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Understanding Mechanics’ Liens on Residential Properties in Illinois

 Posted on March 30, 2022 in DuPage County Real Estate Attorney

IL real estate lawyerIllinois law permits contractors, construction professionals, and other parties to place a lien on a residential property for the purposes of collecting past-due payment. The Mechanics Lien Act ensures that contractors and other parties who work on a home are paid for their work. In other words, a mechanic’s lien is collateral for a debt. It is important for any homeowner to understand when a mechanic’s lien may be placed on their home and how to respond to this situation. It is especially crucial for individuals buying a home to understand how a mechanic’s lien can complicate the home-buying process.

What is a Mechanic’s Lien?

A lien is an action used to ensure the collection of a debt. Liens filed against a real estate property give the creditor interest in the property. This means that the property owner cannot sell or refinance the property until the debt is paid and the lien is lifted. The creditor may also be able to ask the court to compel the sale of the property so the creditor can receive payment from the sale proceeds.

Mechanics’ liens are used to pursue payment of construction, renovation, repair, or home improvements projects. The contractor, subcontractor, or the party who provided materials for the project may be permitted to place a lien on the property if they are not paid for labor or supplies. However, a lien must be executed properly in order to be legally enforceable. Illinois contractors have four months after a project is completed to record a mechanic’s lien.

What Home-Buyers Should Know About Mechanics’ Liens

If you are interested in buying a home, you will need to determine if there are any liens on the property. You can search for information about any liens through your County Recorder. Some counties have online records. Tract searches and title reports may show liens on the property.

Home sellers are usually required to obtain a title commitment or title abstract which will reveal any liens on the property. An experienced real estate lawyer can review title commitments and other documents and help you address any liens or other issues that come up. In some cases, buying a home with an active lien can leave the new property owner facing collection attempts, so it is important to work with a knowledgeable attorney when buying a home with a lien.

Wheaton Residential Real Estate Lawyer

Unexpected problems during the home-buying process can occur at any moment. The skilled DuPage County real estate attorneys at Stock, Carlson & Asso. LLC can help with mechanics’ liens, buy-sell agreements, title insurance, and much more. Call us today at 630-665-2500 for a consultation.



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