Authorizes and directs the Louisiana State Law Institute to study and make recommendations regarding the law of lesion beyond moiety
Impact
The resolution highlights critical concerns regarding the current application of lesion law in Louisiana, particularly as it pertains to the merchantability of property titles and the broader implications for title insurance. A prevalent issue arises when properties sold at lesionary prices create uncertainty in the market, affecting both sellers’ and buyers’ interests. This study is a proactive measure to understand whether the existing statutory framework sufficiently balances economic fairness and expediency in property transactions, ultimately informing potential legislative revisions to enhance clarity and market efficiency.
Summary
House Concurrent Resolution No. 63 (HCR63) authorizes and directs the Louisiana State Law Institute to study and make recommendations regarding the law of lesion beyond moiety. This study will encompass the restrictions and applicable time limitations for initiating actions based on the concept of lesion, which typically allows sellers of immovable property to rescind the sale if they receive less than half of the property's fair market value. HCR63 acknowledges a longstanding legal framework that has remained largely unchanged in Louisiana, despite variations in other jurisdictions and the complete omission of the concept in numerous states.
Sentiment
The sentiment surrounding HCR63 appears to be one of cautious optimism. Stakeholders acknowledge the need for a comprehensive review of the lesion doctrine, recognizing its historical significance while also advocating for modernization to align with contemporary real estate practices. Although discussions on the topic suggest support for the resolution from various quarters, there may be underlying concerns regarding the efficacy of proposed changes and their impact on property rights and seller protections after the review is conducted.
Contention
Notable points of contention may arise during the study regarding the degree of reform necessary and whether any legislative amendments could inadvertently weaken seller protections or impose further restrictions on land transactions. Potential debates could center around the criteria for determining 'fair market value' and whether existing legal safeguards for sellers are adequate in preventing exploitation under the current law. Additionally, the timeline for reporting findings and recommendations by January 1, 2016, suggests a sense of urgency in addressing these crucial legal questions.
Requests the Louisiana State Law Institute to study and make recommendations regarding present Louisiana property law governing common interest ownership regimes.