Mechanics Lien Missouri Guide

Mechanics Lien Missouri Guide

If contractors and suppliers in Missouri are not paid on a construction project, they can file a mechanics lien to secure their payment. A mechanics lien is a legal instrument that grants contractors, subcontractors, and suppliers the right to claim payment for their work or materials by placing a security interest in the property.

At CRM Lien Services, we specialize in ensuring that you get paid quickly and reliably. We can prepare and file mechanics liens for you, taking into account Missouri mechanics lien law and state-specific rules and regulations.

This page outlines the rules, requirements, and deadlines for filing a mechanics lien in Missouri.

mechanics lien missouri

Key Takeaways

  • Eligibility: In Missouri, mechanics liens can be filed by general contractors, subcontractors, laborers, material suppliers, equipment lessors, and registered architects, engineers, and surveyors. Equipment lessors can only file for commercial projects with claims over $5000. For owner-occupied residential projects with four or fewer units, only those with a direct contract with the owner can file a lien unless a Consent of Owner document is signed.
  • Deadlines: File a mechanics lien within 6 months of the last day labor or materials were supplied. Equipment lessors must file within 60 days after removing the last piece of equipment. All claimants, except direct contractors, must issue a Notice of Intent to Lien at least 10 days before filing.
  • Required Information: A Missouri mechanics lien must include an accurate account of the amount due, property description, owner’s name, contractor’s name, claimant’s name and address, hiring party’s name and address, a copy of the written contract or invoices if no contract exists, description of labor/materials provided, last date of furnishing labor/materials, and a file-stamped copy of the Notice of Rights or renewals if applicable.
  • Lien Waivers: Property owners should request lien waivers from contractors to prevent potential mechanic’s liens on their property. Lien waivers serve as a safeguard, ensuring that contractors have paid their suppliers for materials or services, thereby protecting the property from future claims.

Who Can File a Missouri Mechanics Lien?

In Missouri, mechanics lien rights are available to general contractors, subcontractors, laborers, material suppliers, equipment lessors, as well as registered architects, engineers, and surveyors. This includes providers of landscaping services. A notice of rights recorded after the owner has conveyed the property to a bona fide purchaser for value is ineffective in preserving the claimant’s mechanic’s lien rights on that property.

Important for equipment lessors: Lien rights are applicable only for commercial projects with claims exceeding $5000.

For owner-occupied residential projects with four units or fewer, only those with a direct contract with the owner-occupier can file a mechanics lien unless the owner has signed a Consent of Owner document, allowing liens by unpaid subcontractors and suppliers.

Is a Written Contract Necessary to File a Mechanics Lien in Missouri?

In Missouri, contractors typically do not need a written contract to file a mechanics lien. However, it is advisable to have written construction contracts.

For new construction projects involving residential properties with four units or fewer, a written contract must be submitted with the lien claim.

What Is the Deadline for Filing a Missouri Mechanics Lien?

In Missouri, claimants must file a mechanics lien Missouri within 6 months of their last day of supplying labor or materials to the project.

For equipment lessors, the lien must be filed within 60 days after removing the last piece of equipment from the site.

Furthermore, all claimants, other than direct contractors, must issue a Notice of Intent to Lien at least 10 days prior to filing their claim.

Additionally, it is necessary to file a mechanics lien statement within 10 days of final payment to avoid potential liabilities.

What Details Must Be Included in a Missouri Mechanics Lien?

The Missouri mechanics lien form, governed by Mo. Rev. Stat. §429.080, must include the following information:

  • A just and accurate account of the amount due after applying all credits (including the calculation);
  • Description of the property;
  • Name of the owner;
  • Name of the contractor;
  • Name and address of the claimant;
  • Name and address of the hiring party;
  • A copy of the written contract (if there is no written contract, attach all submitted invoices);
  • Description of the labor and materials provided;
  • Last date of furnishing labor and/or materials;
  • A file-stamped copy of the Notice of Rights or any renewals, if applicable; and
  • The lien amount for claims related to leasing rental machinery or equipment is restricted to the reasonable rental value of the equipment used during the project.

Does a Missouri Mechanics Lien Require a Legal Property Description?

missouri mechanics lien

Likely. In Missouri, while a somewhat incomplete legal property description may be acceptable in some cases, the state requires a “true description of the property, or so near as to identify the same,” typically interpreted as a legal description.

However, Missouri courts have stated that the property description does not need to be exact. As long as third-party rights are not involved, the description should be sufficient for someone familiar with the locality to identify the property intended to be covered by the mechanics lien.

Can Attorney Fees, Collection Costs, or Other Charges Be Added to the Lien Amount?

No. In Missouri, mechanics liens cannot include attorney’s fees, interest, or consequential damages. The lien amount is restricted to unpaid labor, materials, or equipment provided to the project, as well as customary profit and overhead. Attorney’s fees and interest are usually awarded to the lien claimant if they win a foreclosure action.

The lien amount is also restricted to the reasonable rental value of the machinery or equipment used, along with considerations for any periods of nonuse as specified in the rental contract.

Additionally, Missouri mechanics lien filings must provide a “just and true account” of the amount claimed. General contractors can submit this as a “lump sum,” though it is advisable to include as much detail as possible. Subcontractors, however, must itemize the materials and labor supplied and unpaid.

Is Notice Required After Recording a Mechanics Lien in Missouri?

No. In Missouri, the lien claimant must file the mechanics lien with the circuit court clerk in the county where the property is located and provide the necessary preliminary notices.

There is no requirement to serve the lien on any party after recording it. However, sending the lien after it is recorded is not prohibited and may benefit the claimant by bringing timely attention to the payment dispute.

Do I Need to Send a Preliminary Notice in Missouri?

Yes. Missouri requires specific notices before asserting a mechanics lien.

All parties contracting directly with the property owner (excluding architects) must provide a disclosure notice to the owner before receiving any payments.

For residential owner-occupied projects, parties who do not have a direct contract with the property owner should ensure the general contractor obtains consent from the owner document signed by the owner. Without this, they will not have mechanics lien rights.

Equipment lessors on commercial projects with rental amounts over $5000 must notify the property owner that the equipment is being used on the property within 15 business days of starting its use.

  • Claims for leasing rental machinery or equipment are permissible only in commercial projects, provided they meet certain requirements, such as the claim exceeding $5,000 and proper notices being given. The lien amount is restricted to the reasonable rental value of the equipment during its use, factoring in any nonuse periods stipulated in the rental contract.

Notice of Intent to Lien: Claimants other than the original contractor must give the property owner a notice of intent to lien at least 10 days before recording the lien.

(Filed) Notice of Lien Rights: For residential projects where the property owner has filed a notice of intended sale, potential lien claimants must file a notice of lien rights with the county recorder of deeds at least 5 days before the proposed transfer date.

5 Things to Know About Missouri Mechanics Liens

missouri mechanics lien law

Contractors and suppliers in Missouri have robust lien rights. If they are not paid for their work, they can file a mechanics lien to expedite payment and protect their interests. However, specific rules and requirements must be followed. Here are five essential points about Missouri’s mechanics lien law:

1. Eligibility for Filing a Missouri Mechanics Lien

In Missouri, a wide range of parties can file a mechanics lien, including prime contractors, subcontractors, laborers, material suppliers, equipment lessors, registered architects, engineers, surveyors, and even landscaping service providers. Landscaping services are specifically included under Missouri law.

Equipment lessors can only file a lien on commercial properties where the claim exceeds $5000.

For owner-occupied residential projects with four units or fewer, only those with a direct contract with the property owner can file a mechanics lien. This restriction can be waived if the property owner signs a consent of owner document allowing liens for unpaid subcontractors and suppliers.

2. Filing Deadlines for Missouri Mechanics Liens

Mechanics liens in Missouri must be filed within six months after the last day services or materials were provided. This deadline is critical for protecting lien rights. The lien must be filed with the clerk of the circuit court in the county where the property is located.

For equipment lessors, the filing deadline is different—they have 60 days from the removal date of the last piece of equipment to file a lien.

Generally, a legal property description should be included in the lien. Although some cases have accepted partially deficient descriptions, it’s best to provide a thorough legal description whenever possible. Missouri courts have noted that the property description doesn’t need to be perfect as long as it sufficiently identifies the property for someone familiar with the area.

All mechanics liens in Missouri must be notarized.

3. Preliminary Notice Requirements

Certain projects in Missouri require preliminary notices. A Notice of Intent to Lien (NOI) is mandatory for all subcontractors and must be filed at least 10 days before filing a mechanics lien. Additional preliminary notice requirements vary based on the project type and the claimant’s role:

  • General Contractors (excluding architects): Must provide notice before receiving any payment from the property owner.
  • Subcontractors (on residential owner-occupied properties): Must ensure the general contractor obtains consent of owner document signed by the property owner. Without this consent, subcontractors without a direct contract with the owner will not have lien rights.
  • Equipment Lessors (on commercial properties): Must notify the property owner within 15 days of starting to use rental equipment or machinery, provided the rental amount exceeds $5000.

If a property owner files a notice of intended sale on a residential property, the intent to lien must be filed at least five days before the proposed transfer date.

Failure to provide the required preliminary notice, intent to lien, or notice of lien rights will invalidate the lien.

4. Expenses Not Included in the Lien Amount

Missouri mechanics liens cannot include attorney’s fees, interest, or consequential damages. The lien amount is limited to unpaid labor, materials, and/or equipment supplied, along with customary profit and overhead. A “just and true” account of the amount due is required—general contractors can present this as a lump sum, but subcontractors must itemize the labor and materials furnished and unpaid.

However, attorney’s fees and interest may be awarded to the lien claimant if successful in a foreclosure action.

5. Lien Priority

Lien priority in Missouri depends on pre-existing encumbrances. All project participants have equal lien rights but do not have priority over pre-existing loans or mortgages. They do have priority over subsequent encumbrances if no prior encumbrance was recorded before the start of construction.

How to File a Mechanics Lien in Missouri?

In an ideal world, construction businesses are always paid promptly for their work. Unfortunately, that’s not always the case. Thankfully, mechanics liens are available in all 50 states, including Missouri, to help contractors, material suppliers, and others secure the payment they’ve earned. While filing a mechanics lien is a serious step and should be a last resort, understanding how to use this powerful tool is crucial for anyone in the construction industry.

This guide provides a step-by-step process for filing a Missouri mechanics lien.

Preparing to File a Missouri Mechanics Lien

Before filing a Missouri mechanics lien, it’s essential to understand the preliminary notice and timing requirements to maintain your lien rights. Filing a mechanics lien on your own can be complex and time-consuming, but the following steps will help guide you through the process. The amount of the lien is determined by the reasonable value of rented machinery or equipment used on-site and also accounts for any nonuse periods when the equipment is present at the construction site.

Required Information for a Missouri Mechanics Lien

lien statement missouri

Ensuring that your Missouri mechanics lien includes all required information is critical. Omitting details or using an incorrect format can invalidate your lien.

Missouri mechanics liens must be verified by oath and include:

  1. The name of the claimant (“Grantee”)
  2. A just and true account of the demand due after all credits
  3. A true description of the property (sufficient to identify it)
  4. A description of the property to be subject to the lien
  5. The identity of the property owner (“Grantor”)
  6. The identity of the direct contractor

Special Note for Residential Property

For Missouri mechanics liens against residential properties, there is an additional “just and true account” requirement.

To satisfy this, claimants must provide:

  1. A photocopy of the file-stamped notice of rights and any renewals
  2. The name and address of the party the claimant contracted with
  3. Copies of any contracts, purchase orders, proposals, and agreed change orders
  4. In the absence of written agreements, a general description of the scope of work and payment basis
  5. All invoices submitted by the claimant
  6. A statement of account showing all payments or credits and the calculation of the amount claimed
  7. The last date the claimant performed any work or supplied materials/equipment
  8. A file-stamped copy of the notice of rights is attached to the lien statement

How to File a Missouri Mechanics Lien

  1. Prepare the lien document, including all required information.
  2. Sign the document under oath and have it notarized (Missouri generally requires black ink).
  3. For residential projects, prepare the required attachments, including the file-stamped notice of rights.
  4. Deliver the lien to the office of the clerk of the circuit court in the county where the property is located. This can be done by mail, FedEx, or in person.
  5. Include the proper recording fees. Incorrect fees can cause delays and potentially missed deadlines. Verify fees by calling the recording office, checking online, or asking in person.
  6. Ensure your lien document complies with any specific margin or cover sheet requirements of the county clerk’s office.

Best Practice: Serve the lien on interested parties, even though it’s not required in Missouri.

How to Serve a Missouri Mechanics Lien

While serving a mechanics lien is not mandatory in Missouri, it is a best practice to notify the property owner and any parties higher up in the payment chain (e.g., the prime contractor or lender).

What If You’re Still Unpaid?

A Missouri mechanics lien remains effective for six months from the filing date. Although powerful, liens can be disputed or challenged. If filing a lien doesn’t result in immediate payment, you may need to enforce it through a foreclosure action.

A Notice of Intent to Foreclose can be a useful next step. This document warns that a lawsuit will be filed and the lien foreclosed if the claim isn’t paid soon, often prompting payment or negotiation.

Mechanics lien laws are complex, and navigating them can be challenging. Payment issues pose serious threats to construction businesses. Levelset offers support to those dealing with construction payment issues. Contact us if you’re facing a payment issue on a Missouri construction project—we’re here to help you get paid.

Get in Touch

Mechanics liens are vital tools for contractors and suppliers in Missouri to secure payment for their work. By filing a mechanics lien, unpaid parties gain a legal interest in the property to ensure they receive their due compensation. Understanding the rules, requirements, and deadlines is crucial for effectively using this powerful tool.

At CRM Lien Services, we have been serving customers across the country with required reference documentation for lien claims since 1986. We assist property owners in navigating the mechanics lien process, informing them about their rights and responsibilities, including providing notices, securing payment, and releasing mechanic’s liens.

We have a wealth of expertise, are licensed and insured, and have a team of highly knowledgeable document processors. If you’re looking for a straightforward process for filing a mechanics lien, give us a call or shoot us an email.

We would love to work with you and help you lower your risk and get paid fast!

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