CHAPTER 6. LIENS AND ENCUMBRANCES
IC 32-25-6
Chapter 6. Liens and Encumbrances
IC 32-25-6-1
Liens and encumbrances
Sec. 1. (a) After a declaration is recorded under this article and
while the property remains subject to this article, a lien may not arise
or be effective against the property as a whole. Except as provided
in subsection (b), liens or encumbrances may arise or be created only
against:
(1) each condominium unit; and
(2) the undivided interest in the common areas and facilities
appurtenant to each unit;
in the same manner and under the same conditions as liens or
encumbrances may arise or be created against any other parcel of real
property.
(b) Labor performed or materials furnished with the consent or at
the request of a condominium unit owner, the owner's agent, or the
owner's contractor or subcontractor may not be the basis for filing a
lien under any lien law against the condominium unit or any other
property of any other co-owner not expressly consenting to or
requesting the performance of the labor or the furnishing of the
materials. However, express consent is considered to be given by the
owner of any condominium unit in the case of emergency repairs to
the condominium unit. Labor performed or materials furnished for
the common areas and facilities, if authorized by the association of
co-owners, the manager, or board of directors in accordance with this
article, the declaration, or the bylaws:
(1) are considered to be performed or furnished with the express
consent of each co-owner;
(2) constitute the basis for the filing of a lien under any lien law
against each of the condominium units; and
(3) are subject to subsection (c).
(c) If a lien against two (2) or more condominium units becomes
effective, the owner of a condominium unit against which the lien is
effective may remove the owner's:
(1) unit; and
(2) undivided interest in the common areas and facilities
appurtenant to the unit;
from the lien by payment of the fractional or proportional amounts
attributable to the unit. After the payment, discharge of the lien, or
other satisfaction of the lien, the condominium unit and the
undivided interest in the common areas and facilities appurtenant to
the condominium unit are free and clear of the lien. A partial
payment, partial satisfaction of the lien, or discharge of the lien may
not prevent the lienholder from proceeding against any condominium
unit and the undivided interest in the common areas and facilities
appurtenant to the condominium unit that remain subject to the lien.
As added by P.L.2-2002, SEC.10.
IC 32-25-6-2
Common areas; transferable easements for making improvements
Sec. 2. Subject to any restrictions and limitations in the
condominium instruments, the declarant has a transferable easement
over and upon the common areas and facilities for the purpose of:
(1) making improvements within:
(A) the condominium; or
(B) additional real estate;
under those instruments and this article; and
(2) doing all things reasonably necessary and proper in
connection with the improvements referred to in subdivision
(1).
As added by P.L.2-2002, SEC.10.
IC 32-25-6-3
Unpaid assessments; lien
Sec. 3. (a) All sums assessed by the association of co-owners but
unpaid for the share of the common expenses chargeable to any
condominium unit constitute a lien on the unit effective at the time
of assessment. The lien has priority over all other liens except:
(1) tax liens on the condominium unit in favor of any:
(A) assessing unit; or
(B) special district; and
(2) all sums unpaid on a first mortgage of record.
(b) A lien under subsection (a) may be filed and foreclosed by suit
by the manager or board of directors, acting on behalf of the
association of co-owners, under laws of Indiana governing
mechanics' and materialmen's liens. In any foreclosure under this
subsection:
(1) the condominium unit owner shall pay a reasonable rental
for the unit, if payment of the rental is provided in the bylaws;
and
(2) the plaintiff in the foreclosure is entitled to the appointment
of a receiver to collect the rental.
(c) The manager or board of directors, acting on behalf of the
association of co-owners, may, unless prohibited by the declaration:
(1) bid on the condominium unit at foreclosure sale; and
(2) acquire, hold, lease, mortgage, and convey the condominium
unit.
(d) Suit to recover a money judgment for unpaid common
expenses is maintainable without foreclosing or having the lien
securing the expenses.
(e) If the mortgagee of a first mortgage of record or other
purchaser of a condominium unit obtains title to the unit as a result
of foreclosure of the first mortgage, the acquirer of title, or the
acquirer's successors and assigns, is not liable for the share of the
common expenses or assessments by the association of co-owners
chargeable to the unit that became due before the acquisition of title
to the unit by the acquirer. The unpaid share of common expenses or
assessments is considered to be common expenses collectible from
all of the co-owners, including the acquirer or the acquirer's
successors and assigns.
As added by P.L.2-2002, SEC.10.