A mechanic’s lien is a legal tool an Indiana contractor might use to collect payment for performing work or supplying materials to improve a particular property. Certain things must hold true for a contractor to be able to secure a mechanic’s lien, which is essentially an interest in the property the contractor worked to improve.
According to Indy.gov, there are certain rules and deadlines associated with filing a mechanic’s lien in Indiana.
When a contractor needs a mechanic’s lien
Typically, Indiana laws allow contractors and subcontractors who never received payment for work performed or materials supplied to file a lien within 90 days of completing work on a particular property. However, in some cases, such as if the work performed or materials provided were for a townhouse, the contractor or subcontractor has 60 days to file the lien. The contractor or subcontractor must then file the lien in the recorder’s office of the county where the property in question is.
When a home has a mechanic’s lien against it
When there is a lien on a particular Indiana home, the lien prevents the owner of the home from being able to transfer the title to anyone else. While the owner may be able to sell the home, the lien then goes with the sale, which may make getting rid of it more difficult. The homeowner has the option of paying the amount listed in the lien to the person who filed it. If the owner disputes the lien, he or she also has the option of challenging it in court.
An Indiana mechanic’s lien remains valid for one year following the date the contractor or subcontractor recorded a notice of intention to hold a mechanic’s lien with the county recorder’s office.
