Louisiana House Bill HB804

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10
• Report Pass: 4/13/10
• Engrossed: 4/21/10

Caption

Provides relative to a presumptive authority in an act of transfer of immovable property

Impact

HB804 is significant in the context of Louisiana's property laws, as it effectively limits the grounds on which subsequent actions regarding property transfers can be contested. This means that the authority stated in initial acts of transfer cannot be easily challenged, thus providing a more secure framework for real estate transactions. However, the bill also includes provisions that allow individuals to contest such transfers under specific circumstances, preserving some level of legal recourse for those who may be adversely affected by erroneous declarations of authority. The retroactive application of this law also indicates a reparative element, permitting actions going back to 2010.

Summary

House Bill 804 proposes a framework concerning the presumption of authority for representatives of legal entities involved in the transfer of immovable property. The bill establishes that if a representative declares their authority in the act of transfer, there is a presumption that this declaration is correct. This is aimed at providing stability and assurance to third parties relying on public records regarding the authority of these representatives when engaging in subsequent property transactions. By reinforcing the accuracy of such declarations, the bill seeks to streamline the conveyance of real estate and mitigate disputes that may arise from challenges to authority claims.

Sentiment

The sentiment surrounding HB804 appears to be generally supportive among real estate professionals and legal experts who value the clarity this bill may bring to transactions involving immovable property. Proponents argue that by reducing the potential for disputes and fostering trust in public records, the bill could enhance market confidence and facilitate smoother property dealings. Conversely, some stakeholders express concerns over potential misuse of the presumptive authority, fearing that it might inadvertently lead to increased instances of fraud or malfeasance due to the diminished ability to challenge erroneous assertions of authority.

Contention

Notably, the bill has raised questions about the balance of power between legal entities and individual property rights. Critics may argue that by creating a strong presumption of authority, the bill could hinder individuals' abilities to contest potentially fraudulent transactions. This aspect of the legislation highlights a crucial tension between simplifying property transfers and ensuring adequate protections against abuses of authority. The debate surrounding HB804 underscores the necessity of carefully navigating the complexities within property law to maintain both efficiency and fairness.