Tag Archives: Mechanic’s Lien Lawyer

Missouri Mechanic’s Lien Requirements [Infographic]

MO Mechanics Lien Requirements Infographic

TIMING

  • Must be filed within six months after the indebtedness accrues
  • Indebtedness accrues on the last day work is performed
  • “A subcontractor cannot, after the termination of an account, extend the mechanic’s lien filing time by rectifying some fault of his in performing the contract.” S & R Builders & Suppliers, Inc. v. Marler, 610 S.W.2d 690, 693 (Mo. Ct. App. 1980).

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NOTICE

1. General Contractor

NOTICE TO OWNER

FAILURE OF THIS CONTRACTOR TO PAY THOSE PERSONS SUPPLYING MATERIAL OR SERVICES TO COMPLETE THIS CONTRACT CAN RESULT IN THE FILING OF A MECHANIC’S LIEN ON THE PROPERTY WHICH IS THE SUBJECT OF THIS CONTRACT PURSUANT TO CHAPTER 429, RSMO. TO AVOID THIS RESULT YOU MAY ASK THIS CONTRACTOR FOR “LIEN WAIVERS” FROM ALL PERSONS SUPPLYING MATERIAL OR SERVICES FOR THE WORK DESCRIBED IN THIS CONTRACT. FAILURE TO SECURE LIEN WAIVERS MAY RESULT IN YOUR PAYING FOR LABOR AND MATERIAL TWICE. ~ R.S.Mo. § 429.012  

2. Subcontractor

A. Residential Owner Occupied Property of 4 Units or Less

  • Consent to Mechanic’s Lien must be in 10 point bold font signed writing, stating:

CONSENT OF OWNER

CONSENT IS HEREBY GIVEN FOR FILING OF MECHANIC’S LIENS BY ANY PERSON WHO SUPPLIES MATERIALS OR SERVICES FOR THE WORK DESCRIBED IN THIS CONTRACT ON THE PROPERTY ON WHICH IT IS LOCATED IF HE IS NOT PAID.” R.S.Mo. § 429.013.2

B. Other Real Property: 10 day Notice of Intent to File Mechanic’s Lien Statement

“Every person except the original contractor, who may wish to avail himself of the benefit of the provisions of sections 429.010to 429.340, shall give ten days’ notice before the filing of the lien, as herein required, to the owner, owners or agent, or either of them, that he holds a claim against such building or improvement, setting forth the amount and from whom the same is due.” ~ R.S.Mo. § 429.100

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MECHANIC’S LIEN STATEMENT CONTENTS

 (a) a just and true account of the demand;

-inaccuracies are unintentional and are the result of honest inadvertence, accident, or oversight, and do not result from deliberate intention or design;

-inclusion of a nonlienable item is the result of honest mistake or inadvertence without intent to defraud and if the nonlienable items can be separated from the lienable items

-no rigid definition of just and true– depends on the facts of each particular case

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General Contractors

“if [] lien statement simply states his account in a lump sum, without itemization.’ Commercial Openings, Inc. v. Mathews, 819 S.W.2d 347, 349–50 (Mo. 1991)(internal citations omitted).

Subcontractors

must  have “an itemized statement of the labor and materials furnished.’” Commercial Openings, Inc. v. Mathews, 819 S.W.2d 347, 349–50 (Mo. 1991)(internal citations omitted).

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(b) a true description of the property, or so near as to identify the same;

  • “need not be letter perfect…” Breckenridge Material Co. v. Byrnesville Const. Co., 842 S.W.2d 551, 552 (Mo. Ct. App. 1992).
  • only be sufficient to enable one familiar with the locality to identify the premises intended to be covered by the lien.” Breckenridge Material Co. v. Byrnesville Const. Co., 842 S.W.2d 551, 552 (Mo. Ct. App. 1992).

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(c) the name of the owner or contractor, or both if known to the person filing the lien; and

(d) verification by the oath of himself or some credible person for him

  • Must be Notarized ~ S.Mo. § 429.080

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EXAMPLES OF LIENABLE ITEMS

If used in improving the property:

  • lumber
  • paneling
  • sheet rock
  • tape
  • paint
  • paint brushes
  • sandpaper
  • saw blades

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LAWSUIT TO FORECLOSE MECHANIC’S LIEN

  • An action to foreclose a mechanic’s lien must be commenced within 6 months of filing the lien ~ S.Mo. § 429.170

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St. Louis Mechanic’s Lien Law Attorney

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St. Louis Lien Attorneys

Depending on the size of your project, a mechanic’s lien can secure hundreds to millions of dollars.

Mechanic’s liens are a critical tool for a construction contractor seeking to collect payment on a construction project.

Why?

Because a lien has the ability to collateralize the property for you.

It makes the real property, upon which you’ve performed the work, collateral, in the event that you do not get paid on the project.

Thus, the real property will be your collateral up to the amount you are owed–that’s what filing a valid mechanic’s lien can do for you.

Essentially the lien clouds the title of the property and causes the lender/financial institution to put pressure on the owner of the property (if there’s a mortgage or deed of trust), or it limits marketability of the property because the encumbrance on the title detracts purchasers.

We are not saying that you cannot collect on a construction project without a lien.  Rather, we are merely pointing out the fact that it is the most powerful collection tool that a contractor can use when seeking payment on a construction project.

In light of the importance of a mechanic’s lien, you want to make sure that you preserve your lien rights and utilize those rights when necessary.

We have attorneys who are experienced with filing and defending mechanic’s liens as we have litigated numerous cases dealing with the foreclosure of mechanic’s liens–both defending and prosecuting the same.

If you need assistance in dealing with your mechanic’s lien filing or claim, our attorneys are experienced with handling the same, and we can help you!

Please contact one of our construction law attorneys today.

5 Thoughts on Mechanic’s Lien Notice Law in Missouri

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St. Louis Attorney Discusses Mechanic’s Lien Notice

Notice is an important part of the lien process.  In fact, it’s an indispensable part.  Without notice, you cannot have a valid mechanic’s lien in Missouri.

This article aims at educating the reader on 5 different thoughts surrounding Missouri mechanic’s liens and a few facts you should probably know if you’re a construction company owner or contractor.

First, let’s look at the notice that general contractors need to provide.

1.   General Contractors Must Provide 429 Lien Notice

A general contractor is required to provide notice for every mechanic’s lien.  The statute, R.S.Mo. section 429.012, even states that provision of the 429 notice is a condition precedent “to the creation, existence or validity of any mechanic’s lien in favor of such original contractor.”

So, what is 429 notice?  It is notice to the owner to alert them that they could pay for materials twice if they do not obtain lien waivers from the general contractor.

The 429 lien notice must state the following in ten-point bold type font:

NOTICE TO OWNER

FAILURE OF THIS CONTRACTOR TO PAY THOSE PERSONS SUPPLYING MATERIAL OR SERVICES TO COMPLETE THIS CONTRACT CAN RESULT IN THE FILING OF A MECHANIC’S LIEN ON THE PROPERTY WHICH IS THE SUBJECT OF THIS CONTRACT PURSUANT TO CHAPTER 429, RSMO. TO AVOID THIS RESULT YOU MAY ASK THIS CONTRACTOR FOR “LIEN WAIVERS” FROM ALL PERSONS SUPPLYING MATERIAL OR SERVICES FOR THE WORK DESCRIBED IN THIS CONTRACT. FAILURE TO SECURE LIEN WAIVERS MAY RESULT IN YOUR PAYING FOR LABOR AND MATERIAL TWICE.

2.   Subcontractors Must Provide Notice of Intent

In order to have valid lien rights on a Missouri construction project, a subcontractor has to give a notice of intent 10 days prior to filing the mechanic’s lien.

As you may be aware, the lien law in Missouri is six months from the last day worked or materials were supplied.  As such, you must provide notice of intent to lien more than 10 days prior to the mechanic’s lien filing deadline because 10 days must pass before filing a mechanic’s lien.

The mechanic lien notice requirement for a Missouri subcontractor is set forth under 429.100, and states the following, in pertinent part:

Every person except the original contractor, who may wish to avail himself of the benefit of the provisions of sections429.010 to 429.340, shall give ten days’ notice before the filing of the lien, as herein required, to the owner, owners or agent, or either of them, that he holds a claim against such building or improvement, setting forth the amount and from whom the same is due.”

Who can serve the lien notice?

“Such notice may be served by any officer authorized by law to serve process in civil actions, or by any person who would be a competent witness.” R.S.Mo 429.100

3.   Notice will Always Be Required by a Lien Claimant

As discussed above, notice is required by a general contractor and is found under 429.010.

Because a general contractor always has to give notice pursuant to section 429 of the Missouri Revised Statutes, the general contractor should have all contracts and other documentation relating to the project chocked full of 429 notice language.

That way, if there’s a question about notice, and all of your paperwork shows the 429 notice language, then you can easily prove that notice was provided.

Additionally, all subcontractors must provide notice of intent as described above.  That makes up all potential mechanic’s lien claimants on the project.

Thus, notice must be given by any party who wishes to file a mechanic’s lien on the project.

For any subcontractors who need assistance in providing a notice of intent to file a mechanic’s lien statement, please contact one of our construction attorneys.

4.   Lien Notice Compliance is Critical

Mechanic’s liens are creatures of statute as the Missouri courts love to say.  From a practical standpoint this means that because mechanic’s lien rights are created through the statute, the lien claimant typically has to strictly comply with the statutory requirements.

If a contractor does not provide lien notice, it will be fatal to the lien. (Note: there is an exception case in Missouri where the court did not require notice, but it is an extreme rarity)

That’s why contractors should know what type of notice they have to provide (depending on their role on the project).

In addition to knowing what type of notice you need to provide, your documentation, such as contracts and invoices, need to be in compliance with Missouri lien statutes.

In order to properly prepare documentation to preserve your lien rights, you should consult with an attorney in the county in which you need to file the lien.  This is the county where the project is located.

For help with mechanic’s liens in Jefferson County, St. Charles County, or St. Louis County, West County, or Ste. Genevieve County, please contact one of our mechanic’s lien attorneys here.

5. Subcontractors and Suppliers Will Rarely, if Ever, Have Lien Rights on a Residential Property of 4 Units or Less

Because Missouri lien law requires written consent from the owner of a residential property, you will rarely, if ever, have lien rights on such project.  Why?

Because the statute requires the consent of the owner.

R.S.Mo. Section 429.013 prohibits a subcontractor from having a lien on owner-occupied residential property (of 4 units or less):

unless an owner of the building or structure pursuant to a written contract has agreed to be liable for such costs in the event that the costs are not paid. Such consent shall be printed in ten point bold type and signed separately from the notice required by section 429.012 and shall contain the following words:

CONSENT OF OWNER

CONSENT IS HEREBY GIVEN FOR FILING OF MECHANIC’S LIENS BY ANY PERSON WHO SUPPLIES MATERIALS OR SERVICES FOR THE WORK DESCRIBED IN THIS CONTRACT ON THE PROPERTY ON WHICH IT IS LOCATED IF HE IS NOT PAID.” R.S.Mo. 429.013.2

In order for any subcontractor to have valid lien rights on an owner-occupied residential building of four units or less, the subcontractor must attach “a copy of a consent in the form prescribed in subsection 2 of [R.S.Mo.] section [429], signed by an owner, [] to the recording of a claim of lien.” R.S.Mo. 429.013.3

For that reason, it may be advisable to have a direct contract with the owner of the property when working on such residential units.

A direct contract can have advantages and disadvantages. Accordingly, You should discuss the specifics of your case with a knowledgeable construction law attorney.

As the statute sets forth above, the general contractor on the project would have to obtain consent from the owner.

A general contractor’s main goal is to land the job with the owner of the project, whether that be an owner of commercial property, owner of large residential property (apartment complex/condominiums), or even a homeowner.

Obtaining consent from the owner in order for subcontractors to have the right to file mechanic’s liens will not be a shining badge that will be well-received by the homeowner.  In fact, it could be a deal breaker for the owner.

Accordingly, rarely, if ever, will a general contractor ask the owner of a construction project to sign a consent to lien form.

Mechanic’s Lien Attorney in St. Louis

Filing a mechanic’s lien is a detail-intensive task because you have to strictly comply with the statutes in order to avoid lien vitiation.

On top of that, there are numerous statutes regarding notice, lien requirements, and other caveats depending on the factual circumstances of your case.

You should always consult a construction law attorney if you are seeking to collect on a construction project.

If you need a lawyer to help you file a mechanic’s lien in the St. Louis area, you can contact a lien lawyer here.