Title 101: Making Sense of Title Insurance in Commercial Transactions

WHO MAY CLAIM One who performs labor or furnishes materials or machinery to erect, later, repair, or remove a structure (includes architects and engineers). Farah, LLC v. Architura Corp., 952 N.E.2d 328, 333 (Ind. Ct. App. 2011). IN CODE § 32-28-3-1 DEADLINE TO PERFECT Statement of lien must be filed within 60 days (residential project) and 90 days (non-residential project) after labor performed or materials furnished. IN CODE § 32-28-3-3 BROKEN PRIORITY Lien relates back to the date the lienor’s work began or materials furnished. However, for construction mortgages on commercial properties, the mortgage has priority over mechanic’s liens that are recorded after the date the commercial mortgage is recorded to the extent of the funds actually owed to the Lender for the specific project to which the lien rights relate. IN CODE § 32-28-3-5(D) For construction mortgages on residential properties, Lenders and mechanic’s lien claimants have parity (equal priority) where the mortgagee and mechanic’s lienholders have notice of each other’s interests. Ward v. Yarnelle, 173 Ind. 535, 91 N.E. 7, 15 (1910). Lincoln Bank v. Conwell Construction, 911 N.E.2d 45 (Ind. App. 2010). “Commencement” does not appear to require that work be visible. O’Hara v. Architects Hartung & Ass’n, 163 Ind. App. 661, 666, 326 N.E.2d 283, 287 (1975) (Architect was granted mechanics’ lien for plans where construction never commenced.) IN CODE § 32-28-3-5 DURATION OF LIEN A lien will be void if not enforced within 1 year of (1) recordation of statement of lien or (2) expiration of credit, if given. IN CODE § 32-28-3-6 CONTENTS OF LIEN (1) Written statement; (2) amount claimed; (3) name and address of the claimant; (4) owner’s name and latest address as shown on the property tax records; (5) legal description; and (6) street and number (if any). Substantial compliance is sufficient so long as it correctly states the above requirements such that all elements are reasonably identifiable. McCartin McAuliffe Mech. Contractor, Inc. v. Midwest Gas Storage, Inc., 685 N.E.2d 165, 168 (Ind. Ct. App. 1997) IN CODE § 32-28-3-3 INDIANA INDIANA – 517 – 1. This chart is to be used strictly as a guideline to facilitate mechanic’s lien inquiries. Parties using this resource should ensure they are independently confirming the information contained herein before relying on the same. NATIONAL COMMERCIAL SERVICES BY STATE MECHANIC’S LIEN

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