Page 18 - State Law Summary of Mechanic's Lien Law

Indiana IN

What is the statutory authority?
Indiana Code §§ 32-28-3-1 through 32-28-3-18.

What is the Attachment Date of the Mechanic’s Lien?
A recorded mechanic’s lien attaches and has priority as of the date claimant
furnishes work, materials or equipment to the project. See I.C. § 32-28-3-5.

What constitutes visible commencement of construction?
The furnishing of work, materials or equipment to the site of the project. I.C. §
32-28-3-1.
What is the priority of the insured construction mortgage/
deed of trust?
A recorded commercial or 3-4 family mortgage has priority over mechanic’s liens
that are recorded after the date the mortgage was recorded, to the extent funds are
actually owed to the lender under the project for which the mechanic’s liens relate.
This provision does not apply to a lien that relates to the construction, alteration,
repair or development of 1-2 family dwelling and any associated outbuilding or
property that is owned by a public utility. See I.C. § 32-28-3-5(d).

If priority of the insured mortgage/deed of trust is lost, is there a
statutory procedure to regain priority?
No.

When does a mechanic’s lien have to be filed for claimant to maintain
lien rights?
Notice of Intention to Hold a Mechanic’s Lien must be filed in the Recorder’s office
where the property is located sixty (60) days for residential property or ninety (90)
days for commercial property after the last day of performing labor or furnishing
materials or machinery. See I.C. § 32-28-3-3.
What is the period of enforcement of a filed mechanic’s lien?
Suit to foreclose must be filed within 1 year after the Notice of Intention to Hold
a Mechanic’s Lien is recorded or if credit was given by a written agreement of
record, 1 year from the expiration of such credit. See I.C. §32-28-3-6. A mechanic’s
lien is void if the owner makes a written demand to the mechanic’s lien claimant
to foreclose on its lien within thirty (30) days after receiving the notice and no suit
is filed. See I.C. § 32-28-3-10.

Is there a procedure to bond over the mechanic’s lien(s)?
Yes. If there is an action to foreclose a mechanic’s lien, the owner of the land subject
to the lien or any person having an interest in the land including a mortgagee or
other lienholder may file a written undertaking with a surety to be approved by the
court. If approved, the court enters an order releasing the property from the lien.
See I.C. § 32-28-3-11.

Are the ALTA 32/33 Series Endorsements available for the Loan Policy?
Yes.

RETURN TO INDEX