Disposition of property by quiet title and foreclosure action

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RS 4720.60.1 - Disposition of property by quiet title and foreclosure action

A. The authority may initiate an expedited quiet title and foreclosure action under this Section to quiet title to immovable property held by the authority, interest in property purchased by the authority at tax sales, or in formerly adjudicated properties acquired by the authority from a city, by recording with the register of conveyances a notice of pending expedited quiet title and foreclosure action. The notice shall include a legal description of the property; the street address of the property if available; the name, address, and telephone number of the authority; a statement that the property is subject to expedited quiet title proceedings and foreclosure under this Section; and a statement that any legal interest in the property may be extinguished by a district court order vesting title to the property in the authority. The right of redemption from tax sales in Article VII, Section 25(B) of the Constitution of Louisiana shall be terminated by these proceedings only if the time period for expiration of the right of redemption has expired. If a notice is recorded in error, the authority may correct the error by recording a certificate of correction with the register of conveyances. A notice or certificate under this Subsection need not be notarized and may be authenticated by a digital signature or other electronic means. If the authority has reason to believe that a property subject to an expedited quiet title and foreclosure action under this Section may be the site of environmental contamination, the authority shall provide the Department of Environmental Quality with any information in the possession of the authority that suggests the property may be the site of environmental contamination.

B. After recording the notice under Subsection A of this Section, the authority shall initiate a search of records identified in this Subsection to identify the owners of a property interest in the property who are entitled to notice of the expedited quiet title and foreclosure hearing under this Section. The authority may enter into a contract with or may request from one or more authorized representatives a title search or other title product to identify the owners of property interest in the property as required under this Subsection or to perform the other functions set forth in this Section required for the quieting of title to property under this Section. The owner of a property interest is entitled to notice under this Section if that owner's interest was identifiable by reference to any of the following sources before the date that the authority records the notice under Subsection A of this Section:

(1) Records in the offices of the clerk of court, recorder of mortgages, notarial archives, and the registrar of conveyances.

(2) Records in the offices of the assessor and the city department of finance.

C. The authority may file a single petition with the district court to expedite foreclosure under this Section listing all property subject to expedited foreclosure by the authority and for which the authority seeks to quiet title. If available to the authority, the list of properties shall include a legal description of, a tax parcel identification number for, and the street address of each parcel of property. The petition shall request that a judgment be entered vesting absolute title in the authority, without right of redemption for each parcel of property listed, as provided in this Section. Prior to the entry of judgment under this Section, the authority may request the court to remove the property erroneously included in the petition, or any tax delinquent properties redeemed prior to the hearing.

D. Upon the institution of a suit under Subsection C of this Section, the trial court shall issue an order fixing the time of the trial of the suit which shall not be less than sixty days from the filing of the suit.

E. After completing the records search under Subsection B of this Section, the authority shall determine the address or addresses reasonably calculated to inform those owners of a property interest in property subject to expedited foreclosure under this Section of the pendency of the quiet title and foreclosure hearing under this Section. If, after conducting the title search, the authority is unable to determine an address reasonably calculated to inform persons with a property interest in property subject to expedited tax foreclosure, or if the authority discovers a deficiency in notice under Subsection I of this Section, the following shall be considered reasonable steps by the authority to ascertain the addresses of persons with a property interest in the property subject to expedited foreclosure or to ascertain an address necessary to correct a deficiency in notice under Subsection I of this Section:

(1) For an individual, a search of records of the clerk of court, recorder of mortgages, registrar of conveyances, and notarial archives.

(2) For a business entity a search of business entity records filed with the secretary of state.

(3) For a state or federally chartered depository institution, a search of entity records with the Louisiana Office of Financial Institutions or with the Federal Deposit Insurance Corporation (FDIC).

F. Not less than thirty days before the quiet title and foreclosure hearing under this Section, the authority shall send notice by certified mail, return receipt requested, of the hearing to the persons identified under Subsection E of this Section with a property interest in property subject to expedited foreclosure. The authority shall also send a notice via regular mail addressed to the "Occupant" for each property subject to expedited foreclosure if an address for the property is ascertainable.

G. Not less than thirty days before the quiet title and foreclosure hearing under this Section, the authority or its authorized representative or authorized agent shall visit each parcel of property subject to expedited foreclosure and post conspicuously on the property notice of the hearing. In addition to the requirements of Subsection H of this Section, the notice shall also include the following or a substantially similar statement: "THIS PROPERTY HAS BEEN TRANSFERRED TO THE NEW ORLEANS REDEVELOPMENT AUTHORITY AND IS SUBJECT TO AN EXPEDITED QUIET TITLE AND FORECLOSURE ACTION. PERSONS WITH INFORMATION REGARDING THE PRIOR OWNER OF THE PROPERTY ARE REQUESTED TO CONTACT THE NEW ORLEANS REDEVELOPMENT AUTHORITY AT ______________________."

H. The notice required under Subsections F and G of this Section shall include:

(1) The date on which the authority recorded under Subsection A of this Section, notice of the pending expedited quiet title and foreclosure action.

(2) A statement that a person with a property interest in the property may lose his interest, if any, as a result of the quiet title and foreclosure hearing under this Section.

(3) A legal description, parcel number of the property, and the street address of the property, if available.

(4) The person to whom the notice is addressed.

(5) The date and time of the hearing on the petition for foreclosure under this Section, and a statement that the judgment of the court may result in title to the property vesting in the authority.

(6) An explanation of any rights of redemption and notice that the judgment of the court may extinguish any ownership interest in or right to redeem the property.

(7) The name, address, and telephone number of the authority.

I. If the authority is unable to ascertain the address reasonably calculated to inform the owners of a property interest entitled to notice under this Section, or is unable to provide notice under Subsection F or G of this Section, the authority shall provide notice by publication. Prior to the hearing, a notice shall be published for three successive weeks, once each week, in the official newspaper published and circulated in the parish. The published notice shall include all of the following:

(1) A legal description, parcel number of the property, and the street address of property, if available.

(2) The name of any person not notified under Subsection F or G of this Section, that the authority reasonably believes may be entitled to notice under this Section of the quiet title and foreclosure hearing under this Section.

(3) A statement that a person with a property interest in the property may lose his interest, if any, as a result of the foreclosure proceeding under this Section.

(4) The date and time of the hearing on the petition for foreclosure under Subsection D of this Section.

(5) A statement that the judgment of the court may result in title to the property vesting in the authority.

(6) An explanation of any rights of redemption and notice that judgment of the court may extinguish any ownership interest in or right to redeem the property.

(7) The name, address, and telephone number of the authority.

(8) A statement that persons with information regarding the owner or prior owner of any of the properties are requested to contact the authority.

J. If prior to the quiet title and foreclosure hearing under this Section, the authority shall take reasonable steps in good faith to correct the deficiency before the hearing. The requirements of this Section relating to notice of the quiet title and foreclosure hearing are exclusive and exhaustive, notwithstanding any other provisions of law.

K. If a petition for expedited quiet title and foreclosure is filed under Subsection C of this Section, before the hearing, the authority shall file with the clerk of the district court proof of notice by certified mail under Subsection F of this Section, proof of notice by posting on the property under Subsection G of this Section, and proof of notice by publication, if applicable. A person claiming an interest in a parcel of property set forth in the petition for foreclosure, including a current holder of a conventional mortgage, who desires to contest that petition shall file written objections with the clerk of the district court and serve those objections on the authority at least ten days before the date of the hearing. A holder of a conventional mortgage may object to the action and is entitled to a dismissal of the proceedings by the district court upon a showing that it is the holder of a legally enforceable conventional mortgage and upon payment of the outstanding amount of any liens, taxes, and related costs. The district court may appoint and utilize as the court considers necessary a special master or hearing officer for assistance with the resolution of any objections to the foreclosure or questions regarding the title to property subject to foreclosure. If the court withholds property from foreclosure, the authority's ability to include the property in a subsequent petition for expedited quiet title and foreclosure is not prejudiced. No injunction shall issue to stay an expedited quiet title and foreclosure action under this Section. The district court shall enter judgment on a petition to quiet title and foreclosure filed under Subsection D of this Section, not more than ten days after the conclusion of the hearing or contested case. The district court's judgment shall specify all of the following:

(1) The legal description and, if known the street address of the property foreclosed.

(2) That title to property foreclosed by the judgment is vested absolutely in the authority, except as otherwise provided in Subsections C and E of this Section, without any further rights of redemption.

(3) That all liens against the property, including any lien for unpaid taxes or special assessments are extinguished.

(4) That, except as otherwise provided in Paragraph (5) of this Subsection, the authority, except as otherwise provided in Subsections C and E of this Section, has good and marketable title to the property without any further rights of redemption.

(5) That all existing recorded and unrecorded interest in that property are extinguished, except servitudes of record and public rights of way.

L. Except as otherwise provided in Paragraph (K)(5) of this Section, title to property set forth in a petition for foreclosure filed under Subsection C of this Section shall vest absolutely in the authority upon the date of signing of the judgment by the district court and the authority shall have absolute title to the property. A judgment entered under this Section is a final judgment within the meaning of Code of Civil Procedure Article 1911.

M. There shall be no suspensive appeal from a judgment rendered under this Section. A devolutive appeal must be taken within the delays allowed by Article 2087 of the Code of Civil Procedure. An appeal under this Subsection is limited to the record of the proceedings in the district court.

N. All actions to annul a judgment rendered pursuant to this Section shall be subject to a one year peremptive period commencing on the date of the signing of the judgment by the district court, notwithstanding any other provision of law.

O. The owner of a property interest with notice of the quiet title and foreclosure hearing under this Section, may not assert any of the following:

(1) That notice to another person was insufficient or inadequate in any way.

(2) That any redemptive right was extended in any way because of lack of notice to any other person.

P. Any instrument executed by the authority purporting to convey any right, title, or interest in any property under this Chapter shall be conclusively presumed to have been executed in compliance with the provisions of this Chapter insofar as title or other interest of any bona fide purchaser, lessees, or transferees of the property is concerned.

Q. The failure of an authority to comply with any provision of this Section shall not invalidate any proceeding under this Section if a person with a property interest in property subject to foreclosure was accorded the minimum due process required under the Constitution of Louisiana and the Constitution of the United States of America.

R. It is the intent of the legislature that the provisions of this Section relating to the expedited quiet title and foreclosure of property by the authority satisfy the minimum requirements of due process required under the Constitution of Louisiana and the Constitution of the United States of America but that the provisions do not create new rights beyond those required under the Constitution of Louisiana or the Constitution of the United States of America. The failure of the authority to follow a requirement of this Section relating to the expedited quiet title and foreclosure of property held by the authority shall not be construed to create a claim or cause of action against the authority unless the minimum requirements of due process accorded under the Constitution of Louisiana or the Constitution of the United States of America are violated.

S. As used in this Section, "authorized representative" includes one or more of the following:

(1) A title insurance company or agent licensed to conduct business in this state.

(2) An attorney licensed to practice law in this state.

(3) A person accredited in land title search procedures by a nationally recognized organization in the field of land title searching.

(4) A person with demonstrated experience in the field of searching land title records, as determined by the authority.

Acts 2007, No. 256, §1, eff. July 6, 2007; Acts 2008, No. 791, §1.


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