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Indiana mechanics' liens are different from many other states. It is important to analyze the particular construction project to determine whether it is a private project subject to mechanics' liens or whether it is a municipal, state or other public project which cannot be lied. There are unique idiosyncrasies for owner-occupied dwellings in the State of Indiana, requiring "pre-lien notices."
Distinctive Features of Law in Indiana
Indiana law does not allow mechanics' liens to be filed against public property held for public use. Once a claimant has determined that the construction project is a "private" construction project, then analysis is required to determine whether the project is a commercial project, a utility or a Class 2/owner-occupied dwelling. Each of these types of private projects has different requirements for filing a mechanic's lien.
In July 1999, the Indiana legislature abolished statutory "no lien contracts" except with respect to Class 2 dwellings and utilities. All owner-occupied dwellings (where the claimant is not dealing directly with the homeowner) require pre-lien notices, and if the single or double family dwelling is a new construction, the pre-lien notice must be filed with the county recorder's office.
There is no "defense of payment" under Indiana law. In fact, the owner's real estate is subject to a mechanic's lien foreclosure action in rem against the real estate even though the owner has paid the general contractor in full.
Deadline Summary
Pre-filing Before Construction
On commercial projects and utilities, there is no pre-lien filing requirement before construction. However, on owner-occupied dwellings there is a requirement for a prelien notice. If the owner-occupied dwelling is undergoing remodeling, then the claimant must furnish to the owner, within 30 days after first delivery or work on the project, a pre-lien notice advising the owner of the claimant's right to hold a mechanic's lien. If the owner-occupied dwelling is new construction, then the pre-lien notice must be recorded with the county recorder's office and furnished to the owner of record within 60 days after first delivery or work on the project. If a claimant fails on an owner-occupied dwelling to furnish to the owner the pre-lien notice (and record the pre-lien notice in the case of new construction), any subsequent mechanic's lien is null and void.
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