SS SCS HCS HB 2058 -- MECHANIC'S LIENS AGAINST RESIDENTIAL REAL
PROPERTY

This bill establishes procedures for asserting a mechanic's lien
against residential real property other than a mechanic's lien
for the repair, remodeling, or addition to owner-occupied
residential property of four units or less.  In its main
provisions, the bill:

(1)  Requires a claimant seeking to retain the right to assert a
mechanic's lien against residential real property to record a
notice of rights with the recorder of deeds in the county in
which the property is located not less than five days prior to
the intended date of closing stated in a notice of intended sale
as contemplated in these provisions.  A claimant who is correctly
identified in a previously recorded notice of rights recorded as
to the property is relieved of his or her duty to record a notice
of rights.  Any claimant failing to record a notice of rights
will be deemed to waive and forfeit any right to assert a
mechanic's lien against the property but will retain the rights
and remedies allowed by law to collect payment for any work,
labor, and materials;

(2)  Requires a notice of rights to comply with the provisions of
Section 59.310, RSMo, and to be in a form as specified in the
bill;

(3)  Requires the title owner of residential real property who
has contracted with a claimant for the performance or provision
of work, labor, or materials for the improvement of the property
in order to facilitate the sale of the property to record with
the recorder of deeds for the county in which the property is
located a notice of intended sale not less than 45 days prior to
the earliest date the owner intends to close on the sale of the
property.  The notice must state the date on which the owner
intends to close.  Recording the notice is a condition precedent
to a claimant's obligation to record a notice of rights as to the
subject property in order to retain a claimant's mechanic's lien
rights as to the property.  The owner or designated agent must
provide a copy of the notice to any claimant within five days
after receiving a written request from the claimant and must post
a copy of the notice on the subject property, at an entrance to
the subject property, or at any jobsite office located at or near
the subject property.  If the owner or agent fails to comply with
these provisions, the claimant will be entitled to receive his or
her actual and reasonable costs, excluding attorney fees, to
obtain the necessary legal description for the claimant to record
his or her notice of rights.  The owner or agent's failure to
post, mail, or transmit the required information will not relieve
the claimant from his or her obligation to record a notice of
rights in order to retain his or her mechanic's lien rights as to
the property.  The owner or agent will not be liable to any
claimant or other person for an error, omission, or inaccuracy in
the content of the information provided and disclosed by the
owner or agent with certain specified exceptions;

(4)  Specifies that a claimant satisfies the just and true
account requirement in Section 429.080 by providing the following
information and documentation as part of the mechanic's lien
claim filed with the clerk of the circuit court:

(a)  A photocopy of the file-stamped notice of rights and any
renewals of notice of rights recorded by or identifying the
claimant;

(b)  The name and address of the person the claimant contracted
with to perform the work;

(c)  A copy of any contract, purchase order, or proposal and any
agreed change order or modification to the agreement;

(d)  A general description of the scope of work agreed to be
performed in the absence of any written agreement;

(e)  All invoices submitted by a claimant for work on the
property;

(f)  An accurate statement of account showing all payments or
credits against the amount due for work performed and the
calculation or basis for the amount claimed; and

(g)  The last date that work or labor was performed or any
materials or equipment provided;

(5)  Allows any person having interest in a residential real
property against which a mechanic's lien has been filed to
release the property from lien by depositing in the office of the
circuit clerk a sum of money in cash or certified check; an
irrevocable letter of credit issued by a federally or
state-chartered bank, savings and loan association, or savings
bank authorized to and doing business in Missouri; or a surety
bond of at least 150% of the amount of the mechanic's lien being
released and by recording with the recorder of deeds and filing
with the circuit clerk the amount of the deposit including the
claimant's name and the amount being released on the property;

(6)  Specifies that a deposit of substitute collateral and
release of a claimant's mechanic's lien claim will not modify any
aspect of the priority of the claimant's interest or obligations
regarding enforcement of a mechanic's lien claim nor will it
relieve any claimant of potential liability for slander of title
or otherwise due to the filing of a claimant's mechanic's lien;

(7)  Allows a claimant to waive his or her right to assert a
mechanic's lien by executing a partial or full waiver of
mechanic's lien rights, but this waiver will not be deemed to
waive or release a mechanic's lien rights in exchange for a
lesser payment unless the mechanic's lien waiver is an
unconditional, final mechanic's lien waiver in compliance with
these provisions;

(8)  Specifies that an unconditional, final mechanic's lien
waiver will only be valid if it is on a form as specified in the
bill; and

(9)  Requires any claimant who has recorded a notice of rights
and who has been paid in full for the work performed to timely
execute an unconditional, final mechanic's lien waiver; to not
unreasonably withhold the waiver when circumstances require
prompt execution; and to in no event fail to provide a waiver any
later than five days after the claimant's receipt of a written
request to do so by any person or entity.  A claimant who fails
or refuses to timely execute an unconditional, final lien waiver
when he or she has been paid in full will be presumed liable for
slander of title and for any damages sustained as a result,
together with a statutory penalty of $500.

The provisions of the bill will apply to any residential real
property conveyance closing on or after November 1, 2010.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:12 pm