Updated almost 5 years ago on . Most recent reply
Expired Mechanics Lien on Property
Hello everyone,
I have a property I want to get under contract in Indiana for a wholesale deal. The seller is ready to sign, however, there is an old mechanics lien attached to the property and this my first time dealing with a mechanics lien. From what I gather from google searches, a mechanics lien becomes void after 1 year in Indiana if no action is taken, and this specific lien is 6 years old. I've been trying to contact the attorney from the title company I use but he is out of the office until monday. I called a big buyer in the area with much more experience and he said the title company should just look over it since it's so old and it shouldn't scare off experienced investors. Is this correct? Should I move forward with the signing over the weekend or wait until monday to confirm with the lawyer? I want to lock it up as the seller has been back and forth on price, but I also don't want it to bite me in the butt later due to my haste and inexperience. Thanks!
Most Popular Reply
I don't know the laws in that state, but, as part of my own due diligence, I would personally confirm with Title (as a general question) that it won't be an issue. If you plan on flipping or selling, you'll need to do title work on it anyway. For future reference, if it's general info you're looking for, I would call any and all title companies until you get an answer to your question. There's always more than one resource! Also, I would check to see if your wholesalers are guaranteeing free and clear title to convey the property. Most wholesalers I work with guarantee this, if I ever buy property from them.
Last but not least, be patient. If this deal passes due to uncertainty, there will always be another deal. We're not going to run out of houses to buy and sell any time soon.