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  • Lesion Law
    I was talking to an investor the other day and he mentioned something called lesion laws for the state of Louisiana -- which basically states that if you buy a property less than 50 cents on the dollar it could be considered lesion in the state of Louisiana. In effect, the buyer would be able to take the property back or demand more money. For reference... http://la-legal.com/faq.htm#Can%20I%20get%20too%20good%20a%20deal%20in%20a%20sale From what I understand of it, you have to buy a property at 50% of its appraised value or better to avoid a lesion conflict. So, I guess my question is, is this really a concern and/or is there any safety nets/way around it for the buyer? I don't intend on buying homes that are not physically distressed that cheaply, that often. But, what should I do if I were to stumble upon a motivated seller with a decent home and I'm able to purchase it at a drastic discount (say 10% FMV)? Jeremy Falcon
  • Re: Lesion Law
    Jeremy, I was born and raised in La, and yes, I would become well versed in the Napoleonic Code before investing in real estate. This is an example of one of the quirks that make Louisiana law different from the other 49 states. Note that the Lesion principle comes into place at 75% with divorces, inheritances, any division of property. This really makes for dangerous waters shopping for bargains. This is what you have to watch out for! Tread lightly and always buy title insurance! Gerald
  • Re: Lesion Law
    Will do. By the way, do you know of any good materials on the subject? Thanks for your input!
  • Re: Lesion Law
    Can the seller expressly waive lesion in the contract?
  • Re: Lesion Law
    That's a good question, and to one which I have no clue. But, I'd love to know the answer.
  • Re: Lesion Law
    I don't either, and since I am not in Louisiana I don't really have any personal use for the knowledge. I just thought it might be one of those things a smart buyer would want to have in the contract...if, in fact, such a clause would be enforceable. Maybe one of our other Louisiana brethren will chime in here...anyone?

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