Title 101: Making Sense of Title Insurance in Commercial Transactions

WHO MAY CLAIM One who contracts with owner or owner’s agent to construct or improve land (includes contractors, subcontractors, architects, structural engineers, surveyors, registered interior designers, property managers, and rental equipment providers). First Bank of Roscoe v. Rinaldi, 262 Ill. App. 3d 179, 184, 634 N.E.2d 1204, 1208 (1994). IL ST CH 770 § 60/1 DEADLINE TO PERFECT Claim of lien must be filed within 4 month of when work is completed and/or materials are furnished. The 4 months only relates to lien rights from the original (general) contractor as to another creditor, incumbrancer, or purchaser. The original contractor has 2 years to file a lien as to the owner of the property. Subcontractor/material suppliers have 90 days after completion of the work (including extras) or delivery of material to perfect their lien rights. IL ST CH 770 § 60/7 BROKEN PRIORITY Date of lien relates back to the date of contract between owner/owner’s agent and lienor. NOTE: • Subcontractors’ lien will relate back to the original contract date as well. Petroline Co. v. Advanced Envtl. Contractors, Inc., 305 Ill. App. 3d 234, 238, 711 N.E.2d 1146, 1149 (1999) • Lien for additional work originally contracted for (even generally as additional work ) relates back to the date of the original contract. DuPage Bank & Trust Co. v. DuPage Bank & Trust Co. as Trustee under Trust Agreement Dated February 15, 1978 and Known as Trust No. 2195, 122 Ill. App. 3d 1015, 1019, 78 Ill. Dec. 309, 462 N.E.2d 25, 28 (2d Dist. 1984). IL ST CH 770 § 60/7 DURATION OF LIEN Lien must be enforced within 2 years of the date on which materials, fixtures, labor and services were furnished, delivered, and performed on the property. IL ST CH 770 § 60/9 CONTENTS OF LIEN Contents of claim of lien contingent upon whether filed by contractor or subcontractor. • Contractor requirements set forth in IL ST CH 770 § 60/7 • Subcontractor requirements set forth in IL ST CH 770 § 60/24 Strict compliance is required; however, lien will not be invalidated where mistake is not prejudicial. N. Shore Cmty. Bank & Tr. Co. v. Sheffield Wellington LLC, 2014 IL App (1st) 123784, ¶ 95, 20 N.E.3d 104, 122 IL ST CH 770 § 60/7 IL ST CH 770 § 60/24 ILLINOIS ILLINOIS – 516 – 1. This chart is to be used strictly as a guideline to facilitate mechanic’s lien inquiries. Parties using this resource should ensure they are independently confirming the information contained herein before relying on the same. NATIONAL COMMERCIAL SERVICES BY STATE MECHANIC’S LIEN

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