Liens: Private and Public

Private Liens

  1. Determine if property is residential or commercial property.
    • If property is residential, is it new or just improvements of an old home?
  2. Determine the first day on job site.
    • Use date of contract if there is a written a contract.
    • Check date on delivery ticket, et cetera for first day of work if oral contract.
    • Note: subcontractors on owner-occupied residential property must give an initial notice to the owner within 60 days of beginning work.
  3. Determine last day on job site.
    • Must be last day of "substantial" work. Punch list work may or may not suffice.
  4. Check for last day to serve lien.
    • 90 days from last date on job. Start counting 90 days on the day following the last delivery. Count all days.
  5. Check for any Waivers given and/or if a Trust Receipt was given.
  6. Complete Lien/Information Form (see enclosed form).
  7. Call or go to Municipal Hall Building Department for information from the Building Permit: Owner and address, General contractor and address, Legal address of property Lot number, Permanent parcel number (not all building permits have this information; some building departments will tell you they cannot give out this information. It is for public record and you can insist.)
  8. Call or go to Township office for Tax Index Number (same as Permanent Parcel Number), along with who the last bill was mailed to, and the address. They can also give you a partial legal description.
  9. Call Chicago Title Company (or any other title company) for Owner/Legal Lender Tract Search. We perform most tract searches ourselves. It's usually cheaper and faster, but you must know what you're doing.
  10. When information is received from title company (Cook County), check if Torrents. If not marked, check document number. Torrent start with LR.
  11. Complete Mechanic's Lien Notice. Form No. 366 - George E. Cole Legal Forms, Notice of Claim of Subcontractor or Material Man can be used.
  12. Send Lien Notice to everyone possible.
    • Owner listed on tract search
    • Your customer
    • Last tax bill
    • General Contractor
    • Owner listed on building permit
    • Any lenders of record
  13. Either serve lien yourself or send via Certified Mail - Return Receipt Requested.
  14. You must wait at least 10 days before you can record, and you must record within 4 months from last day of work.

Public Liens

  1. Determine if it is public property.
    • Is property owned by Federal, State, County, City or Village?
    • Is property paid for completely with public funds or is it just subsidized by the public body? If it is just subsidized by public funds, it is not a public lien.
    • Example: In the case of some housing for the elderly, the property can be owned and operated by church or other organization and just be subsidized by HUD. This would not be a public lien.
  2. Determine clerk or secretary of public body.
  3. Determine first day on job site.
    • Check date on delivery ticket or contract.
  4. Determine last day on job site.
    • Must be last day of substantial work.
  5. Check for status of lien-able funds.
    • Must be money due or to become due to contractor in immediately "higher" tier.
  6. Complete lien information form (see attached).
  7. Check for any Waivers.
  8. Contact public entity for information regarding project.
    • Owner and address
    • General contractor and address
    • Project name or Contract number o Bonding company identity
  9. Prepare Lien Notice (see attached).
  10. Either serve lien yourself or send lien Certified Mail - Return Receipt Requested. Suit must be filed within 90 days of lien service, with copy delivered to public entity, clerk or secretary.