability partnership, or unincorporated association.12
Section 2. The Louisiana State Law Institute is hereby directed to redesignate R.S.13
35:11(B), (C), and (D) as R.S. 9:2731, and is further directed to make technical changes to14
any citations as necessary to reflect the statutory redesignations provided by this Act.15
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)]
Tim Burns HB No. 804
Abstract: Creates a presumption of authority of a legal entity in an act of transfer of
immovable property.
Present law (C.C. Art. 3339) provides that matters pertaining to rights and obligations
evidenced by a recorded instrument are effective as to a third person although not evidenced
of record.
Proposed law provides that a declaration in an act of transfer of immovable property as to
the authority of the representative of a legal entity creates a presumption that the authority
as declared is correct.
Proposed law provides that any subsequent alienation, encumbrance, or lease of the
immovable shall not be attacked on the ground that the authority of the representative was
not as stated in the declaration, except as provided in proposed law.
Proposed law provides that any person may file an action to attack the subsequent alienation,
encumbrance, or lease of the immovable property on the ground that the authority of the
representative of the legal entity as stated in the initial act of transfer was false or incorrect; HLS 10RS-722 ENGROSSED
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however, the action to attack the alienation, encumbrance or lease shall not affect the rights
acquired by third parties entitled to rely upon the public records.
Proposed law provides that the presumption created by proposed law is remedial and
retroactive to any alienation, lease, or encumbrance made prior to Aug. 15, 2010. Any
person who has a cause of action which right has not previously prescribed shall have six
months from Aug. 15, 2010, to initiate an action to attack the transaction.
Proposed law defines "legal entity" as a corporation, partnership, limited liability company,
limited liability partnership, or unincorporated association.
Present law provides that a declaration as to one's marital status in an acquisition of
immovable property creates a presumption that the marital status as declared in the act is
correct, and further provides for the applicability of the presumption.
Proposed law retains present law but merely relocates certain provisions to Title 9 of the
L.R.S. of 1950.
(Adds R.S. 9:2730)