New changes affecting Louisiana tax sales.

by Chris on February 22, 2012

Louisiana law is clear that a tax sale does not operate to terminate a property interest unless that party has been duly notified. This is merely a codification of the jurisprudential doctrine that existed prior to the 2009 enactment. Louisiana Revised Statute 47:2121(C)(2) further states that “person who acquires ownership of property through a tax sale title takes the ownership subject to any interests that are not terminated in accordance with this Title.” This portion of the law is new as previously discussed, since prior to 2009 an unredeemed tax sale operated as a cancellation of all liens and encumbrances.

There is little, if any law on this current statute. However, it does raise some interesting issues. What happens when the owner but not the mortgagee is notified? Does the tax sale purchaser own the property subject to that mortgage? What about mineral rights, rights of habitation, and other rights in immovable property not traditionally listed as the owner of record? How does this affect homestead exemptions? Eventually, these questions will be answered by the courts, by subsequent legislation, or both.

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