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If a Letter of Intent results in a partial payment of balance, what can I do if second half of payment isn't paid?

Illinois

Sent a LOI to a client and they have decided to pay 50% of balance immediately and the remaining balance in 4 months. They have sent a letter for us to sign agreeing to these terms under the condition that we withdraw the lien claim against them. If we sign, are we relinquishing our right to collect the remaining balance if not paid by the 4 month? Will we have to send a new LOI with the new remaining balance, or would we go forward with a Mechanics Lien?

1 reply

Jun 1, 2020
You could agree to withdraw the lien conditioned upon the owners performance of the agreement. If the owner defaults, you would be free to enforce the lien. However, if you release the lien, you cannot re-file it. I’m not sure what a letter of intent is. That is not an instrument recognized in the mechanics lien act.
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