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Can I file a mechanics lien against an Illinois condo association?

IllinoisMechanics Lien

We were hired to do electrical work in the common areas of a condo association. Work was completed in November and invoiced in November; invoice remains unpaid, and we are closing in on 4 months. Does the lien get filed against the association, or the individual owners?

9 replies

Feb 9, 2022

You ask if a Mechanics Lien arising from work done in the common areas of a condominium development must be recorded against, and perfected, against the association's property or that of individual unit owners. Based on the question, the answer is that you must encumber the common areas (i.e. property belonging to the association). I hope this information was helpful. Best of luck.

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Feb 9, 2022
That was not at all helpful.
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Feb 9, 2022

Sorry you feel that way. I actually answered your question word for word. Perhaps you could ask it a different way?

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Feb 9, 2022
Does the lien get files against the association or the individual condo owners? I know Illinois lien law is a little different than other state.
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Feb 9, 2022

Your Mechanics Lien claim will be against the owner of the "common area" property you improved. That would be the Association: unless you were not really working on common area property but on property belonging to individual unit owners. The real answer to your question depends on who owns the property and who hired you. Ultimately, if you have any doubts I recommend consulting with a Construction Attorney - either virtually or face to face. Best of luck.

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Feb 9, 2022
It is the common area of a condo association, so it has 42 owners.
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Feb 10, 2022

Yes and no. As I wrote before, the answer to your question depends on who hired you, and what you were doing. And, the final answer lies at the intersection of the Mechanics Lien and Condominum acts.

Under Illinois law, once a condominium development is under tje control of a Board, and a repair of common element is either authorized by the Board or is an emergency repair authorized by a unit owner, it is consideredauthorized under the express consent of all unit owners. 

In that case, the lien claimant will have a beneficial interest in a trust consisting of common expenses and assessments, instead ofa lien on the real estate. This means no moniescan be expended for any other purpose until the lien claimant is fullypaid. A lien will be allowed to attach to the common elements only with the unanimous consent of the unit owners. So, if you were to simply record a Notice of Lien, it could have negative repercussions.

If I were you, I would consult with an Attorney before taking action. As you can see, this is not a straightforward matter. Moreover, your best bet may be to seek payment directly from the Board (i.e. a Breach of Contract and Unjust Enrichment lawsuit). We can't get into any more detial in this forum. 

Good luck.

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Feb 15, 2022
The short answer is yes! The long part of the answer is that in order to lien a condominium building (common elements), you need to record a mechanics lien against each and every condominium unit in the building. I am not sure how many units are in this particular building or how much money is at stake. You also need to comply with the statute which has strict time requirements to provide notices of intent to lien etc…If you blow any of the statutory time lines, your lien rights will be forfeited.
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Feb 15, 2022

The common areas are owned by the owners. The board of the association acts as the representative of the owners. The lien should name the association and the owners.
 
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