Louisiana Law Change
Louisiana has introduced a notification requirement whereby you need to personallly deliver notice to the property owner within a month after buying a tax lien (registered mail won't do) or, if you or your agent signs an affidavit that you couldn't locate the owner, post notice conspicuously on the property. There are no provisions for reimbursement of cost. My lawyer (not a tax-lien specialist) says it's one of the worst-written laws he's seen. Opens a whole can of worms (i.e. out-of-state owners, trespassing). Any Louisiana investors out there who know more?
In the light of this situation, I am looking at neighboring states. I noticed that AL has a lot of liens for sale. Anybody care to share experiences in AL ( or MS, FL)?
Leave to my "Sportsmens Paradise" State to screw up the laws again. I had hopes of coming back there and getting involved in REI there but they're making it so difficult to do things it just doesn't make any sense. The laws are alot more favorable in Texas....i'm still learning the ropes here, but compared to LA, this is looking like a Paradise.
That is partly correct. My understanding is that there is also noticing requirement six months prior to end of redemption period on top of noticing after one month of tax sale. This is actdually a good thing, not bad for the investor in two ways. First of all, Louisiana has a 5% penalty, so if they redeem early, you gain a much higher annualized rate of return on your investment. Secondly it makes your petition for munition much more secure since the noticing problems in the past was the biggest hurdle for obtaining clear title after redemption period. This makes that process much more safe and possible and the investment much more feasible.
Talk to your lawyer and find out the details.
RC
Richem, I haven't made myself clear. The problem is not so much the noticing requirement, but the manner in which it has to be fulfilled.
To understand what I mean, here's part of the new law:
"Within thirty days of the tax sale, the purchaser shall provide notice of the sale of that property to the prior owner of the property.... by all of the following:
1. Maling to the prior owner ...a notice that the property has been sold for taxes. The notice shall provide to the prior owner full and accurate information, including the name, physical address, and telephone number of the purchaser ... and shall be accompanied by a copy of the deed of sale....
2. Delivering the notice required by this section ... to the prior owner, at the last known address of the prior owner. Delivery shall be made during appropriate hours, by leaving the notice and the documents with a person of suitable age and discretion, or, if no person of suitable age and discretion is avalilable, by posting the notice and the documents in a conspicuous place on the property. "
(R.S. 47:2183; amended by Act 946 of 2003)
I did talk to my lawyer and he advised me, unless you do it yourself, to expect to pay about $50 per lien for the cost of giving (personal) notice. As most liens here are between $100 and $1000, that cuts into your return substantially. Also, to post a notice at a conspicuous place ON the property raises the issue of trespassing. As a practical matter, in many parishes it takes the sheriff's office up to 6 weeks to deliver the deed, which you are supposed to send to the owner within thirty days of the sale (In my parish, the sale date was June 12, the tax deeds were postmarked July 18).
Hello,
I've bought tax liens in Northeast Louisiana for about 4 years. Many of the liens I've bought are on vacant property...I wonder how you would prove that you had physically delivered or posted notice on vacant property.
Mike in Louisiana
StatHaldol--------------
Take a pointed stake with you. Drive it into the ground at the edge of the property, hopefully next to a road. Staple the notice to the stake. Take a picture of the notice on the stake. Make a notation in a notebook about the time, date, and location of the photo being taken.
If there are trees, post it on a tree. If there is a fence, post it on a fencepost.
Good Investing************Ron Starr**********
Hello,
I was talking to an attorney at the Winn Parish sale Saturday (May 1) about this recent law change. The question I have is the part which states "2. Delivering the notice required by this section ... to the prior owner, AT THE LAST KNOWN ADDRESS OF THE PRIOR OWNER." I usually bid on raw land owned by out-of-state owners, so "the last known address of the prior owner" isn't always the same as the property I bid on. For example, one pice of property I bid on was 35 acres of unimproved land. The "last known address of the prior owner" was in Belgium. Does this mean I have to hope a plane to Antwerp within the next 30 days to "deliver" notice?? The attorney there said he was going to use one of the delivery services (Fed-Ex or UPS) but he "wasn't sure" if this satisfied the second requirement under section C (R.S 47:2183)...And this doesn't even address the problem of posting and trespassing.
Any other thoughts?
Mike in Louisiana
My lawyer's advice (it was free, so you know what it's worith... 8-) ) was that "posting on the property" referred to the property bought at tax sale, not the address of the owner. My local sheriff's office informed me that they do not include the cost of noticing in the redemption price. Makes the return on investment go down substantially if property is redeemed. I wrote a letter pointing out the flaws to Rep Martiny, the sponsor of the law change. He never replied.
Where can you get a copy of the new laws for Louisiana?
Hello,
I'm not sure if I can post a URL address here but I'll try. http://www.legis.state.la.us/leg_docs/04RS/CVT4/OUT/0000KXBJ.PDF
Rep Bruneau has a few amendments proposed to change some of the ambiguity.
Take care!
Mike