Blog

Call Us312-704-0771

Chicago debt collection attorneys

How to Make Sure a Mechanic’s Lien Is Valid and Executed Correctly

Posted on in Debt Collection

IL debt collectin lawyerA mechanic's lien is a legal way for creditors to secure payment for work that has been done on a property. It is typically used by construction companies, subcontractors, suppliers, and other professionals whose services are used in the building or improvement of real estate, although finance companies may also need to address mechanic's liens as they take steps to collect debts. If a person or company is not properly paid for work that was performed or materials that were supplied, they may file a claim against the property that will require a lien to be paid before the property can be sold or ownership can be transferred in the future. To ensure that a mechanic’s lien will be valid and enforceable in court, there are certain steps that must be taken.

Filing the Lien

In order for a mechanic’s lien to be valid, it will need to be filed with the appropriate government office within strict timeframes. In Illinois, a claim can be filed with the recorder of deeds in the county where the property in question is located. This claim must be filed within four months after a construction project was completed, the date that materials were delivered, or when work was last performed. A claim must state the balance that is due, provide a description of the property, and include details about the contract to perform work or provide materials.

Providing Notice of a Mechanic's Lien

Notice of a mechanic's lien must also be provided to certain parties in order for it to be valid. Generally speaking, this will include sending notices directly to the property owner and any other parties involved in the underlying transaction (i.e., mortgage lenders). For liens against single-family residences that are occupied by the property owner, notice must be provided to the property owner within 10 days after the lien is recorded.

Subcontractors and suppliers will need to meet additional requirements when filing mechanic's liens. To preserve their right to file a lien, a subcontractor or supplier who has contributed to construction work on an owner-occupied single-family residence must provide a notice to a property owner within 60 days after their first day of work or the date materials were delivered. This notice must state the name and address of the subcontractor or supplier, the type of work performed or the types of materials provided, the date when work began or when materials were delivered, and the name of the contractor who requested work or materials. If a subcontractor files a mechanic's lien against a single-family residence or other property, they must provide notice to the property owner within 90 days after the last day work was performed.

Enforcement of Mechanic's Liens

Once a mechanic's lien has been filed and notice has been provided to all applicable parties, steps will need to be taken to enforce the lien. This will involve taking legal action against those who owe money—namely, by filing a lawsuit asking them to pay what they owe or risk having their property sold off at auction in order to satisfy the debt. In Illinois, a suit must be commenced within two years after the construction project was completed or the last day that work was performed.

Contact Our Cook County Mechanic's Lien Lawyers

A mechanic's lien is an effective way for creditors to ensure they get paid for work that has been done on a property, but there are several important steps that must be taken to ensure that these liens will be valid and enforceable in court. Filing the proper paperwork and providing notices to the right parties are critical components of making sure that mechanic's liens are legally sound before attempting enforcement measures. Creditors should always seek out professional legal advice prior to proceeding with any type of enforcement action related to mechanic's liens. At Walinski & Associates, P.C., we provide legal representation in these matters, ensuring that creditors will be able to collect payment for work that was performed. Contact our Chicago mechanic's lien enforcement attorneys at 312-704-0771 to learn more about how we can assist with these matters.

 

Sources:

https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2254&ChapterID=63

https://nigrowestfall.com/files/articles/perfecting-a-mechanics-lien-what-you-need-to-do-it-right.pdf

 

Illinois Creditors Bar Association Chicago Bar Association Illinois State Bar Association
Back to Top