Lien Law Online eLert for 8/23/2010 - Missouri

August 23, 2010

New provisions to the Missouri mechanic’s lien law (§429.016, R.S.Mo) take effect on August 28, 2010 regarding the construction of new residential property. It applies to any residential property transferred on or after November 1, 2010. The new law generally applies only to new construction and not remodeling or repairs to residential property. It does include residential condominiums, townhouses or cooperatives regardless of the number of units. The new law allows owners to file a notice with the recorder of deeds of intended sale, and date of sale, of the property at least 45 days prior to the proposed transfer. In that event, the lien claimant must file with the recorder of deeds a “Notice of Rights” at least 5 days prior to the proposed transfer, giving the owner notice identifying, at a minimum, the claimant, claimant’s address and telephone number, the legal description of the property claimed against, and the person with whom the claimant contracted, including address and telephone number. If such notice is properly given, the claimant need not file the 10-day advance notice of intent to file a lien. A claimant’s failure to comply with this notice provision is deemed the claimant’s waiver of all mechanics’s lien rights.

The new law also:

• Imposes specific information that must be included in the claimant’s mechanic’s lien statement;

• Allows the owner to provide substitute collateral in lieu of a lien against the property;

• Limits the effect of partial lien waivers to the amount claimed due at the time the claimant signs the waiver;

• Imposes penalties for failure to execute final lien waivers upon payment in full.

These revisions require changes to three (3) forms contained in the Missouri chapter. Revisions to the chapter and forms will be available online by the effective date. August 28, 2010.

Darcy V. Hennessy, Esquire (Contributing Author)
Hennessy and Boe, P.A.