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Are rental companies allowed to file liens against property owners if they are concerned about being paid for rentals.

Anonymous Contractor

We rent equipment for various construction work. Will we need to sign lien releases for construction work.

1 reply

Matt Viator

Construction Lawyer

Levelset Admin at Levelset

| 1,003 reviews

Jan 23, 2020

Equipment rental companies will generally be entitled to file an Illinois mechanics lien if they go unpaid for their services and if their equipment was used to permanently improve the project property. Of course, note that before a lien can be filed, there are certain preliminary notice and Notice of Intent to Lien requirements that may need to be complied with - and you can learn more about those here: Illinois Preliminary Notice Guide and FAQs. Naturally, any time a company has mechanics lien rights, the businesses they work with will require or expect for mechanics lien waivers to be submitted upon payment. You can learn more about waivers - including the process for submitting them - here: (1) Why You Should Send a Lien Waiver with Every Invoice; and (2) The Ultimate Guide to Lien Waivers in Construction (Meaning & Examples). Finally, if you'd like a little more info on Illinois mechanics lien requirements, these resources will be helpful: - Illinois Mechanics Lien Guide and FAQs - How to File an Illinois Mechanics Lien – A Step by Step Guide to Get You Paid

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