MECHANICS' LIEN RELEASE — INDIANA

Indiana Code Title 32, Article 28 — Liens on Real Property

TABLE OF CONTENTS

1. Full Release of Mechanics' Lien
2. Partial Release of Mechanics' Lien
3. Release by Undertaking (Surety Bond)
4. Demand for Release of Mechanics' Lien
5. Petition to Discharge Mechanics' Lien
6. Recording Instructions
7. Indiana Statutory Reference Table
8. Practitioner Notes

1. FULL RELEASE OF MECHANICS' LIEN

RELEASE AND SATISFACTION OF MECHANIC'S LIEN

(IC 32-28-1-1)

RECORDING INFORMATION

Instrument Number: [________________________________]
County of Recording: [________________________________], Indiana
Date of Original Lien Recording: [__/__/____]

CLAIMANT INFORMATION

Name of Claimant (Lien Holder): [________________________________]
Address: [________________________________]
City: [________________________________] State: [____] Zip: [________]
Telephone: [________________________________]
Email: [________________________________]

PROPERTY OWNER INFORMATION

Name of Owner: [________________________________]
Address: [________________________________]
City: [________________________________] State: [____] Zip: [________]

CONTRACTOR (if different from Claimant)

Name: [________________________________]
Address: [________________________________]

PROPERTY DESCRIPTION

Property Address: [________________________________]
City: [________________________________] County: [________________________________], Indiana
Legal Description: [________________________________]
[________________________________]
[________________________________]
Parcel Number: [________________________________]

ORIGINAL LIEN INFORMATION

Date of Notice of Intention to Hold Mechanic's Lien Filed: [__/__/____]
Instrument Number: [________________________________]
Recorder's Office: [________________________________] County, Indiana
Original Lien Amount: $[________________________________]
Date Debt Became Due (as shown on lien record): [__/__/____]
Description of Labor/Materials: [________________________________]
[________________________________]

RELEASE AND SATISFACTION

The undersigned, being the owner, holder, or custodian of the Mechanic's Lien described above, hereby releases, discharges, and satisfies of record the said Mechanic's Lien, pursuant to IC 32-28-1-1. The undersigned states and certifies as follows:

1. The undersigned is the person, firm, or entity that holds, owns, or has custody of the Mechanic's Lien described above.

2. The debt or obligation, and all interest thereon, secured by the above-described Mechanic's Lien has been fully paid, lawfully tendered, and discharged as follows:

☐ Payment in full received in the amount of $[________________________________]
☐ Payment received on [__/__/____] via: ☐ Check ☐ Wire Transfer ☐ Cash ☐ Other: [________________]
☐ Settlement agreement executed on [__/__/____]
☐ Judgment satisfied in Cause No. [________________________________]
☐ Other resolution: [________________________________]

3. The undersigned hereby unconditionally releases, discharges, and satisfies of record the above-described Mechanic's Lien in its entirety.

4. The undersigned consents to the recording of this Release and Satisfaction with the Recorder of [________________________________] County, Indiana.

5. The undersigned waives and relinquishes any and all right, title, claim, lien, or interest in or to the above-described real property arising from the released Mechanic's Lien.

LIEN HOLDER SIGNATURE

Signature: ______________________________
Printed Name: [________________________________]
Title: [________________________________]
Date: [__/__/____]

NOTARIZATION

State of Indiana )
) ss.
County of [________________________________] )

Before me, a Notary Public in and for said County and State, personally appeared [________________________________], who acknowledged the execution of the foregoing Release and Satisfaction of Mechanic's Lien as his/her/their voluntary act and deed.

WITNESS my hand and Notarial Seal this [____] day of [________________], 20[____].

Notary Public: ______________________________
Printed Name: [________________________________]
My Commission Expires: [__/__/____]
County of Residence: [________________________________]

[NOTARY SEAL]

PREPARER INFORMATION

This instrument was prepared by:
[________________________________]
[________________________________]
[________________________________]

I affirm, under the penalties for perjury, that I have taken reasonable care to redact each Social Security number in this document, unless required by law. [________________________________] (Signature)

2. PARTIAL RELEASE OF MECHANICS' LIEN

PARTIAL RELEASE AND SATISFACTION OF MECHANIC'S LIEN

(IC 32-28-1-1)

RECORDING INFORMATION

Instrument Number of Original Lien: [________________________________]
County of Recording: [________________________________], Indiana

PARTIES

Lien Holder: [________________________________]
Property Owner: [________________________________]
Property Address: [________________________________]
Parcel Number: [________________________________]
Legal Description: [________________________________]

ORIGINAL LIEN INFORMATION

Date Lien Recorded: [__/__/____]
Instrument Number: [________________________________]
Original Lien Amount: $[________________________________]

PARTIAL RELEASE

The undersigned Lien Holder hereby partially releases and satisfies the Mechanic's Lien described above as follows:

1. Amount of partial payment received: $[________________________________]
2. Date of partial payment: [__/__/____]
3. Remaining lien amount: $[________________________________]

4. Description of work/materials covered by this partial release:
   [________________________________]
   [________________________________]

5. Portion of property released:
   ☐ Entire property remains subject to lien for the remaining balance
   ☐ The following portion of the property is released from the lien:
   [________________________________]
   [________________________________]
   Parcel Number(s) released: [________________________________]

The Lien Holder releases and discharges the Mechanic's Lien to the extent of $[________________________________]. The remaining lien of $[________________________________] continues as a valid encumbrance against the above-described property (or unreleased portion thereof).

LIEN HOLDER SIGNATURE

Signature: ______________________________
Printed Name: [________________________________]
Title: [________________________________]
Date: [__/__/____]

NOTARIZATION

State of Indiana )
) ss.
County of [________________________________] )

Before me personally appeared [________________________________], who acknowledged the execution of the foregoing instrument.

Notary Public: ______________________________
My Commission Expires: [__/__/____]

[NOTARY SEAL]

I affirm, under the penalties for perjury, that I have taken reasonable care to redact each Social Security number in this document, unless required by law. [________________________________] (Preparer's Signature)

3. RELEASE BY UNDERTAKING (SURETY BOND)

WRITTEN UNDERTAKING TO DISCHARGE MECHANIC'S LIEN

(IC 32-28-3-11)

IMPORTANT: Under IC 32-28-3-11, in an action to foreclose a mechanic's lien, the defendant, owner, or any person having an interest in the property may file a written undertaking with surety, approved by the court. Upon approval, the court shall enter an order releasing the property from the lien.

IN THE [________________________________] COURT OF [________________________________] COUNTY, INDIANA

[________________________________], )
)
Plaintiff, ) Cause No. [________________________________]
)
v. )
)
[________________________________], )
)
Defendant. )

WRITTEN UNDERTAKING WITH SURETY FOR DISCHARGE OF MECHANIC'S LIEN

(IC 32-28-3-11)

KNOW ALL PERSONS BY THESE PRESENTS:

PRINCIPAL

Name: [________________________________]
Address: [________________________________]
City: [________________________________] State: [____] Zip: [________]
Relationship to Property: ☐ Owner ☐ Defendant ☐ Mortgagee ☐ Other Interest Holder: [________________]

SURETY

Name of Surety Company: [________________________________]
Address: [________________________________]
City: [________________________________] State: [____] Zip: [________]
Authorized in Indiana: ☐ Yes

LIEN INFORMATION

Lien Claimant (Plaintiff): [________________________________]
Instrument Number: [________________________________]
Date of Lien Recording: [__/__/____]
Lien Amount: $[________________________________]
Undertaking Amount: $[________________________________]
Property Address: [________________________________]
County: [________________________________], Indiana

WHEREAS, [________________________________] ("Plaintiff/Lien Claimant") has filed an action (Cause No. [________________________________]) to foreclose a Mechanic's Lien against the above-described property; and

WHEREAS, the undersigned Principal has an interest in said property and desires to discharge the property from the lien pursuant to IC 32-28-3-11;

NOW, THEREFORE, the Principal and Surety undertake and are firmly bound that the Principal will pay any judgment that may be recovered in this action to foreclose the Mechanic's Lien, including costs and attorney's fees allowed by the court, if the claim on which the judgment is founded is found by the court to have been a lien on the property at the time the action was filed.

If such payment is made, this undertaking shall be void; otherwise, it shall remain in full force and effect.

PRINCIPAL

Signature: ______________________________
Printed Name: [________________________________]
Date: [__/__/____]

SURETY

By: ______________________________
Printed Name: [________________________________]
Title: [________________________________]
Date: [__/__/____]

[CORPORATE SEAL]

MOTION FOR APPROVAL OF UNDERTAKING AND RELEASE OF PROPERTY

COMES NOW [________________________________], and moves the Court to approve the foregoing Written Undertaking with Surety filed pursuant to IC 32-28-3-11, and to enter an order releasing the real property described therein from the Mechanic's Lien asserted by the Plaintiff.

In support of this Motion, the movant states:

1. The Written Undertaking with Surety has been executed by the Principal and by [________________________________], a surety company authorized to transact surety business in Indiana.

2. The undertaking provides that the Principal will pay any judgment recovered in this lien foreclosure action, including costs and attorney's fees, if the court finds the claim was a lien on the property when the action was filed.

3. IC 32-28-3-11 provides that if an undertaking is filed and approved by the court, the court shall enter an order releasing the property from the lien.

WHEREFORE, the movant requests the Court approve the Written Undertaking and enter an order releasing the real property from the Mechanic's Lien.

Respectfully submitted,

______________________________
[________________________________]
Attorney for Movant
Indiana Attorney No. [________________________________]
[________________________________]
Telephone: [________________________________]
Email: [________________________________]

4. DEMAND FOR RELEASE OF MECHANICS' LIEN

WRITTEN DEMAND FOR RELEASE, DISCHARGE, AND SATISFACTION OF MECHANIC'S LIEN

(IC 32-28-1-1 and IC 32-28-1-2)

Date: [__/__/____]

VIA REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED

To: [________________________________] ("Lien Holder")
[________________________________]
[________________________________]
[________________________________]

From: [________________________________] ("Demanding Party")
[________________________________]
[________________________________]
[________________________________]

RE: DEMAND TO RELEASE, DISCHARGE, AND SATISFY OF RECORD — MECHANIC'S LIEN

Property Address: [________________________________]
Parcel Number: [________________________________]
County: [________________________________], Indiana
Instrument Number: [________________________________]
Date of Lien Recording: [__/__/____]
Lien Amount: $[________________________________]

Dear [________________________________]:

Pursuant to Indiana Code 32-28-1-1 and IC 32-28-1-2, written demand is hereby made upon you, as the owner, holder, or custodian of the above-described Mechanic's Lien, to release, discharge, and satisfy of record the Mechanic's Lien identified above.

BASIS FOR DEMAND:

☐ Full Payment: The debt or obligation and all interest secured by the above-described Mechanic's Lien has been fully paid, lawfully tendered, and discharged. Payment of $[________________________________] was made on [__/__/____].

☐ Expiration of Enforcement Period: The lien has expired. Under Indiana law, a mechanic's lien expires one (1) year after the debt secured by the lien becomes due as shown by the record. The debt became due on [__/__/____], and more than one (1) year has elapsed without commencement of a foreclosure action.

☐ Settlement: The underlying claim has been resolved by settlement agreement dated [__/__/____].

☐ Other: [________________________________]

STATUTORY DEMAND:

Pursuant to IC 32-28-1-2, you are hereby demanded to release, discharge, and satisfy of record the above-described Mechanic's Lien not later than fifteen (15) days from the date you receive this written demand.

NOTICE: This demand is sent by registered/certified mail, return receipt requested, as required by IC 32-28-1-2.

CONSEQUENCES OF FAILURE TO COMPLY (IC 32-28-1-2):

If you fail, neglect, or refuse to release, discharge, and satisfy of record the above-described lien within fifteen (15) days of receipt of this demand, you shall:

1. Forfeit and pay a sum not to exceed Five Hundred Dollars ($500.00) for such failure, neglect, or refusal;

2. Pay costs incurred in enforcing the release; and

3. Pay reasonable attorney's fees incurred in enforcing the release, discharge, or satisfaction of record.

Additionally, the Court may appoint a commissioner to release and satisfy the Mechanic's Lien on your behalf (IC 32-28-1-2).

PROOF OF PAYMENT/EXPIRATION ENCLOSED:

☐ Copy of canceled check(s) or payment confirmation
☐ Wire transfer confirmation
☐ Receipt of payment
☐ Settlement agreement
☐ Calculation showing lien expiration (1-year period)
☐ Other: [________________________________]

Please govern yourself accordingly.

Sincerely,

______________________________
[________________________________]
[________________________________]
[________________________________]
[________________________________]

5. PETITION TO DISCHARGE MECHANICS' LIEN

IN THE [________________________________] COURT OF [________________________________] COUNTY, INDIANA

[________________________________], )
)
Petitioner, ) Cause No. [________________________________]
)
v. ) PETITION TO DISCHARGE
) MECHANIC'S LIEN
[________________________________], )
)
Respondent. )

COMES NOW the Petitioner, [________________________________], and petitions this Court for an order discharging and releasing the Mechanic's Lien recorded by the Respondent, and states:

I. PARTIES

1. Petitioner is:
   ☐ The owner of the real property described herein
   ☐ A mortgagor or person having the right to demand release of the lien
   Address: [________________________________]

2. Respondent, [________________________________], is the owner, holder, or custodian of the Mechanic's Lien. Address: [________________________________]

II. PROPERTY

3. The real property is located at [________________________________], [________________________________] County, Indiana, Parcel No. [________________________________], more particularly described as:
   [________________________________]
   [________________________________]

III. LIEN INFORMATION

4. Respondent filed a Notice of Intention to Hold Mechanic's Lien against the above-described property, recorded with the Recorder of [________________________________] County, Indiana, on [__/__/____], as Instrument No. [________________________________], in the amount of $[________________________________].

IV. WRITTEN DEMAND

5. On [__/__/____], Petitioner sent a written demand to Respondent, via registered/certified mail with return receipt requested, demanding release, discharge, and satisfaction of the Mechanic's Lien. A copy of the demand and proof of service are attached as Exhibit A.

6. More than fifteen (15) days have elapsed since Respondent received the demand, and Respondent has failed, neglected, or refused to release, discharge, and satisfy the lien.

V. GROUNDS FOR DISCHARGE

7. The Mechanic's Lien should be discharged for the following reason(s):

☐ Full Payment (IC 32-28-1-1): The debt or obligation secured by the lien has been fully paid, lawfully tendered, and discharged.

☐ Lien Expired: The lien has expired because more than one (1) year has elapsed since the debt became due as shown on the record of the lien, and no foreclosure action has been filed.

☐ 30-Day Notice to Foreclose Served (IC 32-28-3-9): A Notice to Foreclose was served on Respondent on [__/__/____], and Respondent failed to file suit within thirty (30) days, rendering the lien null and void.

☐ Invalid Lien: The lien is invalid because: [________________________________]

☐ Other Grounds: [________________________________]

VI. PRAYER FOR RELIEF

WHEREFORE, Petitioner respectfully requests that this Court:

A. Enter an order discharging and releasing the Mechanic's Lien (Instrument No. [________________________________]);
B. Direct the Recorder of [________________________________] County to record the order;
C. Appoint a commissioner to execute a release and satisfaction of the lien, if necessary (IC 32-28-1-2);
D. Award Petitioner statutory forfeiture of up to $500.00 (IC 32-28-1-2);
E. Award Petitioner costs and reasonable attorney fees (IC 32-28-1-2);
F. Grant such other relief as the Court deems just and proper.

Respectfully submitted,

______________________________
[________________________________]
Attorney for Petitioner
Indiana Attorney No. [________________________________]
[________________________________]
Telephone: [________________________________]
Email: [________________________________]

6. RECORDING INSTRUCTIONS

Indiana County Recorder

In Indiana, Mechanic's Liens are recorded with the Recorder (sometimes called the County Recorder) in the county where the property is located. Releases are recorded with the same office.

Filing Office:
Recorder of [________________________________] County, Indiana
[________________________________] (Address)

Recording Requirements:

☐ Original executed Release and Satisfaction (with original signatures)
☐ Notarization required
☐ Document must reference the original lien Instrument Number
☐ Parcel number should be included
☐ Legal description or property address
☐ Preparer identification and SSN redaction statement required
☐ Recording fee (consult the Recorder for current fees)

Indiana-Specific Requirements:

• SSN Redaction Statement: Indiana law requires a statement from the preparer affirming reasonable care to redact Social Security numbers (IC 36-2-7-10.1).
• No specific statutory release form: Indiana does not provide a mandatory form for lien releases; the instrument must simply comply with IC 32-28-1-1.

Steps to Record:

1. Prepare the Release and Satisfaction using Form 1 or 2 above.
2. Include the SSN redaction affirmation.
3. Have the Lien Holder execute the Release before a Notary Public.
4. Present the document to the County Recorder.
5. Pay the recording fee.
6. Obtain a recorded copy with the new Instrument Number.
7. Provide a copy to the property owner.

7. INDIANA STATUTORY REFERENCE TABLE

8. PRACTITIONER NOTES

A. The Written Demand Requirement

Under IC 32-28-1-2, the demand to release must be sent by registered or certified mail, return receipt requested. This is a strict procedural requirement. Failure to use registered or certified mail may render the demand ineffective for purposes of triggering the 15-day deadline and the statutory penalty.

B. Modest Statutory Penalty

Indiana's penalty for failure to release a satisfied lien is capped at $500, plus costs and reasonable attorney fees. While the dollar amount is relatively modest, the additional exposure to attorney fees can make continued refusal costly. The court may also appoint a commissioner to execute the release, bypassing the lien holder entirely.

C. One-Year Enforcement Deadline

Indiana mechanic's liens expire one (1) year after the debt secured by the lien becomes due, as shown by the record. This means:
- The expiration date is determined by the "due date" stated in the lien filing, not the recording date
- No foreclosure action may be brought or maintained after the one-year period
- After expiration, the owner may petition for discharge

D. 30-Day Notice to Foreclose

Indiana provides a powerful tool for property owners: the Notice to Foreclose (IC 32-28-3-9). By sending this notice by registered or certified mail to the lien claimant (at the address shown on the lien), the owner can compel the lien claimant to file suit within 30 days or the lien becomes null and void. This effectively accelerates the one-year expiration period to just 30 days.

E. Advance Waiver Prohibition

IC 32-28-3-16 provides that any provision in a contract that purports to waive mechanic's lien rights in advance is void. This means lien waivers can only be given after work is performed or materials are furnished, not before.

F. Undertaking in Foreclosure Only

The surety bond (undertaking) mechanism under IC 32-28-3-11 is available only in a pending foreclosure action. Unlike some states, Indiana does not provide a pre-litigation bond release mechanism. The bond is filed in the existing case, and the court must approve it before the property is released.

G. Common Pitfalls

1. Sending the demand by regular mail only. The statute requires registered or certified mail with return receipt requested.
2. Relying on the 1-year expiration without confirming the "due date." The expiration runs from the due date shown on the lien record, which may differ from the recording date.
3. Attempting to bond off a lien before suit is filed. The undertaking mechanism under IC 32-28-3-11 requires a pending foreclosure action.
4. Ignoring the 30-day Notice to Foreclose. Lien claimants who fail to file suit within 30 days of receiving this notice lose their lien rights permanently.
5. Omitting the SSN redaction statement. Indiana recorders require this affirmation on recorded documents.
6. Attempting advance lien waivers. These are void under IC 32-28-3-16.

H. Checklist for Releasing a Mechanics' Lien in Indiana

☐ Confirm full payment received and cleared
☐ Prepare Release and Satisfaction (Form 1 above)
☐ Include SSN redaction affirmation statement
☐ Have the Release notarized
☐ Record the Release with the County Recorder where the lien was filed
☐ Pay the recording fee
☐ Obtain a recorded copy with the new Instrument Number
☐ Provide a copy to the property owner
☐ If lien holder refuses, send Demand (Form 4) by certified/registered mail
☐ If demand fails after 15 days, file Petition to Discharge (Form 5)
☐ Close the lien file

This template is provided for informational purposes only and does not constitute legal advice. Indiana mechanics' lien law, including IC 32-28-3 and IC 32-28-1, is subject to legislative amendment. Consult a qualified Indiana attorney and verify all statutory citations before use.