MECHANIC’S LIENS: WHAT YOU DON’T KNOW CAN HURT!
Kevin E. Steele
January, 2006
The mechanic’s lien remedy is a powerful
tool that allows a general contractor,
subcontractor or material supplier recover
for the labor or materials they provide to a
job. However, strict adherence to applicable
time frames is necessary to allow a recovery.
This article details the statutory
requirements for a valid mechanic’s lien.
When preparing any mechanic’s lien certain
information is needed. The required items
are:
1. The owner’s name;
2. The owner’s address as shown on the
county tax records;
3. The legal description of the property
where the work was performed or
materials supplied;
4. The street address of the property
where the work was performed or
materials supplied;
5. The name and address of the lien
claimant; and
6. The amount claimed due.
All mechanic’s liens must be notarized and
recorded in the office of the county recorder
where the project is located. The time frame
and certain prerequisites to obtain a
mechanic’s lien vary depending upon the
type of project and the ownership of the
property in question.
The easiest projects to know what needs to
be done is on commercial or industrial
projects. On these types of projects, no prelien
notice is required and the mechanic’s
lien must be prepared and recorded within
ninety (90) days of the last labor being
performed or last materials being supplied.
Complications arise in the context of one
and two family dwellings. The time limit
for filing a mechanic’s lien is decreased to
within sixty (60) days of the last labor being
performed or last materials being supplied.
Additionally, a pre-lien notice must be
supplied to the owner and recorded with the
county recorder within sixty (60) days of the
first labor being performed or first materials
being supplied if the project is new
construction and you were hired by someone
other than the owner and the property owner
will occupy the structure. A pre-lien notice
must be supplied to the property owner, but
not recorded, within thirty (30) days of the
first labor being performed or the first
materials being supplied if it is a remodeling
job and you were hired by someone other
than the property owner. Finally, no pre-lien
notice is required if the project is original
construction and you were hired by the
owner, if the project is non-owner occupied
or if the project is remodeling and you were
hired by the property owner.
Once you have filed a valid mechanic’s lien,
you have one year to file a lawsuit to
foreclose your mechanic’s lien. If you do
not file suit within one year, the mechanic’s
lien is released as a matter of law. However,
the one year time frame may be shortened if
the property owner sends a letter demanding
that suit be filed within thirty (30) days. If a
lawsuit is not filed within thirty (30) days,
then the mechanic’s lien is released as a
matter of law.
A properly perfected mechanic’s lien can
improve your chances of recovery.
Additionally, it can provided a statutory
basis to recover your attorney’s fees.
However, if the statutory requirements for
the mechanic’s lien are not followed, you
will lose the benefits provided to you by
Indiana law.
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