Mechanics lien


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Mechanics lien

A lien filed by a contractor or tradesman for unpaid work performed on a project, which becomes an encumbrance on the property until released by agreement, paid, or dismissed by action in the courts.
References in periodicals archive ?
Although the Act does not explicitly require such information, at least one Illinois court has found a mechanics lien to be deficient for failing to state the last date of work.
To properly perfect a mechanics lien, both contractors and subcontractors must record their liens within four months of their last date of work.
The notice must also contain the warning set forth in Section 5 of the Act, advising the home occupant of the subcontractor's right to file a mechanics lien in the event of nonpayment.
There is only one exception: subcontractors that fail to give the 90-day notice may nevertheless record a mechanics lien if the owner of the property was given notice of the subcontractor by means of a Contractor's Sworn Statement.
Section 7 of the Act provides that the claim for lien may be fired "at any time after the contract is made." Nevertheless, contractors and subcontractors generally wait until they have performed at least some portion of the work before recording a mechanics lien. Notably, some commentators believe that substantial performance of the contract is a prerequisite to recording a lien.
To enforce a mechanics lien, a lien claimant must file suit within two years after its last date of work on the project.
A mechanics lien is a lien upon real estate to secure the compensation of those who have been directly instrumental in the improvement of such real estate.
The mechanics lien must normally be served and/or publicly recorded within some statutory period following completion of work on the construction project, often 60 to 180 days following the completion.
This procedure often involves prior notification and notice with similar procedural requirements and time periods to a mechanics lien claim.
The legal rights of a claimant in the construction industry includes the usual breach of contract remedy as well as the extraordinary remedies provided by the mechanics liens laws.
Mechanics liens are generally available to those who provide labor, or furnish equipment or materials used in the construction, alteration, addition or repair of real estate.
Establishing state level ICPC committees, the quarterly newsletter, the library of mechanics lien and bond laws, plus many other programs on our agenda, will keep members advised of the constant changes that affect the level of the playing field and how we conduct our business.