Louisiana situation guide · Updated November 2026

Wholesaling Condemned Houses in Louisiana

Wholesaling condemned houses in Louisiana means contracting on a home that a parish or city has declared unsafe to occupy, often in Lafayette, and assigning that contract to a buyer who will repair or demolish. Act 807 of 2026 (reported as effective August 1, 2026; confirm on legis.la.gov) requires written disclosures and a five-day cancellation right before the seller is bound.

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The short answer

Can you wholesale condemned houses in Lafayette, Louisiana?

Yes, in most cases. A Lafayette wholesaler may put a condemned house under contract and resell it, as long as the 2026 wholesaling provisions (R.S. 37:1448.5) are followed: written notices first, a no-penalty cancellation window and an escrowed deposit. Confirm current text and the order status. A condemnation order changes who can buy, so learn the status before you offer.

Condemned means a local authority found the structure unsafe, often after fire, storm damage, collapse or neglect. The order may bar occupancy, demand repairs by a date or require demolition. Each path changes the buyer pool. Read our condemned house guide and our fire-damaged house guide before you price.

Ask the parish or city for the order, the date, the required action and any hearing. A buyer who plans to demolish thinks about the lot, while a buyer who plans to repair needs permits first. Check highest and best use and run the ARV calculator on both outcomes.

Condemned Houses in Louisiana at a glance

StatuteWholesaling provisions of the 2026 session, R.S. 37:1448.5
Homes coveredResidential property, up to four dwellings
Backing outSeller may cancel; the notice states a 11:59 PM cutoff
Earnest moneyOne percent of price at minimum, escrowed
Order statusGet the written order and deadline from the local office
TitleCheck for liens and parish charges before offering

The opportunity

Why condemned houses create deals in Lafayette

Lafayette is the hub of Acadiana, and its housing stock ranges from old homes near the Saint Streets to newer subdivisions in Broussard, Youngsville and Scott. Energy-sector swings have left some owners stretched, and storms and fires leave a few houses beyond easy repair. A parcel with a condemnation order may still carry land value in a good area. Investors who can demolish or rebuild see that value before owners do. Our land wholesaling guide helps with lot-value thinking.

Order deadlines

Owners facing a deadline may sell quickly. Be honest about what a buyer can and cannot fix, see negotiating with sellers.

Land value

A sound lot in a desirable area can be worth more than the broken house on it.

Heirs in a bind

Families who inherit an unsafe house may not want the liability. See heirs’ property.

Lead sources

Where to find condemned leads in Lafayette Parish

  • Local condemnation lists. Ask the city and parish about posted orders. Compare them with your driving for dollars notes.
  • Fire and storm damage. Houses hit by fire often end up unsafe. Our fire-damaged house guide covers the first steps.
  • Tax delinquent owners. Unpaid taxes and neglect often go together. See pre-foreclosure and tax leads.
  • Succession cases. Heirs who have not yet cleared the estate may hold an unsafe house they cannot manage.
  • Neighbors and contractors. Roofers, demolition crews and neighbors know which houses are posted.

Your exit

Who buys condemned houses in Louisiana

Buyers fall into two groups. Rehabbers want houses that can be saved, and builders or land investors want a cleared lot. Both ask for the order, the structural facts and the cost of demolition. Provide those up front and your contract is easier to sell.

Some buyers cannot use a bank loan on an unsafe house, so expect cash. Because the Act covers certain simultaneous closings, read our double closing guide if you plan to use one. Keep the seller informed about what happens next.

Step by step

How to start wholesaling condemned houses in Louisiana

  1. Get the order. Obtain the written condemnation notice and any deadline from the local authority.
  2. Search title. Look for liens and charges with the title search guide.
  3. Disclose first. Deliver the resale statement and the see-a-lawyer note before the seller signs.
  4. Print the cutoff. Beside the signature, show the final moment to cancel and attach the commission’s sheet.
  5. Fund the escrow. Deposit one percent or more of the price with a Louisiana escrow holder.
  6. Price both paths. Use the MAO calculator for repair and for demolition.
  7. Close properly. Work with an investor-friendly title company.

Your checklist for wholesaling Condemned Houses in Louisiana

  • Read the condemnation order and note every deadline.
  • Deliver the written statements before signature.
  • Count the cancellation days and print the cutoff time.
  • Escrow at least one percent of the price.
  • Record nothing that could cloud title.

A Louisiana example: an unsafe house near the Saint Streets

Contract price$37,000
Deposit in escrow$500
Demolition estimate$14,000
Cleared lot valueAbout $85,000
Assignment fee$7,500
Builder marginAbout $20,000

In this worked example, a storm-weakened house near the Saint Streets was posted as unsafe. The owner, a retiree, could not pay for a demolition. The city had set a deadline for action.

You offered $37,000 and delivered the written statements, with the cutoff printed beside his signature and the commission sheet attached. The seller consulted a lawyer and did not cancel. Your $500 earnest money went to escrow. Title work found only a small city charge.

A local builder paid a $7,500 fee. He demolished the house and planned a new home on the lot. In this illustration the seller avoided a deadline problem and the buyer had a documented path.

Louisiana rules to know

Louisiana law for condemned house wholesalers

The 2026 wholesaling provisions were added through R.S. 37:1431(35)-(37) and R.S. 37:1448.5, and they cover residential property with up to four units. Notices must precede each contract. A violation can let the seller void the deal until title transfers and can bring a civil penalty up to $5,000.

Condemnation is local, so ask the parish or city for its process and any demolition charges. Louisiana’s license law, R.S. 37:1459, can penalize unlicensed real estate activity done for others, and R.S. 37:1438 exempts owners, so how the two fit is unsettled. Sellers also owe the property disclosure under R.S. 9:3196 to 3198. Read our attorney guide.

Learn it with a mentor

Decide repair or demolish

A condemned house can be a trap or a lot discount. In mentorship we help you read the order and compare both exits.

FAQ

Condemned Houses in Louisiana: common questions

Is wholesaling condemned houses in Louisiana legal?

Generally yes, but it is regulated. The 2026 provisions cover one-to-four unit homes and call for written notices, a seller cancellation right and an escrowed deposit. A Louisiana attorney can confirm what applies. Check current text and confirm the order status with the local office.

Can a condemned house still be sold in Lafayette?

Generally yes. A condemnation order restricts use, but the owner usually can still sell the property. Buyers will price the repair or demolition cost and any charges tied to the order. Ask the local office for the notice before you make an offer.

Who is responsible for demolition costs?

The cost may fall on the owner first, and the local authority may bill unpaid work. In a wholesale deal the end buyer typically pays after closing. Confirm any lien or charge on title and plan payoff through the title company at closing.

Do I have to tell the seller I will resell the contract?

Yes. As the statute reads, you must say so in writing before the contract is signed, including that you intend to assign or resell for more than the seller is offered, and that the seller should seek legal advice. Confirm the wording with a Louisiana attorney.

What happens if I skip a required notice?

The seller may void the contract before title transfers, and the matter can be handled as an unfair trade practice and a Real Estate Commission issue. A civil penalty of up to $5,000 per violation is possible. Check current text and use an attorney.

Keep going

More Louisiana wholesaling guides

Read the full Louisiana wholesaling guide or pick another situation below.

Your next step

Read the order before you offer

Send us the notice and the address. We will help you weigh repair against demolition.

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