RDCSB506 4463 4198
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
SB 506 Engrossed 2024 Regular Session Edmonds
Present law provides for the Unfair Trade Practices and Consumer Protection Law.
Proposed law defines "real estate service agreement" and "residential immovable property".
Proposed law retains present law and provides that no person shall secure any obligation in
a real estate service agreement by obtaining a security interest, lien, or mortgage against
residential immovable property or record a real estate service agreement in the mortgage or
conveyance records, and provides that any person who violates the provisions of proposed
law shall be subject to the person the provisions of present law, excluding private rights of
actions.
Proposed law provides that any violation arising out of a real estate service agreement does
not constitute a real right and is not effective against third persons, whether or not the
agreement is recorded.
Proposed law provides that any mortgage purporting to secure or create an encumbrance
upon immovable property as security for an obligation arising from a real estate service
agreement is absolutely null.
Proposed law provides that the recording of a real estate service agreement, or a notice,
extract, or memorandum thereof, in the mortgage or conveyance records shall not provide
actual or constructive notice against a bona fide purchaser or creditor.
Proposed law allows an interested person to petition the court for a writ of mandamus
ordering the clerk of court to cancel a security interest, lien, mortgage, or to remove a real
estate service agreement, or a notice, extract, or memorandum thereof, from any public
record, without notice to any party to the real estate service agreement or any of his
successors or assigns.
Proposed law shall not authorize a real estate salesperson or real estate broker to record a
lien or privilege against an owner's residential immovable property to secure payment of a
commission or other compensation.
Proposed law provides for applicability.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 51:1429)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Commerce to the
engrossed bill:
1. Make technical changes.
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