Louisiana Agency Relationships and Disclosure
Louisiana law defines how licensees represent buyers and sellers and requires early disclosure of the agency relationship. This chapter covers the Agency Disclosure Informational Pamphlet, agency duties, and Louisiana's use of designated agency.
Agency Disclosure Informational Pamphlet
Louisiana requires licensees to provide the Agency Disclosure Informational Pamphlet and disclose the agency relationship at first contact concerning a specific property, before confidential information is shared. This helps consumers understand whether the licensee represents the seller, the buyer, or is acting in another capacity.
Agency Duties
A licensee representing a client owes duties including loyalty, confidentiality, disclosure of material facts, accounting, and reasonable skill and care. Louisiana licensees must also deal honestly with all parties to a transaction, including those they do not represent, and disclose known material defects as required by law.
Designated Agency
Louisiana permits designated agency, in which a broker whose firm represents both the buyer and the seller may appoint different affiliated licensees to represent each client separately. This allows each client to retain an advocate within the same firm, subject to disclosure and the parties' consent, rather than treating the situation as undivided dual agency.