Bill Text: IL HB5817 | 2025-2026 | 104th General Assembly | Introduced
Bill Title: Amends the Mechanics Lien Act. Provides that, before recording a lien against an owner-occupied single-family residence, a contractor must determine whether a senior citizens homestead exemption has been granted under the Property Tax Code for that residence, and if such an exemption has been granted, the contractor must provide the owner with a Senior Citizen Pre-Lien Notice no less than 15 days before recording the lien. Sets forth the information to include in the Senior Citizen Pre-Lien Notice. Allows the owner to, within 15 days after receiving a Senior Citizen Pre-Lien Notice, dispute the lien in writing. Sets forth requirements statements for the contractor's affidavit. Allows the owner to bring an action in the circuit court requesting that a lien be discharged or reduced on the ground that the contractor failed to comply with the provisions or on the ground that the amount of the lien is excessive. Effective immediately.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2026-09-25 - Filed with the Clerk by Rep. Michael Crawford [HB5817 Detail]
Download: Illinois-2025-HB5817-Introduced.html
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| 1 | AN ACT concerning civil law. | |||||||||||||||||||
| 2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||
| 3 | represented in the General Assembly: | |||||||||||||||||||
| 4 | Section 5. The Mechanics Lien Act is amended by changing | |||||||||||||||||||
| 5 | Section 7 as follows: | |||||||||||||||||||
| 6 | (770 ILCS 60/7) (from Ch. 82, par. 7) | |||||||||||||||||||
| 7 | Sec. 7. Claim for lien; third parties; errors or | |||||||||||||||||||
| 8 | overcharges; multiple buildings or lots. | |||||||||||||||||||
| 9 | (a) No contractor shall be allowed to enforce such lien | |||||||||||||||||||
| 10 | against or to the prejudice of any other creditor or | |||||||||||||||||||
| 11 | incumbrancer or purchaser, unless within 4 months after | |||||||||||||||||||
| 12 | completion, or if extra or additional work is done or labor, | |||||||||||||||||||
| 13 | services, material, fixtures, apparatus or machinery, forms or | |||||||||||||||||||
| 14 | form work is delivered therefor within 4 months after the | |||||||||||||||||||
| 15 | completion of such extra or additional work or the final | |||||||||||||||||||
| 16 | delivery of such extra or additional labor, services, | |||||||||||||||||||
| 17 | material, fixtures, apparatus or machinery, forms or form | |||||||||||||||||||
| 18 | work, he or she shall either bring an action to enforce his or | |||||||||||||||||||
| 19 | her lien therefor or shall file in the office of the recorder | |||||||||||||||||||
| 20 | of the county in which the building, erection or other | |||||||||||||||||||
| 21 | improvement to be charged with the lien is situated, a claim | |||||||||||||||||||
| 22 | for lien, verified by the affidavit of himself or herself, or | |||||||||||||||||||
| 23 | his or her agent or employee, which shall consist of a brief | |||||||||||||||||||
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| 1 | statement of the claimant's contract, the balance due after | ||||||
| 2 | allowing all credits, and a sufficiently correct description | ||||||
| 3 | of the lot, lots or tracts of land to identify the same. Such | ||||||
| 4 | claim for lien may be filed at any time after the claimant's | ||||||
| 5 | contract is made, and as to the owner may be filed at any time | ||||||
| 6 | after the contract is made and within 2 years after the | ||||||
| 7 | completion of the contract, or the completion of any extra | ||||||
| 8 | work or the furnishing of any extra labor, services, material, | ||||||
| 9 | fixtures, apparatus or machinery, forms or form work | ||||||
| 10 | thereunder, and as to such owner may be amended at any time | ||||||
| 11 | before the final judgment. No such lien shall be defeated to | ||||||
| 12 | the proper amount thereof because of an error or overcharging | ||||||
| 13 | on the part of any person claiming a lien therefor under this | ||||||
| 14 | Act, unless it shall be shown that such error or overcharge is | ||||||
| 15 | made with intent to defraud; nor shall any such lien for | ||||||
| 16 | material be defeated because of lack of proof that the | ||||||
| 17 | material after the delivery thereof, actually entered into the | ||||||
| 18 | construction of such building or improvement, although it be | ||||||
| 19 | shown that such material was not actually used in the | ||||||
| 20 | construction of such building or improvement; provided, that | ||||||
| 21 | it is shown that such material was delivered either to the | ||||||
| 22 | owner or his or her agent for that building or improvement, to | ||||||
| 23 | be used in that building or improvement, or at the place where | ||||||
| 24 | said building or improvement was being constructed, for the | ||||||
| 25 | purpose of being used in construction or for the purpose of | ||||||
| 26 | being employed in the process of construction as a means for | ||||||
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| 1 | assisting in the erection of the building or improvement in | ||||||
| 2 | what is commonly termed forms or form work where concrete, | ||||||
| 3 | cement or like material is used, in whole or in part. | ||||||
| 4 | (b) In case of the construction of a number of buildings | ||||||
| 5 | under contract between the same parties, it shall be | ||||||
| 6 | sufficient in order to establish such lien for material, if it | ||||||
| 7 | be shown that such material was in good faith delivered at one | ||||||
| 8 | of these buildings for the purpose of being used in the | ||||||
| 9 | construction of any one or all of such buildings, or delivered | ||||||
| 10 | to the owner or his or her agent for such buildings, to be used | ||||||
| 11 | therein; and such lien for such material shall attach to all of | ||||||
| 12 | said buildings, together with the land upon which the same are | ||||||
| 13 | being constructed, the same as in a single building or | ||||||
| 14 | improvement. In the event the contract relates to 2 or more | ||||||
| 15 | buildings on 2 or more lots or tracts of land, then all of | ||||||
| 16 | these buildings and lots or tracts of land may be included in | ||||||
| 17 | one statement of claims for a lien. | ||||||
| 18 | (c) A statement that a party is a subcontractor shall not | ||||||
| 19 | constitute an admission by the lien claimant that its status | ||||||
| 20 | is that of subcontractor if it is later determined that the | ||||||
| 21 | party with whom the lien claimant contracted was the owner or | ||||||
| 22 | an agent of the owner. | ||||||
| 23 | (d) A contractor for improvements of an owner-occupied | ||||||
| 24 | single-family residence must give the owner written notice | ||||||
| 25 | within 10 days after recording a lien against any property of | ||||||
| 26 | the owner. The notice is served when it is sent or personally | ||||||
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| 1 | delivered. If timely notice is not given and, as a result, the | ||||||
| 2 | owner has suffered damages before notice is given, the lien is | ||||||
| 3 | extinguished to the extent of the damages. The mere recording | ||||||
| 4 | of the lien claim is not considered damages. This subsection | ||||||
| 5 | does not apply to subcontractors, and it applies only to | ||||||
| 6 | contracts entered into after the effective date of this | ||||||
| 7 | amendatory Act of the 96th General Assembly. | ||||||
| 8 | (e) Before recording a lien against an owner-occupied | ||||||
| 9 | single-family residence, a contractor must determine whether a | ||||||
| 10 | senior citizens homestead exemption has been granted under | ||||||
| 11 | Section 15-170 of the Property Tax Code for that residence. If | ||||||
| 12 | such an exemption has been granted, the contractor must | ||||||
| 13 | provide the owner with a Senior Citizen Pre-Lien Notice no | ||||||
| 14 | less than 15 days before recording the lien. The notice is | ||||||
| 15 | served when it is sent or personally delivered. The Senior | ||||||
| 16 | Citizen Pre-Lien Notice shall include the following | ||||||
| 17 | information: | ||||||
| 18 | (1) the amount claimed to be owed; | ||||||
| 19 | (2) an itemized list of the charges, including labor | ||||||
| 20 | and materials, for completed work; | ||||||
| 21 | (3) a copy of the written contract and any signed | ||||||
| 22 | change orders; | ||||||
| 23 | (4) a plain-language explanation that a mechanics lien | ||||||
| 24 | may be recorded if the matter is not resolved; and | ||||||
| 25 | (5) a statement that the owner has the right to | ||||||
| 26 | dispute the claim in writing during the 15-day period. | ||||||
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| 1 | The owner may, within 15 days after receiving a Senior | ||||||
| 2 | Citizen Pre-Lien Notice, dispute the lien in writing. | ||||||
| 3 | When recording the lien, the contractor shall state, as a | ||||||
| 4 | part of his or her affidavit: | ||||||
| 5 | (i) that he or she gave the owner the required Senior | ||||||
| 6 | Citizen Pre-Lien Notice; and | ||||||
| 7 | (ii) whether the owner disputed the claim. | ||||||
| 8 | The provisions of subsection (d) apply to a lien recorded | ||||||
| 9 | under this subsection (e). | ||||||
| 10 | The owner may bring an action in the circuit court | ||||||
| 11 | requesting that a lien be discharged or reduced on the ground | ||||||
| 12 | that the contractor failed to comply with this subsection (e) | ||||||
| 13 | or subsection (d) or on the ground that the amount of the lien | ||||||
| 14 | is excessive. The court shall hear the matter on an expedited | ||||||
| 15 | basis. The court shall grant any appropriate relief, and, if | ||||||
| 16 | the court finds that the contractor acted willfully or in bad | ||||||
| 17 | faith, the court may award the owner reasonable attorney's | ||||||
| 18 | fees and costs. | ||||||
| 19 | This subsection (e) applies to contracts entered into on | ||||||
| 20 | or after the effective date of this amendatory Act of the 104th | ||||||
| 21 | General Assembly. | ||||||
| 22 | (Source: P.A. 96-654, eff. 1-1-10.) | ||||||
| 23 | Section 99. Effective date. This Act takes effect upon | ||||||
| 24 | becoming law. | ||||||
