Bulletin: IL2010003

Dear Associates:

In the current economy projects that have problems with Mechanic's Lien claims have been and are appearing more often. Many of these projects have been Condominium Projects. These projects, in the majority of cases, are not complete and can have substantial amounts of liens on the property which would attach not only to the unfinished units but also can attach to the sold units. In Illinois the main issue is the lack of priority over the Mechanic's Lien. Therefore these liens could be valid liens against insured owners and their lenders which could be significant.

If you are issuing commitments, policies and/or closing transactions in Illinois and a Mechanic's Lien claim appears on the search it must be raised on title as an exception. If coverage is requested over these Mechanic's Liens you must contact Stewart Underwriting Personnel before proceeding to close and insure the title to the property without exception to or insuring over the Mechanic's Liens.

Please refer to Bulletins MU2008009 and SLS2009007.

If you have questions related to this bulletin, please contact your local underwriting personnel at 847-884-2336 or Stewart Legal Services.

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