Bill Text: IN SB0436 | 2013 | Regular Session | Introduced
Bill Title: Mechanic's liens.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-01-10 - First reading: referred to Committee on Civil Law [SB0436 Detail]
Download: Indiana-2013-SB0436-Introduced.html
Citations Affected: IC 32-28-3-1.
Synopsis: Mechanic's liens. Provides that persons that sell or furnish
on credit material, labor, services, equipment, or machinery: (1) for the
original construction of a single or double family dwelling for the
intended occupancy of the owner upon whose real estate the
construction takes place, or for the original construction on, alteration
to, or repair to any real estate or improvements; and (2) to a contractor,
a subcontractor, a mechanic, or anyone other than the owner of the real
estate or the owner's legal representatives; must furnish the owner of
the real estate with a written notice of the provision of materials, labor,
services, equipment, or machinery and the existence of lien rights.
Provides that the notice must be: (1) furnished to the owner; and (2)
filed in the recorder's office of the appropriate county; not later than 10
days after the first date the materials, labor, services, equipment, or
machinery is provided.
Effective: July 1, 2013.
January 10, 2013, read first time and referred to Committee on Civil Law.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
property.
(1) the erection, alteration, repair, or removal of:
(A) a house, mill, manufactory, or other building; or
(B) a bridge, reservoir, system of waterworks, or other structure;
(2) the construction, alteration, repair, or removal of a walk or sidewalk located on the land or bordering the land, a stile, a well, a drain, a drainage ditch, a sewer, or a cistern; or
(3) any other earth moving operation;
may have a lien as set forth in this section.
(b) A person described in subsection (a) may have a lien separately or jointly:
(1) upon the house, mill, manufactory, or other building, bridge, reservoir, system of waterworks, or other structure, sidewalk, walk, stile, well, drain, drainage ditch, sewer, cistern, or earth:
(A) that the person erected, altered, repaired, moved, or removed; or
(B) for which the person furnished materials or machinery of any description; and
(2) on the interest of the owner of the lot or parcel of land:
(A) on which the structure or improvement stands; or
(B) with which the structure or improvement is connected;
to the extent of the value of any labor done or the material furnished, or both, including any use of the leased equipment and tools.
(c) All claims for wages of mechanics and laborers employed in or about a shop, mill, wareroom, storeroom, manufactory or structure, bridge, reservoir, system of waterworks or other structure, sidewalk, walk, stile, well, drain, drainage ditch, cistern, or any other earth moving operation shall be a lien on all the:
(1) machinery;
(2) tools;
(3) stock;
(4) material; or
(5) finished or unfinished work;
located in or about the shop, mill, wareroom, storeroom, manufactory or other building, bridge, reservoir, system of waterworks, or other structure, sidewalk, walk, stile, well, drain, drainage ditch, sewer, cistern, or earth used in a business.
(d) If the person, firm, limited liability company, or corporation described in subsection (a) or (c) is in failing circumstances, the claims described in this section shall be preferred debts whether a claim or notice of lien has been filed.
(e) Subject to subsection (f), a contract:
(1) for the construction, alteration, or repair of a Class 2 structure (as defined in IC 22-12-1-5);
(2) for the construction, alteration, or repair of an improvement on the same real estate auxiliary to a Class 2 structure (as defined in IC 22-12-1-5);
(3) for the construction, alteration, or repair of property that is:
(A) owned, operated, managed, or controlled by a:
(i) public utility (as defined in IC 8-1-2-1);
(ii) municipally owned utility (as defined in IC 8-1-2-1);
(iii) joint agency (as defined in IC 8-1-2.2-2);
(iv) rural electric membership corporation formed under IC 8-1-13-4;
(v) rural telephone cooperative corporation formed under IC 8-1-17; or
(vi) not-for-profit utility (as defined in IC 8-1-2-125);
regulated under IC 8; and
(B) intended to be used and useful for the production, transmission, delivery, or furnishing of heat, light, water, telecommunications services, or power to the public; or
(4) to prepare property for Class 2 residential construction;
may include a provision or stipulation in the contract of the owner and principal contractor that a lien may not attach to the real estate, building, structure or any other improvement of the owner.
(f) A contract containing a provision or stipulation described in subsection (e) must meet the requirements of this subsection to be valid against subcontractors, mechanics, journeymen, laborers, or persons performing labor upon or furnishing materials or machinery for the property or improvement of the owner. The contract must:
(1) be in writing;
(2) contain specific reference by legal description of the real estate to be improved;
(3) be acknowledged as provided in the case of deeds; and
(4) be filed and recorded in the recorder's office of the county in which the real estate, building, structure, or other improvement is situated not more than five (5) days after the date of execution of the contract.
A contract containing a provision or stipulation described in subsection (e) does not affect a lien for labor, material, or machinery supplied before the filing of the contract with the recorder.
(g) Upon the filing of a contract under subsection (f), the recorder shall:
(1) record the contract at length in the order of the time it was received in books provided by the recorder for that purpose;
(2) index the contract in the name of the:
(A) contractor; and
(B) owner;
in books kept for that purpose; and
(3) collect a fee for recording the contract as is provided for the recording of deeds and mortgages.
(h) A person, firm, partnership, limited liability company, or corporation that sells or furnishes on credit any material, labor, or
machinery for the alteration or repair of an owner occupied single or
double family dwelling or the appurtenances or additions to the
dwelling to:
(1) a contractor, subcontractor, mechanic; or
(2) anyone other than the occupying owner or the owner's legal
representative;
must furnish to the occupying owner of the parcel of land where the
material, labor, or machinery is delivered a written notice of the
delivery or work and of the existence of lien rights not later than thirty
(30) days after the date of first delivery or labor performed. The
furnishing of the notice is a condition precedent to the right of
acquiring a lien upon the lot or parcel of land or the improvement on
the lot or parcel of land.
(i) A person, firm, partnership, limited liability company, or
corporation that sells or furnishes on credit material, labor, services,
equipment, or machinery:
(1) for the original:
(A) construction of a single or double family dwelling for the
intended occupancy of the owner upon whose real estate the
construction takes place; or
(B) construction on, alteration to, or repair to any real
estate or improvements; and
(2) to a contractor, a subcontractor, a mechanic, or anyone other
than the owner of the real estate or the owner's legal
representatives;
must furnish the owner of the real estate with the notice described
in subsection (j).
(j) A person, firm, partnership, limited liability company, or
corporation described in subsection (i) must:
(1) furnish the owner of the real estate:
(A) as named in the latest entry in the transfer books described
in IC 6-1.1-5-4 of the county auditor; or
(B) if IC 6-1.1-5-9 applies, as named in the transfer books of
the township assessor (if any) or the county assessor; or
(C) as identified in a notarized copy of an owner's affidavit
executed by the owner of the real estate or the owner's
authorized representative that provides:
(i) the address and legal description of the real estate for
which the provision of material, labor, services,
equipment, or machinery has been contracted;
(ii) the name and address of the fee owner of the real
estate; and
(iii) the address to which a written notice must be
delivered;
with a written notice of the delivery or provision of materials,
labor, services, equipment, or machinery and the existence of
lien rights not later than sixty (60) ten (10) days after the first
date of the first delivery or materials, labor, performed, services,
equipment, or machinery is provided; and
(2) file a copy of the written notice in the recorder's office of the
county not later than sixty (60) ten (10) days after the first date
of the first delivery or materials, labor, performed. services,
equipment, or machinery is provided.
The furnishing and filing of the notice is a condition precedent to the
right of acquiring a lien upon the real estate or upon the improvement
constructed on the real estate.
(j) (k) A lien for material or labor in original construction does not
attach to real estate purchased by an innocent purchaser for value
without notice of a single or double family dwelling for occupancy by
the purchaser unless notice of intention to hold the lien is recorded
under section 3 of this chapter before recording the deed by which the
purchaser takes title.
