Mechanic’s Lien Changes Now Officially Law – Are You Ready for Compliance?

Attorney Steven J. Blair of Hall Ansley Sweeney & Rodgers will present a program designed to help HBA members understand the impact of recent changes to the state’s Mechanic’s Lien Law. The free presentation is scheduled for Thursday, October 7 at 3:30 pm at The Library Center. Click here to download more information.

On July 12, 2010, Governor Jay Nixon signed into a law a new statute which adopts major changes to Missouri’s mechanic’s lien law pertaining to residential property development. It will substantially alter Missouri mechanic’s lien practices for the residential projects it covers. Legislation passed in each legislative session becomes effective on August 28 of that year. This statute effectively applies to residential real property otherwise subject to the section if the real property conveyance closes on or after November 1, 2010.

Legal experts agree that means you need to be aware of and phasing in these requirements now in preparation for real property conveyance closings that may occur on or after November 1. Most are suggesting that property owners/builders start on approx. Sept. 15 (45 days from November 1) giving a notice of intended sale if they think they are going to close on November 1. For specific advice on how this new law applies in particular circumstances facing you, please consult with your attorney.

The new Missouri law applies to mechanic’s liens against residential real property, other than liens for the repair, remodeling, or addition to owner-occupied residential property of four units or less (covered by other statutory sections). One wishing to maintain the right to file a residential property lien must record a “Notice of Rights” in the recorder of deeds office for the county in which the project is located. The new law also establishes the form and content of the Notice of Rights. When the record owner hires a builder, each builder, the trade contractors at every tier (i.e., subcontractors, sub-subcontractors, etc.), and the suppliers qualifies as a claimant. For sample notices developed for and shared with us by the St. Louis HBA, click here.