What Contractors and Property Owners Need to Know About Liens in Illinois

Property owners that eed answers in real time? A seasoned Illinois mechanics lien attorney at Grzymala Law Offices is ready to review your project documents—book a consultation now.

What is a Mechanics Lien in Illinois?

A mechanics lien is a statutory security interest that allows those who improve real estate—contractors, subcontractors, suppliers, and certain laborers—to claim an interest in the property when they are not paid. The right comes from the Illinois Mechanics Lien Act and functions as leverage: if the debt remains unpaid, the claimant may foreclose on the property and collect from the sale proceeds. A recorded lien also clouds title, making refinancing or sale difficult for the owner.

Who May File a Mechanics Lien in Illinois?

Eligible parties include:

• Prime (general) contractors with a written or oral contract directly with the owner.
• Subcontractors, material suppliers, equipment lessors, and lower-tier vendors who furnish labor or materials that become part of the improvement.
• Design professionals (architects, engineers) in limited circumstances.

Each must strictly follow the statute’s timing and notice requirements to preserve rights.

What are the Critical Filing Deadlines?

Illinois imposes a three-part timetable:

What Must the 90-day Notice Contain?

The notice must identify:

• Claimant’s name and address.
• Owner’s name.
• General description of the labor or materials provided.
• Balance due.
• Property’s legal description.
• Last date of work

Send it by certified mail or personal service; keep the receipt for proof. Failure to include these elements renders the lien unenforceable.

Do Prime Contractors Have Any Advance Notice Duties?

Although the statute does not mandate notice for prime contractors, many deliver an early “contractor’s sworn statement” listing all lower-tier providers to reassure owners and lenders. This proactive step smooths payment and reduces the likelihood of downstream liens.

How can Property Owners Protect Themselves from Surprise Mechanics Liens?

Owners should:

• Demand sworn statements with every pay application.
• Exchange conditional lien waivers only when payments clear.
• Hold retainage until all subcontractor waivers are received.
• Consider a lien bond to discharge any recorded lien from title while the dispute is litigated.

Early legal guidance from a Chicago mechanics lien attorney ensures paperwork lines up with statutory defenses.

What Role Do Lien Waivers Play, and How Should They Be Used?

Lien waivers are written releases of lien rights in exchange for payment. Illinois recognizes four common forms (partial/conditional, partial/unconditional, final/conditional, final/unconditional). Contractors should issue only conditional waivers until funds are available; owners must match each dollar paid to a waiver to avoid double liability.

Can Property Owners Simply “Bond Off” a Mechanics Lien?

Yes. Upon petition, Illinois courts allow owners or lenders to post security—often 175 percent of the claim—transferring the lien from the land to the bond pursunt to 770 ILCS 60/38.1. This clears title so financing or a sale may proceed while the dispute is litigated on the bond. A mechanic lien attorney can coordinate bond language acceptable to the recorder and the court.

How Do Mechanics Liens Interact with Mortgages and Construction Loans?

Priority battles between lien claimants and lenders reached the Illinois Supreme Court in LaSalle Bank v. Cypress Creek I, LP. The court initially sided with lenders, but the legislature amended the Act to restore many lienholder rights. Today, recorded mechanics liens generally gain priority over later disbursements from a construction loan—even if the mortgage was recorded first.

Do Mechanics Liens Apply to Public Projects?

Not directly. On state or municipal work, title is public and cannot be liened. Instead, claimants seek payment under the Illinois Public Construction Bond Act or the federal Miller Act if the project is federally owned. Subcontractors also have a right to place liens against the public funds due from the owner to the general contractor pursuant to 770 ILCS 60/23..

Why Partner with Grzymala Law Offices?

With more than 45 years in Chicagoland construction, our team blends courtroom skill with industry know-how. We draft contracts that prevent disputes, file airtight liens when payments stall, and defend owners against inflated claims—all while keeping projects on schedule. Protect your project or investment—contact us today for strategic counsel before time runs out.