Tag: Property

Court Finds Real Estate Agents Are Not Required to Research the Truthfulness of Their Client’s Representations

02.05.2026

In Smith v. Grantham, homebuyers sued the sellers for alleged failure to disclose prior flooding of the home. The buyers also sued the sellers’ real estate agent for negligent misrepresentation, arguing the realtor knew or should have known of a prior history of flooding. The plaintiff referenced the previous sellers’ property disclosure documents located in the MLS listing database, which disclosed a prior flooding incident. However, the property disclosure document that the realtor received from her clients denied any prior flooding of the property or structure.

The Court of Appeal affirmed summary judgment in favor of the sellers’ agent, noting that her clients represented in their property disclosure document that the property had never flooded, and she had no actual knowledge contradicting their representation. The Court stated that under La. R.S. 9:3894(B), a real estate agent is relieved of liability for providing false information furnished by her client if she did not have actual knowledge that the information was incorrect. The court held that imposing a higher duty on a real estate agent would improperly “create a situation in which the agent had to independently verify information before conveying it to the buyer.”

Reference:

Smith v. Grantham, 93-0881 (La. App. 1 Cir. 9/4/24), 394 So.3d 316.

Good Restrictions Can Make Good Neighbors

12.16.2025

Picture it – you purchase a new home in a quiet, family-friendly neighborhood.  On your first night, you notice that the neighbors are having a party – a big loud party.  Your haven of peace and tranquility is interrupted by thumping bass and the shrieks of people jumping into a pool.  The next day, the neighbors are gone, and the block is quiet again. However, the party returns the next weekend, bigger and louder than before. You do some research and find the house is listed on a popular website for short term rentals.  What do you do?

This is the exact question that was posed to the Louisiana Court of Appeals for the Second Circuit in Marina Homeowners Association, Inc. v. Cahill.  In that case, the Marina Homeowner’s Association filed a petition seeking declaratory judgment against the owner of the house on the basis that the use of the home as a short-term rental violated the covenants of the homeowner’s association.  In response, the property owners argued that the covenants had expired and were no longer applicable. Therefore, they claimed they were free to use their property as they saw fit.

Many homeowners in Louisiana are familiar with building restrictions.  Authority for the issuance of building restrictions is found in Louisiana Civil Code article 775.  A building restriction is a real right under Louisiana Civil Code article 777.  However, Louisiana Civil Code article 778 provides that if there is doubt as to the existence, validity, or extent of building restrictions, the issue should be resolved in favor of the unrestricted use of the immovable.  These articles also provide a subsequent purchaser of the immovable property is also bound by the building restrictions if they are recorded in the public records. 

The building restrictions for the subdivision at issue provided that the restrictions had a term of twenty years and then would renew automatically in ten-year periods.  These restrictions bound the original property owners and all subsequent property owners. The court found that even though the original twenty-year term for the building restrictions had expired, the restrictions would automatically renew unless amended by the Association.  Therefore, the property owner’s house was subject to the building restrictions.

Importantly for this case, the building restrictions specifically prohibited the use of the property for any reasons other than residential purposes. Therefore, the operation of a short-term rental was a violation of the building restrictions. 

The Homeowners Association prevailed in this case – the property owners were no longer able to use their property for short term rentals.  As the moral of the story – to be a good neighbor – it helps to follow the rules.  And it is always important to check the fine print to know what those rules are!

References:

Marina Homeowners Ass’n, Inc. v. Cahill, 56,423 (La. App. 2 Cir. 8/27/25), 420 So. 3d 782. 

Court holds real estate agents representing sellers are not required to investigate the seller’s representations about the property.

08.26.2024

In Casbon v. K.W.E.J., LLC d/b/a Keller Williams Realty, et al, the buyer of a home sued her real estate agent for the seller’s alleged misrepresentation of the home’s living area square footage. The facts of this case are unusual because the seller’s representation was based on a prior appraisal report, and accurately reflected the home’s square footage as stated in that report. Also, the buyer financed the purchase, and her lending institution appraised the home again, which resulted in a nearly identical living area square footage calculation.

The plaintiff sought to refinance about a year after buying the home. She used a different lending institution, which retained a different appraiser. The house included a sunroom which had been converted from a porch. The appraiser chose to classify the sunroom as something other than standard living area. As a result, the appraisal report stated the home’s living area square footage was several hundred square feet smaller than the prior appraisal reports, and the plaintiff was not approved for the refinance. The plaintiff sued her real estate agent on the ground that the agent failed to verify the living area square footage before plaintiff purchased the home.

The defendant agent filed summary judgment, arguing she did not owe the plaintiff a duty to investigate or confirm the home’s square footage. The trial court denied the defendant’s motion, finding an issue of fact regarding the classification of the sunroom, specifically “whether it is living area or not living area.”

Reversing the Trial Court, the Court of Appeal granted summary judgment in favor of the real estate agent. The Court noted prior caselaw establishing that agents are not required to confirm square footage as represented by a property owner by measuring or otherwise researching the accuracy of the seller’s representation. The Court also rejected the plaintiff’s contention that the issue here was how the sunroom was classified rather than how the room was measured. To the Court, this was a “distinction without a difference.”

The Court applied the standard rule that real estate agents only are required to disclose defects which are known or should be known to them. Additionally, the purchase agreement expressly put the obligation to verify the seller’s representation of living area on the buyer. Thus, the plaintiff’s claims were dismissed.

Case reference: Casbon v. K.W.E.J, LLC, et al, 23-321 (La. App. 5 Cir. 10/4/23), 375 So.3d 524.

Google Earth Images Ruled Admissible

03.11.2020

Recently, a Louisiana appellate court found that images from Google Earth images were admissible.   In Walker v. S.G.B.C., LLC, 2019-506 (La.App. 3Cir. 2/5/20); — So.3d —, 2020 WL 563818, the Louisiana Third Circuit rejected a challenge to the use of the images on the basis that they were not properly authenticated. 

In this case, the plaintiff sought recognition of a historical servitude of passage from his landlocked property. During the trial, the plaintiff offered Google Earth images of the property to show a gravel pathway on the alleged right of way. The images were dated January 2004, November 2005, and December 2017.  Multiple witnesses identified the path on the images. Thereafter, the trial court admitted the images into evidence over the defendant’s objections.

On appeal, the defendant argued that the images were not properly authenticated under La. C.E. art. 901 because the plaintiff did not: (1) have the creator of the images testify to their authenticity; (2) get a certification from Google that the images were what they purported to be; and (3) have an expert testify that the images were accurate depictions of what they claimed to be.

The Walker court affirmed the trial court ruling that these images were admissible. Louisiana Code of Evidence Article 901(B)(1) provides the testimony of a witness with personal knowledge may supply the authentication of evidence required for its admission. Because the plaintiff identified various landmarks on each image, and each image was subsequently recognized by multiple witnesses (including the defendant’s witnesses), the Court concluded there was sufficient support for finding the images authentic.

In Walker, the precise dates the photographs were taken were not critical. Under different facts, courts may choose to apply the authentication rules of Article 901 more stringently.

Chris Jones is a partner with Keogh Cox in Baton Rouge, LA.  He focuses his practice on class actions and mass torts, and handles these matters in courts throughout the country.  He is a life-long resident of Baton Rouge, where he lives with his wife and four children.