Property Ownership, Transfer, and Valuation
Louisiana property concepts
Louisiana is a civil-law state, so ownership language differs from common-law states. Candidates should understand full ownership, usufruct (the right to use and enjoy another’s property), servitudes (especially predial servitudes that run with the land), co-ownership, and community property. Louisiana presumes property acquired during marriage is community property unless proved otherwise. Title transfer requires a written act of sale, notarial passage, and recordation in the parish conveyance records. Prescription (adverse possession) can ripen title; know that good-faith possession with just title differs from long-term possession without it.
Valuation approaches
Appraisals use the sales comparison approach for homes, the cost approach for unique or new construction, and the income approach for investment property. A CMA is not an appraisal. Highest and best use frames the analysis.
Traps
Questions confuse usufruct with ownership, treat a personal servitude like a predial servitude, or assume a parish homestead exemption transfers to a new owner automatically. Another trap: using an income approach without subtracting vacancy and expenses.
Rule of thumb
Income approach: value = net operating income ÷ capitalization rate. Worked example: A duplex produces $60,000 NOI and the market cap rate is 8%. Value = $60,000 ÷ 0.08 = $750,000. If a question gives gross rent, subtract vacancy and operating expenses before dividing.