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Illinois Lien Waiver Forms — Generate in 60 Seconds

Generate Illinois-compliant lien waivers that meet the "express agreement" requirement under 770 ILCS 60. Illinois has three unique features: criminal penalties for waiver fraud, a trust fund obligation tied to waivers, and the date vs. money waiver distinction. All four waiver types available with free preview.

Generate Illinois Waiver

Which Type Do You Need?

Illinois uses the standard 4-type framework. Illinois has no statutory form — our templates are custom-designed for compliance using money waivers (covers only the dollar amount received, safer for contractors). Criminal penalties apply for waiver fraud (Section 21.01).

Decision Tree

1
Mid-project and payment has NOT cleared?
Use Conditional Progress Waiverlearn more
2
Mid-project and payment HAS cleared?
Use Unconditional Progress Waiverlearn more
3
Project done and final payment has NOT cleared?
Use Conditional Final Waiverlearn more
4
Project done and final payment HAS cleared?
Use Unconditional Final Waiverlearn more

Illinois Lien Waiver Rules at a Glance

No mandatory statutory form

770 ILCS 60 contains no prescribed waiver form language. Waivers must be by "express agreement."

Advance waivers unenforceable

770 ILCS 60/1: waivers "in anticipation of and in consideration for the awarding of a contract" are void.

Criminal penalties for waiver fraud

Section 21.01: inducing a sub to sign a waiver with intent to defraud and failing to pay within 30 days is a Class A misdemeanor (up to 364 days jail, $2,500 fine).

Trust fund obligation

Section 21.02: anyone who collects payment in exchange for a waiver holds those funds in trust.

Notarization NOT required

Lien waivers are enforceable without notarization. E-signatures also valid.

Date waiver vs. money waiver

Date waivers cover all work through a date; money waivers cover only the amount received. Title companies prefer date waivers; money waivers are safer for contractors.

Illinois Lien Waiver Legal Requirements

Illinois doesn't prescribe statutory waiver forms — unlike California and Texas, there's no mandated language. The Mechanics Lien Act (770 ILCS 60) requires waivers to be by "express agreement," meaning the intent to waive must be clear and explicit. Illinois has three unique features that set it apart: (1) criminal penalties for waiver fraud (Section 21.01), (2) a trust fund obligation tied specifically to waivers (Section 21.02), and (3) the date/money waiver distinction driven by title company practices. The contractor's sworn statement (Section 5) — where the contractor lists all subs and amounts due — is commonly exchanged alongside waivers and interacts with the lien protection system.

Illinois Conditional Progress Waiver

What It Is

Custom template waiving lien rights for a progress payment, conditioned on receipt and clearance of payment.

When to Use

When submitting a pay application and you want protection until payment clears.

Key Legal Points

  • No statutory form — must be by "express agreement" per 770 ILCS 60/1.
  • Conditional on payment clearance.
  • Retainage preserved — template explicitly excludes retained amounts.
  • Trust fund obligation applies (Section 21.02) — the party collecting this waiver in exchange for payment holds funds in trust.
  • Available as date waiver or money waiver (our template defaults to money waiver, safer for contractors).

Tips

  • Illinois legal community recommends conditional as the default for progress payments.
  • Ask whether a date waiver or money waiver is required — if you have a choice, money waivers are safer.
  • The trust fund obligation adds a layer of protection beyond the waiver itself.
Generate an Illinois Conditional Progress Waiver

Illinois Unconditional Progress Waiver

What It Is

Immediately and irrevocably waives lien rights for the specified amount upon signing.

When to Use

Only after payment has been received and fully cleared your bank.

Key Legal Points

  • Does NOT depend on payment being received — effective immediately.
  • Only sign after payment clears.
  • Retainage excluded.
  • Criminal penalties apply (Section 21.01) — if a contractor induces this waiver with intent to defraud and fails to pay within 30 days, it's a Class A misdemeanor.

Warning

Once signed, there's no safety net. The criminal penalty provision (Section 21.01) provides deterrence but won't undo the waiver.

Tips

  • The criminal penalty for fraud (up to 364 days, $2,500 fine) provides protection even with an unconditional form.
  • Document everything — keep proof of payment for your records.
Generate an Illinois Unconditional Progress Waiver

Illinois Conditional Final Waiver

What It Is

Waives all remaining lien rights, conditioned on receipt and clearance of final payment including retainage.

When to Use

When requesting final payment (including retainage) and you want protection until it clears.

Key Legal Points

  • Covers ALL remaining work and lien rights.
  • Conditional on final payment.
  • Should address retainage explicitly — IL retainage rules: 10% before 50% completion, 5% after (815 ILCS 603/20).
  • Trust fund obligation applies (Section 21.02).
  • Date vs. money distinction matters less for final waivers since they cover everything.

Tips

  • If the project is over 50% complete, maximum retainage should have dropped to 5%. Verify your retainage calculation.
  • The trust fund obligation gives you additional recourse beyond the waiver if funds are diverted.
Generate an Illinois Conditional Final Waiver

Illinois Unconditional Final Waiver

What It Is

Complete and permanent release of ALL lien rights. Effective immediately.

When to Use

Only after ALL payment — including final payment and all retainage — has been received and fully cleared.

Key Legal Points

  • The most consequential Illinois waiver.
  • Immediately effective. No recall.
  • Criminal penalties for fraud (Section 21.01) and $2,500 penalty for failure to release a satisfied lien (Section 35) are relevant protections from different angles.
  • Section 21.01 protects the signer from fraud; Section 35 penalizes anyone who refuses to release a satisfied lien within 10 days of written demand.

Warning

Permanent. No undo. Verify every dollar before signing.

Tips

  • If defrauded, the criminal penalty (Section 21.01) and trust fund obligation (Section 21.02) provide recourse.
  • The $2,500 penalty under Section 35 is for the opposite situation — when YOU hold a lien and refuse to release it after being paid.
Generate an Illinois Unconditional Final Waiver

Common Illinois Lien Waiver Mistakes

  1. 1

    Using a date waiver when a money waiver would be safer

    Title companies prefer date waivers, but if work is complete, a date waiver covering the completion date waives ALL remaining claims, even unpaid amounts. Understand the risk before choosing.

  2. 2

    Not knowing about criminal penalties for waiver fraud

    Section 21.01 makes it a Class A misdemeanor to induce a waiver fraudulently and fail to pay within 30 days. If this happens to you, it's a criminal matter, not just a civil one.

  3. 3

    Ignoring the contractor's sworn statement

    Under Section 5, the contractor must provide a sworn statement listing all subs and amounts due before the owner pays. If your name isn't on it — or the amounts are wrong — flag it immediately.

  4. 4

    Missing the 4-month lien recording deadline

    Recording within 4 months of last furnishing gives you full priority. Record after 4 months and you lose priority against subsequent purchasers and mortgages (though the lien is still valid against the original owner for 2 years).

How to Use the Illinois Lien Waiver Generator

  1. 1

    Select your waiver type. Consider both the conditional/unconditional choice and the date/money waiver choice.

  2. 2

    Fill in: your company info, property owner, GC, property description, project description, payment amount, date range, exceptions.

  3. 3

    Preview (free, watermarked). Download ($5 or subscription).

  4. 4

    Sign and deliver. Our template includes express agreement language required for enforceability under 770 ILCS 60/1.

Generate Your Illinois Lien Waiver

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Illinois Lien Waiver FAQ

Does Illinois require a specific statutory lien waiver form?
No. Illinois does not prescribe mandatory form language. Waivers must be by "express agreement" but the form is flexible. The widely used "Chicago Title" form is an industry convention, not a legal requirement.
Do lien waivers need to be notarized in Illinois?
No. Lien waivers are enforceable without notarization. Electronic signatures are also valid. Note: the contractor's sworn statement under Section 5 DOES require notarization (sworn under oath).
What are criminal penalties for lien waiver fraud in Illinois?
Under Section 21.01, inducing a sub to sign a waiver with intent to defraud and failing to pay within 30 days is a Class A misdemeanor — up to 364 days in jail and/or $2,500 fine.
What is the trust fund obligation for lien waivers?
Under Section 21.02, anyone who collects payment in exchange for a waiver must hold those funds in trust for the person who furnished the labor or materials. Knowingly diverting these funds creates liability for all damages.
What is the difference between a "date waiver" and a "money waiver" in Illinois?
A date waiver covers all work through a specific date, regardless of how much you've been paid. A money waiver covers only the dollar amount received. Date waivers are preferred by title companies but can waive more than intended. Money waivers are generally safer for contractors.
Can I waive lien rights before being awarded the contract?
No. Section 60/1 makes waivers "in anticipation of and in consideration for the awarding of a contract" unenforceable. This is a pre-contract waiver prohibition, not a pre-payment prohibition.
What's the deadline to file a mechanics lien in Illinois?
4 months after last furnishing labor/materials for full priority. The lien remains valid against the original owner for 2 years, but loses priority against subsequent purchasers after 4 months.
What protections do I have if I sign a waiver and don't get paid?
Two layers: (1) Section 21.01 criminal penalties if the contractor induced the waiver fraudulently. (2) Section 21.02 trust fund obligation — the funds received in exchange for your waiver must be held in trust for you.
What is Illinois's retainage cap?
Before 50% completion: maximum 10%. After 50%: maximum 5%. These caps apply to private commercial projects under the Contractor Prompt Payment Act (815 ILCS 603/20). Single-family residences and buildings with 12 or fewer units are exempt.
Can I undo a lien waiver after signing?
Generally no, especially for unconditional waivers. Your recourse is based on fraud, duress, or other contract defenses. If waiver fraud occurred, the criminal and trust fund provisions provide additional remedies.

Lien Waiver Forms for Other States

California*Texas*Florida*New York

* = mandatory statutory form language required

Legal Disclaimer

LienWaiver.pro is not a law firm and does not provide legal advice. Our templates are designed to comply with applicable state statutes, but laws change and every situation is different. Consult a licensed construction attorney for legal advice specific to your project. By using this service, you agree to our Terms of Service.