Louisiana Lien: A Complete Guide to Liens in the State

A lien is a legal interest filed against property to establish a right to payment on an obligation or debt. Once filed, they provide creditors an enforceable right. Liens also give creditors the opportunity to prevent the property owner from selling, refinancing, or transferring ownership of the property until it has been paid or otherwise resolved. While the rules governing liens may vary from state to state, it is important to know the specific rules in Louisiana, which has a civil law history.

What Is a Lien in Louisiana?

In Louisiana, a lien (often referred to as a privilege under the state’s civil law system) gives a creditor a legal right to claim an interest in a debtor’s property until repayment is made. Liens may attach to immovable property (real estate such as land and buildings) or movable property (vehicles, equipment, and personal assets). Once recorded, liens become public record. They notify potential buyers, lenders, and other creditors of outstanding obligations.

For property owners, liens may prevent refinancing or sales. Buyers are required to carry out a lien check as a crucial step to ensuring a clear title. Nevertheless, liens provide creditors legal security for repayment.

Types of Liens in Louisiana

In Louisiana, liens are also called privileges. The most common types of liens filed in Louisiana are property tax liens, mechanic’s liens, and mortgage liens.

Property tax liens are filed by parish tax collectors when individuals default on paying taxes and take over properties. These liens are given higher priority over other types of liens and may lead to tax sales.

Contractors, subcontractors, laborers, or suppliers may secure payment for work or materials by filing a Mechanic’s or Materialman’s lien (Construction Privileges). Louisiana has detailed statutes governing notice, and they are deadline-driven. When a creditor wins a lawsuit and records the judgment against the debtor’s property, judgment liens are created. In addition, they apply to real estate and movable property.

A lender may want to finance a real estate property via standard or mortgage liens. They remain valid until the loan is repaid and the lender files a release of lien. Also, federal taxes are often procured via the Internal Revenue Service (IRS), while the Louisiana Department of Revenue tax liens are used for retrieving state tax. These types of liens apply to both immovable and movable properties.

The homeowners’ associations (HOAs) in Louisiana may utilize the HOA or Municipal Liens for unpaid dues. In addition, municipalities may file liens to recover costs for overdue utilities, fees, or code violations.

How to Search for Liens in Louisiana

In Louisiana, lien records are public, and they are accessible through:

• Parish Clerk of Court Offices: Each of Louisiana’s 64 parishes maintains property and lien records. A search may be conducted using the owner’s name, property address, or legal description.
• Online Parish Databases: Many parishes, including Orleans, East Baton Rouge, and Jefferson, provide online portals for property and lien searches. Although some counties require fees or subscriptions before the public may access lien records.
• Louisiana Court Records: Judgment liens may be found through the Louisiana Supreme Court’s online resources or parish-level court databases.
• Title Companies and Third-Party Services: They provide full lien searches, and these are often used in real estate transactions.

In general, lien records contain the name of the lienholder, debt amount, date of filing, and property description.

Lien Records in Major Louisiana Cities

Since lien records are parish-based, a search may be conducted in the appropriate parish:

• New Orleans (Orleans Parish): The Orleans Parish Clerk of Civil District Court maintains lien and property filings, with online access available.
• Baton Rouge (East Baton Rouge Parish): Lien searches are handled through the East Baton Rouge Clerk of Court’s Office, with both in-person and online services.
• Shreveport (Caddo Parish): The Caddo Parish Clerk of Court maintains property and lien records.
• Lafayette (Lafayette Parish): The Lafayette Parish Clerk of Court manages property and lien filings.
• Lake Charles (Calcasieu Parish): The Calcasieu Parish Clerk of Court offers searches for lien and deed records.

Each parish sets its own rules regarding fees, online access, and certified copy requests.

How Long Does a Lien Stay on Property in Louisiana?

In Louisiana, the duration of a lien depends on its type:

• Property Tax Liens: They remain active until taxes are paid or the property is sold at a tax sale. Louisiana law allows a 3-year redemption period during which the original owner may reclaim their property by paying the owed tax.
• Mechanic’s Liens: Under the Louisiana Private Works Act, mechanic’s liens are enforceable within 1 year of filing, or they expire.
• Judgment Liens: These are valid for 10 years in Louisiana, with a potential renewal period.
• Mortgage Liens: They remain valid until the debt is settled and a release is recorded.
• Tax Liens (IRS/State): Federal tax liens are enforceable for a period of 10 years from the date of assessment. On the other hand, the state’s tax liens follow Louisiana’s collection statutes.

If a lien has yet to undergo a release, it may remain on record even after payment. This further complicates the transfer of property.

How to Remove a Lien in Louisiana

In Louisiana, removing a lien requires resolving the debt or disputing the lien’s validity. Common methods to remove a lien in Louisiana include:

1. Paying the Debt in Full: The lienholder is obligated by law to issue a lien release once the debt is paid. Liens are to be filed with the parish clerk of court in Louisiana.
2. Negotiating a Settlement: Creditors and property owners may agree to settle for a reduced fee or create a payment plan. This is followed by a satisfaction of lien (release), which the creditor is required to record.
3. Court Action: Property owners may challenge fraudulent, invalid, or improperly filed liens in court.
4. Recording a Release or Cancellation: Property owners are to verify that the lienholder files the release with the parish office to clear the title.

Without the above-mentioned, a lien that is not recorded may further obstruct the sale of a property even after payment.

Liens in Louisiana are an essential part of property and debt law, protecting creditors while ensuring property owners meet their obligations. Understanding the types of liens in Louisiana, how to find them, their duration, and the process of removing them helps property owners, buyers, and lenders avoid complications.

Furthermore, Louisiana operates under a civil law system, which allows individuals to record liens at the parish. Consulting with a parish clerk, attorney, or title company is recommended to ensure the proper handling of liens. In Louisiana, property owners may resolve liens and maintain clear property titles with the necessary legal steps.