Page 17 - State Law Summary of Mechanic's Lien Law

Illinois IL

What is the statutory authority?
Illinois Compiled Statutes, Chapter 770 ILCS 60/0.01 to 60/39.
What is the Attachment Date of the Mechanic’s Lien?
Mechanic’s liens attach as of the date of the contract between the owner and
contractor. See 770 ILCS 60/1(a).

What constitutes visible commencement of construction?
There is no visible commencement rule in Illinois.

What is the priority of the insured construction mortgage/
deed of trust?
Mechanic’s liens have priority over a mortgage recorded prior to the mechanic’s
liens. However, in the event of a sale of the property, the proceeds of the sale
are paid to the mortgage holder first but only for the value of the land at the
time construction began. The mechanic’s lien holders have a senior lien on the
proceeds in an amount attributable to the value of the improvements on the
property. See 770 ILCS 60/16.

If priority of the insured mortgage/deed of trust is lost, is there a
statutory procedure to regain priority?
No.

When does a mechanic’s lien have to be filed for claimant to maintain
lien rights?
Claimants must file a lien within 4 months after completion of work in the Office
of the Recorder where the property is located. See 770 ILCS 60/7. Subcontractors
must give the owner notice within 90 days of their last contribution to the project or
they will be limited to the amount shown on the last sworn contractor’s statement
relied on by the owner. See 770 ILCS 60/24.
What is the period of enforcement of a filed mechanic’s lien?
Suit to foreclose must be filed within 2 years of the last work done or furnishing of
materials to the project. See 770 ILCS 60/9.

Is there a procedure to bond over the mechanic’s lien(s)?
Yes. A petition may be filed to substitute a bond for the property subject to a lien
claim with the clerk of the circuit court of the county in which the property is
located. See 770 ILCS 60/38.1.
Are the ALTA 32/33 Series Endorsements available for the Loan Policy?
Yes.

RETURN TO INDEX