SLS 14RS-332 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2014
SENATE BILL NO. 426
BY SENATOR LAFLEUR
COMMERCIAL REGULATIONS. Prohibits required use of settlement service providers
in residential real estate transactions. (8/1/14)
AN ACT1
To enact R.S. 51:1428, relative to unfair trade practices and consumer protection; to prohibit2
the required use of settlement service providers in residential real estate transactions;3
to provide for definitions; to provide for certain terms, conditions, and procedures;4
and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 51:1428 is hereby enacted to read as follows:7
ยง1428. Unfair or deceptive acts or practices; prohibition against required use8
of settlement service providers in residential real estate9
transactions10
A. For the purposes of this Section, the following terms and phrases11
shall have the following meanings:12
(1) "Purchaser" means any person who, using the proceeds of a13
federally related mortgage loan, contracts to acquire residential real estate in14
this state.15
(2) "Residential real estate" means any immovable property in this state16
upon which at least one, but not more than four, buildings or structures are17 SB NO. 426
SLS 14RS-332 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
situated, each of which are occupied or intended for occupancy as single family1
residences.2
(3) "Federally related mortgage loan" means any loan defined as a3
"federally related mortgage loan" under the provisions of 12 U.S.C. 2602(1) of4
the Real Estate Settlement Procedure Act of 1974.5
(4) "Settlement services" means any service defined as a "settlement6
service" under the provisions of 12 U.S.C. 2602(3) of the Real Estate Settlement7
Procedure Act of 1974.8
B. No contract to sell or purchase residential real estate executed in this9
state shall contain any provision requiring the purchaser of such residential10
property, as a condition of such sale, to use a specific provider of settlement11
services.12
C. No person shall deprive, impair, diminish, or otherwise limit the13
access of a purchaser of residential real estate to any service, discount, rebate,14
or other economic incentive by making such access contingent on that15
purchaser's use of a specific provider of settlement services.16
D. No person shall impose upon a purchaser of residential real estate an17
economic disincentive or penalty based on the failure or refusal of such18
purchaser to use a specific provider of settlement services.19
E. Any violation of this Section shall be a deceptive and unfair trade20
practice and shall subject the violator to any and all penalties provided for in21
this Chapter.22
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Michelle Ducharme.
DIGEST
LaFleur (SB 426)
Proposed law defines "purchaser", "residential real estate", "federally related mortgage
loan", and "settlement services".
Proposed law provides that no contract to sell or purchase residential real estate executed in
this state shall contain any provision requiring the purchaser of such residential property, as
a condition of such sale, to use a specific provider of settlement services. SB NO. 426
SLS 14RS-332 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Proposed law provides that no person shall deprive, impair, diminish, or otherwise limit the
access of a purchaser of residential real estate to any service, discount, rebate, or other
economic incentive by making such access contingent on that purchaser's use of a specific
provider of settlement services.
Proposed law provides that no person shall impose upon a purchaser of residential real estate
an economic disincentive or penalty based on the failure or refusal of such purchaser to use
a specific provider of settlement services.
Proposed law provides that any violation of proposed law shall be a deceptive and unfair
trade practice and shall subject the violator to any and all penalties provided for in law.
Effective August 1, 2014.
(Adds R.S. 51:1428)