Basic requirements for Mechanic's Lien
What is Mechanic’s Lien
“Mechanic’s lien” is a legal document filed with the correct recording authority, which if properly filed and recorded gives the holder of the lien an interest in the property. While a mortgage holder can force a foreclosure sale if the deadbeat doesn’t pay the mortgage, which means the contractor can then take action and force any property that has a lien on it into sale in order to collect what is owned.
Mechanic’s Lien Act.
Mechanic’s Lien Act provides you with certain rights and obligations for enforcing those rights. If you follow proper procedures, you can protect yourself. The best think about “Mechanic’s Lien” is that in many cases there is more than one avenue to collect a bad debt. if the lien is properly filed and depending on whether you are a contractor or subcontractor, you can collect from the owner,the general contractor, title insurance company, or lender. In the state of Illinois a verbal contract is sufficient; however, a written contract is preferable. It is very important to file your lien on time.
The Illinois Mechanic’s Lien Act
The Illinois Mechanic’s Lien Act allows you to record a lien within two years -of the last day you completed work on the property. It is always preferable to record your lien within four months because you are able to gain priority rights over mortgages and other lien holders.
Bankruptcy does not entirely protect your customer from an enforceable mechanic’s lien. A properly enforced lien takes priority over even the mortgage company. There are a lot of types of work that qualify under the mechanic’s lien act.
For instance: roofers, electricians, plumbers, carpenters, excavators, architects, engineers, crane operators, and many more.
How to fill out mechanic’s lien application?
Filling out mechanic’s lien application is easy! You need to know the address of the property, where the work was performed. The first and last day of work is required; and date of contract (verbal/written). Also original contract amount, how much money you receive, and what is the balance due. If you have written contract, you are allowed to charge the interest 30 days after the due day.
The most important thing is to work with professionals, because there is a lot of information which we have to provide with the mechanic’s lines like: property description, mortgage information, title company information, legal owner information, tax payer information, bank information (if is any mortgage on the property), and also it is very important to inform all parties, whoever is got interest in the property, where your work was performed.
If you chose our company (Contractor’s Lien Advisors, INC), we also monitor your mechanical lien though the process, and to the moment when you receive your money.
Our Company can file mechanical liens in three easy ways for you: online, over the phone, or in person.