News / Article

Remember covenant when selling a home that received Road Home assistance

Source: nola.com/business/index.ssf/2011/10/remember_covenant_when_selling.html - Nov 1, 2011

From Times Picayune's "The Answer Spot": I am planning to sell my house. I received a Road Home grant several years ago, and the property has been completely restored with the exception of an air-conditioning unit. I will install a new air-conditioning unit once I find a buyer. What is the required procedure?

When you agreed to rebuild your home through the Road Home program, you agreed to adhere to a covenant that requires that the home be rebuilt and occupied within three years of the initial payment. If you received the Road Home grant less than three years ago, then the property is still bound by the covenant, and anyone who buys your home will be responsible for upholding the terms of the covenant until those three years are up.

If your home is still bound by the covenant, you should spell out in the sales agreement what responsibility the new owner has to uphold that covenant.

Category: Louisiana