Frequently Asked Questions - Missouri Mechanics Lien
Missouri Lien Documents are Easy to File with LienItNow.com
Why LienItNow?
LienItNow.com provides online mechanics lien forms to help contractors, sub-contractors, and suppliers secure the payment they need. In three simple steps, complete your mechanics lien on your own time in only 10 quick minutes. Once a time-consuming process for construction companies, LienItNow.com makes filing your mechanics lien faster and easier than ever. LienItNow.com can also help you create bond claims, pre-lien notices and lien releases.
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What is a Missouri mechanics' lien claim?
Missouri's mechancis' and materialmen's lien law was enacted with an intense focus on those who provide labor and materials for the construction of buildings or improvement of real estate. In crafting the lien law, Missouri lawmakers attempted to ensure that everyone who provides services on a construction project will be paid for those services. The goal of the lien law is to avoid non-payment of contractors, subcontractors and suppliers whenever possible. To that end, Missouri allows those who have not been paid for work performed on a jobsite to file a lien, or encumbrance, against the property. The filing of a MO lien allows the contractors and suppliers to use the real estate as security, or collateral, for the money they are owed. The lien makes it difficult for the owner to sell, refinance, or otherwise transfer the property without first paying the lienors. If the property is sold, the lienors are entitled to payment out of the sale proceeds. The lienors can also force a sale of the property to recoup the money owed to them. In Short, when a Missouri mechanics lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property and allows the lienor to foreclose on that property.
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Who can file a Missouri mechanics' lien Claim?
Missouri's lien laws are broad, providing maximum protection for those who provide labor or materials to a construction project. Like many states, MO lien requirements are strict, but still allow for almost anyone who works on a project to file a lien. While contractors, as well as subcontractors, sub-subcontractors and suppliers who have a contract with a general contractor or a subcontractor can file a Missouri mechanics lien, they must all comply with strict prelien notice requirements which are laid out below. Since the Missouri lien law provides the ability to foreclose on real estate, the courts have required that all liens strictly comply with all requirements set forth in the MO lien laws.
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Can a Missouri mechanics' lien Claim be filed on Public Projects?
In Missouri, no mechanics lien may be filed on public projects or publicly owned property. Contractors are required to obtain bonds on public works.
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Are pre-lien notices for a Missouri mechanics' lien Claim required?
The original contractor who contracts directly with the owner must give a disclosure notice in writing to the owner as a condition precedent to the establishment of any Missouri mechanic's lien rights in its favor. The notice must be given either at the time of execution of the contract, when the material is delivered, when the work is commenced or with the first invoice. In addition, anyone other than the original contractor must give a written notice to the owner, known as a Notice of Intent, at least 10 days before filing a Missouri mechanics lien statement, stating that he holds a claim against the improvement and setting out the amount and from whom it is owed. Note that Missouri also requires, on owner occupied residential properties four units or fewer, that for subcontractors to have lien rights, the general contractor must obtain the Consent of Owner permitting such liens in the event of non-payment. It is strongly recommended that Notice of Delivery of Labor or Materials be sent on all construction projects in Missouri. The sending of the Notice of Delivery not only provides the owner with contact information, but also alerts the owner as to who is on the project, allowing them to keep track of what work should be done and who should be doing it at any given time.
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Can you file a Missouri mechanics' lien Claim without a pre-lien notice?
No, but the pre-lien notice time periods are liberal.
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When should a Missouri mechanics' lien Claim be filed?
Missouri mechanics' liens on private property must be filed within 6 months of the last date the lienor provided materials or services to the Project.
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How much does it cost to file a Missouri mechanics' lien Claim?
LienItNow.com prepares, files and serves Missouri mechanics' liens. For pricing information, please visit our prices page.
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Do I need a written contract in order to file a Missouri Mechanics Lien Claim?
No. Oral contracts are sufficient if you have sufficient documentation to show the existence of an agreement or that you performed the work for which you are attempting to file a Missouri mechanics lien.
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How does filing a Missouri mechanics' lien Claim help me get my money?
On a private project, the Missouri mechanics' lien places an encumbrance on the property that makes it difficult to resell or re-finance the property without first removing the mechanics lien.
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What is a Missouri Stop Notice and why should it be filed
LienItNow.com prepares and serves Stop Notices. A Stop Notice is a notification that has the ability to enhance the effectiveness of a mechanic's lien. A Stop Notice, or a notice to withhold funds, is sent to the company that is financing or funding the construction funds for a project. Once that company receives the Stop Notice, that company has notice that it should withhold sufficient money to satisfy the stop notice claim. The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid.
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What is a Missouri Amendment to a mechanics' lien Claim?
LienItNow.com prepares, files and serves Missouri Amendments to mechanics' lien Claims. Amendments to a mechanics' lien claim are often needed when something about the lien claim changes. Common changes to a lien claim are increases or reductions in the amount due to the lienor, or a change to the last date of work.
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When should a Missouri Discharge of mechanics' lien claim be filed?
LienItNow.com prepares, files and serves Missouri Discharges of mechanics' lien Claims. Once the lienor has been paid the amount contained in its lien claim, or has come to an agreement that requires the lien claim to be removed from the property records, a Discharge of mechanics' lien Claim should be filed.
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Can I file a Missouri Extension of a mechanics' lien Claim?
No extensions of mechanics' lien Claims are permitted in Missouri.
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Can I file a Bond Claim on a Missouri Project?
LienItNow.com prepares, files and serves Missouri Bond Claims. Bond claims can only be filed on a project where the owner, contractor or subcontractor has obtained a payment bond to ensure that every contractor receives payment for the work performed on the Project. The payment bonds issued by sureties for construction projects have specific timing requirements, but most require claimants to submit claims against the bond within sixty to ninety days from the claimants' last date of work. Bond claims are as or more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed.
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Do I need to file a Pre-Notice to make a claim against a Missouri payment bond?
LienItNow.com prepares, files and serves Missouri Pre-Notices for bond claims. Depending on the terms of the payment bond, pre-notices may or may not be required. LienItNow.com recommends that, prior to or immediately after starting work or delivering materials to a project, subcontractors and suppliers, file a pre-notice that it is a potential beneficiary of the construction project's bond.
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