By sending a Notice of Intent to Lien, you are alerting the parties funding a project that you worked on a project and are still waiting to get paid. Increasing transparency can be enough to smooth out cash flow and improve business relationships.
There are hundreds of reasons why you may not have the right to file a mechanics lien against a construction project. Whatever the reason, sending a Notice of Intent to Lien may be a great move for your company. Sending a Notice of Intent to Lien is a lot less expensive than filing a mechanics lien.
In addition to the expense differences, there are risk differences as well. If you file a claim of lien, it could potentially be challenged which could cost you a good deal in attorney fees and damages, especially if your lien is invalid or there is another problem with it.
Notices of Intent to Lien do not expose you to this risk. The notice is just a mailed letter, not a document formally filed with the county recorder. First , the notice of intent to lien will not delay or extend your mechanics lien deadline. Or, at least, understand that the lien deadline will not budge.
Second , the notice of intent to lien may cause folks to promise you payment in the future, but a promise of payment is not the same as actually getting paid! Click the banner below to try our free tool, the Payment Rights Advisor. I am a subcontractor, I send a Notice to Owner to the address that appear on the drawings as the physical address of the owner.
The notice was sent through certified mail. The UPS tracking number show the Notice to owner as been deliver to the front desk, My condo has been being restored by a company and it has taken 4 years for me to get back into my property. I have 3 years of lost rental income. How do I dispute To our knowledge, no day prelim notices were filed.
This pre-lien notice is served when your work on a project has already wrapped up and there are still outstanding payments that you are waiting to receive. Failing to serve an Illinois Notice of Intent to Lien on time will not necessarily preclude you from filing a valid mechanics lien.
However, the amount that you write on your Notice of Intent to Lien form could determine the amount that you can recover from the owner if there are any discrepancies.
Send day notice now. This is the full name of the property owner. You may gather this information from the general contractor or the party who hired you. This is a description of the property location that must be sufficient for identification.
It can be a legal property description or a specific street address. This is your signature, or the signature of the party who is signing on your behalf. You may also add the name and designation of person who signs the notice.
The Illinois notice of intent to lien may substantially follow this template from the Illinois Statutes:. There are also no service and court fees that must be paid so writing a letter of intent to lien is also definitely less expensive.
Writing a notice of intent is also essentially risk-free. The contractor does not lose anything by expressing their intention to file a mechanics lien against a client who has failed to pay the invoices after the deadline has passed. Since the Notice of Intent has been proven to be an effective way in pressuring the clients to iron out their payment issues, the contactor may be able to gain everything, including the long overdue payment, even without resorting to complicated mechanics lien measures.
This should be a no-brainer, but sometimes the client may be dealing with multiple contractors and suppliers and the best way to grab their attention is to express the intention of filing a lien.
The construction industry is already known for payment delays and abuses; keeping the communication channels flowing between contractors and clients may be a good way to address this. Filing the necessary pre-lien notices does not guarantee that your lien rights are protected. There are things you must keep in mind in order to ensure that you retain your right to file a mechanics lien.
Be wary not to miss the deadline for filing the Preliminary Notice. Some states forfeit your lien rights the moment you fail to file a Preliminary Notices. States like California allows claimants to still send a Preliminary Notice after the day window has passed, but the mechanics lien can relate back to 20 days prior to when the notice is served.
Also note that some states require a Preliminary Notice to be written on a specific format using a specific language. Make sure that you know the statutory lien requirements in your state to avoid conflict regarding this requirement. Generally you must always submit a Preliminary Notice regardless if it is required or not. If you missed the deadline, sending a Notice of Intent to Lien could still be enough to get your clients to pay you. Contractors, subcontractors, and material suppliers should keep in mind that filing the notice of intent to lien does not extend the deadline of submitting the actual mechanics lien.
Even if you have submitted the Letter of Intent to Lien and you have confirmed that the client has received the document, you must still set your eyes on recording the actual mechanics lien. This is because the sending the Notice of Intent to Lien does not automatically mean that you are going to get paid.
The Notice of Intent to Lien only warns the client of potentially having to deal with a mechanics lien, but it does not, for example, attach a liability to a property unlike a mechanics lien. Project participants must always keep track of the deadline for filing a mechanics lien. They must also track the paperwork and other important research documents to prove their claim of non-payment — even if they have already submitted the pre-lien notices.
File a preliminary notice in 60 seconds Send Online Today. What is a Notice of Intent to Lien? Ottawa, Illinois, phone: fax:. Ogle Ogle County Recorder s. Tazewell Tazewell County Recorder 11 S. Williamson Williamson County Recorder N. Woodford Woodford County Recorder N. Main St. Room Eureka, Illinois, phone: fax:. Learn about Contractors near you in Illinois and How they Pay. Aggregate Industries. Rating 5. Allied Building Products Corporation. Cosgrove Construction Inc. Hines Development.
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