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 andwhile the property remains subject to this article, a lien may not ariseor be effective against the property as a whole. Except as providedin subsection (b), liens or encumbrances may arise or be created onlyagainst:
        (1) each condominium unit; and
        (2) the undivided interest in the common areas and facilitiesappurtenant to each unit;
in the same manner and under the same conditions as liens orencumbrances may arise or be created against any other parcel of realproperty.
    (b) Labor performed or materials furnished with the consent or atthe request of a condominium unit owner, the owner's agent, or theowner's contractor or subcontractor may not be the basis for filing alien under any lien law against the condominium unit or any otherproperty of any other co-owner not expressly consenting to orrequesting the performance of the labor or the furnishing of thematerials. However, express consent is considered to be given by theowner of any condominium unit in the case of emergency repairs tothe condominium unit. Labor performed or materials furnished forthe common areas and facilities, if authorized by the association ofco-owners, the manager, or board of directors in accordance with thisarticle, the declaration, or the bylaws:
        (1) are considered to be performed or furnished with the expressconsent of each co-owner;
        (2) constitute the basis for the filing of a lien under any lien lawagainst each of the condominium units; and
        (3) are subject to subsection (c).
    (c) If a lien against two (2) or more condominium units becomeseffective, the owner of a condominium unit against which the lien iseffective may remove the owner's:
        (1) unit; and
        (2) undivided interest in the common areas and facilitiesappurtenant to the unit;
from the lien by payment of the fractional or proportional amountsattributable to the unit. After the payment, discharge of the lien, orother satisfaction of the lien, the condominium unit and theundivided interest in the common areas and facilities appurtenant tothe condominium unit are free and clear of the lien. A partialpayment, partial satisfaction of the lien, or discharge of the lien maynot prevent the lienholder from proceeding against any condominiumunit and the undivided interest in the common areas and facilitiesappurtenant 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 thecondominium instruments, the declarant has a transferable easementover 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 inconnection 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 butunpaid for the share of the common expenses chargeable to anycondominium unit constitute a lien on the unit effective at the timeof 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 suitby the manager or board of directors, acting on behalf of theassociation of co-owners, under laws of Indiana governingmechanics' and materialmen's liens. In any foreclosure under thissubsection:
        (1) the condominium unit owner shall pay a reasonable rentalfor the unit, if payment of the rental is provided in the bylaws;and
        (2) the plaintiff in the foreclosure is entitled to the appointmentof a receiver to collect the rental.
    (c) The manager or board of directors, acting on behalf of theassociation 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 condominiumunit.
    (d) Suit to recover a money judgment for unpaid commonexpenses is maintainable without foreclosing or having the liensecuring the expenses.
    (e) If the mortgagee of a first mortgage of record or otherpurchaser of a condominium unit obtains title to the unit as a resultof foreclosure of the first mortgage, the acquirer of title, or theacquirer's successors and assigns, is not liable for the share of thecommon expenses or assessments by the association of co-ownerschargeable to the unit that became due before the acquisition of titleto the unit by the acquirer. The unpaid share of common expenses orassessments is considered to be common expenses collectible from

all of the co-owners, including the acquirer or the acquirer'ssuccessors and assigns.
As added by P.L.2-2002, SEC.10.