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.
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.