Common Mistakes That Can Invalidate Your Mechanics’ Lien In Illinois
Filing a mechanics’ lien is a powerful tool for contractors, subcontractors, and suppliers to ensure they are paid for their work or materials. However, the process requires strict adherence to Illinois law, and even small mistakes can invalidate your lien. As attorneys who regularly handle mechanics’ lien matters, we know firsthand how challenging this process can be. Whether it’s missing a deadline, failing to include the necessary information, or not serving the correct parties, these errors can jeopardize your ability to collect payment. Understanding the common pitfalls can help you avoid costly mistakes and ensure your lien remains enforceable.
Illinois Mechanics’ lien laws, governed by the Illinois Mechanics’ Lien Act (770 ILCS 60/), are highly technical and demand careful compliance. Missing even one step in the process can result in losing the right to secure payment for your work. If you’re planning to file a lien or are concerned about protecting your rights, it’s critical to understand the common mistakes that can invalidate a mechanics’ lien and how to avoid them.
Missing The Filing Deadline
One of the most frequent mistakes is failing to file the mechanics’ lien within the required timeframe. In Illinois, the lien must be filed within four months after the last date of providing labor, materials, or services. Filing outside of this window could mean losing your lien rights. Additionally, if you want the lien to have priority over other claims, it’s essential to file within this four-month period, even though the law provides up to two years to enforce the lien.
Failing To Provide Proper Notice
Proper notice is a vital step in protecting your lien rights. For subcontractors and suppliers, Illinois law requires providing notice to the property owner within 90 days of the last date of furnishing labor or materials. Failing to provide this notice can result in the lien being invalidated. The notice must include specific details, such as the amount due, the name of the party who hired you, and a description of the work or materials provided.
Not Accurately Describing The Work Or Property
Another common error is failing to adequately describe the work performed or the property subject to the lien. The lien document must clearly state the work provided, the materials supplied, and the property’s legal description. Vague language or incomplete information can render the lien unenforceable.
Overstating The Lien Amount
While it may be tempting to include additional costs or future work in your lien, overstating the amount is a critical mistake. Illinois courts take these errors seriously, and an exaggerated lien can be invalidated entirely. Make sure your lien only includes the amount that is currently due and owed under the contract.
Filing A Lien Without A Proper Contract
Illinois law requires that a mechanics’ lien be based on a valid contract or agreement. Even if the contract is verbal, there must be evidence of its terms. Filing a lien without a proper contract can result in dismissal of your claim.
Ignoring Bonded Projects
For public projects or certain private projects, you may not be able to file a standard mechanics’ lien due to bond requirements. Contractors and subcontractors must understand whether a bond is in place and, if so, how to file a claim against the bond instead of the property.
Failing To Enforce The Lien
Even after filing a valid lien, it must be enforced within the legal timeframe. Illinois law provides a two-year statute of limitations for enforcing a mechanics’ lien. Failure to file a lawsuit to foreclose on the lien within this period can result in losing your rights to collect.
Illinois Mechanic’s Lien Frequently Asked Questions
What Is A Mechanics’ Lien?
A mechanics’ lien is a legal claim against a property to secure payment for work or materials provided for its improvement. It allows contractors, subcontractors, and suppliers to seek compensation if they are not paid under their contract.
How Long Do I Have To File A Mechanics’ Lien In Illinois?
In Illinois, for most lien claims you must file your lien with the recorder’s office within four months of the last date of providing labor or materials in order to have priority over other claims. However, you generally have up to two years to file a lawsuit to enforce the lien.
What Happens If I Miss The Filing Deadline?
If you miss the filing deadline, you may lose your lien rights entirely. Without a valid lien, you cannot use the property as security for payment, which makes it more difficult to recover what you are owed.
Who Must I Notify When Filing A Mechanics’ Lien?
If you are a subcontractor or supplier, you must notify the property owner, lender and other parties that may have an interest in the property within the statutorily required amount of days from your last date of work or delivery. The filing deadlines and notice requirements can be extremely confusing which is why you should always seek the assistance of an experienced mechanics’ lien attorney. The notice of claim for lien must include the amount due, the name of the party who hired you, a description of the work or materials provided together with other critical information.
Can I File A Lien Without A Written Contract?
Yes, Illinois allows mechanics’ liens to be based on verbal contracts, but there must be evidence of the agreement’s terms. Without a clear agreement, proving your claim may be more difficult.
What Can I Include In The Lien Amount?
The lien amount can only include the unpaid value of labor, services, or materials provided under the contract. Additional costs, future work, or inflated claims can invalidate the lien.
What If The Property Is Sold Before I File My Lien?
If the property is sold before you file your lien, you may lose your priority claim against the property. However, if you file within the statutory period and provide proper notice, your lien could still be attached to the proceeds from the sale.
What Happens If I Overstate The Lien Amount?
Overstating the lien amount can render the lien invalid. Illinois courts take a strict approach to this issue, so it’s crucial to ensure the lien reflects the accurate amount owed under your contract.
Contact Our Chicago Mechanic’s Lien Attorney For Legal Help
If you’re dealing with legal matters related to a mechanics’ lien in Illinois, it’s important to take immediate action to protect your rights. At Keller Law Group, LLC, we are dedicated to helping contractors, subcontractors, and suppliers secure the payment they are entitled to. Whether you’re filing a lien, disputing a claim, or need guidance through the process, we are here to provide the legal support you need.
Contact our Chicago mechanic’s lien attorney at Keller Law Group by calling 630-868-3093 to receive an initial consultation. Our firm represents clients in Chicago and throughout Illinois, ensuring their lien rights are protected every step of the way.