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Indiana mechanics lien law does not require parties with a direct contract with the property owner to provide preliminary notice at the beginning of a construction project. However, sending an Indiana preliminary notice is a best practice on every job.
Indiana's deadline to file a mechanics lien is 60 days on residential projects and 90 days on non-residential projects. These deadlines are calculated from the last date the claimant provided materials or labor.
An action to enforce an Indiana mechanics lien must be initiated within 1 year of the date the lien was received for recording.
However, Indiana's lien enforcement deadline can be shortened to 30 days if the property owner properly sends a 30-day Notice to Foreclose to the lien claimant. This notice states that the failure to file suit within 30 days will render the lien null and void.
Indiana mechanics lien law only requires subcontractors to provide preliminary notice on residential owner-occupied projects. If the project is new construction, the notice deadline is within 60 days of first furnishing. On renovation projects, preliminary notice is due within 30 days.
Indiana's deadline to file a mechanics lien is 60 days on residential projects and 90 days on non-residential projects. These deadlines are calculated from the last date the claimant provided materials or labor.
An action to enforce an Indiana mechanics lien must be initiated within 1 year of the date the lien was received for recording.
However, Indiana's lien enforcement deadline can be shortened to 30 days if the property owner properly sends a 30-day Notice to Foreclose to the lien claimant. This notice states that the failure to file suit within 30 days will render the lien null and void.
Indiana mechanics lien law only requires suppliers to provide preliminary notice on residential owner-occupied projects. If the project is new construction, the notice deadline is within 60 days of first furnishing. On renovation projects, preliminary notice is due within 30 days.
Indiana's deadline to file a mechanics lien is 60 days on residential projects and 90 days on non-residential projects. These deadlines are calculated from the last date the claimant provided materials or labor.
An action to enforce an Indiana mechanics lien must be initiated within 1 year of the date the lien was received for recording.
However, Indiana's lien enforcement deadline can be shortened to 30 days if the property owner properly sends a 30-day Notice to Foreclose to the lien claimant. This notice states that the failure to file suit within 30 days will render the lien null and void.
Indiana’s mechanics lien laws specifically lists the parties who are entitled to mechanics lien rights, and provides as follows:
A contractor, a subcontractor, a mechanics, a lessor leasing construction and other equipment and tools… for
1) The erection, alteration, repair, or removal of:
(a) A house, mill, manufactory, or other building; or
(b) A bridge, reservoir, system of waterworks, or other structure;
2) The construction, alteration, repair, or removal of a walk or sidewalk located on the land or bordering the land, a stile, a well, a drain, a drainage ditch, a sewer, or a cistern; or
3) Any other earth moving operation.”
This also includes design professionals such as engineers, land surveyors, and architects.
• Learn more: Can an interior designer file a mechanics lien in Indiana?
Lastly, supplier to suppliers have been declared to have lien rights very recently, overturning the longstanding prohibition against supplier-to-supplier lien rights.
Generally, a written contract isn’t required in Indiana to be able to file a mechanics lien. However, its always a good idea to get a contract in writing at the outset of each and every construction project.
• Dive deeper: Can a Contractor File a Lien Without a Written Contract?
Indiana’s construction lien law does not impose special requirements regarding the licensing of a mechanics lien claimant. However, if the work being performed requires a license, it’s a good idea to have one, or risk facing contractual issues and/or penalties.
• Learn how to get licensed: How to Get a Contractor’s License in Indiana
In Indiana, the deadline to file a mechanics lien claim depends on the project type:
• The general rule is that a lien must be filed no later than 90 days after the last date of furnishing labor and/or materials to the project.
• However, on 1-2 unit, residential projects a lien must be filed no later than 60 days from last furnishing labor and/or materials to the project.
The contents of an Indiana mechanics lien, also referred to as a “Sworn Statement and Notice of Intention to File a Lien,” is governed under IC 32-28-3-3, and must contain, at minimum:
• Amount claimed;
• Claimant’s name & address;
• Owner’s name & address (as shown on the tax records);
• Property description;
• Sworn to and verified; &
• Filed in duplicate.
Note: Indiana claimants must be careful when identifying themselves on lien claims. Read more here: Indiana Weighs In On Claimants Who Incorrectly Identified Themselves
Yes. Indiana requires a legal description of the property to be liened. The legal description is sufficient if it is substantially as set forth in the latest entry in the transfer books of the county auditor, or the transfer books of the township or county assessor at the time of the filing of the notice of intention to hold a lien.
• Need more help? See: Legal Property Description Search | A Complete Guide
Indiana is fairly generous in determining the proper amount for a lien claim, however, the claim should generally be limited to the value of labor and/0r materials furnished to the project and unpaid.
Interest is generally awarded in a foreclosure action on an Indiana mechanics lien. Attorneys fees should not be included in the lien amount. However, the Indiana Supreme Court has ruled that successful lien claimants can recover attorney fees in foreclosure.
Yes. Indiana requires a lien claim to be notarized unless prepared and signed by the lien claimant’s attorney; if that is the case, the lien is only required to be verified.
• Dive deeper: Guide to Notarizing Common Construction Documents
Indiana mechanics liens are documents recorded with the county recorder’s office. For your mechanics lien to be valid, you must record it in the office of the county where the job is physically located. Indiana has a fair amount of counties, and each with their own specific rules and requirements.
To help you, we’ve compiled a list of all the recorder’s offices in Indiana that file mechanics liens, along with all the fees, filing, and formatting requirements. Also, many counties allow for electronic filing as well.
• Be prepared: Essential Questions to Ask a County Recorder Before Filing
There are a lot of questions answered on this page about who can file an Indiana mechanics lien, when it must be filed, what types of rules apply, and more. But you may be wondering something much more practical: how do I actually get my mechanics lien recorded and filed in Indiana?
For this, you may want to consult our Step-by-Step Guide to Filing an Indiana Mechanics Lien
Yes. One of the duplicates filed in the recorder’s office must be mailed to the property owner named in the lien claim. Notice must be sent by first class mail no later than 3 business days after recording the lien.
However, this notice of the filing of the lien is completed by the recorder, so the lien claimant does not need to take additional action as long as they provided two copies of the lien claim form.
Yes, to the extent that a valid mechanics lien may be filed in the first place. A lien filed prior to the condominium declaration will attach to the property as a whole.
After the declaration, liens will only attach to the individual condo units and/or undivided common areas as long as the owners consented to the improvements. Furthermore, if the improvements are to the common areas, and the work was authorized by the association of co-owners, the manager, or the board of directors; then the works is considered to be performed at the express consent of each individual unit, and liens may be filed proportionately against the units improved.
In Indiana, all lien claimants must initiate the enforcement of the lien within 1 year of the date the lien was received for recording.
• See: How long is a mechanics lien effective in Indiana?
However, Indiana gives the property owner (or other party with an interest in the property) the opportunity to shorten the time in which the lien must be foreclosed. They can do this by sending a 30-day Notice to Foreclose to the lien claimant.
The notice must be sent by registered or certified mail to the lien claimant at the address noted on the lien, and must state that the failure to file suit within 30 days will render the lien null and void. If the lien claimant receives this notice and fails to initiate a foreclosure action within the 30-day time period, the noticing party may file an affidavit with the recorder stating that the period elapsed and no foreclosure action was initiated – the recorder will then release the lien.
Yes, Indiana is considered a full price lien state, meaning that for subcontractors and suppliers, they may recover on a lien the full extent of the value of labor or materials furnished to the project; it is not restricted to the unpaid balance owed to the general contractor.
Generally, mechanics liens in Indiana have priority only over liens or encumbrances on the property created after the mechanics lien. In Indiana, a mechanics lien is created on the date the lien claimant first provides labor or materials to the project, for purposes of determining priority. However, lien priority in Indiana is not always cut-and-dry, as the Indiana Supreme Court ruled in a case involving a pre-existing mortgage.
Among competing mechanics liens, there is no priority and funds are shared pro-rata if there are not enough to fully cover all claims. Mechanics liens are prior to judgment creditors to the extent that the mechanics lien claimant first performed work or supplied materials to the project prior to the rendering of the money judgment.
• Learn more: Lien Priority – What Happens When Everybody Is Trying to Grab a Piece from the Same Pie?
Indiana does not have a statute specifically stating who must cancel or release a lien after payment. However, generally speaking, when a mechanics lien is filed, if the lien claimant receives a payment, it is typically exchanged in consideration of the cancellation of the lien.
• Dive deeper: Lien Release Deadlines & Penalties | A 50-State Guide
Give my office a call for a free consult. 260-782-1712. I would like to learn about some of the specific facts of your case. The Mechanic's lien statute has time sensitive requirements to file a perfected lien depending on the structure and your role. Additionally, Indiana has a number of statutes that govern home improvements which provide a consumer up to 3x damages and attorney's fees. Along with various other statutes that have deadlines/timeframe requirements, things can get messy quick where when you thought you may have had a good case, turn upside down due to compliance issues. We look forward to speaking with you. Best, Nick
Give my office a call 260-782-1712. I think I need some more details about some timelines pertaining to work and amounts owed/if any agreements exist. Typically, you would be able to file a lien if you are within the statutory timeframe. I look forward to speaking with you. Best, Nick
Give my office a call 260-782-1712. I need some more information regarding the facts and timeline. It sounds like you could have significant exposure under the Home Improvement Contract Act so the timing of any lien and enforcement of same can be pretty complex and needs to be carefully done to ensure compliance with the laws of IN and avoidance of violating same. I look forward to speaking with you. Best, Nick
Please give my office a call for a free consult to arrange reviewing a copy of any sub agreement and getting some additional facts regarding parties. As a sub you are required to give preliminary notice. I look forward to speaking wtih you. 260-782-1712. Best, Nick
Please give my office a call 260-782-1712 for more facts on this matter. It sounds like you are out of time to file a perfected mechanic's lien, but you still likely have claims for breach of contract and/or unjust enrichment/quantum meruit otherwise.
Please give my office a call for a free consult to arrange reviewing a copy of the contract and getting some additional facts regarding parties. It sounds like you may have a claim under the Home Improvement Contract Act/Deceptive Consumer Sales Acts for 3x damages and attorneys fees. I look forward to speaking wtih you. 260-782-1712. Best, Nick
I loved reading your post since it was both informative and fascinating. You are invited to join me in playing retro bowl if you ha ve any spare time.
This sounds like a number of patent violations of the Home Improvement Contract Act. We would need to look at the contract and discuss some additional facts to fully assess your situation, however. We handle a significant of these types of cases. Give my office a call for a free consultation. 260-782-1712. We look forward to speaking with you. Best, Nick
Please give my office a call 260-782-1712. I think I need some additional facts regarding your case to assess what is going on. A sub-contractor is required to provide preliminary notice within 30 days of first furnishing labor and/or materials in order to have a basis to file a mechanic's lien within 60 days of last furnishing labor/material. Also, typically, waiver of lien provisions are unenforceable unless it complies with the statute. I look forward to speakign with you about your legal issue. Best, Nick
I'd need to look at the agreement. Typically, you'd need to record your interest in the property at the county recorder to have priority interest in the property to those who claim to have an interest subsequent to your taking. Give my office a call for a free consult. 260-782-1712
Give my office a call 26-782-1712. I think you're out of time to file a lien as if considered a sub you needed to give preliminary notice within 30 days of starting the work then you have 60 days from date last worked to file the lien. You likely have claims though for breach of contract, among others. Happy to speak to you as a free initial consult. Best, Nick
Give my office a call. 260-782-1712. We routinely handle this type of case. Did you have a written contract? If so, I'd like to take a look at it. Typically, most contractors don't have stautory complaint contracts. That said, you could get 3x damages and attorney's fees if we send the proper notice to the contractor. Per statute they can file the lien. We can send a notice requiring that the prosecute it or it is deemed void. Also, there is an option to submit surety to the court to remove it. Happy to discuss in more detail. Best, Nick Podlaski
Give my office a call. 260-782-1712. We routinely handle this type of case. Did you have a written contract? If so, I'd like to take a look at it. Typically, most contractors don't have stautory complaint contracts. That said, you could get 3x damages and attorney's fees if we send the proper notice to the contractor. Per statute they can file the lien. We can send a notice requiring that the prosecute it or it is deemed void. Also, there is an option to submit surety to the court to remove it. Happy to discuss in more detail. Best, Nick Podlaski
Give my office a call. 260-782-1712. Happy to discuss. Best, Nick
Give my office a call for a free consultation. I think I need more facts to clarify what is going on and who all the parties are. You may have a claim under Indiana's Deceptive Consumer Sales Act and Home Improvement Contract Act, but there are strict notice requirements that need to be followed. Once those claims are established (specfically ones relating to fraud/deception), if they are in bankruptcy court then you will need to challenge the dischargability of your claims. Given the statutes its a pretty complicated area, but if properly navigated you can get up to 3x damages and fees paid. Happy to discuss more over the phone and after I can review any contract. Best, Nick
Give my office a call so I can get some more information regarding your case. Typically, if you are a sub you would have needed to give notice within 30 days of first furnishing work/materials. If you are the general then you have 60 days from last day of work. There are a number of other stautes that apply to home improvements in Indiana such as the Home Improvement Contract Act. There may be some strategy that goes into when you file given the exposure you could have from the statutes I referenced--the HICA in particular. We routinely handle these types of matters in Indiana. I look forward to speaking with you. 260-782-1712. Best, Nick
Give my office a call so I can get some more information regarding your case. Typically, unless the owner forces your hand with a 30 day notice, you'd have to renew before a year. We routinely handle these types of matters in Indiana. I look forward to speaking with you. 260-782-1712. Best, Nick
Give my office a call. 260-782-1712. Sounds like you may have a basis as a sub to file a lien, but you need to likely give preliminary notice. Also, to the extent you have any claims based in tort law, this could be slightly complicated involing the tort claims act which also requires a separate type of notice.
Did you grind the stump? The statute provides for earth moving operations, but landscaping so to speak, specifically cutting trees down, is not provided in the statute. One thing to consider, however, is the Indiana Home Improvement Contract Act and it spotential applicability to the improvement or alteration of a real property in IN. You could be exposed to counterclaims if the statute applies and your contract is not compliant. Give my office a call . 260-782-1712
Mechanics lien rights are generally available for work improving the project property, and lien claims must generally be tied to amounts owed for the improvement to the property, itself. While a customer may owe you money for damages to machinery, because the damage to the machinery didn't improve the property - I'd assume that lien rights won't be available for amounts relating to broken machinery.
That being said, it might be useful to consult with an Indiana lawyer on the matter. Even if they come to the same conclusion that a lien might not be the most appropriate option, they can help you review the situation and assess what other legal theories may well be suitable for recovery, such as a breach of contract claim Plus, they could help to write a demand letter , too.
Give my office a call for a free consult so I can better understand the facts here. 260-782-1712. There are typically 3 statutes that govern home improvements in IN. As a contractor if you are not compliant you could get slammed with 3x damages and attorney's fees. If you're a home owner you could sue a contractor for 3x damages and attorney's fees. There are a number of steps on both sides of the coin in defense/prosecution of claims that are very time sensitive. I look forward to speaking with you. Best, Nick
Give my office a call for a free consult. I need to understand some additional facts and take a look at the contract you do have. Does your agreement have a provision which disallows him to file a lien? He would have to give a prelim notice to the homeowner in any event (30 days from first furnishing materials/labor). He could potentially bring a claim it sounds like against you for breach of contract if you do not pay him. 260-782-1712. Podlaski LLP Attorneys at Law. I look forward to speaking with you. Best, Nick
Give my office a call. 260-782-1712. In short, the sub had to have given you preliminary notice. If he/she didn't do that then it was improper for them to file the lien. Typically, unless renewed a lien is void after a year. If the sub did not give you notice of the renewal then its likely void. If it is being maintained improperly you can initiate a law suit to quiet the title and for slander of title. If you prevail you can get your attorney's fees paid as well as damages that the slandering of title caused. I look forward to speaking with you. Podlaski LLP Attorneys at Law. Best, Nick
Depending on when you started and how far out you are from start date you may be able to file a lien. You can get attorney's fees if the lien is properly filed. It sounds like you nonetheless have some claim either as to the GC or homeowner for breach of contract or some equitable claims. There are a number of other issues at play here as well such as if the home owner hired you directly, you need to have a Home Improvement Contract Act compliant contract, otherwise you could be looking at a counterclaim that provides for 3x damages and attorney's fees. Give my office a call for a free consult. Podlaski LLP 260-782-1712. www.podlaskilegal.com. Best, Nick
This is an improper lien if the last day they did work was in January. You have claims for slander of title. Give my office a call to assist you in getting damages plus attorney's fees! 260-782-1712. www.podlaskilegal.com Nick Podlaski
Indiana law sets forth specific requirements that unpaid construction parties must follow in order to file a mechanics lien claim.
Generally, Indiana gives mechanics lien rights to any party who provides labor or materials to a permanent improvement on real property. Contractors, subcontractors, suppliers to prime or subcontractors, laborers, and equipment lessors are all eligible to file an Indiana mechanics lien if they are not paid for their work or materials.
Suppliers to suppliers have recently been declared to have mechanics lien rights in Indiana.
Indiana’s lien filing deadlines depend on the nature of the project.
Under Indiana mechanics lien law, there are 3 different types of projects:
For residential projects in Indiana, the deadline to file a mechanics lien in Indiana is 60 days from the last date that the contractor or supplier provided services, labor, or materials.
For all other projects, the lien must be filed within 90 days of the last date that the claimant provided services and labor.
Indiana mechanics lien law requires parties who do not have a direct contract with the owner to provide preliminary notice. Sending this notice is required in order to preserve their lien rights. The notice required is called a Preliminary Notice to Owner of Mechanic’s Lien Rights. Parties should send preliminary notice to the property owner via certified mail with return receipt requested.
An option to further secure rights includes sending a Notice to Owner of Personal Liability that works similar to a Stop Notice. Because it is not required, there is no deadline by which it must be sent. It should be sent to the property owner via certified mail with return receipt requested.
An Indiana mechanics lien form must contain the following information:
A legal description of the property is required by Indiana mechanics lien law. A property description can be determined legal if it is obtained from the latest entry in the transfer books of the county auditor, the transfer books of the township or county assessor at the time the lien is being filed.
Download a free Indiana mechanics lien form, prepared by construction attorneys.
Indiana claimants must record their mechanics lien with the recorder’s office in the county where the property is located. Claimants must provide at least two copies of the Indiana mechanics lien form. Once the lien has been recorded, the recorder is required to send one of the duplicate copies of the lien to the property owner a copy via priority mail no later than 3 business days after recording.
A mechanics lien doesn’t last forever. If unpaid, Indiana claimants must take action to enforce their lien within 1 year from the date of recording.
However, if the Indiana property owner provides a 30-Day Notice to Foreclose, the enforcement deadline is shortened to 30 days.
In our Guide to Filing an Indiana Mechanics Lien, we will walk you through each step required to qualify for and file a mechanics lien in Indiana. We’ll show you the notices you need to send, the information required on Indiana’s mechanics lien form, and essential tips about delivering it to the county recorder’s office.
Download a blank Indiana mechanics lien form to use when filing a claim. Our free forms were created by construction attorneys to meet the requirements in Indiana’s mechanics lien laws. The state statutes are very specific about the language and formatting required in a lien claim document. We make it easy to get this part right.
This part can get tricky; making a mistake on the form could cause an Indiana lien claim to be invalid. All of the information must be 100% accurate, including the legal names of each party, the property description, and the claim amount. Review every detail carefully.
File your completed form with the recorder’s office in the county where the property is located, and pay the recording fee. View a full list of Indiana recorder’s offices to find contact information, fees, and filing requirements.
A mechanics lien is only valid for 1 year in Indiana. If you don’t get paid, you may need to enforce it. You must file an enforcement action before the deadline expires. If you get paid, it’s a good idea to release your Indiana lien.
The provisions of the Indiana statutes that permit the filing of mechanics liens and materialmen’s liens can be found in Indiana’s Mechanics Lien Act, Indiana Code § 32-28-3-0.2 et. seq. The full text of the Indiana Mechanics Lien Law is provided below. Updated as of May 2023.
(a) The amendments made to IC 32-8-3-1 (before its repeal, now codified at section 1 of this chapter), IC 32-8-3-3 (before its repeal, now codified at section 3 of this chapter), and IC 32-8-3-5 (before its repeal, now codified at section 5 of this chapter) by P.L. 53-1999 apply only to contracts and subcontracts entered into after June 30, 1999.
(b) The addition of IC 32-8-3-16 (before its repeal, now codified at section 16 of this chapter), IC 32-8-3-17 (before its repeal, now codified at section 17 of this chapter), and IC 32-8-3-18 (before its repeal, now codified at section 18 of this chapter) by P.L. 53-1999 applies only to contracts and subcontracts entered into after June 30, 1999.
(a) A contractor, a subcontractor, a mechanic, a lessor leasing construction and other equipment and tools, whether or not an operator is also provided by the lessor, a journeyman, a laborer, or any other person performing labor or furnishing materials or machinery, including the leasing of equipment or tools, for:
(1) the erection, alteration, repair, or removal of:
(A) a house, mill, manufactory, or other building; or
(B) a bridge, reservoir, system of waterworks, or other structure;
(2) the construction, alteration, repair, or removal of a walk or sidewalk located on the land or bordering the land, a stile, a well, a drain, a drainage ditch, a sewer, or a cistern; or
(3) any other earth moving operation;
may have a lien as set forth in this section.
(b) A person described in subsection (a) may have a lien separately or jointly:
(1) upon the house, mill, manufactory, or other building, bridge, reservoir, system of waterworks, or other structure, sidewalk, walk, stile, well, drain, drainage ditch, sewer, cistern, or earth:
(A) that the person erected, altered, repaired, moved, or removed; or
(B) for which the person furnished materials or machinery of any description; and
(2) on the interest of the owner of the lot or parcel of land:
(A) on which the structure or improvement stands; or
(B) with which the structure or improvement is connected;
to the extent of the value of any labor done or the material furnished, or both, including any use of the leased equipment and tools.
(c) All claims for wages of mechanics and laborers employed in or about a shop, mill, wareroom, storeroom, manufactory or structure, bridge, reservoir, system of waterworks or other structure, sidewalk, walk, stile, well, drain, drainage ditch, cistern, or any other earth moving operation shall be a lien on all the:
(1) machinery;
(2) tools;
(3) stock;
(4) material; or
(5) finished or unfinished work;
located in or about the shop, mill, wareroom, storeroom, manufactory or other building, bridge, reservoir, system of waterworks, or other structure, sidewalk, walk, stile, well, drain, drainage ditch, sewer, cistern, or earth used in a business.
(d) If the person, firm, limited liability company, or corporation described in subsection (a) or (c) is in failing circumstances, the claims described in this section shall be preferred debts whether a claim or notice of lien has been filed.
(e) Subject to subsection (f), a contract:
(1) for the construction, alteration, or repair of a Class 2 structure (as defined in IC 22-12-1-5) ;
(2) for the construction, alteration, or repair of an improvement on the same real estate auxiliary to a Class 2 structure (as defined in IC 22-12-1-5) ;
(3) for the construction, alteration, or repair of property that is:
(A) owned, operated, managed, or controlled by a:
(i) public utility (as defined in IC 8-1-2-1) ;
(ii) municipally owned utility (as defined in IC 8-1-2-1) ;
(iii) joint agency (as defined in IC 8-1-2.2-2) ;
(iv) rural electric membership corporation formed under IC 8-1-13-4;
(v) rural communications cooperative corporation formed under IC 8-1-17; or
(vi) not-for-profit utility (as defined in IC 8-1-2-125) ;
regulated under IC 8; and
(B) intended to be used and useful for the production, transmission, delivery, or furnishing of heat, light, water, telecommunications services, or power to the public; or
(4) to prepare property for Class 2 residential construction;
may include a provision or stipulation in the contract of the owner and principal contractor that a lien may not attach to the real estate, building, structure or any other improvement of the owner.
(f) A contract containing a provision or stipulation described in subsection (e) must meet the requirements of this subsection to be valid against subcontractors, mechanics, journeymen, laborers, or persons performing labor upon or furnishing materials or machinery for the property or improvement of the owner. The contract must:
(1) be in writing;
(2) contain specific reference by legal description of the real estate to be improved;
(3) be acknowledged as provided in the case of deeds; and
(4) be filed and recorded in the recorder’s office of the county in which the real estate, building, structure, or other improvement is situated not more than five (5) days after the date of execution of the contract.
A contract containing a provision or stipulation described in subsection (e) does not affect a lien for labor, material, or machinery supplied before the filing of the contract with the recorder.
(g) Upon the filing of a contract under subsection (f), the recorder shall:
(1) record the contract at length in the order of the time it was received in books provided by the recorder for that purpose;
(2) index the contract in the name of the:
(A) contractor; and
(B) owner;
in books kept for that purpose; and
(3) collect a fee for recording the contract as is provided for the recording of deeds and mortgages.
(h) A person, firm, partnership, limited liability company, or corporation that sells or furnishes on credit any material, labor, or machinery for the alteration or repair of an owner occupied single or double family dwelling or the appurtenances or additions to the dwelling to:
(1) a contractor, subcontractor, mechanic; or
(2) anyone other than the occupying owner or the owner’s legal representative;
must furnish to the occupying owner of the parcel of land where the material, labor, or machinery is delivered a written notice of the delivery or work and of the existence of lien rights not later than thirty (30) days after the date of first delivery or labor performed. The furnishing of the notice is a condition precedent to the right of acquiring a lien upon the lot or parcel of land or the improvement on the lot or parcel of land.
(i) A person, firm, partnership, limited liability company, or corporation that sells or furnishes on credit material, labor, or machinery for the original construction of a single or double family dwelling for the intended occupancy of the owner upon whose real estate the construction takes place to a contractor, subcontractor, mechanic, or anyone other than the owner or the owner’s legal representatives must:
(1) furnish the owner of the real estate:
(A) as named in the latest entry in the transfer books described in IC 6-1.1-5-4 of the county auditor; or
(B) if IC 6-1.1-5-9 applies, as named in the transfer books of the township assessor (if any) or the county assessor;
with a written notice of the delivery or labor and the existence of lien rights not later than sixty (60) days after the date of the first delivery or labor performed; and
(2) file a copy of the written notice in the recorder’s office of the county not later than sixty (60) days after the date of the first delivery or labor performed.
The furnishing and filing of the notice is a condition precedent to the right of acquiring a lien upon the real estate or upon the improvement constructed on the real estate.
(j) A lien for material or labor in original construction does not attach to real estate purchased by an innocent purchaser for value without notice of a single or double family dwelling for occupancy by the purchaser unless notice of intention to hold the lien is recorded under section 3 of this chapter before recording the deed by which the purchaser takes title.
(a) The entire land upon which the building, erection, or other improvement is situated, including the part of the land not occupied by the building, erection, or improvement, is subject to a lien to the extent of the right, title, and interest of the owner for whose immediate use or benefit the labor was done or material furnished.
(b) If:
(1) the owner has only a leasehold interest; or
(2) the land is encumbered by mortgage;
the lien, so far as concerns the buildings erected by the lienholder, is not impaired by forfeiture of the lease for rent or foreclosure of mortgage. The buildings may be sold to satisfy the lien and may be removed not later than ninety (90) days after the sale by the purchaser.
(a) Except as provided in subsection (b), a person who wishes to acquire a lien upon property, whether the claim is due or not, must file in duplicate a sworn statement and notice of the person’s intention to hold a lien upon the property for the amount of the claim:
(1) in the recorder’s office of the county; and
(2) not later than ninety (90) days after performing labor or furnishing materials or machinery described in section 1 of this chapter. The statement and notice of intention to hold a lien may be verified and filed on behalf of a client by an attorney registered with the clerk of the supreme court as an attorney in good standing under the requirements of the supreme court.
(b) This subsection applies to a person that performs labor or furnishes materials or machinery described in section 1 of this chapter related to a Class 2 structure (as defined in IC 22-12-1-5) or an improvement on the same real estate auxiliary to a Class 2 structure (as defined in IC 22-12-1-5) . A person who wishes to acquire a lien upon property, whether the claim is due or not, must file in duplicate a sworn statement and notice of the person’s intention to hold a lien upon the property for the amount of the claim:
(1) in the recorder’s office of the county; and
(2) not later than sixty (60) days after performing labor or furnishing materials or machinery described in section 1 of this chapter. The statement and notice of intention to hold a lien may be verified and filed on behalf of a client by an attorney registered with the clerk of the supreme court as an attorney in good standing under the requirements of the supreme court.
(c) A statement and notice of intention to hold a lien filed under this section must specifically set forth:
(1) the amount claimed;
(2) the name and address of the claimant;
(3) the owner’s:
(A) name; and
(B) latest address as shown on the property tax records of the county; and
(4) the:
(A) legal description; and
(B) street and number, if any; of the lot or land on which the house, mill, manufactory or other buildings, bridge, reservoir, system of waterworks, or other structure may stand or be connected with or to which it may be removed.
The name of the owner and legal description of the lot or land will be sufficient if they are substantially as set forth in the latest entry in the transfer books described in IC 6-1.1-5-4 of the county auditor or, if IC 6-1.1-5-9 applies, the transfer books of the township assessor (if any) or the county assessor at the time of filing of the notice of intention to hold a lien.
(d) The recorder shall:
(1) mail, first class, one (1) of the duplicates of the statement and notice of intention to hold a lien to the owner named in the statement and notice not later than three (3) business days after recordation;
(2) post records as to the date of the mailing; and
(3) collect a fee of two dollars ($2) from the lien claimant for each statement and notice that is mailed.
The statement and notice shall be addressed to the latest address of the owner as specifically set out in the sworn statement and notice of the person intending to hold a lien upon the property.
Any otherwise valid and enforceable statement and notice of intention to hold a lien filed before March 10, 1967, is valid and enforceable.
(a) As used in this section, “lender” refers to:
(1) an individual;
(2) a supervised financial organization (as defined in IC 26-1-4-102.5) ;
(3) an insurance company or a pension fund; or
(4) any other entity that has the authority to make loans.
(b) The recorder shall record the statement and notice of intention to hold a lien when presented under section 3 of this chapter in the miscellaneous record book. The recorder shall charge a fee for recording the statement and notice in accordance with IC 36-2-7-10. When the statement and notice of intention to hold a lien is recorded, the lien is created. The recorded lien relates back to the date the mechanic or other person began to perform the labor or furnish the materials or machinery. Except as provided in subsections (c) and (d), a lien created under this chapter has priority over a lien created after it.
(c) The lien of a mechanic or materialman does not have priority over the lien of another mechanic or materialman.
(d) The mortgage of a lender has priority over all liens created under this chapter that are recorded after the date the mortgage was recorded, to the extent of the funds actually owed to the lender for the specific project to which the lien rights relate. This subsection does not apply to a lien that relates to a construction contract for the development, construction, alteration, or repair of the following:
(1) A Class 2 structure (as defined in IC 22-12-1-5) .
(2) An improvement on the same real estate auxiliary to a Class 2 structure (as defined in IC 22-12-1-5) .
(3) Property that is:
(A) owned, operated, managed, or controlled by:
(i) a public utility (as defined in IC 8-1-2-1) ;
(ii) a municipally owned utility (as defined in IC 8-1-2-1) ;
(iii) a joint agency (as defined in IC 8-1-2.2-2) ;
(iv) a rural electric membership corporation formed under IC 8-1-13-4;
(v) a rural communications cooperative corporation formed under IC 8-1-17; or
(vi) a not-for-profit utility (as defined in IC 8-1-2-125) ;
regulated under IC 8; and
(B) intended to be used and useful for the production, transmission, delivery, or furnishing of heat, light, water, telecommunications services, or power to the public.
(a) A person may enforce a lien by filing a complaint in the circuit or superior court of the county where the real estate or property that is the subject of the lien is situated. The complaint must be filed not later than one (1) year after:
(1) the date the statement and notice of intention to hold a lien was recorded under section 3 of this chapter; or
(2) subject to subsection (c), the expiration of the credit, if a credit is given.
(b) Except as provided in subsection (c), if a lien is not enforced within the time set forth in subsection (a), the lien is void.
(c) A credit does not extend the time for filing an action to enforce the lien under subsection (a)(2) unless:
(1) the terms of the credit are in writing;
(2) the credit was executed by:
(A) the lienholder; and
(B) all owners of record; and
(3) the credit was recorded:
(A) in the same manner as the original statement and notice of intention to hold a lien; and
(B) not later than one (1) year after the date the statement and notice of intention to hold a lien was recorded.
(d) If the lien is foreclosed under this chapter, the court rendering judgment shall order a sale to be made of the property subject to the lien. The officers making the sale shall sell the property in accordance with IC 34-55-6.
(a) A person whose lien is recorded under this chapter may be a party to an action to enforce a lien.
(b) The court may, by judgment, direct a sale of the land and building for the satisfaction of the liens and costs. The sale shall not prejudice the rights of:
(1) a prior encumbrance; or
(2) an owner or other person who is not a party to the action.
(c) If several actions are brought by different claimants and are pending at the same time, the court may order the actions to be consolidated.
If the proceeds of the sale of the property subject to a lien are insufficient to pay all the claimants, the court shall order the claimants to be paid in proportion to the amount due each claimant.
(a) This section applies to a:
(1) subcontractor;
(2) lessor leasing construction and other equipment and tools, regardless of whether an operator is also provided by the lessor;
(3) journeyman; or
(4) laborer;
employed or leasing any equipment or tools used by the lessee in erecting, altering, repairing, or removing any house, mill, manufactory or other building, or bridge, reservoir, system of waterworks, or other structure or earth moving, or in furnishing any material or machinery for these activities.
(b) Except as provided in subsection (f) and section 12 of this chapter, in order to acquire rights under this section, a person described in subsection (a) must give to the property owner, or if the property owner is absent, to the property owner’s agent, written notice particularly setting forth the amount of the person’s claim and services rendered for which:
(1) the person’s employer or lessee is indebted to the person; and
(2) the person holds the property owner responsible.
(c) Subject to subsections (d) and (e), the property owner is liable for the person’s claim.
(d) The property owner is liable to a person described in subsection (a) for not more than the amount that is due and may later become due from the owner to the employer or lessee.
(e) A person described in subsection (a) may recover the amount of the person’s claim if, after the amounts of other claims that have priority are subtracted from the amount due from the property owner to the employer or lessee, the remainder of the amount due from the property owner to the employer or lessee is sufficient to pay the amount of the person’s claim.
(f) This subsection applies to a person described in subsection (a) who gives written notice, to the property owner or, if the property owner is absent, to the owner’s agent, before labor is performed or materials or machinery is furnished. The notice must particularly set forth the amount of:
(1) labor the person has contracted to perform; or
(2) materials or machinery the person has contracted to furnish;
for the employer or lessee in erecting, altering, repairing, or removing any of the buildings or other structures described in subsection (a). A person described in this subsection has the same rights and remedies against the property owner for the amount of the labor performed by the person or materials or machinery furnished by the person after the notice is given, as are provided in this chapter for persons who serve notice after performing the labor or furnishing the materials or machinery.
(g) If an action is brought against a property owner under this section, all subcontractors, equipment lessors leasing equipment, journeymen, and laborers who have:
(1) performed labor or furnished materials or machinery; and
(2) given notice under this section;
may become parties to the action. If, upon final judgment against the property owner the amount recovered and collected is not sufficient to pay the claimants in full, the amount recovered and collected shall be divided among the claimants pro rata.
(a) A lien is void if both of the following occur:
(1) The owner of property subject to a mechanic’s lien or any person or corporation having an interest in the property, including a mortgagee or a lienholder, provides written notice to the owner or holder of the lien to file an action to foreclose the lien.
(2) The owner or holder of the lien fails to file an action to foreclose the lien in the county where the property is located not later than thirty (30) days after receiving the notice.
However, this section does not prevent the claim from being collected as other claims are collected by law.
(b) A person who gives notice under subsection (a)(1) by registered or certified mail to the lienholder at the address given in the recorded statement and notice of intention to hold a lien may file an affidavit of service of the notice to file an action to foreclose the lien with the recorder of the county in which the property is located. The affidavit must state the following:
(1) The facts of the notice.
(2) That more than thirty (30) days have passed since the notice was received by the lienholder.
(3) That no action for foreclosure of the lien is pending.
(4) That no unsatisfied judgment has been rendered on the lien.
(c) The recorder shall:
(1) record the affidavit of service in the miscellaneous record book of the recorder’s office; and
(2) certify by cross reference to the record any lien that is fully released.
When the recorder records the affidavit and certifies by cross reference the record under this subsection, the real estate described in the lien is released from the lien.
(a) In an action to foreclose a lien:
(1) the defendant or owner of the property subject to the lien; or
(2) any person having an interest in the property subject to the lien, including a mortgagee or other lienholder;
may file in the action a written undertaking with surety to be approved by the court.
(b) An undertaking filed under this section must provide that the person filing it will pay any judgment that may be recovered in the action to foreclose the lien, including costs and attorney’s fees allowed by the court, if the claim on which the judgment is founded is found by the court to have been a lien on the property at the time the action was filed.
(c) If an undertaking is filed and approved by the court:
(1) the court shall enter an order releasing the property from the lien; and
(2) the property shall be discharged from the lien.
(a) This section applies to a person who:
(1) performs work or labor such as:
(A) grading;
(B) building embankments;
(C) making excavations for track;
(D) building:
(i) bridges;
(ii) trestlework;
(iii) works of masonry;
(iv) fencing; or
(v) other structures; or
(E) performs work of any kind;
in the construction or repair of a railroad or part of a railroad in Indiana; or
(2) furnishes material for:
(A) a bridge, trestlework, work of masonry, fence, or other structure; or
(B) use in the construction or repair of a railroad or part of a railroad;
in Indiana.
(b) The work, labor, or material described in subsection (a) may be provided under a contract:
(1) with the railroad corporation building, repairing, or owning the railroad; or
(2) with a person, corporation, or company engaged as:
(A) lessee;
(B) contractor;
(C) subcontractor; or
(D) agent;
of the railroad corporation in the work of constructing or repairing the railroad or part of the railroad in Indiana.
(c) A person to whom this section applies may have a lien to the extent of the work or labor performed, or material furnished, or both, upon:
(1) the right-of-way and franchises of the railroad corporation; and
(2) the works and structures as set forth in this section that may be upon the right-of-way and franchise of the railroad corporation;
within the limits of the county in which the work or labor may be performed or the material may be furnished.
(d) A person performing work or labor or furnishing materials under a contract described in subsection (b)(2) is not required to give notice to the railroad corporation under section 9 of this chapter in order to acquire and hold a lien for labor performed or material furnished under the provisions of this section. The performance of the labor or the furnishing of the materials is sufficient notice to the railroad corporation. A lien that is acquired as set forth in this subsection shall be enforced as other mechanic’s liens are enforced in Indiana.
(e) A person who, in doing business with a railroad company, has constructed a building or other improvement on a portion of the railroad right-of-way adjacent to the person’s place of business may have a lien to the extent of the fair market value of the improvement on that portion of the right-of-way. The lien may be acquired and enforced:
(1) upon abandonment of the right-of-way by the railroad company; and
(2) against the successors in title of the railroad company.
This subsection does not apply to property that is subject to a written agreement providing for the disposition of improvements upon abandonment. Liens acquired under this subsection shall be enforced as other mechanic’s liens are enforced in Indiana.
A person who desires to acquire the lien provided for in section 12 of this chapter must give notice of the person’s intention to hold the lien by causing the notice to be recorded in the recorder’s office of the county in which the work was done or material furnished in the same manner and within the same time as provided in this chapter for giving notice of a mechanic’s lien. A person who gives notice within the proper time may enforce the lien in the same manner as mechanic’s liens are enforced. The suit must be brought within one (1) year after the time the notice was filed in the recorder’s office.
(a) Except as provided in subsection (b), in an action to enforce a lien under this chapter, a plaintiff or lienholder who recovers a judgment in any sum is entitled to recover reasonable attorney’s fees. The court shall enter the attorney’s fees as a part of the judgment.
(b) A plaintiff may not recover attorney’s fees as part of the judgment against a property owner in an action in which the contract consideration for the labor, material, or machinery has been paid by the property owner or party for whom the improvement has been constructed.
A person who knowingly or intentionally:
(1) performs labor, supplies services, or furnishes material or machinery in the:
(A) construction;
(B) repair; or
(C) remodeling;
of a building, structure, or other work;
(2) accepts payment for the labor, services, material, or machinery furnished and supplied;
(3) at the time of receiving the payment, knows that the person is indebted to another for:
(A) labor, including the cost of renting or leasing construction and other equipment and tools, whether or not an operator is also provided by the lessor;
(B) services;
(C) material; or
(D) machinery;
used or employed in the construction, repair, or remodeling;
(4) fails:
(A) at the time of receiving the payment; and
(B) with intent to defraud;
to notify in writing the person from whom the payment was received of the existence of the outstanding indebtedness; and
(5) causes the person from whom the payment was received to suffer a loss by failing under subdivision (4) to notify the person of the existence of the outstanding indebtedness;
commits a Level 6 felony.
(a) This section applies to a construction contract for the construction, alteration, or repair of a building or structure other than:
(1) a Class 2 structure (as defined in IC 22-12-1-5) or an improvement on the same real estate auxiliary to a Class 2 structure (as defined in IC 22-12-1-5) ; or
(2) property that is:
(A) owned, operated, managed, or controlled by a public utility (as defined in IC 8-1-2-1) , a municipally owned utility (as defined in IC 8-1-2-1) , a joint agency (as defined in IC 8-1-2.2-2) , a rural electric membership corporation formed under IC 8-1-13-4, rural communications cooperative corporation formed under IC 8-1-17, or a not-for-profit utility (as defined in IC 8-1-2-125) regulated under IC 8; and
(B) intended to be used and useful for the production, transmission, delivery, or furnishing of heat, light, water, telecommunications services, or power to the public.
(b) A provision in a contract for the improvement of real estate in Indiana is void if the provision requires a person described in section 1 of this chapter who furnishes labor, materials, or machinery to waive a right to:
(1) a lien against real estate; or
(2) a claim against a payment bond;
before the person is paid for the labor or materials furnished.
(c) A provision in a contract for the improvement of real estate in Indiana under which one (1) or more persons agree not to file a notice of intention to hold a lien is void.
A provision in a contract for the improvement of real estate in Indiana is void if the provision:
(1) makes the contract subject to the laws of another state; or
(2) requires litigation, arbitration, or other dispute resolution process on the contract occur in another state.
(a) This section applies to a provider of labor, materials, or equipment under a contract for the improvement of real estate that conditions the right of the provider to receive payment on the obligor’s receipt of payment from a third person with whom the provider does not have a contractual relationship.
(b) This section does not apply to a construction contract for the construction, alteration, or repair of the following:
(1) A Class 2 structure (as defined in IC 22-12-1-5) .
(2) An improvement on the same real estate auxiliary to a Class 2 structure (as defined in IC 22-12-1-5) .
(3) Property that is:
(A) owned, operated, managed, or controlled by a:
(i) public utility (as defined in IC 8-1-2-1) ;
(ii) municipally owned utility (as defined in IC 8-1-2-1) ;
(iii) joint agency (as defined in IC 8-1-2.2-2) ;
(iv) rural electric membership corporation formed under IC 8-1-13-4;
(v) rural communications cooperative corporation formed under IC 8-1-17; or
(vi) not-for-profit utility (as defined in IC 8-1-2-125) ;
regulated under IC 8; and
(B) intended to be used and useful for the production, transmission, delivery, or furnishing of heat, light, water, telecommunications services, or power to the public.
(c) An obligor’s receipt of payment from a third person may not:
(1) be a condition precedent to;
(2) limit; or
(3) be a defense to;
the provider’s right to record or foreclose a lien against the real estate that was improved by the provider’s labor, material, or equipment.
(a) If:
(1) a person owns or has an interest in real estate to which a mechanic’s lien has been attached;
(2) the debt secured by the lien has satisfied or paid; and
(3) the person who owns or has an interest in the encumbered real estate demands that the lien be released;
the lienholder shall release the lien within fifteen (15) days after the demand.
(b) If the lienholder does not release the lien within fifteen (15) days after the demand, the lienholder is liable to the person who owns or has an interest in the real estate to which the mechanic’s lien has been attached for the greater of:
(1) actual damages; or
(2) liquidated damages in the sum of ten dollars ($10) per day from the fifteenth day until the release or expiration of the lien.
(c) A person who owns or who has an interest in real estate to which a mechanic’s lien has been attached may, at any time thirteen (13) months after the date of the filing of the notice of the lien, file in the office of the recorder of the county in which the real estate is situated an affidavit stating that no suit for the foreclosure of the lien is pending and that no unsatisfied judgment has been rendered on the lien.
If a person who owns or has an interest in real estate encumbered by a mechanic’s lien prepares and files the affidavit described in section 1(c) of this chapter, the recorder of the county in which the encumbered real estate is situated shall immediately record the affidavit and certify by cross reference to the record of the lien that the mechanic’s lien is fully satisfied and that the real estate described in the mechanic’s lien is released from the lien. The fee of the recorder for the filing and recording of the affidavit shall be an amount prescribed by law and shall be paid by the person filing the affidavit.
An action may not be brought or maintained in Indiana to foreclose or enforce a mechanic’s lien filed under Indiana law when the debt secured by the lien, as shown by the record of the lien, has been due more than one (1) year. If the record of the lien does not show when the debt secured by the lien became due, an action to foreclose or enforce the lien may not be brought or maintained in Indiana more than one (1) year after the filing date of the lien.
A mechanic’s lien filed under Indiana law expires one (1) year after the debt secured by the lien becomes due, as shown by the record of the lien. If the record of the mechanic’s lien does not show when the debt secured by the lien becomes due, the mechanic’s lien expires one (1) year after the filing date of the lien.
(a) Except as provided in subsection (b), the lien of an assessment for a:
(1) street;
(2) sewer;
(3) sidewalk;
(4) ditch; or
(5) other public improvement;
expires five (5) years after the assessment (including any installment payments) is due and payable, as shown by the record creating the lien.
(b) If an assessment is payable in installments, an action to enforce the lien may be brought within fifteen (15) years after the date of the approval of the record creating the lien. After the expiration of this time period, upon the request of the owner of record of the encumbered real estate, the custodian of the record evidencing the lien, in the jurisdiction in which the real estate is situated, shall certify on the record that the lien of the assessment for street, sewer, sidewalk, ditch, or other public improvement is satisfied and released by lapse of time and that the encumbered real estate is released from the lien.
If an action to enforce a lien to which this chapter applies was commenced in Indiana before the lien expired, the lien as it existed at the time the action commenced may be enforced.
(a) Except as provided in subsection (b), an action may not be brought for the foreclosure of a lien of an assessment for a:
(1) street;
(2) sewer;
(3) sidewalk;
(4) ditch; or
(5) other public improvement;
if the action is not commenced within five (5) years after the right of action accrues.
(b) If an assessment described in subsection (a) is payable in installments, an action may be brought within fifteen (15) years after the date of the final approval of the assessment as shown by the record creating the lien.
If:
(1) a court with jurisdiction in Indiana renders a judgment foreclosing a public improvement lien;
(2) the sheriff of a county sells the encumbered real estate to satisfy the lien; and
(3) the sheriff has executed a sheriff’s deed for the real estate to a purchaser;
an action to reopen the judgment or invalidate the deed for any cause may not be brought unless the action is filed within one (1) year after the date of the deed.
Registered professional engineers, registered land surveyors, and registered architects may secure and enforce the same lien that is now given to contractors, subcontractors, mechanics, journeymen, laborers, and materialmen under IC 32-28-3 and any statutes that supplement IC 32-28-3.
A lien created under this chapter may be secured and enforced in the same manner as mechanic’s liens are secured and enforced.