Preserving Lien Rights After Sale of Residential Property

When residential property is involved, lien claimants in Missouri must take precautions to ensure that their lien rights survive, even if the owner transfers the property by sale. Filing and serving a document called a "Notice of Lien Rights" will protect those rights.

Under R.S.M.O. 429.016(1), any person or entity who seeks to retain the right to assert a mechanic's lien against residential real property must record a notice of rights in the office of the recorder of deeds for the county in which the property is located, not less than five (5) calendar days prior to the intended date of closing stated in a notice of intended sale.

Failure to record the notice effectively waives and forfeits any right to assert a mechanic's lien against the property. R.S.M.O. 429.016(2). The claimant retains all other rights and remedies allowed by law to collect payment for work, labor, and materials. Id. So, all hope is not lost for those who miss the deadline, but they have limited their available options.

If a notice of rights is recorded after the owner's conveyance (sale) of the property to a bona fide purchaser for value (someone who buys without notice of a claimant's lien rights), it will not be effective to preserve the claimant's mechanic's lien rights to the property. R.S.M.O. 429.016(3).

The notice of rights must contain the following information as mandated by R.S.M.O. 429.016(8): (1) date of the document; (2) owner's name; (3) lien claimant's name including address; (4) a legal description of the property; (5) name of the person contracting with the claimant for work; and (6) names of persons performing work for or supplying materials to the claimant.

By properly completing and filing the notice in a timely manner, claimants can confirm that their lien rights are protected, even if the property changes hands during the time the lien is in place.

This article is provided for informational purposes only and should not be considered legal advice or relied upon as a substitute for speaking with a legal professional. If you have any questions about preserving lien rights if the owner sells his or her property, or any other issues related to liens in Missouri, please speak with a qualified attorney.

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