Wholesaling real estate in Louisiana
Louisiana has rules aimed at wholesaling: cancellation notice and 1% deposit. Act 807, effective August 1, 2026, requires pre-execution wholesaling disclosures, the mandatory LREC cancellation notice with every agreement, at least five calendar days to cancel, and an escrow deposit of at least 1% of the purchase price. A wholesaler cannot act as the seller’s advisor or cloud the title.
What the research found
- Wholesaling review: Cancellation notice and 1% deposit.
- Closing: Confirm the local closing arrangement. Ask state counsel and the selected title company which legal, settlement, escrow and recording tasks each professional may perform. Local custom alone is not an attorney-only law.
- Scope: One to four residential dwelling units. Commercial, vacant-land, foreclosure-rescue and seller-financing deals need separately reviewed forms.
Checklist before you sign a wholesale contract in Louisiana
- Confirm the permitted deal structure. State counsel must address licensing, registration, the actual marketing activity, assignment or novation, and any foreclosure, distressed-owner, or solicitation restrictions. Draft availability is not permission to wholesale without a license.
- Complete the required disclosure package. Record the current prescribed state forms, delivery timing and acknowledgements, or the attorney’s supported exemption determination. The general seller questionnaire does not replace statutory forms.
- Check federal lead-paint requirements. For covered pre-1978 housing, provide the federal disclosure, known reports and EPA pamphlet before the buyer becomes obligated, and preserve the inspection opportunity unless lawfully modified. Document an applicable exemption separately.
- Confirm the title and closing package. Obtain the legal description, ownership and signing authority, lien payoffs, occupancy documents, required riders, and the closing company’s acceptance of this specific agreement and fee structure.
- Deliver Louisiana’s disclosures and mandatory cancellation form. Use the current LREC form with each covered agreement. Confirm the statutory five-calendar-day cancellation instructions, deposit remedies, and an eligible Louisiana escrow account. This must be done before the purchase agreement is signed.
- Confirm the statutory escrow deposit. An earnest deposit of at least 1% of purchase price is required for a covered wholesale agreement. Record the Louisiana escrow holder and compliant deposit arrangements.
Louisiana wholesaling questions
Is wholesaling real estate legal in Louisiana?
Louisiana has rules aimed at wholesaling: cancellation notice and 1% deposit. Act 807, effective August 1, 2026, requires pre-execution wholesaling disclosures, the mandatory LREC cancellation notice with every agreement, at least five calendar days to cancel, and an escrow deposit of at least 1% of the purchase price. A wholesaler cannot act as the seller’s advisor or cloud the title.
Do you need an attorney to close a wholesale deal in Louisiana?
The research snapshot does not identify an attorney-only closing rule for Louisiana. Ask state counsel and the selected title company which legal, settlement, escrow and recording tasks each professional may perform. Local custom alone is not an attorney-only law.
What disclosures does a wholesale deal in Louisiana need?
Deliver Louisiana’s disclosures and mandatory cancellation form: Use the current LREC form with each covered agreement. Confirm the statutory five-calendar-day cancellation instructions, deposit remedies, and an eligible Louisiana escrow account. Confirm the statutory escrow deposit: An earnest deposit of at least 1% of purchase price is required for a covered wholesale agreement. Record the Louisiana escrow holder and compliant deposit arrangements. For homes built before 1978, the federal lead-based paint disclosure and EPA pamphlet are required before the buyer is bound.
Can DealRivet draft a wholesale purchase agreement for Louisiana?
Yes. DealRivet includes a cash-purchase draft and a conditional novation plan for one to four residential units in Louisiana, with this state’s review checklist. Each draft must be reviewed by Louisiana counsel and accepted by the closing company before anyone signs.