An act of sale in Louisiana is the notarized, witnessed, and recorded document that transfers ownership of land or buildings from seller to buyer. It serves the same function a deed does in other states, but Louisiana’s civil law system layers on specific requirements: the document generally must be signed before a notary public and two witnesses to qualify as an authentic act, and it must be filed in the parish conveyance records before it protects the buyer against third-party claims. Miss any of these steps and you can end up with an unenforceable transfer or a title that will not stand up to challenge.
What Makes the Document Legally Valid
Louisiana Civil Code article 1839 requires any transfer of immovable property to be made either by authentic act or by act under private signature.1Louisiana State Legislature. Louisiana Civil Code Article 1839 – Transfer of Immovable Property Nearly every residential sale uses the authentic act form because it carries stronger evidentiary weight in court and lenders almost universally require it.
Under Civil Code article 1833, an authentic act must be signed by each party, each witness, and the notary public, all in each other’s presence.2Louisiana State Legislature. Louisiana Civil Code Article 1833 – Authentic Act Two competent witnesses are required. An act under private signature needs only the parties’ signatures at the moment of signing, but it still has to be notarized or acknowledged before it can be recorded, which is why most closings skip the extra step and use the authentic form from the start.
Louisiana notaries public have broader authority than notaries in most states. They routinely draft the act of sale and conduct the closing without a separate attorney being involved.
What You Need in Hand Before Signing
The notary or attorney preparing the act will need several pieces of information before the document can be drafted. Errors here create title problems that are expensive to fix later.
- Each party’s full legal name as it appears on government ID, plus current marital status. Louisiana is a community property state, so marital status directly affects who must sign.
- The full legal description of the property from the most recent title deed, identifying the exact lot, square, or tract in the parish records. A street address is not enough.
- The purchase price, earnest money already deposited, and the terms of any mortgage financing. A buyer’s lender will issue closing instructions that add further requirements.
- A list of any outstanding mortgages, tax liens, or judgments against the property so they can be paid off or released at closing.
- A title examination or title insurance commitment confirming the seller has authority to transfer the property and showing any encumbrances. Lenders generally require title insurance, and buyers should seriously consider an owner’s policy as well.
If the Seller Is Married: Spousal Consent
This is where Louisiana trips up out-of-state buyers and sellers. Under Civil Code article 2347, both spouses must agree to any sale of community immovable property.3LSU Law. Louisiana Civil Code Article 2347 – Management of Community Property If only one spouse signs for a community asset, the other spouse can later have the transfer annulled.
Property acquired during a marriage is presumed community unless the spouses have a separate property agreement or the property was received by one spouse through inheritance or donation. When a married seller claims the property is separate, the drafter should verify that claim with documentation such as a prenuptial agreement, a judgment of separation of property, or the act of donation or succession that brought the property into the seller’s estate. When both spouses own as community, both must appear at closing or one must grant the other a valid power of attorney.
Seller Disclosures
Louisiana requires sellers of residential property to complete a property disclosure document in a form prescribed by the Louisiana Real Estate Commission.4Louisiana State Legislature. Louisiana Revised Statutes 9-3198 – Property Disclosure Document The disclosure must cover known defects, defined as conditions that substantially reduce the property’s value, impair the health or safety of future occupants, or significantly shorten the property’s expected life.5Louisiana State Legislature. Louisiana Revised Statutes 9-3196 – Definitions The seller completes it in good faith based on actual knowledge. If a seller genuinely does not know about a condition, marking “no knowledge” satisfies the requirement. The form also addresses homeowners’ association membership, restrictive covenants, past methamphetamine lab use, and proximity to salt mining cavities or injection wells. The disclosure is informational only and does not become part of the purchase contract.
Federal law adds a separate layer for any home built before 1978. Before the buyer becomes obligated under the purchase contract, the seller must disclose any known lead-based paint or lead hazards, provide available records or reports, give the buyer an EPA-approved pamphlet, and allow at least ten days for the buyer to conduct a lead inspection (the buyer can waive the period in writing).6eCFR. 24 CFR Part 35 Subpart A – Disclosure of Known Lead-Based Paint Hazards Upon Sale or Lease of Residential Property The contract must include a signed lead warning attachment, and sellers and agents must keep a copy for at least three years after the sale.
What Happens at Closing
The signing happens at a closing, typically held at the office of the notary or attorney handling the transaction. The notary verifies each signer’s identity, usually with a government-issued photo ID. The parties then sign the act while the notary and two witnesses observe. The witnesses sign, and the notary adds their signature and seal last. This sequence is what makes the document an authentic act under article 1833.2Louisiana State Legislature. Louisiana Civil Code Article 1833 – Authentic Act If any party cannot attend, they may execute a power of attorney (itself an authentic act) authorizing someone else to sign on their behalf.
At the same meeting, the closing agent handles the money: the buyer’s loan proceeds arrive by wire, any remaining cash from the buyer is collected, and the notary pays off the seller’s existing mortgage, covers closing costs, and delivers the net proceeds to the seller.
Why Recording Immediately Matters
Between buyer and seller, ownership transfers the moment the act is signed. Civil Code article 517 says ownership of an immovable transfers between the parties “by the effect of the agreement.”7Justia. Louisiana Civil Code Article 517 – Voluntary Transfer of Ownership The same article adds a crucial limitation: the transfer “is not effective against third persons until the contract is filed for registry in the conveyance records of the parish in which the immovable is located.”
Civil Code article 3338 reinforces this. Any instrument transferring an immovable or creating a real right in one has no effect against third parties unless it is recorded in the appropriate mortgage or conveyance records.8Louisiana State Legislature. Louisiana Civil Code Article 3338 – Instruments Creating Real Rights in Immovables This is Louisiana’s Public Records Doctrine, and it means delay in recording is genuinely dangerous. If a seller fraudulently sold the same property to a second buyer who recorded first, the second buyer could prevail. The notary or closing agent submits the executed act to the parish Clerk of Court, and getting it filed promptly is one of the most important post-closing tasks.
What the Seller Is Actually Warranting
Under Civil Code article 2475, the seller is obligated to deliver the property and to warrant the buyer’s ownership, peaceful possession, and the absence of hidden defects.9Justia. Louisiana Civil Code Article 2475 – Seller’s Obligations of Delivery and Warranty The practical scope depends on the language of the act of sale itself.
A sale with full warranty of title means the seller guarantees ownership, swears to the absence of undisclosed liens, and will defend the buyer’s title against third-party claims. A sale without warranty transfers only whatever interest the seller has, with no guarantees. Sales without warranty are common in successions, tax sales, and bank-owned dispositions. If you are buying without warranty, invest in a thorough title examination and title insurance, because you will have no recourse against the seller if a defect appears later.
Redhibition: A Remedy for Hidden Defects
Louisiana gives buyers a remedy that most states do not. Under article 2520, the seller warrants against “redhibitory defects,” meaning hidden problems that make the property useless, so inconvenient that the buyer would not have purchased it, or that significantly reduce its value.10Louisiana State Legislature. Louisiana Civil Code Article 2520 – Warranty Against Redhibitory Defects A defect that makes the property essentially unusable can support rescission of the entire sale. A defect that merely reduces value can support a reduction in price.
The deadlines depend on what the seller knew. When the seller was unaware of the defect, the buyer has one year from discovery or two years from delivery, whichever comes first.11Louisiana State Legislature. Louisiana Civil Code Article 2534 – Prescription When the seller knew or is presumed to have known, the buyer has one year from discovery or ten years from the sale, whichever comes first. These deadlines are hard; once they pass, the claim is gone regardless of how serious the defect is. If you discover something like foundation damage, hidden water intrusion, or undisclosed termite damage after closing, consult an attorney quickly rather than waiting to see if the problem worsens.
What It Costs
Recording Fees
Louisiana Revised Statute 13:844 sets uniform recording fees across all parishes based on document length.12Justia. Louisiana Revised Statutes 13-844 – Fees of Ex Officio Recorders
- 1 to 5 pages: $100
- 6 to 25 pages: $200
- 26 to 50 pages: $300
- Over 50 pages: $300 for the first 50 pages plus $5 per additional page
A typical residential act of sale lands in the one-to-five-page range, so expect $100 for the act itself. A mortgage recorded at the same time is a separate document with its own fee.
Notary or Attorney Fees
Notaries who draft the act and run the closing charge a professional fee that varies with transaction complexity. For a straightforward residential sale, fees commonly run from a few hundred dollars up to around $500. Commercial deals, multiple parcels, or unusual title issues cost more. These fees are separate from the small per-signature notarization charges set by state law.
Title Insurance
Louisiana title insurance premiums are calculated on the coverage amount. Filed rates start at $5.00 per $1,000 of coverage for the first $50,000 and step down to $3.00 per $1,000 for amounts over $1,000,000. For a $250,000 home, an owner’s policy runs roughly $1,050 to $1,150. If the lender requires a separate loan policy issued at the same time, the loan policy typically costs a flat $100. Ask about reissue rates: if title insurance was issued on the property within the past ten years, your premium may drop to 70% of the standard rate.
No State Transfer Tax
Unlike many states, Louisiana does not charge a state or local transfer tax on property conveyances. The recording fees above are the only government charges tied to filing the act of sale.
Who Pays What
The purchase agreement controls how costs split, and everything is negotiable. Local custom in most parishes puts recording fees and title insurance on the buyer and leaves clearing existing liens and mortgages with the seller. Custom is not law. If you want the other side to cover a particular cost, negotiate it into the purchase agreement before signing.
One Boundary: FIRPTA Applies Only When the Seller Is Foreign
If the seller is a foreign person or entity rather than a U.S. citizen or resident alien, federal law requires the buyer to withhold 15% of the amount realized and remit it to the IRS under the Foreign Investment in Real Property Tax Act.13Internal Revenue Service. FIRPTA Withholding Most Louisiana residential sales involve domestic sellers and avoid FIRPTA entirely; the seller simply provides a certification of non-foreign status to the closing agent.14Internal Revenue Service. Exceptions From FIRPTA Withholding If a seller refuses to provide the certification, do not proceed to closing without addressing the issue with your closing agent or attorney.