Mechanic’s Liens

Mechanic’s Liens

Mechanic’s Liens

Indiana Real Estate Lawyer providing legal services relating to Mechanic’s Liens, as well as litigation, arbitration and mediation of construction claims and disputes.

In Indiana State, when a general contractor, sub-contractor, or material supplier has not been paid for the material or labor provided for a construction or renovation project, a Mechanic’s Lien may be filed against the property. The Mechanic’s Lien is recorded at the county clerk’s office where the property is located, and a Notice of Mechanic’s Lien is served on the property owner to notify the owner that a lien has been filed against the property. When a Mechanic’s Lien is filed against the property, it becomes more difficult for the owner to sell or refinance the property, without paying the claimed debt underlying the lien.

If the property owner does not pay the outstanding amount due for material and labor, the party who filed the Mechanic’s Lien may commence a legal action to foreclose on the lien.

General contractors, sub-contractors and material suppliers may file a Mechanic’s Lien to protect their rights and their ability to get paid for their work. But Mechanic’s Liens are sometimes filed by dishonest contractors as an aggressive tool in an attempt to extract unwarranted sums of money from the property owner.

The Law Offices of Paul P. Page represents its clients in diverse Mechanic’s Lien law matters. We represent general contractors, subcontractors, material suppliers and property owners in Mechanic’s Lien disputes.

For our clients who are general contractors, subcontractors, or material suppliers seeking payment for materials and/or labor provided to a property owner, we can assist in the following matters:
• Filing Mechanic’s Liens
• Enforcing Mechanic’s Liens
• Negotiation and settlement of outstanding claims by contractors, subcontractors and material suppliers

For our clients who are property owners against whom a Mechanic’s Lien has been filed, we can assist in the following matters:
• Legal proceeding to vacate a Mechanic’s Lien by posting a bond or undertaking
• Legal proceeding to vacate an improper, defective or exaggerated Mechanic’s Lien
• Negotiation and resolution of the dispute that gave rise to the Mechanic’s Lien
• Settlement of outstanding claims by contractors, subcontractors and material suppliers

We attempt to resolve disputes among general contractors, subcontractors, material suppliers and property owners without resorting to litigation, however when litigation is unavoidable, we are prepared to represent our clients in litigation arising from construction project claims, including Mechanic’s Liens.

When faced with a Mechanic’s Lien, the property owner has several options including:
• pay the amount claimed
• send written notice demanding that the general contractor remove the lien (if the contract between the property owner & the general contractor requires the general contractor to remove the Mechanic’s Lien)
• request that the court discharge the Mechanic’s Lien, if it appears that the lien is defective (i.e., the lien is for items, such as profit, that are not lienable labor or materials, or the lien incorrectly names the owner of the property, or the lien was not timely filed)
• Bond the Mechanic’s Lien by a surety bond, in lieu of the property against which the Mechanic’s Lien is filed. After the Mechanic’s Lien is bonded, the lien is considered “discharged”. Even though the lien is bonded, the lien may be foreclosed on against the bond.
• In order to bond the Mechanic’s Lien, the property owner or its attorney needs to either have a court set the amount of the surety bond needed to discharge the lien, or alternatively, the attorneys for the lien holder and the property owner may stipulate to the amount of the bond, which is typically 110% of the lien amount. Then the property owner’s attorney submits the surety bond in the amount directed by the court order (or the amount agreed to by the attorneys.) The court should then issue an order directing that the lien be discharged from the property.
• On private non-governmental construction projects, the property owner or contractor may discharge the Mechanic’s Lien by depositing with the county clerk where the lien is filed, a sum of money equal to the lien amount plus interest to the date the money is deposited.

When a contractor, subcontractor or material supplier commences a lawsuit to foreclose on a Mechanic’s Lien, a Notice of Pendency (formerly referred to as a “lis pendens“) is also filed against the property, in order to put everyone on notice that a lawsuit to foreclose a Mechanic’s Lien is pending against the property. This warns potential buyers or lenders that a potential judgment may adversely affect the title to the property.

In Indiana State, a Mechanic’s Lien will automatically terminate after one year, if it is not extended within the one year, unless an action to foreclose the Mechanic’s Lien is filed within one year of the date that the Mechanic’s Lien was filed In comparison to an action to foreclose the Mechanic’s Lien (which is a lawsuit), a one year extension of the term of the Mechanic’s Lien may be easily obtained by the contractor, subcontractor or material supplier by filing an extension with the county clerk’s office. Although the filing of an extension of the Mechanic’s Lien does not legally compel the property owner to pay the allegedly outstanding sum of money, it does continue the legal effect of the lien against the property. Therefore, if the term of the Mechanic’s Lien is extended for a second year, the property owner who has bonded the lien will be required to pay for an additional year’s premium on the surety bond.

Indiana Mechanic’s Lien lawyer protecting the legal rights of property owners, contractors, subcontractors or material suppliers. Mechanic’s Lien attorneys representing clients in Indiana State, throughout Indiana City including Manhattan, Brooklyn, Bronx, Queens, Staten Island, and Long Island, Nassau County, Suffolk County, Westchester, Rockland and upstate Indiana.

It can be quite reassuring to know that you have retained an attorney who can both aggressively defend your legal rights, and give you unbiased information which can assist you in determining your strategy.

We believe that we provide excellent value because our professionalism is among the highest, while our fees are middle of the road.” We cater to those clients who appreciate this high level of legal representation, and understand that all Indiana Mechanic’s Lien law lawyers are not the same.

If you are in need of an aggressive and experienced Mechanic’s Lien lawyer, click Contact Us to tell us about your case. You may also call Paul P. Page to discuss your case or legal matter by telephone, or to schedule a consultation at our office.

Visiting our website, submitting any information via questionnaire or email, or discussing your case with us does not create an attorney-client relationship. An attorney-client relationship with our law firm can only be established with the signing of a written retainer agreement prepared by our law firm.

The information in this website involving Indiana Mechanic’s Lien Law, IN Mechanic’s Liens or other Indiana legal information contained in this website is not intended to constitute legal advice, nor to create an attorney-client relationship or lawyer-client relationship. We recommend that you discuss your IN Mechanic’s Lien Law matter with a IN Mechanic’s Lien lawyer or Indiana Mechanic’s Lien attorney promptly.

Prior results do not guarantee or predict a similar outcome with respect to any future case or legal matter.

This website is not intended to solicit clients for Mechanic’s Liens outside of Indiana State. However, we do represent clients who live outside of Indiana State, and are involved with a Mechanic’s Lien in Indiana State, or who need legal services for an Indiana Mechanic’s Lien.

Indiana Mechanic’s Lien lawyer and attorney Indiana representing Mechanic’s Lien clients.

Cases that our firm accepts in this area of the law may be handled by Paul P. Page, or might be referred to co-counsel for primary responsibility, including court appearances. However, if we accept your case, we will either maintain primary responsibility for your legal matter, or will maintain joint responsibility along with our co-counsel. While the case is pending, you may feel free to discuss your legal matter with our firm or with our co-counsel. Legal fees in this type of case will be shared between our firm and our co-counsel, however the fee charged to the client will not be affected by such arrangement.

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