Removing a Mechanics Lien in Illinois: Deadlines, Demands, and Bond Options

A mechanics lien has been recorded against your Chicago property. Your refinancing is stalled. Your buyer is threatening to walk. The title company will not insure. Even though the work was paid for - or the lien has expired - it is still there, clouding your title and blocking your transaction.

This is one of the most frustrating situations property owners face: a mechanics lien that will not go away on its own, even when it should not be there in the first place. Sometimes the owner withheld payment because the work was defective or incomplete, and the contractor recorded a lien in response. Other times the owner is caught in the middle of a payment dispute between contractors and subcontractors further down the chain, or dealing with a lien that expired years ago but was never cleared from the record. Either way, the lien is blocking the transaction and something needs to be done about it.

The Illinois Mechanics Lien Act (770 ILCS 60) provides several mechanisms for removing a lien from title, but each involves different costs, timelines, and levels of risk. Understanding which option fits your situation - and acting before a closing deadline forces your hand - is essential to protecting your property rights.

Why Mechanics Liens Create Ongoing Problems for Property Owners

A mechanics lien attaches to the property itself, not merely to the party who allegedly failed to pay. As a result, owners often find themselves dealing with lien issues even when the dispute arose between contractors, subcontractors, or suppliers they never hired directly.

Once recorded with the Cook County Recorder of Deeds or other county recorders throughout Illinois, a lien raises red flags for buyers, lenders, and title companies - regardless of whether the lien is valid or enforceable. Title companies will typically refuse to insure a property with a recorded mechanics lien, even an expired one, without additional documentation or legal analysis confirming that the lien is no longer valid.

The core problem is that liens do not self-clear. Even liens that have been paid, that have expired, or that contain fatal statutory defects remain of record unless affirmative steps are taken to remove them. This frequently forces owners to address lien issues under compressed timelines - during a closing or refinancing - when leverage is limited and every week of delay costs money.

When a Mechanics Lien Is No Longer Enforceable

A mechanics lien can become unenforceable due to statutory defects or failure to comply with timing requirements under Illinois law. Common reasons include:

• Expired enforcement deadline. The claimant failed to file suit to foreclose the lien within two years of their last date of work.
• Missed notice requirements. Subcontractors must serve a 90-day pre-lien notice. Required notices to property owners or lenders were not properly served within statutory timeframes.
• Defective filing. The lien contains errors in the property description, PIN number, party identification, or other required information that may invalidate the claim.
• Late recording. The lien was recorded more than four months after completion of work, which means it may not have priority over mortgages or subsequent purchasers.
• Payment or satisfaction. The underlying claim has been paid or otherwise resolved, but the claimant never recorded a release.

Illinois courts strictly enforce these statutory deadlines. A lien claimant who fails to comply with the timing or notice requirements may lose lien rights entirely. But even when that happens, the lien itself remains visible in the property's chain of title, continuing to create practical problems for owners until it is formally removed.

Four Options for Removing a Mechanics Lien in Illinois

There are four primary ways to remove a mechanics lien from title. The right approach depends on whether the lien is expired, paid, or disputed - and how quickly you need it resolved.

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Option 1: Demand to Commence Suit (Section 34)

Section 34 of the Illinois Mechanics Lien Act allows a property owner to formally demand that a lien claimant either file suit to enforce the lien or forfeit lien rights. If the claimant fails to file suit within 30 days after receiving the demand, their lien rights are extinguished.

This is often the most effective first step. It forces the claimant to put up or shut up. In our experience, a Section 34 demand works best when the mechanics lien is for a relatively low amount or the lien claimant's case is weak. In those situations, the economics of pursuing the claim often do not justify the cost of litigation. For larger liens or stronger claims, the claimant may well file suit within the 30-day window - but even then, the demand has value because it accelerates the timeline and forces the dispute toward resolution rather than allowing the lien to sit on record indefinitely.

Option 2: Demand for Lien Release (Section 35)

When a lien has been paid, has expired, or lien rights have been forfeited under Section 34, Section 35 of the Illinois Mechanics Lien Act requires the claimant to provide a written lien release. The release must then be recorded to remove the lien from the public record.

Failure to provide a release after proper demand can expose the lien claimant to statutory penalties and the property owner's attorney fees. This exposure often motivates compliance. Once claimants understand that continued refusal to release an unenforceable lien may create liability for them, they typically provide the release. For property owners in Chicago facing closing deadlines, this can be the most efficient path to clearing title.

Option 3: Bond Over the Lien (Section 38.1)

Under Section 38.1 of the Illinois Mechanics Lien Act, property owners and other interested parties can petition the court to substitute a surety bond in place of the mechanics lien on the property. The bond must be in an amount equal to 175% of the lien claim and issued by a qualified surety company.

The practical effect is that the lien is removed from the property and transferred to the bond. The claimant can still pursue their claim, but against the bond rather than against the real estate. This allows the transaction to proceed without delay.

The bond premium itself is typically 1-3% of the bond amount, but sureties require substantial collateral and financial documentation from the bond principal. In our experience, obtaining lien release bonds from sureties has become increasingly difficult, and the underwriting process can be demanding - particularly for larger claims. On a $50,000 lien claim, the bond would need to be $87,500, and the collateral requirements often exceed what owners expect. We typically recommend bonding only when a closing date cannot move and there is insufficient time to resolve the lien through other means.

The statute also includes a mandatory attorney fee provision: a prevailing lien claimant who recovers at least 75% of their claim is entitled to reasonable fees, while a bond principal wins fees if the claimant recovers less than 25%.

Option 4: Challenge the Lien in Court

When a lien claimant refuses to release an invalid lien and other remedies have failed, property owners may need to file a court action to discharge the lien or a quiet title action to remove the cloud from title.

While not always the preferred path, litigation is sometimes necessary to resolve mechanics lien disputes. If the mechanics lien is defective, or if the owner believes the lien claimant is not entitled to payment, going to court may be the most direct way to resolve the dispute. Owners who withheld payment due to defective or incomplete work may also have counterclaims against the lien claimant that are worth pursuing. In those situations, litigation serves a dual purpose: removing the lien and recovering damages.

Court action does involve more time and expense than the demand-based options, and it can delay a pending real estate transaction. But when the underlying dispute is legitimate and the amounts justify it, challenging the lien in court protects the owner's rights in a way that demand letters alone cannot.

What Lien Removal Typically Costs

The cost of removing a mechanics lien depends on which option applies and whether the claimant cooperates.

A Section 34 demand or Section 35 release demand is the least expensive approach, typically involving attorney fees for reviewing the lien, drafting and serving the demand, and following up. If the claimant complies, the matter can be resolved for a fraction of the lien's face value.

Bonding over the lien under Section 38.1 requires a bond premium - typically 1-3% of the bond amount - but the more significant cost is often the collateral that sureties require. Because the bond must equal 175% of the lien claim, collateral requirements can be substantial on larger liens. Court filing fees and attorney fees for the bond petition add to the total.

Filing a court action involves the most expense, with costs that depend on whether the case is contested and how long it takes. Uncontested petitions to discharge a lien cost less than a full quiet title action with active opposition. But when the owner has a strong defense or a viable counterclaim for defective work, litigation costs may be justified by what the owner stands to recover or protect.

In every case, addressing a lien early - before a transaction is at risk - reduces costs and preserves options. Property owners who wait until a closing deadline is days away often end up paying more because their leverage is reduced and faster (more expensive) remedies become the only choice.

Why Early Legal Review Makes a Difference

Property owners often delay addressing mechanics liens until a transaction is already at risk. By that point, options may be limited and deadlines looming.

Early legal review allows owners to identify whether a lien is enforceable, determine which statutory remedy is most cost-effective, and pursue a strategy that aligns with transaction timing. A lien that looks intimidating on a title report may turn out to have fatal defects - a missed notice deadline, an incorrect property description, a recording made outside the statutory window - that give the owner significant leverage.

In many cases, careful early action can resolve a mechanics lien in weeks rather than months, and for a fraction of what it would cost under the pressure of a closing deadline.

For additional background on mechanics liens, visit our Mechanics Liens practice area page or see our Mechanics Liens FAQ for answers to common questions about lien rights, deadlines, and enforcement under Illinois law. You may also find our post on how to challenge a mechanics lien claim in Illinois helpful if you believe the lien against your property is defective or invalid. For guidance on protecting yourself during the construction process, see our article on lien waivers in Illinois construction.