Indiana Mechanics Lien Requirements

You finished the job. The homeowner won't pay. You file a mechanics lien, and then the property owner's attorney argues that you weren't properly licensed when the work was performed — and suddenly your lien is the one on trial. Indiana's mechanics lien statute gives contractors powerful collection rights, but licensing and registration problems can complicate a payment dispute.

What a Mechanics Lien Does

Under Indiana Code 32-28-3, contractors, subcontractors, and material suppliers who improve real property have the right to place a lien against that property if they aren't paid. The lien attaches to the property itself — not just the owner's promise to pay — giving you a secured interest that survives even if the property is sold.

A mechanics lien is the strongest collection tool available to contractors in Indiana. It's more effective than a breach-of-contract lawsuit because the property can't be sold or refinanced cleanly until the lien is resolved.

Filing Deadlines

Indiana's mechanics lien statute imposes strict timing requirements:

• Most projects: General contractors, subcontractors, and suppliers must record their lien with the county recorder within 90 days after the last labor or materials are furnished
• Class 2 structures: All claimants must record within 60 days after the last labor or materials are furnished
• Foreclosure action: Must be filed within one year after the statement and notice of intention to hold a lien is recorded

Missing the applicable recording window can eliminate your lien rights. The deadline is not always 60 days: a Class 2 project uses 60 days, while most other projects use 90 days. There is no general grace period, so confirm the filing requirements immediately if you are close to the deadline.

The Licensing Connection

Here's where contractor licensing intersects with lien rights in a way that trips up unlicensed contractors: if you perform work in a jurisdiction that requires a local contractor license and you don't have one, the unlicensed or unpermitted work can complicate litigation and a property owner may challenge your mechanics lien.

Indiana's mechanics lien statute does not expressly require an active municipal contractor license to record a lien. But performing unpermitted or unlicensed work can complicate litigation, and a property owner may challenge the claim.

The practical takeaway: maintaining your local contractor license isn't just about avoiding fines and stop-work orders. It reduces litigation risk, while following the statutory lien requirements protects your ability to use this collection tool.

Notice Requirements

Indiana does not generally require a prime contractor in direct contract with the owner to send a preliminary notice before filing a mechanics lien. Subcontractors and suppliers have separate notice rules, including requirements that can apply to residential work, so confirm the rule that fits your role and project before relying on lien rights.

Best practice for all contractors: document everything. Keep written records of your contract terms, change orders, payment schedules, and completion dates. If you end up filing a lien, this documentation supports the claim's validity.

How to File

Recording a mechanics lien in Indiana requires filing a written notice with the county recorder in the county where the property is located. The notice must include:

• The amount claimed
• Your name and address
• The property owner's name and latest address shown on the county property tax records
• The property's legal description and street number, if any

Recording fees and mailing charges follow the applicable county schedule; confirm the current amount with the recorder.

For a complete understanding of how local licensing requirements affect your lien rights and other legal protections, the Indiana General Contractor License Guide covers the regulatory framework across Indiana's major jurisdictions.

See more Indiana guides →