Bill Text: IN HB1514 | 2011 | Regular Session | Introduced
Bill Title: Abandoned structure liens.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-01-20 - First reading: referred to Committee on Judiciary [HB1514 Detail]
Download: Indiana-2011-HB1514-Introduced.html
Citations Affected: IC 32-28-15.
Synopsis: Abandoned structure liens. Provides that a person who
repairs, cleans up, or maintains a neighboring abandoned structure is
entitled to a lien on the property, not to exceed the lesser of: (1) the fair
market value of the work performed; or (2) $10,000. Establishes a
procedure for creating, filing, and enforcing the lien. Provides that the
lien has priority over the lien of a lender and over later recorded liens,
and specifies that the lien expires if not enforced within one year.
Effective: July 1, 2011.
January 20, 2011, read first time and referred to Committee on Judiciary.
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A BILL FOR AN ACT to amend the Indiana Code concerning
property.
Chapter 15. Lien for Repair, Cleanup, or Maintenance of Neighboring Abandoned Property
Sec. 1. This chapter applies only to a Class 2 structure.
Sec. 2. As used in this chapter, "abandoned structure" has the meaning set forth in IC 36-7-36-1.
Sec. 3. As used in this chapter, "neighboring abandoned structure" means an abandoned structure that is located not more than three hundred (300) feet from property owned or occupied by a person asserting a lien under this chapter.
Sec. 4. A person who repairs, cleans up, or maintains a neighboring abandoned structure is entitled to a neighboring abandoned structure lien on the structure and the real property on which the structure is located, as set forth in this chapter.
Sec. 5. A lien under this chapter may not exceed the lesser of the
following:
(1) The fair market value of the work performed and
materials used.
(2) Ten thousand dollars ($10,000).
Sec. 6. (a) To assert a lien under this chapter, a person must, not
more than ten (10) days before commencing the repair, cleanup, or
maintenance of a neighboring abandoned structure, send written
notice to the owner of the neighboring abandoned structure
asserting the person's intention to repair, clean up, or maintain the
neighboring abandoned structure.
(b) Written notice under this section must be mailed to the latest
address of the owner of the property as shown on the property tax
records of the county in which the property is located.
(c) Unless the owner of the neighboring abandoned structure
begins repair, cleanup, or maintenance of the neighboring
abandoned structure not later than ten (10) days after the owner
receives the notice described in subsection (a), a person described
in subsection (a) is required to send only one (1) written notice
under subsection (a) per calendar year.
Sec. 7. (a) A person who wishes to acquire a lien on a
neighboring abandoned structure under this section must file in
duplicate a sworn statement and notice of the person's intention to
hold a lien on the neighboring abandoned structure for the amount
of the claim:
(1) in the recorder's office of the county in which the
neighboring abandoned structure is located; and
(2) not later than sixty (60) days after performing repair,
cleanup, or maintenance on the neighboring abandoned
structure as described in this chapter.
The statement and notice of intention to hold a lien may be verified
and filed on behalf of a client by an attorney licensed to practice
law in Indiana.
(b) A statement and notice of intention to hold a lien filed under
this section must specifically set forth:
(1) the amount claimed;
(2) the name and address of the claimant;
(3) the:
(A) name; and
(B) latest address, as shown on the property tax records of
the county;
of the owner of the neighboring abandoned structure;
(4) the street and address, if any, of the neighboring
abandoned property; and
(5) a copy of the written notice mailed to the owner under
section 6 of this chapter.
(c) The recorder shall:
(1) mail, first class, one (1) copy of the statement and notice of
intention to hold a lien to the owner of the neighboring
abandoned structure named in the statement and notice not
later than three (3) business days after recordation;
(2) post records as to the date of the mailing; and
(3) collect a fee of two dollars ($2) from the lien claimant for
each statement and notice that is mailed.
The statement and notice must be addressed to the latest address
of the owner of the neighboring abandoned structure as specifically
set out in the sworn statement and notice of the person intending
to hold a lien upon the neighboring abandoned structure.
(d) The recorder shall record the statement and notice of
intention to hold a lien in the miscellaneous record book. The
recorder shall charge a fee for recording the statement and notice
in accordance with IC 36-2-7-10. When the statement and notice of
intention to hold a lien is recorded, the lien is created. The
recorded lien relates back to the date the person began to perform
the repair, cleanup, or maintenance. A lien created under this
chapter has priority over:
(1) a lien created after it; and
(2) the mortgage of a lender.
Sec. 8. A lien under this chapter does not attach to real estate
purchased by an innocent purchaser for value without notice
unless the lien is recorded under section 7 of this chapter before the
deed by which the purchaser takes title is recorded.
Sec. 9. (a) A person may enforce a lien created under this
chapter by filing a complaint in the circuit or superior court of the
county where the neighboring abandoned structure that is the
subject of the lien is situated. The complaint must be filed not later
than one (1) year after the date the statement and notice of
intention to hold a lien is recorded under section 7 of this chapter.
(b) If a lien created under this chapter is not enforced within the
time set forth in subsection (a), the lien is void.
(c) If a lien created under this chapter is foreclosed, the court
rendering judgment shall order the property to be sold subject to
the lien. The officers making the sale shall sell the property without
any relief from valuation or appraisement laws.
Sec. 10. (a) A person whose lien is recorded under this chapter
may be a party to an action to enforce the lien.
(b) The court may, by judgment, direct a sale of the land and
building for the satisfaction of the liens and costs. The sale does not
prejudice the rights of:
(1) a prior encumbrance; or
(2) an owner or other person who is not a party to the action.
(c) If several actions are brought by different claimants with
regard to the same neighboring abandoned structure and are
pending at the same time, the court may order the actions to be
consolidated.
Sec. 11. If the proceeds of the sale of property subject to a lien
under this chapter are insufficient to pay all the claimants, the
court shall order the claimants to be paid in proportion to the
amount due each claimant.
Sec. 12. (a) A lien created under this chapter is void if both of
the following occur:
(1) The owner of the property subject to the lien or any
person or corporation having an interest in the property,
including a mortgagee or a lienholder, provides written notice
to the owner or holder of the lien to file an action to foreclose
the lien.
(2) The owner or holder of the lien fails to file an action to
foreclose the lien in the county where the property is located
not later than thirty (30) days after receiving the notice.
(b) A person who gives notice under subsection (a)(1) by
registered or certified mail to the lienholder at the address given in
the recorded statement and notice of intention to hold a lien may
file an affidavit of service of the notice to file an action to foreclose
the lien with the recorder of the county in which the property is
located. The affidavit must state the following:
(1) The facts of the notice.
(2) That more than thirty (30) days have passed since the
notice was received by the lienholder.
(3) That no action for foreclosure of the lien is pending.
(4) That no unsatisfied judgment has been rendered on the
lien.
(c) The recorder shall:
(1) record the affidavit of service in the miscellaneous record
book of the recorder's office; and
(2) certify on the face of the record any lien that is fully
released.
When the recorder records the affidavit and certifies the record
under this subsection, the property described in the lien is released
from the lien.
Sec. 13. (a) In an action to foreclose a lien created under this
chapter:
(1) the defendant or owner of the property subject to the lien;
or
(2) any person having an interest in the property subject to
the lien, including a mortgagee or other lienholder;
may file in the action a written undertaking with surety to be
approved by the court.
(b) An undertaking filed under this section must provide that
the person filing the undertaking will pay any judgment that may
be recovered in the action to foreclose the lien, including costs and
attorney's fees allowed by the court, if the claim on which the
judgment is based is found by the court to have been a lien on the
property at the time the action was filed.
(c) If an undertaking described in subsection (b) is filed and
approved by the court:
(1) the court shall enter an order releasing the property from
the lien; and
(2) the property shall be discharged from the lien.
Sec. 14. In an action to enforce a lien under this chapter, a
plaintiff or lienholder who recovers a judgment in any sum is
entitled to recover reasonable attorney's fees. The court shall enter
the attorney's fees as a part of the judgment.
