PH: (847) 549-0600 FX: (847) 589-2263 Info@LawJTLG.com
PH: (847) 549-0600 FX: (847) 589-2263 Info@LawJTLG.com
PH: (847) 549-0600 FX: (847) 589-2263 Info@LawJTLG.com
You have recently commissioned the construction or remodeling of a home or business. Nearing the end of the work something goes wrong and it results in a lack of payment to your contractors. Perhaps something was not made to spec and you need it done right before final payment. Perhaps you have paid in full, but your contractor is asking for more than you agreed to.
As a result of this payment dispute, your contractor filed a mechanics lien against your property. What does it mean, and what should you do about it? That is what we’re here to answer so that Illinois property owners can aptly handle the situation.
A mechanics lien is a financial hold on your property designed to ensure that builders and subcontractors are properly paid for the work they do – and that they are paid first if the property is sold. A lien goes on your title and must be removed from your title before you sell the property.
Just a few hundred years ago, builders were often stiffed, and builders of castles were often buried in the walls to keep the castle’s secrets – as payment for their hard work. Thomas Jefferson introduced the Mechanics Lien to make sure the US remained a place of fair work and fair pay instead of the old feudal ways.
A mechanics lien can be filed by your builders, contractors, subcontractors, and even your building material suppliers for issues of non-payment and underpayment. This often stems from quality disputes, where the owner knowingly refuses the final payment until mistakes in the building project are remedied. In this case, the dispute will need to be settled for the lien to be lifted.
A mechanics lien may also be filed if a subcontractor or supplier was not paid by the general contractor on time. In this case, the lien will be lifted when everyone is properly paid.
Each state has unique laws regarding a mechanics lien. Mechanics lien laws in Illinois have established a few timelines that limit when and how long a shareholder on a construction project can hold an owner to a mechanics lien.
Contractors must file a lien within four months of the last completed work, or within two years to affect the owners alone. For the lien to be valid, they must file a lawsuit to seek payment within two years of last work or the lien will be lifted.
It should also be known that in Illinois, contractors sometimes have the right to foreclose on the property they have built or worked on in order to remedy the issue of non-payment.
In Illinois, not paying contractors can have some pretty dire consequences. First, a lien typically prevents the owner from selling the property and ensures that the entity that filed the lien gets first dibs on the profits from any home sale that does occur. To this end, a mechanic’s lien that is not resolved can result in the contractors foreclosing the home and paying the balance with the proceeds.
You will need to take steps to have the lien on your property lifted, but the right steps depend on the situation. If the contractor is in error or trying to strong-arm you into paying for shoddy or incomplete work, you may need to take them to court. However, if this is due to a clerical error or late payment processing, you can address this as an administrative matter instead. Here are a few of your best options:
If you are satisfied with the work and this is a matter of timely payments, address the payments issue. However, if you need to sue your general contractor for subcontractor mismanagement or you need the matter to go to court to prove the lien was filed in error, it’s time to hire a lawyer.
The experienced real estate legal team of JTLG is here to help you with your Illinois mechanic’s lien concerns and proceedings. Contact us today to consult on your unique situation and the best way to remove the mechanic’s lien from your property.
You have recently commissioned the construction or remodeling of a home or business. Nearing the end of the work something goes wrong and it results in a lack of payment to your contractors. Perhaps something was not made to spec and you need it done right before final payment. Perhaps you have paid in full, but your contractor is asking for more than you agreed to.
As a result of this payment dispute, your contractor filed a mechanics lien against your property. What does it mean, and what should you do about it? That is what we’re here to answer so that Illinois property owners can aptly handle the situation.
A mechanics lien is a financial hold on your property designed to ensure that builders and subcontractors are properly paid for the work they do – and that they are paid first if the property is sold. A lien goes on your title and must be removed from your title before you sell the property.
Just a few hundred years ago, builders were often stiffed, and builders of castles were often buried in the walls to keep the castle’s secrets – as payment for their hard work. Thomas Jefferson introduced the Mechanics Lien to make sure the US remained a place of fair work and fair pay instead of the old feudal ways.
A mechanics lien can be filed by your builders, contractors, subcontractors, and even your building material suppliers for issues of non-payment and underpayment. This often stems from quality disputes, where the owner knowingly refuses the final payment until mistakes in the building project are remedied. In this case, the dispute will need to be settled for the lien to be lifted.
A mechanics lien may also be filed if a subcontractor or supplier was not paid by the general contractor on time. In this case, the lien will be lifted when everyone is properly paid.
Each state has unique laws regarding a mechanics lien. Mechanics lien laws in Illinois have established a few timelines that limit when and how long a shareholder on a construction project can hold an owner to a mechanics lien.
Contractors must file a lien within four months of the last completed work, or within two years to affect the owners alone. For the lien to be valid, they must file a lawsuit to seek payment within two years of last work or the lien will be lifted.
It should also be known that in Illinois, contractors sometimes have the right to foreclose on the property they have built or worked on in order to remedy the issue of non-payment.
In Illinois, not paying contractors can have some pretty dire consequences. First, a lien typically prevents the owner from selling the property and ensures that the entity that filed the lien gets first dibs on the profits from any home sale that does occur. To this end, a mechanic’s lien that is not resolved can result in the contractors foreclosing the home and paying the balance with the proceeds.
You will need to take steps to have the lien on your property lifted, but the right steps depend on the situation. If the contractor is in error or trying to strong-arm you into paying for shoddy or incomplete work, you may need to take them to court. However, if this is due to a clerical error or late payment processing, you can address this as an administrative matter instead. Here are a few of your best options:
If you are satisfied with the work and this is a matter of timely payments, address the payments issue. However, if you need to sue your general contractor for subcontractor mismanagement or you need the matter to go to court to prove the lien was filed in error, it’s time to hire a lawyer.
The experienced real estate legal team of Johnston Tomei Lenczycki & Goldberg, LLC in Lake County and DuPage County is here to help you with your Illinois mechanic’s lien concerns and proceedings. Contact us today to consult on your unique situation and the best way to remove the mechanic’s lien from your property.
Phone Number: (847) 549-0600
Fax Number: (847) 589-2263
Libertyville Office
350 N. Milwaukee Ave., Ste. 202
Libertyville, IL 60048
Gurnee Office
223 N. IL. Rt. 21, Ste. 14
Gurnee, Illinois 60031
Manchester Office
2100 Manchester Road, Suite 920
Wheaton, IL 60187