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Illinois (IL)

Illinois lien waiver requirements

Illinois doesn't prescribe a form, but 770 ILCS 60/21.02 makes anyone who collects a waiver a trustee of the money.

Illinois Mechanics Lien Act, 770 ILCS 60/1 et seq.

The short version

Illinois doesn't require a specific lien waiver form, so a clean plain-English waiver works if the scope is clear. The catch sits in 770 ILCS 60/21.02: anyone who collects a waiver in exchange for payment holds the money in trust for the person who signed. Mishandle those funds and you've got bigger problems than a lien. Add the 90-day subcontractor notice and the 4-month lien deadline, and timing controls the workflow.

At a glance

  • 770 ILCS 60: Mechanics Lien Act
  • 770 ILCS 60/21.02: trust fund duty on collected waivers
  • Subcontractors: 90-day notice of intent required
  • 4-month deadline to record the lien

What Illinois law actually requires

The Mechanics Lien Act doesn't publish statutory waiver forms. Subcontractors and suppliers typically sign plain-English partial or final waivers that name the project, the claimant, the through-date, and the dollar amount. Conditional vs unconditional language carries the same meaning it does in every other state.

770 ILCS 60/21.02 adds a trust fund duty. When a GC or owner collects a lien waiver in exchange for paying a sub, the GC holds that money in trust for the sub. Diverting trust funds is a separate cause of action on top of any payment dispute.

The 90-day subcontractor notice

Under 770 ILCS 60/24, subcontractors and suppliers must serve a Notice of Intent to Lien on the owner and lender within 90 days of their last furnishing. Miss the notice and you lose the right to enforce against the property, even if the lien itself is timely recorded.

That 90-day window also drives your waiver timing. If you're a GC, the longer you stretch payment to a sub, the closer they get to that notice deadline. A clean per-payment waiver workflow keeps you out of that pressure.

Common Illinois mistakes

Ignoring the trust fund duty under §21.02. A GC who collects a waiver and uses the money for something other than paying the sub is now a defendant in two cases, not one.

Letting the 90-day notice run while a sub waits on payment. The notice clock doesn't care that you're processing the check.

Using a single blanket waiver for the whole job. Illinois courts read waiver scope strictly. Tie the waiver to the pay app.

Questions

Does Illinois require a statutory lien waiver form?

No. The Mechanics Lien Act does not prescribe a form. A plain-English partial or final waiver tied to a specific pay application is the working standard.

What is the trust fund rule under 770 ILCS 60/21.02?

When a GC or owner collects a lien waiver in exchange for paying a sub, the GC holds that money in trust for the sub. Diverting those funds creates a separate cause of action.

How long does an Illinois subcontractor have to file a lien?

4 months from last furnishing to record the lien, and a 90-day Notice of Intent must be served on the owner and lender to preserve enforcement against the property.

Send a Illinois waiver in two minutes.

The right form, the right notice, signed on a phone. Released when the check clears.

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