Real Estate and Mechanic Liens in Indiana

hold_up_800_clrNot too long ago, a client came to me in a panic. They were selling their home. Suddenly, they are served with a Notice of Intention to Hold a Mechanic’s Lien. There was an allegation of work and a claim for over $10,000.00. They had a buyer in the wings, ready to close. The lien was bogus. The man who filed the lien was trying to pick my clients’ pockets.

Indiana law can be quirky when it comes to Mechanic’s liens. Typically, if someone files a lien for work done on a property, it has to be filed within 60 days of the work performed. In this case, there had been no work performed in the 60 day period. However, once a lien is filed, the lienholder has up to one year to foreclose against his lien. After that, the lien disappears.

REMOVING A MECHANIC’S LIEN ON A PROPERTY

There is a way to shorten the process. What homeowner, especially one with a sale pending, wants a lien to be on his property for up to a year. That is sure to kill any sales. In this instance, I immediately took steps to protect my clients’ interests and to invoke a special procedure in the law that can shorten the time for foreclosure to 30 days.

Fortunately, all turned out well for the clients. The lien is removed. The clients sold their home.

A lien on a piece of real estate is not something to be taken lightly. Sometimes, you have to make some serious investigations as to the validity of the claim, and you need to make sure the claim falls within the parameters of Indiana law. Moreover, you need to insure that the paperwork was filed properly and complied with the notice requirements of the Mechanic’s Lien statute.

RESOURCES

http://www.in.gov/legislative/ic/code/title32/ar28/ch3.html

 http://www.in.gov/dfi/2485.htm

 http://www.kddk.com/navigating-the-complexities-of-indianas-mechanics-lien-statute/

 

 



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