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What Is a Lien? and professional consultants may file liens You have 15 days from the receipt of this
A Lien (pronounced "lean") is a financial against your property. order to appeal before the house is
hold on your property, giving your creditor Unscrupulous contractors (and other service demolished and the lien is filed against your
the right to collect a debt out of the proceeds providers) might try to get you to pay for the property.
of the sale of your property. same work twice by filing a lien against your If you receive an Order to Repair and/or
property for a debt you have already paid Vacate, contact the Legal Clinic at 504-
If the City of New Orleans puts a lien on your them for. 717-7324.
property, the City will eventually get the right It is essential to get a lien release or waiver
to sell your property without your from each subcontractor and supplier. WHEN TO SETTLE
permission, unless you fight the lien. Insist on signed releases before making If the creditor can prove that he or she
payments. Never pay by cash. Only use a completed the work as requested, and that
WHY CREDITORS USE LIENS check or money order. you did not pay what you promised in writing
Creditors use liens, and threats of liens, to to pay, then you should seek legal advice
limit your right to sell your property. CITY DEMOLITION AND CLEAN-UP about negotiating a settlement so the creditor
Generally, creditors file liens because they LIENS will release the lien claim.
expect you to pay your alleged debt to them. The City of New Orleans may file a lien
Creditors are anyone who says you owe them against your property to pay for the WHAT TO DO IF A LIEN IS FILED
money, including contractors or the City of demolition or clean-up of houses that are AGAINST YOU
New Orleans. uninhabitable or public nuisances. If your You have the right to challenge liens on your
If there is a lien on your property when you house is not gutted, cleaned and boarded, or property. (La. R.S. 9:484)
try to sell it, most purchasers will refuse to have not put yourself on a gutting list or
buy your property. If you are able to sell signed a with a contractor by Aug. 29, 2006, If a lien is filed against your property by a
your property in spite of the presence of a you risk seizure, demolition, or inspection. contractor, you should consult with an
lien, your creditor will collect their debt out The lower 9th Ward is exempt from this attorney. Attorneys may be able to recover
of your profit on the sale, leaving you with deadline. (Code of the City of New Orleans Sec. fees from the contractor to pay for this
less money than you would have had 26-205 (2)). challenge. (La. R.S. 9:4841(F)) The New
otherwise. In order to declare your house uninhabitable Orleans Bar Association Lawyer Referral
or a public nuisance, the city must first order Service telephone number is (504) 561-8828 .
CONTRACTOR LIENS an inspection of the property. The city can
Your contractor may file a lien against your also charge you for inspecting the property If the City of New Orleans demolishes your
property. (La. R.S. 9:4801). The contractor or for any repairs/clean-up that they do to house and files a lien against your property,
must provide you a NOTICE OF LIEN your house. The city cannot put a lien on you may have as little as two months before
RIGHTS for work on your home (La. R.S. your house without doing any demolition or the city can sell your property to collect the
9:4852). work on it. special demolition tax. You have the right to
If you did not sign a NOTICE OF LIEN If you are living in your house and do not appeal the debt until the property is sold.
RIGHTS, then any lien your contractor allow the inspection to take place, the city Contact the Legal Clinic immediately at 504-
files can be challenged. is required to obtain a warrant 717-7324 if you receive an order to repair or
before proceeding. vacate, a notice of lien, a notice of tax
Other service providers such as After the inspection, you will receive an assessment, a notice of sale, or any other
subcontractors, laborers, material suppliers, order to repair and/or vacate the property. legal papers from the city about your
property. NOLAC
DOCUMENTS TO KEEP
504-529-1000 Learning about
To contest liens filed against your property,
you should keep as much documentation as
Common Ground Legal Helpline
(504) 717-7324
Liens on Your
possible, such as:
-- Legal papers and notices you receive from Property
your contractor or from the city
-- Your contract, including every revision you
have, with the contractor's signature on it Need Access to free Fax,
-- Copy of your contractor's license
-- Invoices for materials and labor Phone, of Internet? Stop by
-- Copies of the checks cashed by the Common Ground's House of
contractor or other suppliers
-- Receipts signed by the contractor for each Excellence at 1415 Franklin
payment Ave. Our community
-- Photographs of the property before, during,
and after the work
computer lab is open 8am- Common Ground Legal
-- Copies of every letter or note you send or midnight. House of Excellence
give to the contractor 1415 Franklin Ave
-- Copies of every waiver or release signed New Orleans, LA 70117
by you and/or your contractor
-- Contact information for any witnesses who
are present when you negotiate with your
contractor Creditors who repaired damage to your
-- Your notes Also visit our Free Legal Clinic house from Katrina may say they will put
Keep your documents together in a file, and at 1415 Franklin, a lien on your property. This brochure
bring them all with you every time you go to contains information about what liens are,
your attorney or the Common Ground Legal
every Saturday 12-3. and how creditors use liens to get paid for
Clinic or other legal advisors. Come Speak with an attorney their work. You can prevent a lien being
. about any legal questions you put on your property by appealing lien
Additional Resources proceedings or by settling with the
may have. contractor (under reasonable
Katrina Pr-Bono Hotline: circumstances). You can have liens
1-800-310-7029 removed from your property by going to
court. This brochure may help you figure
LA Bar Referral and Information Service out if you need to consult an attorney
1-888-503-5747 about a lien.
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