Missouri Radically Modifies Residential Mechanic’s Liens
07/14/10
Governor Nixon signed House Bill 2058 on July 12th. The bill radically changes the requirements for the filing of a mechanic’s lien in Missouri on residential properties. The law is vague in many aspects and is a radical departure from prior law. In essence if a subcontractor or laborer fails to provide and record written notice of its intent to perform work prior to work beginning and prior to the recordation of any deed of trust encumbering the property, then the laborer/subcontract will not have any lien rights or its lien rights will be subordinated to the deed of trust. In addition, if a lien or notice of intent to perform is not immediately removed upon request, then the laborer/subcontract will be "presumed" to have slandered title and will be exposed to the payment of damages and attorneys’ fees. Our construction group is working to prepare necessary forms for our clients to attempt to comply with this new law, which has internally inconsistent requirements and restrictions. Please contact Mr. Freeman or Mr. Murphy if Swanson Midgley can be of any service.
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