Indiana Lien: A Complete Guide to Liens in the State

A lien is a legal claim placed on property to secure an unpaid debt or obligation. It stops the property owner from selling, transferring, or refinancing until the lien is settled and grants the creditor enforceable rights after it is recorded. Understanding Indiana's unique regulations is crucial because lien laws differ from state to state.

What Is a Lien in Indiana?

Liens are covered in Indiana under Title 32, Article 28 of the Indiana Code. A lien is, by definition, a creditor's legitimate right to affix a claim to a debtor's assets until they are paid back.

Real property (houses, land, or business buildings) and personal property (cars, machinery, or company assets) are both subject to liens. Liens notify lenders, title companies, and prospective purchasers about unpaid debts after they are filed and become part of the public record.

Liens can make selling or refinancing more difficult for property owners. Before closing, buyers must review lien documents. Liens give creditors legal security and a direct route to debt execution.

Types of Liens in Indiana

The most common liens filed in Indiana include:

1. Property Tax Liens

Property tax liens are filed by counties when property taxes are unpaid. It is the county’s way of making sure taxes are paid. As such, these liens can lead to tax lien sales, where investors purchase certificates.

2. Mechanic’s or Materialman’s Liens

A mechanic's lien is an unpaid legal claim on real estate made by someone who has contributed labor, supplies, or equipment to its development. According to Indiana law, it is the most prevalent kind of lien and has particular conditions. A mechanic's lien may be filed by laborers, material suppliers, mechanics, subcontractors, and contractors. A building, a structure, or the land it is situated on may be subject to the lien. A sworn statement and a notice of intent to hold a lien must be submitted to the county recorder's office to obtain a lien.

3. Judgment Liens

When an Indiana court issues a judgment, the debtor's real estate in the county where the judgment is entered becomes subject to a lien. A certified copy of the judgment must be submitted to each county's recorder to extend the lien to properties located in other counties.

4. Automobile Liens

To handle liens on automobiles, the Indiana Bureau of Motor Vehicles (BMV) uses an electronic lien and titling system. This method simplifies the procedure for both lienholders and car owners by enabling lienholders to electronically manage their liens.

5. IRS or Indiana Department of Revenue Tax Liens

These are filed by the IRS or the Indiana Department of Revenue for unpaid federal or state taxes. These liens can be attached to both real and personal property.

6. Commercial Real Estate Broker Liens

If real estate brokers adhere to the legal criteria, they may be able to place a lien on business property for unpaid commissions. This is known as a commercial real estate broker lien.

How to Search for Liens in Indiana

Lien records in Indiana are public and can be accessed through the following sources:

• County Recorder’s Offices: Each of Indiana's 92 counties maintains property filing records. Typically, these searches can be performed using the parcel ID, name, or address.
• Online County Databases: Lien and property records are accessible online in several counties, including Marion (Indianapolis), Lake, and Allen.
• Indiana Court Records (Indiana MyCase): The online case system of the Indiana judiciary allows users to search for judgment liens.
• Title Companies and Third-Party Services: Title companies and third-party services typically offer full lien searches, which are frequently used in real estate transactions.

Lien filings usually include the lienholder’s name, amount owed, filing date, and property description.

Lien Records in Major Indiana Cities

Lien searches in Indiana are county-based, and major cities are covered by their county offices:

• Indianapolis (Marion County): The Marion County Recorder's Office is responsible for maintaining lien records, which can be searched online.
• Fort Wayne (Allen County): Property and lien filings are handled by the Allen County Recorder, who is accessible both in person and online.
• Evansville (Vanderburgh County): Searches for lien and deed records are conducted by the Vanderburgh County Recorder in Evansville..
• South Bend (St. Joseph County): The St. Joseph County Recorder's Office is in charge of conducting lien searches.
• Carmel (Hamilton County): The Hamilton County Recorder is responsible for keeping databases of property records and lien information.

Each county sets its own rules for online access, fees, and certified copy requests.

How Long Does a Lien Stay on Property in Indiana?

Lien duration in Indiana depends on the lien type:

• Property Tax Liens: Property tax liens remain until taxes are paid or the property is sold at a tax sale. Typical redemption periods for this lien are one year after the sale.
• Mechanic’s Liens: This lien must usually be enforced within one year of filing, or it expires.
• Judgment Liens: Judgment liens are valid for 10 years in Indiana and can be renewed.
• Mortgage Liens: Mortgage liens remain valid until the mortgage loan is satisfied and the lender officially releases them.
• Tax Liens (IRS/State): Federal liens generally last 10 years, while state liens follow Indiana’s statutory collection rules.

Satisfied liens could stay in public records, and this could make real estate transfers more difficult if they are not appropriately discharged.

How to Remove a Lien in Indiana

Lien removal in Indiana requires resolving the underlying obligation or disputing the lien’s validity. Common options include:

1. Paying the Debt: The lienholder has to submit a release to the county recorder after being satisfied.
2. Negotiating a Settlement: Creditors may accept reduced payment or structured plans, followed by recording a lien release.
3. Court Petition: Property owners may challenge fraudulent or improperly filed liens through the court system.
4. Recording a Release or Satisfaction: Owners should make sure the lienholder files a release to clear the title even after payments have been made.

Without a recorded release, liens may remain active in public records despite repayment.

In Indiana, liens are a crucial tool for creditors to hold property owners responsible for outstanding debts. Owners, purchasers, and lenders must be aware of the several kinds of liens in Indiana, how to look for them, how long they last, and how to get rid of them.

Working with a county recorder, title business, or attorney guarantees that liens are handled correctly because Indiana has stringent enforcement regulations and filing deadlines. Property owners may preserve clean titles and seamless real estate transactions by taking the right steps.