Question on "Lesioin beyond Moiety" in Louisiana

5 Replies

I have a question regarding wholesaling in the state of louisiana.  In Louisiana, we have what is called "Lesion Beyond Moiety" which states if a property is sold for less than half of the market value at the time of sale, the seller can sue to rescind the sale for up to one year from the time of sale.  I would imagine this could have some risk for those in Louisiana that are wholesailing deals and maybe subject to's?  How does this affect wholesaling and are there ways to mitigate the risk of the seller rescinding the sale?  

@Tiankhy Hinton  it's not likely that anyone will ever challenge a sale under this provision. BUT, be certain, if you are dealing with an elderly person or anyone who's capacity to make a sound decision on selling a property at such a low price to value you should be careful. 

I think Michael Quarells' situation he described in his podcast (he did two, I'm not sure which one it was?) offers an excellent way to handle such a situation.  He had an elderly person who wanted to sell a property to him at an extremely low price.  He asked her if she had a family member or trusted friend that she could have come over to meet with them.  The friend/family member was there along with her to be certain that there was no appearance of him taking advantage of the little old lady.  I can't think of a better way to handle such a situation.

Thanks Robert!  I was sure on how this would impact wholesaling deals.  I remember hearing the podcast where Micheal thought the deal was too good to be true and he morally didn't want to engage into this contract without speaking with a member of her family first.  Found out the Family was surprised that he was willing to purchase his mother's house 15k I believe and she needed to move closer to her family.  

Again, Thanks for your thoughts..... 

Anytime I acquire a property at a HUGE discount, I get a waiver signed from the seller at closing stating they are aware of below than market value but it's in their best interest due to either time constraints , condition of property, or impeding situation such as foreclosure

Just another paper trail to CYOA

Originally posted by @Tiankhy Hinton:

I have a question regarding wholesaling in the state of louisiana.  In Louisiana, we have what is called "Lesion Beyond Moiety" which states if a property is sold for less than half of the market value at the time of sale, the seller can sue to rescind the sale for up to one year from the time of sale.   

On an etymological note, I presume "Lesion Beyond Moiety" is an anglicisme for Lésion {en plus} de moietié ... literally: a "wound" greater than half.  Not a common usage of lésion.

Originally posted by @Chance Delome:

Anytime I acquire a property at a HUGE discount, I get a waiver signed from the seller at closing stating they are aware of below than market value but it's in their best interest due to either time constraints , condition of property, or impeding situation such as foreclosure

Just another paper trail to CYOA

 Thats a good idea to have the seller sign a waiver at closing.  Have you ever had a situation where someone challenged your waiver?  If so, what was the outcome?  

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