Notice of Satisfaction - Corporation
Note: This summary is not
intended to be an all-inclusive discussion of Missouri's construction or
mechanic's lien laws, but does include basic provisions.
What is a construction or mechanic's lien?
Every state permits
a person who supplies labor or materials for a construction project to
claim a lien against the improved property. While some states differ
in their definition of improvements and some states limit lien claims to
buildings or structures, most permit the filing of a document with the
local court that puts parties interested in the property on notice that
the party asserting the lien has a claim. States differ widely in
the method and time within which a party may act on their lien. Also
varying widely are the requirements of written notices between property
owners, contractors, subcontractors and laborers, and in some cases lending
institutions. As a general rule, these statutes serve to prevent
unpleasant surprises by compelling parties who wish to assert their legal
rights to put all parties who might be interested in the property on notice
of a claim or the possibility of a claim. This by no means constitutes
a complete discussion of construction lien law and should not be interpreted
as such. Parties seeking to know more about construction laws in
their state should always consult their state statutes directly.
Who can claim a lien in this state?
Missouri law states
that "Any person who shall do or perform any work or labor upon, or furnish
any material, fixtures, engine, boiler or machinery for any building, erection
or improvements upon land, or for repairing the same, or furnish and plant
trees, shrubs, bushes or other plants or provide any type of landscaping
goods or services or install outdoor irrigation systems under or by
virtue of any contract with the owner or proprietor thereof, or his agent,
trustee, contractor or subcontractor, or without a contract if ordered
by a city, town, village or county having a charter form of government
to abate the conditions that caused a structure on that property to be
deemed a dangerous building under local ordinances pursuant to section
67.410, RSMo, upon complying with the provisions of sections 429.010 to
429.340, shall have for his work or labor done, or materials, fixtures,
engine, boiler, machinery, trees, shrubs, bushes or other plants furnished,
or any type of landscaping goods or services provided, a lien upon such
building, erection or improvements, and upon the land belonging to such
owner or proprietor on which the same are situated, to the extent of three
acres;..." M.A.S. § 429.010
How long does a party have to claim a lien?
Any party seeking
to claim a lien must file a Lien Claim with the clerk of the circuit court
of the proper county within six (6) months after the lien accrued. M.A.S.
§ 429.080.
What kind of notice is required prior to claiming
a lien?
Original contractors are not required to give notice, but all other parties
are required to provide the property owner with ten (10) days written notice
prior to the filing of a lien claim. M.A.S. § 429.100.
By what method is a lien filed in this state?
A Claim of Lien must
be filed with the county recorder within six (6) months of the accrual
of the indebtedness. It must contain a just and true account of the
demand due, a true description of the property, and the name of the owner
or contractor, or both. M.A.S. § 429.080.
How long is a lien good for?
Missouri statutes state
that all actions regarding the enforcement of liens shall be commenced
within six months after filing the lien. M.A.S. § 429.170.
Are liens assignable?
Yes. Missouri
statutes allow a party who has filed a mechanic's lien to assign the lien
to another party who is entitled to bring suit and enforce the lien.
M.A.S.§ 429.160.
Does this state require or provide for a notice
from contractors and subcontractors to property owners?
Yes. Missouri
law provides for a series of notices between contractors, subcontractors
and property owners. First, a contractor must provide the form
language contained in M.A.S. § 429.012 advising the property owner
of his rights and warning of the possibility of having to pay for labor
and material twice. This notice must be provided to the property
owner before payment in any form is made.
Second, subcontractors
or parties other than the original contractor who wish to claim a lien
must provide the property owner with ten (10) days notice prior to the
filing of a lien claim. M.A.S. § 429.100.
Does this state require or provide for a notice
from the property owner to the contractor, subcontractor, or laborers?
Yes, in certain circumstances.
When the property to be improved involves the repair or remodeling or the
addition to an owner occupied dwelling, Missouri law states that no party
shall have a lien against the property other than the original contractor.
However, the statute also allows the property owner to give written consent
permitting any person who supplies materials or services to claim a lien.
M.A.S. § 429.013.
Does this state require a notice prior to starting
work, or after work has been completed?
No. Missouri statutes
do not require a Notice of Commencement or a Notice of Completion as required in
some other states.
Does this state permit a person with an interest
in property to deny responsibility for improvements?
No. Missouri statutes
do not provide for a Notice of Non Responsibility as in some other states.
Is a notice attesting to the satisfaction of a
lien provided for or required?
Yes. Missouri
statutes require a lien claimant whose lien has been satisfied to enter
with the clerk of the circuit court an acknowledgment of that satisfaction.
Failure to do so within ten (10) days of payment shall render the lien
claimant liable for any damages that result from the refusal including
the cost of bringing a suit.
Does this state permit the use of a bond to release
a lien?
No.
Missouri law does not contain a provision under which a bond may be used
to remove a lien.
