Title 101: Making Sense of Title Insurance in Commercial Transactions

WHO MAY CLAIM Natural or artificial person who contracts, labors, furnishes material leases materials, or provides professional consultation services in connection with work on real property (includes architects, engineers, and surveyors). GRW Engineers, Inc. v. Elam, App. 2 Cir.1987, 504 So.2d 117, writ denied 506 So.2d 1230. LA REV STAT § 9:4801 LA REV STAT § 9:4802 DEADLINE TO PERFECT Deadline to file a statement of claim depends on lien claimant: • General Contractor under LA REV STAT § 9:4808(B): (1) within 60 days after filing a notice of termination or (2) 7 months after substantial completion/ abandonment of work if no notice of termination • Non-General Contractor under LA REV STAT § 9:4802 who filed a notice of contract under LA REV STAT § 9:4811: (1) 30 days after filing notice of termination or (2) 6 months after substantial compliance or abandonment of work if no notice of termination. • Other: 60 days after (1) filing a notice of termination or (2) substantial completion or abandonment of work if no termination filed. LA REV STAT § 9:4822 NOTE: For residential construction, certain claimants have 70 days to file a state of claim. BROKEN PRIORITY Lender can create a conclusive presumption that its mortgage has priority over all mechanics and materialmens liens by causing an affidavit by a qualified inspector to the effect that he inspected the immovable at a specified time and work had not been commenced and materials had not been placed at the site provided that the inspection occurs and the affidavit is filed within 4 days before or 4 days after the recordation of the mortgage. Date of lien relates back to the earlier of: • Notice of contract filing under LA REV STAT § 9:4811 • Commencement of work by placing material at the site or visible work (architectural, engineering, prep work will not be considered). NOTE: Commencement of work relates back to the first work done with the exception of where a notice of contract was recorded or work was preliminary site work such as drafting plans, completing surveys, etc. These things will be considered separate projects. LA REV STAT § 9:4821 LA REV STAT § 9:4808 DURATION OF LIEN Action to enforce must be brought within 1 year of filing a statement of claim. LA REV STAT § 9:4823 CONTENTS OF LIEN (1) In writing; (2) signed by claimant or claimant’s representative; (3) reasonable identification of immovable for which labor performed / materials furnished; (4) amount and nature of obligation; and (5) identification of requesting and/or record owner. Strict compliance required and technical defects will defeat claim where notice does not adequately serve purpose. Buck Town Contractors & Co. v. K-Belle Consultants, LLC, 2015-1124 (La. App. 4 Cir. 4/6/16), 216 So. 3d 981, 984, writ denied, 2016-0831 (La. 9/6/16), 205 So. 3d 915 LA REV STAT § 9:4822 LOUISIANA LOUISIANA – 521 – 1. This chart is to be used strictly as a guideline to facilitate mechanic’s lien inquiries. Parties using this resource should ensure they are independently confirming the information contained herein before relying on the same. NATIONAL COMMERCIAL SERVICES BY STATE MECHANIC’S LIEN

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