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ACT No. 245
Regular Session, 2010
HOUSE BILL NO. 340
BY REPRESENTATIVE ARNOLD
AN ACT1
To amend and reenact R.S. 9:1123.115(A)(1) and (2) and to enact R.S. 9:1121.111, relative2
to the Louisiana Condominium Act; to require an advance be put in escrow accounts3
when purchasing a condominium unit; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 9:1123.115(A)(1) and (2) are hereby amended and reenacted and6
R.S. 9:1121.111 is hereby enacted to read as follows:7
§1121.111. Sale of unit; escrow accounts8
As part of the initial sale of units, the seller, whether that be the condominium9
developer, the declarant, or a successor-in-interest, shall collect at least two months10
of assessments from each unit purchaser, which funds are dedicated for the sole11
purpose of establishing the association's reserve account. Such funds shall be placed12
in a reserve escrow account separate from the seller's account. Those funds may be13
used only for the exclusive benefit of the unit owner's association and shall be turned14
over to the unit owner's association along with the other condominium assets in15
accordance with the association declaration or bylaws.16
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§1123.115. Privilege on immovables 18
A.(1) The association shall have a privilege on a condominium parcel for all19
unpaid or accelerated sums assessed by the association , any fines or late fees in20
excess of two hundred fifty dollars, and interest thereon at the rate provided in the21
condominium declaration or, in the absence thereof, at the legal interest rate. This22
privilege shall also secure reasonable attorney fees incurred by the association23
incident to the collection of the assessment or enforcement of the privilege. Further,24
if the unit owner fails to timely pay the assessments for common elements for a25 ENROLLEDHB NO. 340
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period of six three months or more during any eight-month period and notice to the1
delinquent unit owner is provided as set forth in Paragraph (3) of this Subsection, the2
association may accelerate the assessment on the common elements for a twelve-3
month period and file a privilege for the accelerated sums. Assessments for common4
elements are those assessments that are collected on a regular basis by the5
association for routine expenditures associated with the property.6
(2) To be preserved, the privilege shall be evidenced by a claim of privilege,7
signed and verified by affidavit of an officer or agent of the association, and shall be8
filed for registry in the mortgage records in the parish in which the condominium is9
located. The claim of privilege shall include a description of the condominium10
parcel, the name of its record owner, the amount of delinquent or accelerated11
assessment, and the date on which said the assessment became delinquent, and any12
fines or late fees assessed in excess of two hundred fifty dollars.13
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SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: