Page 22 - State Law Summary of Mechanic's Lien Law

Louisiana LA

What is the statutory authority?
LA. R.S. §§ 9:4801 - 9:4861, generally, and §§ 38:2242 and 38:2247.
What is the Attachment Date of the Mechanic’s Lien?
A mechanic’s lien attaches on the earlier of the date: 1) contractor records notice
of contract; or 2) work or furnishing of materials commences that is visible by
inspection. LA R.S. 9:4820 (A) (1) and (2).
What constitutes visible commencement of construction?
There is no visible commencement rule in Louisiana.
What is the priority of the insured construction mortgage/
deed of trust?
A mortgage recorded before a notice of commencement has been filed or
construction has commenced has priroity over mechanic’s liens. LA R.S. 9:4821(A)
(2). A mortgage lender may rely on inspector’s affidavit (“No work affidavit”)
stating that work has not commenced or materials placed if the mortgage is filed
before or within 4 days of the affidavit being filed. LA R.S. 9:4820 (C).

If priority of the insured mortgage/deed of trust is lost, is there a
statutory procedure to regain priority?
No.

When does a mechanic’s lien have to be filed for claimant to maintain
lien rights?
A statement of claim must be filed no later than 60 days after the filing of a notice
of termination of work or the substantial completion or abandonment of work if no
notice of termination is filed. If a notice of contract is properly and timely filed, a
subcontractor has no later than 30 days after the filing of a notice of termination of
the work or 6 months after the substantial completion or abandonment of the work
if no notice of termination is filed. A general contractor must file its notice of claim
no later than 60 days after the filing of the notice of termination and 7 months after
the substantial completion or abandonment of the work if no notice of termination
filed. LA R.S. 9:4822(A)(B)(C).

What is the period of enforcement of a filed mechanic’s lien?
A lien claimant must act to enforce its lien against the owner within 1 year after
filing a statement of claim according to LA .R.S. 9:4823(A)(2).

Is there a procedure to bond over the mechanic’s lien(s)?
Under LA R.S.9:4835, any interested person may deposit with recorder of
mortgages either cash, certified funds or post a surety bond up to a total amount
of 125% the principal amount to obtain a cancellation of a statement of claim or
notice of pendency of action which the recorder will notate on the statement of
claim or notice of pendency of an action.

Are the ALTA 32/33 Series Endorsements available for the Loan Policy?
Yes.

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