Chicago, Illinois Mechanics Lien Act
The Illinois Mechanics Lien Act allows general contractors and sub-contractors to issue a lien on the improved property where they provided labor or materials when the balance for services or materials was not paid.
The property may then be sold to pay the amount due. If all requirements are met the contractor of the Mechanics Lien can collect the lien amount, professional fees, costs, and attorney fees. The contractor and Mechanics lien may force the property into foreclosure in order to collect all the money due.
Mechanics Lien: General Contractor Requirements
A general contractor, stated by the Mechanic’s Lien Act, is the party that has a contract with the property owner. The liens are filed with the Recorder of Deeds in the same county as property. For example in Chicago, a Mechanics Lien must be filed as a Chicago Mechanics Lien. They would file a Chicago Mechanics Lien within four months of the last day that labor or materials were supplied. A suit must be filed within two years of the same last day. If the lien is not filed the general contractors lien will be placed at the bottom of other claims on the property.
Mechanics Lien: Sub-contractor Requirements
A sub-contractor, in the Illinois Mechanics Lien Act, is a party that has a contract with the general contractor and not with the property owner. In order to collect on a lien, the sub-contractor must give notice to the owner within 60 days of intent to file the claim if the property is a single family and occupied. For other types of properties the notice should be given within 90 days. If the intent is not provided on time, a sworn statement of the amount due from the general contractor will be needed in order to continue with the lien. Notice of intent can be given after 10 days of no payment. The sub-contractor has four months to file a lien after the last day that labor or materials were supplied to the property. Sub-contractors should file with the Record of Deeds in the country where the property sits. A suit must be filed within two years.