As I have said before, knowing your mechanics lien rights is essential to securing your right to be paid in the construction industry. Every state has different rules that need to be followed to have a valid mechanics lien. This blog article will address the steps that need to be followed to have a valid lien in Illinois.
Who is Entitled to a Lien
Anyone who supplies labor and materials to improve a property is entitled to a lien. Anyone who is hired directly by the owner (general contractor) does not have to send a pre-lien notice but they must file their lien with the recorder of deeds in the county where the property is located within four months of last work.
Subcontractors and material suppliers must send notice of unpaid amounts to the owner and general contractor within 90 days of last work and must file their lien within four months of last work. Once the lien is filed, it is a good practice to send a copy of the lien to the owner and general contractor.
Special Rules for Owner-Occupied Single-Family Residences
Subcontractors and material suppliers providing labor and/or materials to an owner occupied single-family residence must send a pre-lien notice to the owner and general contractor. This notice must be sent within 60 of first work or first materials supplied and must inform the owner that you are working and/or supplying materials, and you may file a lien if you are unpaid.
Deadlines for Filing and Enforcing a Lien
Once a lien is filed you have two years to file suit to enforce your lien or it will expire, you are entitled to recover your attorney fees to enforce your lien rights.
Although in Illinois there is no particular law that limits the amount of a subcontractor or suppliers’ lien to the amount still owed to the general contractor, there is case law to support that a court can limit the amount of the subcontractor or supplier’s lien to the amount still owed to the general contractor. In the case of Bricks, Inc v. C&F Developers, Inc., the brick supplier followed all the proper steps to have a valid lien in the amount of $64,510.22. But by the time Bricks, Inc. Filed their lien only $10,000 was due to the general contractor, the court reduced Bricks, Inc.’s lien to $10,000.
This reiterates my constant position that every state has deadlines that must be met to have a valid lien but there is no penalty for sending notice or filing your lien early. The sooner you send notice that you are unpa filing you likely you are to get paid.
If you want to learn more about lien rights in Illinois, listen here.
