Recent Amendment to the Mechanic’s Lien Act Now Requires Contractors Provide Notice to Owners of Single Family Residences

By: James P. Ziegler

Effective January 1, 2010 the Illinois Mechanics Lien Act now requires general or original contractors, (not subcontractors or suppliers), on owner-occupied single-family residences give the owner written notice within 10 days of recording a mechanics lien against the property of the owner. The notice is served when sent or when personally delivered. Unfortunately the new law does not specify approved methods of serving the notice. If this notice is not given the contractor’s lien is extinguished to the extent the owner suffers damage before the notice is given. Again the new law does not specify what these damages might be, however it does say mere recording of the lien is not damage.

Frankly the new law raises some serious questions about its ramifications. We simply suggest if general contractors find a need to record a mechanics lien on single-family owner-occupied homes, they personally deliver a copy of the lien to the owner(s) within 10 days of recording. See 770 ILCS 60/7 (d).