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Where do I find the instructions or form for the Indiana "30 Day Notice to Foreclose on a Lien"

IndianaLien Foreclosure

I am a tenant within a strip mall. I hired a handy man who was responsible for installing 9 light bulbs. We agreed to $70 and he was paid - according to his bill and my cancelled check. He later alleges that I orally committed to pay his $150K to replace these standard florescent light-bulbs. In addition he states he spent $1500 for supplies. I bought the supplies and have the receipt for approx. $60 for the light bulbs. [note: all of this started bcs my WC denied his claim of allegedly falling while replacing the bulbs]. As a result he filed a mechanics lien against the property and is demanding the $150,000 plus $1500. He named me in the lien as the one he made an agreement with. Since he has named me in the lien, and the Landlord would like me to address, I would like to send him a letter requesting he foreclose on the lien within 30 days. Do you have a form? Or the information of what must be included and how sent?

2 replies

Mar 19, 2020

Illinois is one of very few states which allows an owner or other party interested in the property to shorten the claimant's timeframe for enforcing their mechanics lien. Under § 60/34 of the Illinois mechanics lien statute, a "Notice to Commence Suit" will force the claimant to proceed with a lawsuit or forfeit their lien. Levelset doesn't currently have a template for this notice, but the below information should be enough to help you get that notice sent. Additionally, referencing the statute linked above should help. The statutory directions for this Notice to Commence Suit are extremely simple. That section states that the demand must be in writing and contain the following language in at least 10-point bold type: “Failure to respond to this notice within 30 days after receipt, as required by Section 34 of the Mechanics Lien Act, shall result in the forfeiture of the referenced lien.” As for the other contents of the notice - it sounds like that's up to the sender. But, it may be a good idea to provide information or claims which dispute the validity of the claimant's lien as well as legal threats that might be undertaken if the lien is not released. It's extremely important, though, that the required language posted above is prominent on the notice - probably right at the top of the document. The document must be sent by registered or certified mail, return receipt requested, to the mechanics lien claimant. It may also be given by personal service, but if personal service will be undertaken, then it'd be wise to make sure there's some kind of evidence showing that the claimant actually received that notice (and that's why certified/registered mailing requires that a return receipt be requested). Regardless of how it's sent, it's crucial to keep great documentation on hand. That way, if the dispute continues, you'll be able to show everything was done by the book.

How to get an Illinois mechanics lien claim removed if the 30 day enforcement period isn't followed

If an Illinois lien claimant misses their window for enforcement, it's pretty easy to force them to remove their lien. § 60/35 of the Illinois mechanics lien statute states that, once the lien deadline has passed, the owner or another party with interest in the real estate (like a tenant) can demand for the release of the expired lien. After receiving that demand, a claimant has 10 days to release the lien. If the lien claimant fails to do so, then the lien claimant will become liable to the owner for $2,500. To facilitate that release of lien, it would likely help to draw up the lien release for them so all they have to do is sign it and return the document. Having a claimant draw up a lien release then have it filed is a big ask, but if the documentation is right there in front of them and all they have to do is return the mail, then it'd probably be easier to get that done. Here's a free, downloadable template for an Illinois mechanics lien release: Illinois Mechanics Lien Release Form.

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Mar 19, 2020

Thanks for your response and its very informative. However it references IL and I am seeking information for Indiana mechanics lien 30 day notice. Can you provide me with information specifically to Indiana? Les

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