Danette O'Neal, PhD

The record-setting rainfall over the past week has caused catastrophic flooding in Southeastern Louisiana, including flooding in areas of cities that have never before been flooded.  This unprecedented natural disaster has impacted tens of thousands of Louisiana homeowners; resulting in many questions for homeowners and real estate professionals regarding pending real estate sales.  This article addresses some of the questions real estate professionals may be receiving from their clients, and provides information regarding applying for assistance and filing insurance claims.Q.  Are closing deadlines set in Purchase Agreements suspended by the Emergency Executive Order issued by the Governor

A. Governor Edwards issued Executive Order No. JBE 2016-53 on August 15, 2016 (copy at http://gov.louisiana.gov/assets/ExecutiveOrders/JBE16-53.pdf) (the “Executive Order”). The Executive Order suspends all deadlines in “legal proceedings, administrative, and regulatory proceedings” including “in all courts, administrative agencies, and boards…”  However, the Executive Order does not appear to specifically encompass closing deadlines contained in private contracts between private parties, such as purchase agreements.  Timelines and closing deadlines contained in purchase agreements represent terms of contracts negotiable between the parties to such contracts, and may be amended by agreement of the parties.  The failure of parties to perform within such timeframes, or agree to amended timelines, may result in the default of a purchase agreement, if not amended.  See Louisiana Civil Code Article 2017. By: Baker, Donelson, Bearman,
Caldwell & Berkowitz, Patricia B. McMurray and Natalie K. Maples