A mechanic's lien protects general contractors if an owner does not pay for work performed on an owner's property, and protects subcontractors in the event that the general contractor fails to pay for the subcontractor's services or supplies. In the event of nonpayment, the subcontractor can ask a court to put a lien, or hold, on your property until the unpaid debt is paid. As the property owner, in most instances you are responsible for the debt, and if a lien is filed against your home, you will not be able to sell or finance your property until all liens are paid or lifted.

Under Illinois law, the homeowner must request - and the contractor must provide - a written list of the names and addresses of "all parties furnishing materials and labor and of the amounts due or to become due to each." This list, or affidavit, must appear either as part of the contract or in a separate printed statement, and it must contain the following language:

"THE LAW REQUIRES THAT THE CONTRACTOR SHALL SUBMIT A SWORN STATEMENT OF PERSONS FURNISHING MATERIALS AND LABOR BEFORE ANY PAYMENTS ARE REQUIRED TO BE MADE TO THE CONTRACTOR."

In the case of an owner-occupied property, the Illinois Mechanics Lien Act also requires every subcontractor listed in the affidavit to notify the homeowner, either personally or by certified letter, when he or she has furnished materials or performed labor on the homeowner's remodeling project within sixty (60) days from the commencement of the subcontractor's work. This 60-day notice preserves the subcontractor's right to put a lien on your property, and it must contain the name and address of the subcontractor or material provider, the starting date of the work performed, the type of work performed or materials provided, and the name of the general contractor who requested the work to be done. Failure of a subcontractor to give an owner this 60-day notice will preserve a subcontractor's lien only to the extent that the owner has not been prejudiced by payments made before receipt of the notice.

What can an owner do to protect him or herself? Require the subcontractor to give you a lien waiver. By giving you a signed lien waiver, a supplier of materials or services for your home repair project acknowledges that he or she has no right to file a mechanic's lien against your property. In other words, the supplier acknowledges having been paid in full for those materials or services. DO NOT make the final payment to the contractor until you are satisfied with the work and have obtained signed waivers showing that every subcontractor has been paid.

If you have any questions concerning mechanics liens and your rights under the Illinois Mechanics Lien Act, please feel free to contact Cameron Monti at cmonti@lavellelaw.com.