Situation #1: Regarding Owner-Occupied Projects, what is the classification if the Owner is building a multi-unit building and plans to live in one of the units? Is this still classed as Owner-Occupied? Situation #2: Our schedule for timing of our Notices is as follows: Owner-Occupied Projects-Send the Preliminary Letter at the outset of the project, Send the Intent to File a Lien and File the Lien itself by deadlines below. Notice of Intent to File a Lien-Sent on the 60th day after the last furnishing to have reaction time to meet the 90 day deadline for this Notice. Filing of the Lien-Sent on the 100th day after the last furnishing to have reaction time to meet the 120 (4 months) deadline. As I understood today’s conversation, in a situation where the Intent to File a Lien Notification is not acknowledged or signed for by the property owner, the 120 day deadline to file the lien is now reduced to 90 days, thus cutting our reaction time by 30 days. To have acceptable reaction time, the Notice of Intent to File a Lien would have to be sent on the 60th day after the last furnishing. If we didn’t get the acknowledgement of this Notice by the 75th day, we would have to go ahead and file the lien at that point to be able to meet the new 90 day deadline. Though it would seem reasonable but not necessarily the case that the County Recorder’s court would take into account that the Notice was not acknowledged in a timely way by the property owner and would allow us more reaction time. But could we count on that? I understand that the 60/25 form would have to be completed and submitted with this Filing of the Lien. Since we can’t predict which Letters of Intent to File are not going to be signed and acknowledged within the 90 day window, it would appear that we would have to file as above for all property owners that did not respond to the Notice to File a Lien. Is that the case?
Re: Situation #1:
Under Illinois' lien laws, any specific requirements for "owner-occupied" projects relate only to "owner-occupied, single-family residences." Thus, the example you provided of a multi-unit building would not be subject to those requirements.
Re: Situation #2
An IL Notice of Intent to Lien can be served any time after the contract is executed, but no later than 90 days after last furnishing. Sending this notice early is a good idea to avoid any issues with service, as you alluded to. Because, although an IL NOI is considered served when deposited in the mail by certified mail, actual receipt is still required. If the owner cannot be served, then you are correct that a claim may be filed within the same 90-day period to constitute proper notice.
Your timeline and rationale seem sound. County recorders' offices are stubborn creatures, and by no means should a claimant rely on their leniency; particularly when it comes to deadlines. If issues arise concerning the service of an NOI, then filing a lien claim within the 90-day period is the best way to ensure that your lien rights are properly protected.