Updated on April 13th, 2022
A Louisiana mechanic’s lien allows constructions workers and suppliers to recover unpaid wages by filing a claim against a non-paying client’s property. Having a lien on the property will usually be enough to convince the owner to pay; however, the worker/supplier (“claimant”) can also enforce their lien if need be, thus initiating a foreclosure suit to reclaim their payment via the forced sale of the property. Liens must be registered with the mortgage office of the parish where the work is performed.
Before or during the signing of the contract for residential property improvement, the contractor is required to provide the owner a written notice of lien rights in the format specified in § 4852(A). If requested, the contractor must also provide a signed copy to others involved in the project that are entitled to lien rights.
It should be noted that general contractors working on a contract estimated over $100,000 must also provide the owner with a notice of contract to preserve their lien rights. The notice of contract can be filed with the parish recorder office in the parish where the project is located (§ 4811(D)).
Laws & Requirements
- Laws: Title 9, Title XXI, Ch. 2, Part 1
- Signing Requirements: Not mentioned in state statutes.
- Time Limit for Recording Lien (§ 4822):
- General contractors – sixty (60) days after filing a notice of termination or seven (7) months after completion/abandonment of work.
- Subcontractors/laborers/suppliers etc. – sixty (60) days. If Notice of Contract is filed, thirty (30) days after filing notice of termination or completion of work. If a Notice of Contract is filed but no notice of termination is filed, six (6) months.
- Deadline for Enforcing Lien (§ 4823 A. (2)): One (1) year