Escrow & Title
What is a mechanic's lien in Illinois, and how does it affect property title?
AA lien for unpaid property taxes that takes priority over all other liens
BA claim against property by contractors, subcontractors, or suppliers who provided labor or materials that were not paid✓ Correct
CA lien placed by a lender when a borrower defaults on a mortgage
DA court-ordered lien arising from a civil judgment
Explanation
Under the Illinois Mechanics Lien Act, contractors, subcontractors, and suppliers who provide labor or materials for the improvement of real property can file a mechanic's lien against that property if they are not paid. Mechanic's liens can cloud title and must be resolved before or at closing. In Illinois, a mechanic's lien must be filed within 4 months of the last work performed. Title searches reveal existing mechanic's liens.
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