A 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.
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