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How to File a Mechanics Lien in Illinois [A Step-by-Step Guide!]

6,662 views December 3, 2019 6:32

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ChannelLevelset

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Download FREE templates of ALL the required documents (levelset.com/blog/how-to-file-mechanics-lien-il…) and follow along, or file it stress-free through Levelset at app.levelset.com/wizard/SelectDocument/1.

If you’re trying to file a mechanics lien in Illinois, follow these steps to be sure you get all the details right.

-Step 1: Determining if you have lien rights
The first step is to check if you’re even eligible to file a Mechanics Lien. In Illinois, most parties who provide any labor or services have the right to file a lien, but the materials must be “attached” or “used in” the construction. One more thing to note is that direct contractors on a single-family, owner-occupied residential project are required to provide a written sworn statement to the owner, listing all the subs and suppliers, and how much is owed to each; whether the owner requested it or not. Forgetting to do this will result in loss of lien rights right off the bat!

-Step 2: Sending the required notices
There may be two required notices, depending on the type of project. Anyone who didn’t contract directly with the owner must send a Notice of Intent to Lien to preserve their right to lien. This notice needs to be sent by certified mail, with return receipt requested within 90 days of the last date of furnishing labor or materials to the project.
Preliminary Notices are required to be sent only on single-family, owner-occupied residential projects within 60 days of starting work.
-Step 3: Preparing your Illinois lien form
In Illinois, there are 3 separate forms; one for direct contractors, one for subs and suppliers, and one for those hired by a tenant. If you need any of these forms, you can go to levelset.com/blog/how-to-file-mechanics-lien-il… to download free, customizable Illinois mechanics lien templates that have helped thousands of Illinois contractors and suppliers get paid.

Once you have the right form, be sure to include all the following information:
Your information;
The property owner’s information;
Your hiring party’s information;
A description of labor, services, and materials provided;
The amount claimed;
Some general information about your contract;
The contract date and last date of furnishing;
A property description;
And your notarized signature.
-Step 4: Filing your Illinois Mechanics Lien
When to file an Illinois Mechanics Lien
In Illinois, there are technically two different deadlines to file your Mechanics Lien. When you file will determine who the lien will be enforceable against. If the Mechanics Lien is filed within 4 months of completion of the overall project, then the lien will be enforceable against the owner any subsequent purchasers of the property. On the other hand, to have an enforceable Mechanics Lien against the current property owner, it needs to be filed within 2 years of completion of the last lienable work to the project.
Where to file an Illinois Mechanics Lien
Illinois mechanics liens need to be filed in the County Recorder of Deeds where the property being liened is located. On levelset.com, we’ve put together a list of all the Illinois recorder’s offices and links to their website to simplify this process for you. Be sure to contact the office ahead of time to be sure you meet all the county specific requirements. Also, keep in mind that many Illinois county recorder offices offer electronic recording as well.
Serving notice that a lien was filed
If you are direct contract on one of those owner-occupied, single family residential projects, another notice needs to be sent within 10 days of filing that a lien has been recorded.
-Step 5: What to do after your Illinois Mechanics Lien is filed
An Illinois mechanics lien is only valid for 2 years. Before your lien expires, make sure you either initiate a foreclosure action, or release the lien if you get paid.
If you’re not getting paid, but aren’t ready for a foreclosure action, one option is to send a Notice of Intent to Foreclose. This acts as a final warning shot, basically saying if you don’t get paid soon, you’re ready and able to file a lawsuit.
Over 500,000 contractors and suppliers connect on Levelset’s cloud-based platform to make payment processes stress-free. Users easily exchange payment documents like Lien Waivers, Pay Applications, and Preliminary Notices, they see a complete picture of who is on their job, and are empowered with the resources and knowledge they need to be confident in payment. The results are faster payments and fewer surprises.
Levelset is venture-backed by S3 Ventures, Altos Ventures, and Brick & Mortar Ventures. Headquartered in New Orleans with offices in Austin and Cairo, Egypt, Levelset employs more than 150 people. For more information about Levelset, visit levelset.com or call 866-720-5436.

About this tutorial

Levelset published this 6:32 video tutorial on December 3, 2019. It has been watched 6,662 times on YouTube.

Channel
Levelset
Duration
6:32
Published
December 3, 2019
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6,662
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