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Does this make a lien null and void?

IndianaConstruction Contract

Hello, we filed a lien and listed the wrong property owner. Our contract lists the owner as the one we filed under. Does this make our lien null and void?

1 reply

Nov 1, 2019
When filing an Indiana mechanics lien, the name of the property owner must be included. This requirement is created by § 32-28-3-3(c)(3) of the Indiana mechanics lien statute. And, there's nothing in that section which seems to provide flexibility for errors on the lien claim - whether major or minor. Still, let's look at some factors pointing in either direction.

Mistaken ownership information on Indiana mechanics liens

On one hand: minor issues and errors won't always invalidate a lien claim. Plus, where the contract indicates one owner of the property, but when the owner is someone else in reality - that doesn't seem particularly fair to the claimant. In theory, the claimant should be held responsible for mistakes or misdirections created by their customer. But, on the other hand: information like ownership of the property is pretty crucial to a lien claim. Further, § 32-28-3-3 also states that a claimant is entitled to use the name of the owner which is in the books of the county auditor or the county/town assessor. So, considering that's an official approved source of information, it's entirely possible that the lien claimant might be held responsible for a mistake of ownership information which comes from somewhere else - like their contract. Plus, in what may be a bigger issue: If the ownership information on the lien claim was wrong, then the actual owner probably did not receive notice of the lien filing, as required. And, a failure to provide notice to the property owner of an Indiana lien filing could be fatal to a lien claim, itself.

Will an incorrect owner render an Indiana mechanics lien invalid?

It's hard to know whether an error with ownership info would render an Indiana lien invalid, on it's face. But it's certainly possible - and ownership information is generally crucial on a lien claim. But, if the deadline to file the lien has not yet passed - it might be worthwhile to try and either amend the filed lien claim, or to refile the lien with corrected info then release the flawed claim. If there's an opportunity to correct an issue on a lien claim, it's typically a good idea to do so since courts have been harsh in the past regarding errors on lien claims. As a last and final note: Keep in mind that most lien disputes are resolved relatively quickly and without further legal action. So, there's always a chance that recovery might be made even when there's a substantial issue with the claim.
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