Mechanic's Lien

A mechanic's lien is a security device available to those who work on a construction project for payment for services rendered. A contractor with a direct contract with an owner can sue the owner for non-payment (as well as lien the property) and is not limited to the value of the property for recovery. That contractor can get a judgment and collect against any assets of the owner.
 
The lower tier subcontractors, suppliers, and materialmen have no direct cause of action against the owner. They can sue the party with whom they contracted, such as the contractor, but if that entity ceases to do business, they do not have a direct cause of action against the owner. The owner could have financial difficulties and not pay the contractor. The mechanic's lien taps into the enhanced value of the property to pay for the services of those whose efforts increased the property value.

A Sworn Statement of Mechanic's Lien must be filed in the Office of the Recorder within 60 days of last work or delivery.




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Related Sites of Interest

Mechanic's Lien State StatutesForm - Notice to Hold Mechanic's Lien (pdf)

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April Whetstone ,
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Columbia City, IN 46725
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