815 ILCS 307/10-115
2021 Illinois Compiled Statutes|Chapter 815 - BUSINESS TRANSACTIONS|815 ILCS 307/ - Illinois Business Brokers Act of 1995.|Article 10

Sec. 10-115.     Business broker lien.(a) Any business broker shall have a lien upon the tangible assets of a  business  located in this State that is the subject of a business broker's  written contract in the amount due to  the broker under  the written contract.(b) The lien shall be available to the business broker named in the  instrument signed by the owner of an interest in the assets.  The lien arising  under this Act  shall be in addition to any other rights that a business broker may have.(c) A lien under this Act does not attach unless  and until:(1) the business broker is otherwise entitled to a     fee or commission under a written contract signed by the seller or its duly authorized agent; and(2) before the actual conveyance or transfer of the     business assets or property with respect to which the business broker is claiming a lien, the business broker files a notice of lien (i) as to real property, with the recorder of the county in which the real property is located or (ii) as to tangible personal property, in the Office of the Secretary of State.(d) When payment to a business broker is due in installments, a portion of  which is due only after the conveyance or transfer of the tangible assets, any claim  for lien for those payments due after the transfer or conveyance may be filed  at any time subsequent to the transfer or conveyance of the tangible assets and prior  to the date on which the payment is due but shall only be effective as a lien  against the tangible assets to the extent moneys  are still owed to the  transferor by the transferee. In all other respects, the lien shall attach  as  described in this subsection.(e) If a business broker has a written agreement with a prospective  purchaser, then the lien shall attach upon the prospective  purchaser purchasing or otherwise accepting a  conveyance  or  transfer of the real property or tangible personal property of the business  and  the filing of a notice of lien (i) in the recorder's office of the county in  which the real  property is located, as to real property, and (ii) in the Office of the  Secretary of State, as  to tangible personal property, by  the  business  broker within 90 days after the  transfer to the purchaser. The lien shall  attach to the interest purchased by the purchaser as of the date of the  filing of the notice of lien and does not relate back to the date of the  written contract.(f) The business broker shall, within 10 days after filing its notice of  lien,  mail a copy of the  notice of lien to the owner of the property by depositing it in the United States mail, registered  or certified mail, with return receipt requested, or personally  serve a copy of the notice on the  owner of record or his agent.   Mailing of  the copy of the notice of claim for lien is effective  if mailed to the seller at the address of the business that is the subject of  the notice of lien  or to another address that the seller or purchaser has provided in writing to  the business  broker.  The broker's lien shall be  unenforceable if mailing of the copy of the notice of lien does not occur at  the time and in the manner required by this Act.(g) A business broker may bring suit to enforce a lien in the circuit court  (i) in the county where the real property is located,  as to real property, or (ii) as to tangible personal property, either in the  county where the  personal property is located or where the principal office of the owner of the  personal  property, or the owner's residence, is located, by filing a  complaint and sworn affidavit that the lien has been filed.(h) The person claiming a lien shall, within 2 years after filing the lien,  commence proceedings by filing a complaint.  Failure to commence proceedings  within 2 years after filing the lien shall extinguish the lien.  No subsequent  notice of lien may be given for the same claim nor may that claim be asserted  in any proceedings under this Act.(i) A complaint under this Section shall have attached to it a copy of the  written contract on which the lien is founded and shall  contain a description of the services performed, the amount  due  and unpaid, a description of the tangible assets of the business that are subject to the lien, and other facts necessary for a full  understanding of the rights of the parties.  The plaintiff shall make all  interested parties, of whose interest the plaintiff is notified or has  actual or constructive knowledge, defendants to the action and shall issue  summons and provide service  as in other civil actions.  When any defendant resides or has gone out of the  State, or on inquiry cannot be found, or is concealed within this State so that  process cannot be served on that defendant, the plaintiff shall cause a notice  to be given to that defendant, or cause a copy of the complaint to be served  upon that defendant, in the manner and upon the same conditions as in other  civil actions.  Failure of the plaintiff to provide proper summons or notice  shall be grounds for judgment against the plaintiff with prejudice.  Every lien claimed under this Act shall be foreclosed as provided in the  Illinois Mortgage  Foreclosure Law, if the lien is on real property, or as provided in the Uniform  Commercial Code, if the lien is on personal property.(j) The lien notice shall state the name and address of the claimant,  the name of the  purchaser or seller whose property or assets are subject to the lien, a  description of the real or personal property that is subject to the lien, the amount for which the lien is claimed,  and the registration number of the business broker.  The notice of lien shall  recite that the information contained in the notice is true and accurate to the  knowledge of the signer.  The notice of lien shall be signed  by the  business broker or by a person authorized to sign on behalf of the business  broker and shall be verified.(k) Whenever a claim for lien has been filed with the Office of the  Secretary of State or the county recorder's office and a condition occurs  that would preclude the business  broker from receiving compensation under the terms of the business broker's  written agreement, the business broker shall provide to the purchaser of the  business, if the lien is filed against the purchaser's assets of the business  that are subject to this Act, or the seller of the  business, if the lien is filed against the seller's assets of the business  that are subject to this Act,  within 10 days following  demand by that party, a written release or  satisfaction of the lien.(l) Upon written demand of the owner, lienee, or other authorized agent,  served on the person claiming the lien requiring suit to be commenced to  enforce the lien or answer to be filed in a pending suit, a suit shall be  commenced or answer filed within 30 days thereafter, or the lien shall be  extinguished.  Service may be by registered or certified mail, return receipt  requested, or by personal service.(m) If a claim for lien has been filed with the Office of the Secretary  of State or the county recorder's office and  is paid, the business broker shall acknowledge  satisfaction or release of the lien, in writing, within 5  days  after payment.(n) The cost of proceedings brought under this Act, including reasonable attorneys' fees, costs, and prejudgment  interest due to the prevailing party, shall be borne by the  nonprevailing  party  or parties.  When more than one party is responsible for costs, fees, and  prejudgment interest, the costs, fees, and prejudgment interest shall be  equitably apportioned by the court among those responsible parties.(o) Prior recorded liens and mortgages shall have priority over a broker's  lien.  A prior recorded lien shall include, without limitation, (i) a  mechanic's lien claim, (ii) prior recorded liens securing revolving  credit or future advances under construction loans as  described in Section  15-1302 of the Code of Civil Procedure, and (iii) prior recorded liens  perfected under the Uniform Commercial Code.(p) No lien under this Section 10-115 shall attach to any real property  asset of a business unless and until a notice of lien is filed with the  recorder of the county in which the real property asset is located.  A lien  recorded under this subsection (p) shall otherwise be subject to the same  notice, enforcement,  and limitations as any other lien under this Section.  A copy of the notice of  lien recorded under this subsection (p) shall be filed with the Secretary of  State.    (Source: P.A. 91-194, eff. 7-20-99; 91-534, eff. 1-1-00;  92-16, eff. 6-28-01.)