Marie and Pierre Thibodaux are married and wish to mortgage their community property home in Lafayette to secure a home equity loan. Under Louisiana community property law, which of the following correctly states the signature requirement for the mortgage to be valid?
Correct Answer
C) Both Marie and Pierre must sign the mortgage because it encumbers community property
Under Louisiana Community Property Law (La. Civil Code Arts. 2327–2437), property acquired during marriage is presumed community property. Both spouses must sign any act that encumbers or alienates community immovable property, including a mortgage. La. Civil Code Art. 2347 requires the concurrence of both spouses for acts that alienate, encumber, or lease community immovable property. A mortgage signed by only one spouse on community property is an absolute nullity.
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Related Topics & Key Terms
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Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
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