Guideline: LA No Work Affidavit

Explanation:

Since privileges under the Louisiana Private Works Act can be filed after an insured mortgage is filed and may still outrank the insured mortgage, an agent should take advantage of the safe harbor provided by La. R. S. 9: 4820 and file a "no work affidavit."

Underwriting Requirements:

If the affidavit is filed within four days of its execution, its attestation that no work has begun or materials placed on the site cannot be controverted to prejudice the ranking of the insured mortgage. The affidavit must include the entire time period prior to the recordation of the mortgage, and therefore must be executed after the mortgage has been filed, to cover this gap.

Before or during construction, an underwriter must approval mechanic's liens coverage.

The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.

Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.

This guideline applies to the following form(s):

LA No Work Affidavit