HLS 15RS-1196 REENGROSSED
2015 Regular Session
HOUSE BILL NO. 611
BY REPRESENTATIVE PYLANT
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
REAL ESTATE: Provides relative to net listing agreements
1 AN ACT
2To enact R.S. 37:1431(34) and 1448.3, relative to certain real estate contracts; to define a
3 net listing agreement; to prohibit net listing agreements between real estate brokers
4 and sellers with respect to sales of certain real estate property; and to provide for
5 related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 37:1431(34) and 1448.3 are hereby enacted to read as follows:
8 §1431. Definitions
9 * * *
10 (34) "Net listing agreement" means a listing agreement that authorizes a
11 broker to take as his commission the difference between the higher sale price at
12 which the real estate property is sold and the stipulated net price agreed upon to be
13 received by the seller.
14 * * *
15 §1448.3. Net listing agreements
16 It is unlawful for any real estate broker to advise or encourage a seller in
17 relation to, or to enter into, a net listing agreement as described in R.S. 37:1431(34),
18 for the sale of residential real estate property or any land as defined in R.S. 47:2302.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-1196 REENGROSSED
HB NO. 611
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)]
HB 611 Reengrossed 2015 Regular Session Pylant
Abstract: Prohibits the use of net listing agreements in certain circumstances.
Proposed law defines a "net listing agreement" as a "listing agreement" that authorizes a
broker to take as his commission the difference between the higher sale price at which the
real estate property is sold and the stipulated net price agreed upon to be received by the
seller.
Proposed law makes it unlawful for a real estate broker to advise or encourage a seller in
relation to, or to enter into, a net listing agreement as defined in proposed law for the sale
of residential real estate property, or for any property defined in present law (R.S. 47:2302).
(Adds R.S. 37:1431(34) and 1448.3)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Commerce to the
original bill:
1. Prohibit net listing agreements for the sale of residential real estate property, or
for the sale of bona fide agricultural land, bona fide horticultural land, bona fide
marsh land, and bona fide timberland as defined in present law.
The House Floor Amendments to the engrossed bill:
1. Clarify the term "real property" as "real estate property."
2. Clarify the provision that it is unlawful for a real estate broker to advise or
encourage a seller in relation to a net listing agreement.
3. Make technical changes.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.