How to Create a Mechanic’s Lien

Indiana law affords contractors and subcontractors the ability to secure payment after their work is complete, but payment was not received. In such unfortunate situations, unpaid construction professionals have the option to record a mechanic’s lien against the property on which work was completed. A mechanic’s lien is  “a statutory tool to help collect payment for labor and materials that improve real property.” Serv. Steel Warehouse Co., L.P. v. United States Steep Corp., 182 N.E.3d 840, 841 (Ind. 2022). The holder of a mechanic’s lien must foreclose on the lien within one year after recording unless the property owner, by written demand, accelerates the lien to foreclose sooner.

The mechanic’s lien must be recorded in the county where the subject property is located, but only after the contractor has finished the work they were hired to perform. The date that a contractor completes their portion of a project is critical because the countdown to file begins on that final day of work. The deadline to file is either 60 or 90 days after the final day of work, depending on the type of project. Liens for work performed on residential properties must be recorded within 60 days, while liens for all other types of properties (commercial, industrial) must be recorded within 90 days. If not recorded in that time, a contractor or subcontractor loses their opportunity to secure payment via the mechanic’s lien.

Indiana Code section 32-28-3-3(c) outlines the information that must be included in the mechanic’s lien filing itself. The lien must contain (1) an amount claimed, (2) the claimant’s name and address, (3) the property owner’s name and latest address, (4) a legal description of the property, and if available, the street name and number, (5) the last day of labor or last day supplies or materials were procured for the job, and (6) a verification or signature under oath.

Acceptance and recording of a lien by the county recorder does not automatically render it valid, as all other prerequisites for the creation of a lien must also be met. For example, special rules apply to projects on leased properties, usually requiring the landowner to actively consent to the work. See R.T.B.H., Inc. v. Simon Prop. Grp., 849 N.E.2d 764 (Ind. Ct. App. 2006).

Therefore, it is essential to seek legal guidance throughout the process to ensure that your lien meets the legal requirements before recording.

If you have any questions or would like assistance relating to a mechanic’s lien, please reach out to one of our attorneys at McNeelyLaw LLP by calling (317) 825-5110.

This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion of any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.