GREEN SHEET REDIGEST
HB 440 2024 Regular Session Berault
PROPERTY/IMMOVABL E: Provides relative to association documents of planned
communities.
DIGEST
Proposed law provides that upon a seller's acceptance of an offer to purchase residential
property, a buyer may request a homeowner's association, property owner's association,
condominium association, or any other planned community association with copies of
documents governing the property to be purchased, including but not limited to the
following:
(1)Building restrictions or restrictive covenants and all amendments.
(2)Acts creating or establishing a condominium regime or other planned community and
all amendments.
(3)Articles of incorporation, articles of organization, bylaws, operating agreements and
all amendments governing the homeowner's association, property owner's
association, condominium association or other planned community association.
(4)Rules established by any association that affect the property.
Proposed law provides that a buyer may request a copy of any of the documents described
in proposed law which are recorded in the conveyance or mortgage records from the person
providing title closing or title settlement services.
Proposed law provides that any person providing a document pursuant to proposed law shall
not be liable under present law for any error, inaccuracy, or omission in a document
provided.
Proposed law provides that prior to, or concurrent with the delivery of the requested
documents, the buyer making the request pursuant to proposed law shall pay all costs
incurred by the person obtaining and providing the requested copies and a reasonable service
fee.
Proposed law provides that failure to request or receive these documents shall not be cause
to extend or terminate the purchase agreement.
(Adds R.S. 9:3200.1)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Civil Law and
Procedure to the original bill:
1. Make technical changes.
2. Remove the requirement that homeowners associations, property owners
associations, and condominium associations conduct an annual accounting
of the books and provide a report outlining the fees and expenses for the
previous fiscal year.
3. Remove the requirement that every homeowners association, property owners
association, and condominium association with dues exceeding $500,000
annually shall have an audit of the books conducted every three years by a
third-party auditor in addition to the annual accounting.
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Prepared by Hanna Gettys. 4. Add "planned community" to the list of associations that the purchaser of a
home is made aware of in the property disclosure statement in order to
provide the purchaser the association documents prior to closing.
The House Floor Amendments to the engrossed bill:
1. Remove all provisions of proposed law other than the requirement that the
property disclosure statement inform the purchaser of any planned
community and provide the association documents to the purchaser no later
than at the time of closing.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Judiciary A to the
reengrossed bill
1. Remove the requirement that in the property disclosure statement that the
purchaser be made aware of any homeowners, property, or condominium
association, and requires that all association documents be provided to the
purchaser no later than at the time of closing.
2. Adds provisions for a buyer to request a homeowners, property, or
condominium association with copies of certain documents listed in proposed
law.
3. Adds that a buyer may request a copy of the documents listed in proposed law
which are recorded in the conveyance or mortgage records from the person
providing title closing or title settlement services.
4. Adds that any person providing a document pursuant to proposed law shall
not be liable for error, inaccuracy, or omission in a document provided.
5. Adds that prior to or concurrent with delivery of the documents, the buyer
making the request shall pay all costs incurred for obtaining and providing
the requested copies, and a reasonable service fee.
6. Adds that failure to request or receive the documents shall not be cause to
extend or terminate the purchase agreement.
7. Makes technical changes.
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Prepared by Hanna Gettys.