Louisiana

Louisiana is the only US state operating under civil law rather than common law, a legacy of French and Spanish colonial rule that persists today through the Louisiana Civil Code. Almost every aspect of Louisiana real estate practice differs in some way from the rest of the country: terminology, conveyance documents, closing procedures, even the underlying legal theory of property ownership.

For buyers and sellers from elsewhere, the most important practical implication is that closings in Louisiana are required to be conducted by a Louisiana-licensed attorney or notary. There's no title-company-only closing path comparable to most states. The state divides into 64 parishes (rather than counties), and recording happens at the parish clerk's office.

Civil law conveyance: act of sale and authentic act

The Louisiana Act of Sale is the document that conveys ownership, analogous to the deed in common-law states but with distinct procedural requirements. The Act must be executed as an authentic act before a Louisiana notary, with two witnesses. The notary's signature and seal carry legal authority that a notary in other states doesn't have, Louisiana notaries function as quasi-legal professionals, not just signature-witnessing officers.

The notary or attorney conducting the closing also typically performs the title examination, prepares the closing documents, and supervises funding. Louisiana title insurance is available and increasingly used, but historically Louisiana relied on attorney-certified title opinions rather than insurance, the cultural and procedural inheritance from civil-law tradition.

No state-level transfer tax

Louisiana is among the states with no state-level real estate transfer tax. Sellers don't pay a percentage-based transfer tax on Louisiana sales, and most parishes don't impose one either. New Orleans (Orleans Parish) has a documentary transaction tax that's nominal. The closing-cost stack in Louisiana is dominated by attorney/notary fees, title insurance (where used), and lender costs, not transfer taxes.

Property tax, homestead exemption, and the 10/100 rule

Louisiana property tax is comparatively low, roughly 0.5%–0.8% of market value statewide on average. The state's homestead exemption for owner-occupied primary residences exempts the first $75,000 of assessed value from parish and municipal taxes (school taxes still apply). On a $250,000 home with $25,000 assessed value (assessed value is 10% of market in most parishes), the homestead exemption can effectively zero out non-school property tax in many jurisdictions.

The state's "10/100 rule" (properties are assessed at 10% of market value, and the homestead exemption is $75,000) combines to make Louisiana's effective property-tax burden among the lowest in the country for owner-occupied homes. New Orleans (Orleans Parish) is the partial exception, with higher effective rates due to local millages.

What buyers should know

Louisiana's standard purchase contract is the Louisiana Realtors Residential Sales Contract, structured similarly to other states' contracts but with civil-law terminology and procedures. Inspection contingencies typically run 7–14 days; financing contingencies run 21–35 days.

Title insurance in Louisiana is increasingly common but historically less universal than in common-law states. Title companies operate in Louisiana, but the closing professional is the attorney or notary, title insurance issuance happens through that channel. Premiums are not state-promulgated.

Property tax in Louisiana is low for owner-occupied primary residences after the homestead exemption. The application is filed with the parish assessor and is automatic for the homeowner's primary residence; out-of-state buyers acquiring Louisiana property as a primary residence should file the homestead application after closing.

The buyer-broker agreement (post-2024 NAR settlement) is required before showings.

What sellers should know

Louisiana seller closing costs are moderate. On a $250,000 New Orleans sale: 5–6% commission ($12,500–$15,000), attorney/notary fees $750–$1,500, title insurance $1,000–$2,000 (split per local convention), parish documentary fees $50–$200, remaining items. Total seller closing costs typically run 6.5–8% of sale price.

Capital gains in Louisiana are taxed at graduated rates (top bracket 4.25% per recent legislation). Combined with federal long-term cap gains (0/15/20%) and the 3.8% NIIT for higher earners, sellers above the federal § 121 exclusion face combined effective rates of 22–28%.

The Louisiana Property Disclosure Document is required for residential sales of pre-existing homes. Sellers complete the form covering known defects, including civil-law-specific items like servitudes (easements) and usufructs (life estates) that are conceptually distinct from common-law equivalents.

Forced heirship is a uniquely Louisiana civil-law concept that affects estate planning for property owners, descendants under specified conditions have a forced share of the estate. This typically surfaces in inheritance-related transactions rather than ordinary residential sales, but Louisiana property owners should be aware that estate-planning around real estate works differently here than in any other state.

How closing typically works

Closing happens at the attorney's or notary's office. The Act of Sale is signed by both parties before the notary and two witnesses; the buyer signs loan documents; the closing professional prepares the settlement statement; funds wire from the lender to the attorney's trust account; the Act of Sale records at the parish clerk's office.

Total time from offer acceptance to recorded Act of Sale runs 30–45 days for financed transactions in Louisiana.

For Louisiana transactions specifically (and this applies to nearly every deal) a Louisiana attorney or experienced notary is the right closing professional. Out-of-state buyers used to title-company-only processes need to budget for attorney involvement and plan around the longer signing logistics. The closing-costs estimator covers Louisiana's state base; the structural framework is here.