SUBPART D. CLAIMS AND PRIVILEGES; EFFECTIVENESS;

PRESERVATION; RANKING; EXTINGUISHMENT

§4820. Privileges; effective date

           A. Except as otherwise provided in this Part, the privileges granted by this Part arise and are effective as to third persons when the earlier of the following occurs:

           (1) Notice of the contract is filed as required by R.S. 9:4811.

           (2) The work is begun by placing materials at the site of the immovable to be used in the work or conducting other work at the site of the immovable the effect of which is visible from a simple inspection and reasonably indicates that the work has begun. For these purposes, the "site of the immovable" is defined as the area within the boundaries of the property. In determining when work has begun, services rendered by a professional consultant, professional subconsultant, or other surveyor, architect, or engineer, or the placing of materials having an aggregate price of less than one hundred dollars on the immovable, driving of test piling, cutting or removal of trees and debris, placing of fill dirt, demolition of existing structures, and clearing, grading, or leveling of the land surface shall not be considered.

           B.(1) If work for which notice of contract was not filed as required by R.S. 9:4811 is for the addition, modification, or repair of an existing building or other construction, the suspension of the work for thirty days or more shall cause that part of the work performed before the suspension to be considered, for the purposes of ranking privileges arising under this Part against the rights of third persons, a separate work from the work performed thereafter. A work is suspended if the cost of the work done, in labor and materials, is less than one hundred dollars during a period of thirty days or more.

           (2) A privilege arising under this Part with respect to work performed before the suspension, other than a privilege arising under R.S. 9:4801(2) or a privilege securing a claim arising under R.S. 9:4802(A)(2), retains its priority under R.S. 9:4821 over the rights of third persons acquired prior to the resumption of work only if the claimant having the privilege files a statement of claim or privilege no later than sixty days after the commencement of the suspension.

           C. A person acquiring or intending to acquire a mortgage, privilege, or other right in or on an immovable may conclusively rely upon an affidavit made by a qualified inspector to the effect that he inspected the immovable at a specified time and work had not then been commenced nor materials placed at its site, provided the inspection occurs, and the affidavit is filed, within four business days before or within four business days after the filing of the mortgage, privilege, or other document creating the right. Insofar as the rights of the person to whom or for whom the affidavit is given are concerned, the facts recited in the affidavit shall be deemed to be true at the time of the inspection and to remain true at the time of the filing of the mortgage, privilege, or other document, and the correctness of those facts may not be controverted to affect the priority of the rights of the person to whom or for whom it is given, unless actual fraud by such person is proved. A person who gives a false affidavit shall be responsible for any loss or damage suffered by any person whose rights are adversely affected.

           D. Notwithstanding the other provisions of this Part, the privileges granted upon an immovable by R.S. 9:4801(5) and those securing a claim arising under R.S. 9:4802(A)(5) shall have no effect as to third persons acquiring rights in, to, or on the immovable before the statement of claim or privilege is filed.

           E. If, following cancellation of a notice of contract in accordance with R.S. 9:4832(C), another notice of contract is filed, the date of the later filing shall be the date of filing of notice of contract for purposes of this Section.

           Acts 1981, No. 724, §1, eff. Jan. 1, 1982; Acts 1986, No. 424, §1; Acts 1988, No. 904, §1; Acts 1988, No. 999, §1; Acts 1991, No. 370, §1; Acts 1995, No. 666, §1; Acts 2003, No. 729, §1; Acts 2012, No. 425, §1, eff. August 1, 2012; Acts 2019, No. 325, §1, eff. January 1, 2020.