Yvonne is selling her home in Lake Charles. She completed the Louisiana Residential Property Disclosure Document and delivered it to the buyer, Frank, before he signed the purchase agreement. After receiving the disclosure, Frank signed the purchase agreement without objection. Three weeks later, Frank discovers that Yvonne had disclosed on the form that the roof had been repaired once, but Frank claims the roof actually has a pre-existing leak she did not disclose. Yvonne insists she disclosed the repair and had no knowledge of an active leak. Under Louisiana law, which principle most directly governs whether Yvonne has satisfied her disclosure obligation?

Correct Answer

B) Yvonne's obligation is measured by what she actually knew at the time of disclosure; if she had no actual knowledge of an active leak, she has satisfied her statutory duty

Under La. R.S. 9:3196 et seq., the seller's disclosure obligation is based on actual knowledge of defects and material facts at the time of disclosure. Louisiana's statute does not impose a constructive knowledge or 'should have known' standard on sellers for purposes of the Property Disclosure Document. If Yvonne genuinely had no knowledge of an active roof leak beyond the repair she disclosed, she has satisfied her statutory duty. Frank's remedy, if any, would depend on proving Yvonne had actual knowledge of the undisclosed defect, potentially through a redhibition claim under the Louisiana Civil Code.