Louisiana tax liens are unique to most states. While most states do vary in the redemption process, the Louisiana law is said to use “The Napoleonic Code.”

Despite popular belief, it is incorrect to say that the Louisiana Civil Code is, or stems from, the Napoleonic Code. Although the developing Napoleonic Code influenced Louisiana law, the Napoleonic Code was not enacted until 1804, one year after the Louisiana Purchase. A leading source of Louisiana jurisprudence may in fact be Spanish. The resulting “civil law” system in Louisiana does differ from the “common-law” system in the other 49 states.

Owners of property in Louisiana are given special consideration by the courts to ensure their rights are protected. This can be frustrating to lien holders. Each person with an interest (someone who has equity in the property) should be given notice that a tax lien is on the property, their interest is at risk, and deadlines are looming. It is likely that simply giving notice to the owner on the tax records for the property may suffice, but to take the title on the property, it is best to cover all bases.

Without notice meeting the minimum notice standards as set forth by the Louisiana code the courts may consider the notice invalid and thus delay the process. As lien holders research must be done to locate any person or entity that owns a portion of the property. This can be done with tax records and the public records that the parish has for the notices issued at the initial tax sale.

In Louisiana, 36 months are required to have passed before the tax lien holder can begin the process to take possession of the property. At any time prior to this deadline the owner of the record can pay off the tax lien and other year’s taxes owed. If the deadline to redeem has passed the city or parish can no longer allow redemption of the property. The property owner and tax lien holder must work together to determine the fate of the tax lien and property.

The process for tax lien holders is complex. The easiest step in managing tax liens is the purchase of the lien. After that notice, conversations with property owners, courts, and processes can become quickly overwhelming. For many selling their tax lien to a willing buyer is a way to get cash back in their pocket. The Tax Sale Market is a great place to start when the processes and headaches are no longer worth it.