La. Stat. tit. 9 § 1141.23

Current with changes from the 2024 legislative session effective on or before 7/1/2024, from Acts 1-3, 6-671

Section 9:1141.23 - [Effective 1/1/2025] Transfer of special declarant rights

A. Special declarant rights may be transferred only by an instrument evidencing the transfer recorded in every parish in which any portion of the planned community is situated. Upon transfer of special declarant rights, the transferor is not relieved of any obligation or liability arising before the transfer. A transferor has no liability for any act or omission of, or any breach of a contractual obligation arising from the exercise of a special declarant right by, a successor declarant.

B. In the event of partial transfer of special declarant rights, except in the event of a collateral assignment pursuant to the granting of a security interest, those special declarant rights not transferred terminate on the effective date of the transfer. The transferee of partial rights is responsible for only those obligations related to the special declarant rights that are transferred. A collateral assignment pursuant to the granting of a security interest is not a transfer until the secured party exercises its right to seize the rights in accordance with law.

C. A person who succeeds to special declarant rights is subject to the obligations and liabilities imposed by this Part or the community documents with respect to those special declarant rights transferred, except for any of the following:

(1) Misrepresentations by a previous declarant.

(2) Breach of any fiduciary obligation owed to the board of directors by a previous declarant or his appointees.

(3) Any liability or obligation imposed on the transferor as a result of his acts or omissions after the transfer.

D. Nothing in this Section subjects any successor to a special declarant right to any claims against or other obligations of a transferor declarant, other than claims and obligations in accordance with this Part or the community documents.

La. R.S. § 9:1141.23

Added by Acts 2024, No. 158,s. 2, eff. 1/1/2025, except "For planned communities established by a declaration or similar document filed for registry on or before December 31, 2024, this Act shall become effective on January 1, 2026.".