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Help with mechanic’s lien

Indiana

I hired a contractor and paid him for his material upfront. He bought the material from a local place and did not pay them. I didn’t even know where he bought it. I had nothing to do with the business between them. Now the material supplier put a mechanic’s lien on my home. I’m in Indiana what can I do?

1 reply

May 19, 2020
Suppliers are typically entitled to mechanics lien rights, even when they've been hired by someone other than the owner. Indiana is generally considered a "full price" lien state. Meaning, even if a contractor has been fully paid by the owner, their subs and suppliers may be entitled to file a mechanics lien for the full value of their work. That doesn't mean the contractor is off the hook, though. No, if a contractor accepts full payment for a job but fails to pay their subs and suppliers - legal claims will generally be available from the owner against that contractor. And, that contractor can absolutely be roped into the dispute over the filed mechanics lien. So, threatening to take legal action against your contractor, threatening to report them to the state licensing board, or actually pursuing claims could all work to force a contractor to do the right thing and pay what's owed. Additionally, threatening to make complaints online like with the Better Business Bureau, Google, Angie's List, or even Facebook might help get them to pay the supplier, too. What's more, an owner will have a few different options for managing a lien claim against their property, as discussed here: A Mechanics Lien Was Filed on My Property – What Do I Do Now? It's common for owners to challenge lien claims via attorney letter, to bond off a filed lien, or even to file an official challenge against the lien. And, consulting with an Indiana construction attorney should help to sort out what your best next step will be.
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