Illinois Lien: A Complete Guide to Liens in the State

An unpaid debt or obligation is secured by a lien, which is a legal claim placed on property. A lien stops property owners from selling, refinancing, or transferring their property until the lien is settled and also grants creditors enforceable rights. Understanding Illinois law is crucial because lien regulations differ from one state to the next.

What Is a Lien in Illinois?

The Illinois Compiled Statutes (ILCS) govern liens in Illinois. A lien is a creditor's legitimate claim on a portion of a debtor's assets until the debt is paid off. To obtain payment for a debt or service, it provides a legitimate claim against property. Real estate (houses, land, and business buildings) and personal property (cars, office supplies, and other assets) can both be subject to liens. Liens are made public once they are recorded, alerting lenders, title companies, and prospective purchasers of unpaid debts.

Liens may prevent property owners from selling or refinancing until they are removed. Lien checks are an essential part of due diligence for purchasers. Liens provide a safe means of enforcing payments for creditors.

Types of Liens in Illinois

Several types of liens may be filed in Illinois. The most common include:

1. Mechanic’s Liens

Any individual or business that provides labor, materials, or services for the improvement of real property, including general contractors, subcontractors, and material suppliers, is subject to the Mechanics Lien Act -770 ILCS 60/0.01 et seq. This regulates who can file a lien on private property, what is necessary to make it valid, and how to enforce it. The law is strictly construed, meaning that all deadlines and procedural requirements must be adhered to exactly.

2. Judgment Liens

A judgment from a court of law imposes a lien on the debtor's real property. For the judgment to constitute a lien on real estate in that county, it must be submitted to the county recorder's office. In Illinois, a judgment lien lasts for seven years after the date it was entered or resurrected. If it is not enforced within a specific time frame, it may become a dormant judgment, but it can still be revived to prolong its life.

3. Commercial Real Estate Broker Liens

A commercial real estate broker who has unpaid commissions from a written agreement may put a lien on a commercial property. Residential properties are exempt from this ordinance. To perfect the lien, the broker must submit a notice of lien to the county recorder. Within two years of the notice being recorded, the broker must file a lawsuit to foreclose on the lien.

4. Attorney’s Liens

A client's claims, lawsuits, or causes of action are encumbered by an attorney's lien. This lien is attached to any judgment, verdict, or settlement and is for the sum of any agreed-upon fee. The lawyer must give written notification to the party the client has a claim against to enforce the lien.

5. IRS or Illinois Department of Revenue Tax Liens

These are filed by the IRS or the Department of Revenue for unpaid federal or state taxes. These liens are attached to real estate and personal property and are meant to ensure that taxes are paid to the state or federal government.

6. Health Care Service Liens

To recoup the expenses of medical treatment, a hospital, doctor, or other healthcare professional may place a lien on a patient's personal injury settlement or judgment. There are restrictions on how much can be claimed for this lien.

How to Search for Liens in Illinois

Lien records in Illinois are public and can be accessed in several ways:

• County Recorder of Deeds Offices: Illinois county governments typically keep property and lien files up to date for their county. Typically, searches are done using the parcel number, owner name, or property address.
• Online County Databases: Some counties offer online search portals for recorded liens, such as Cook, DuPage, and Lake. Some demand fees or registration.
• Illinois Court Records: You may find judgment liens through the Illinois courts’ public access systems.
• Title Companies and Third-Party Services: Professional lien searches are offered by title companies and third-party services, which are frequently utilized in real estate closings.

Typically, lien records contain property descriptions, recording dates, debt amounts, and creditor information.

Lien Records in Major Illinois Cities

In Illinois, lien searches are county-based, which means they have to be carried out in the county where the property is situated. Among the examples are:

• Chicago (Cook County): The Cook County Recorder of Deeds manages lien filings, with online access available through the Property Records Portal.
• Aurora (Kane, DuPage, Kendall, and Will Counties): You can conduct searches through the appropriate county recorder's office, depending on the location of the property.
• Naperville (DuPage and Will Counties): You can access lien records in these counties through the county offices where the property lies.
• Joliet (Will County): The Will County Recorder’s Office maintains lien and property records with both in-person and online access.
• Rockford (Winnebago County): Winnebago County Recorder of Deedsoffers lien searches and access to property records in Rockford, Winnebago County..

Each office sets its own procedures, fees, and online access rules.

How Long Does a Lien Stay on Property in Illinois?

Lien duration in Illinois varies depending on the type:

• Property Tax Liens: These remain until taxes are paid or the property is sold at a tax lien sale. The redemption rights for these typically last 2 to 3 years.
• Mechanic’s Liens: Mechanic’s liens must be enforced within 2 years of completion of work, or they expire.
• Judgment Liens: These are valid for 7 years, with the option for renewal.
• Mortgage Liens: These are valid until the loan is satisfied. The lienholder must also officially release a record for this lien to be resolved.
• Tax Liens (IRS/State): Federal liens last 10 years, while state tax liens follow Illinois’ statutory collection periods.

If not properly released, satisfied liens may still appear in public records, causing title issues.

How to Remove a Lien in Illinois

Lien removal in Illinois requires resolving the underlying debt or disputing the lien. The common methods include:

1. Paying the Debt: The lienholder is required to submit a release to the county recorder upon payment of the obligation.
2. Negotiating a Settlement: Creditors may agree to reduced payments or settlement terms, followed by a release filing.
3. Court Petition: Property owners can request removal if a lien is invalid, fraudulent, or improperly filed.
4. Recording a Satisfaction or Release: Owners should make sure that the lienholder notifies the county office of the release even after obligations have been paid.

Without a properly recorded release, liens may continue to cloud the property title.

In Illinois, liens are an essential component of debt and property enforcement. They demand that property owners fulfill their responsibilities while protecting creditors. Owners, purchasers, and lenders can prevent issues in real estate transactions by being aware of the different kinds of liens in Illinois, how to look for them, how long they persist, and how to have them removed.

The best method to make sure liens are handled correctly is frequently to speak with a lawyer, title business, or county recorder of deeds because Illinois lien regulations have stringent filing deadlines and processes. In Illinois real estate, property owners can keep clean titles and remove liens with the right resolution.