If we release a lien on a property can we later put a lien on it again if needed?
Full Question:
Answer:
I may need to know what type of lien you are referring to in order to provide a more applicable answer. Assuming it is a mechanic's lien, if the release has been recorded, no further action may be taken to enforce the lien. If not recorded, it may be possible to have the release voided by the court, depending on the facts and circumstances involved, such as if fraud or duress was involved in obtaining the release.
The following is an Illinois statute:
770 ILCS 60/35 (from Ch. 82, par. 35)
Sec. 35.
Satisfaction or release; recording; neglect; penalty. Whenever a
claim for lien has been filed with the recorder of deeds, either by the
contractor or sub-contractor, and is paid with cost of filing same, or
where there is a failure to institute suit to enforce the same after demand
as provided in the preceding Section within the time by this Act limited
the person filing the same or some one by him duly authorized in writing so
to do, shall acknowledge satisfaction or release thereof, in writing, on
written demand of the owner, lienor, or any person interested in the real
estate, or his or her agent or attorney, and on neglect to do so for 10
days after such written demand he or she shall be liable to the owner for
the sum of $2,500, which may be recovered in a civil action together with
the costs and the reasonable attorney's fees of the owner, lienor, or other
person interested in the real estate, or his or her agent or attorney
incurred in bringing such action.
(b) Such a satisfaction or release of lien may be filed with the recorder
of deeds in whose office the claim for lien had been filed and when so
filed shall forever thereafter discharge and release the claim for lien and
shall bar all actions brought or to be brought thereupon.
(c) The release of lien shall have the following imprinted thereon in
bold letters at least 1/4 inch in height: "FOR THE PROTECTION OF THE OWNER,
THIS RELEASE SHOULD BE FILED WITH THE RECORDER IN WHOSE OFFICE THE CLAIM
FOR LIEN WAS FILED." The Recorder in whose office the claim for lien had
been filed, upon receipt of a release and the payment of the recording fee,
shall record the release.
The answer will depend in part on whether the lien release was filed, the time periods involved, and whether the additional work was performed as part of the same contract for an overall project. In Illinois, a lien must be filed within 4 months of the completion of the overall project. Time is not extended for warranty or “punch list” work in which you are merely re-doing services already performed. Time extension only applies to “essential” work done to complete the base contract.
After a lien is filed, the party has 30 days to enforce the lien after a written demand or it is forfeited. As previously stated, if the lien release is recorded, it bars all further action on the lien. I am prohibited from giving legal advice, this service provides information of a general nature. I suggest you contact a local attorney who can review all the facts and documents involved.
The following are Illinois statutes:
Sec. 7.
Claim for lien; third parties; errors or overcharges; multiple
buildings or lots. No contractor shall be allowed to enforce such lien
against or to the prejudice of any other creditor or incumbrancer or
purchaser, unless within 4 months after completion, or if extra or
additional work is done or labor, services, material, fixtures, apparatus
or machinery, forms or form work is delivered therefor within 4 months
after the completion of such extra or additional work or the final delivery
of such extra or additional labor, services, material, fixtures, apparatus
or machinery, forms or form work, he or she shall either bring an action to
enforce his or her lien therefor or shall file in the office of the
recorder of the county in which the building, erection or other improvement
to be charged with the lien is situated, a claim for lien, verified by the
affidavit of himself or herself, or his or her agent or employee, which
shall consist of a brief statement of the claimant's contract, the balance
due after allowing all credits, and a sufficiently correct description of
the lot, lots or tracts of land to identify the same. Such claim for lien
may be filed at any time after the claimant's contract is made, and as to
the owner may be filed at any time after the contract is made and within 2
years after the completion of the contract, or the completion of any extra
work or the furnishing of any extra labor, services, material, fixtures,
apparatus or machinery, forms or form work thereunder, and as to such owner
may be amended at any time before the final judgment. No such lien shall be
defeated to the proper amount thereof because of an error or overcharging
on the part of any person claiming a lien therefor under this Act, unless
it shall be shown that such error or overcharge is made with intent to
defraud; nor shall any such lien for material be defeated because of lack
of proof that the material after the delivery thereof, actually entered
into the construction of such building or improvement, although it be shown
that such material was not actually used in the construction of such
building or improvement; provided, that it is shown that such material was
delivered either to the owner or his or her agent for that building or
improvement, to be used in that building or improvement, or at the place
where said building or improvement was being constructed, for the purpose
of being used in construction or for the purpose of being employed in the
process of construction as a means for assisting in the erection of the
building or improvement in what is commonly termed forms or form work where
concrete, cement or like material is used, in whole or in part.
In case of the construction of a number of buildings under contract
between the same parties, it shall be sufficient in order to establish such
lien for material, if it be shown that such material was in good faith
delivered at one of these buildings for the purpose of being used in the
construction of any one or all of such buildings, or delivered to the owner
or his or her agent for such buildings, to be used therein; and such lien
for such material shall attach to all of said buildings, together with the
land upon which the same are being constructed, the same as in a single
building or improvement. In the event the contract relates to 2 or more
buildings on 2 or more lots or tracts of land, then all of these buildings
and lots or tracts of land may be included in one statement of claims for a
lien.
A statement that a party is a subcontractor shall not constitute an
admission by the lien claimant that its status is that of subcontractor if
it is later determined that the party with whom the lien claimant
contracted was the owner or an agent of the owner.
770 ILCS 60/34
Sec. 34.
Upon written demand of the owner, lienor, or any person
interested in the real estate, or their agent or attorney, served on the
person claiming the lien, or his agent or attorney, requiring suit to be
commenced to enforce the lien or answer to be filed in a pending suit, suit
shall be commenced or answer filed within 30 days thereafter, or the lien
shall be forfeited. Such service may be by registered or certified mail,
return receipt requested, or by personal service.
