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Illinois Contractor's Notice to Owner about Disclosure of Labor and Materials - Mechanic Liens - Individual

State:
Illinois
Control #:
IL-02-09
Format:
Word; 
Rich Text
Instant download

Description

Pursuant to 770 ILCS 60/5, this form is used by a contractor to give the notice required by statute to an owner. It may be in the body of a contract or a separate document.

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FAQ

In Illinois, a mechanics lien must be filed within 4 months after completion of work to be effective against subsequent property owners. If the lien is filed after 4 months but before 2 years after completion of work, it will still be effective against the original owner.

In Alberta, for example, your lien is valid for 180 days from the date the lien was placed. In Ontario, liens are only valid for 90 days from the date of last on site working.

Under Illinois law, any mechanics lien should be filed in the County Recorder of Deeds where the property being liened is located. This is crucial as the lien must be filed not only in the correct county but the correct office as well. The fees and specific document formatting vary depending on your county.

The simplest way to prevent liens and ensure that subcontractors and suppliers are paid is to pay with joint checks. This is when both parties endorse the check. Compare the contractor's materials or labor bill to the schedule of payments in your contract and the Preliminary Notices.

WHAT MUST I DO BEFORE I FILE MY LIEN? Usually there is at least one notice that you must mail before you can file your lien. These notices are sometimes called notices of intent to file lien. Illinois Document Preparation fee of $165 includes all required notices of intent.

The people who can file mechanic's liens are identified by state law. A subcontractor or supplier to a subcontractor may not be able to file a lien. Also, unlicensed contractors are often barred from filing a mechanic's lien.

Negotiate with the contractor who placed the lien (the "lienor" to remove it. Obtain a lien bond to discharge the lien, or. File a lawsuit to vacate the lien.

In order to enforce a lien, the contractor, subcontractor or supplier must file a lawsuit. The deadline to file a lawsuit is two years from the last date work was performed or materials were supplied. A recorded lien is valid for these two years, but a failure to sue within that time frame voids the lien.

The deadline for contractors and subcontractors to file their statement of mechanic's lien is four months (not 120 days) from the last date of work (exclusive of warranty work or other work performed free of charge), or from the last date that materials were supplied to the project.

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Illinois Contractor's Notice to Owner about Disclosure of Labor and Materials - Mechanic Liens - Individual