Bill > HB468

This bill defines "residential real property" as property with one to four dwelling units, and a "wholesaler" as someone engaged in or intending to engage in the business of "wholesaling," which is defined as securing, negotiating, or facilitating the purchase or sale of residential real property with the intent to transfer or sell the right to purchase for financial gain, including assigning contracts before taking ownership or simultaneously closing two separate transactions without intending to occupy or improve the property. Wholesalers must now provide written disclosures to sellers before signing any contract, informing them that the wholesaler intends to profit from reselling the property, advising the seller to seek legal counsel, and informing the seller of their right to cancel the contract for at least five days without penalty. The bill also prohibits wholesalers from acting as advisors, misrepresenting their credentials, placing liens on the property, or engaging in deceptive trade practices. Contracts must clearly state the cancellation period and include a mandatory cancellation notice form provided by the state, and failure to comply with these disclosure requirements makes the contract voidable by the seller until title transfer. If a seller cancels, they are entitled to their earnest money deposit, and if the wholesaler is terminated before the rescission period ends, they receive a full refund of their deposit, with all deposits to be held in escrow. Violations can result in civil penalties of up to $5,000 per violation and can be enforced by the Attorney General and the commission.

Business and Industry

https://www.legis.la.gov/legis/BillInfo.aspx?s=26rs&b=HB468&sbi=y