NOTE: §1148 eff. until Jan. 1, 2025. See Acts 2024, No. 158.

§1148. Privilege; ranking

            The privilege provided in this Part shall be ranked according to its time of recordation.

NOTE: §1148 as amended by Acts 2024, No. 158, eff. Jan. 1, 2025.

§1148. Privilege; time periods; rank

            A.(1) Except as provided in Subsection B of this Section, if the assessment is imposed for alleged violations of community documents, the effect of recordation of a statement of privilege shall cease and the privilege preserved by it shall be extinguished as to third persons unless a notice of pendency of action in accordance with Code of Civil Procedure Article 3752, identifying the suit required to be filed in accordance with this Subsection, is filed for registry in the mortgage records of the parish where the lot or unit is located within one year after the statement of privilege was filed. In addition to the requirements of Code of Civil Procedure Article 3752, the notice of pendency of action shall contain a reference to the recorded statement of privilege. If the effect of recordation of a statement of privilege has ceased for lack of timely filing of a notice of pendency of action, the recorder of mortgages, upon receipt of a written signed application, shall cancel the recordation of the statement of privilege.

            (2) If the assessment is imposed to enforce the affirmative duty of an owner to pay monthly or periodic dues or fees, or assessments for particular expenses or capital improvements that are reasonable for the maintenance, improvement, or safety, or any combination thereof, then the effect of recordation of a statement of privilege shall cease and the privilege preserved by it shall be extinguished as to third persons unless a notice of pendency of action in accordance with Code of Civil Procedure Article 3752, identifying the suit required to be filed in accordance with this Subsection, is filed for registry in the mortgage records of the parish where the lot or unit is located within five years after the statement of privilege is filed. In addition to the requirements of Code of Civil Procedure Article 3752, the notice of pendency of action shall contain a reference to the recorded statement of privilege. If the effect of recordation of a statement of privilege has ceased for lack of timely filing of a notice of pendency of action, the recorder of mortgages, upon receipt of a written signed application, shall cancel the recordation of the statement of privilege.

            B. A privilege pursuant to this Part is effective against third persons from the time that the statement of privilege is filed for registry in the mortgage records and, except as otherwise provided in the Private Works Act, R.S. 9:4801 et seq., is preferred in rank to all mortgages, privileges, and other rights in the lot or unit that become effective against third persons after that time.

            C. In the absence of a contrary provision in the declaration authorizing two or more associations, privileges in favor of those associations for assessments have equal priority regardless of the date on which the associations file statements of privilege unless there is an intervening encumbrance, in which event this Subsection does not apply.

            Added by Acts 1979, No. 583, §1; Acts 2024, No. 158, §2, eff. Jan. 1, 2025.