- September 22, 2010
- All Missouri Issuing Offices
- Residential New Construction and Mechanic's Liens
The Missouri Legislature passed and the Governor approved HB 2058 which establishes procedures for asserting mechanic's liens for new construction against residential real property. The law does not apply to mechanic's liens for repair, remodeling, or additions. Although the law has an effective date of August 28, 1010, the provisions relating to mechanic's liens apply to residential real property conveyances closing on or after November 1, 2010. We may authorize the extension of Mechanic's Lien Coverage to the purchaser of a newly constructed and completed residence if the statutory requirements are met. Prior to issuing a policy extending Mechanic's Lien Coverage on residential new construction to an Owner, contact your Stewart Underwriter for approval.
The law requires: (1) The "record title owner of residential real property" who has contracted with a claimant for performance of work, labor, or materials for improvements must record a notice of intended sale not less than 45 days prior to earliest date owner intends to close the sale. The owner's designated agent may also record the notice. In addition, the title owner must provide a copy of the notice to any claimant within 5 days after written request from the claimant and must post a copy of the notice at the property.
(2) A claimant seeking to retain the right to assert a mechanic's lien against residential real property must record a notice of rights with the recorder of deeds not less than five days prior to the intended date of closing stated in a notice of intended sale. The notice of rights must comply with the form specified in the law.
(3) The title owner must obtain and record an Unconditional Final Lien Waiver, substantially in the form as provided by statute, from all persons or parties filing a notice of rights within the time frame above.
View a copy of the bill in this link: http://www.house.mo.gov/billtracking/bills101/biltxt/truly/HB2058T.HTM §429.016.8 includes the form of Notice of Rights. §429.016.27 specifies the form of Unconditional Final Lien Waiver for Residential Real Property.
The new law also establishes a procedure by which a filed mechanic's lien may be released from residential real property upon the deposit with the circuit clerk of cash, certified check, irrevocable letter of credit or surety bond in an amount of not less than one hundred fifty percent of the amount of the mechanic's lien to be released. The circuit clerk's certificate of receipt of deposit, specifying the items set out in the law, must be recorded. Any reliance on such a deposit must be approved by a Stewart Title Guaranty Company underwriter.
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THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.
- Bulletins Replaced:
- Related Bulletins:
- MO2009002 Mechanic's Lien Coverage and Construction Loans
- MU2008009 Mechanic's Liens on Condominium Projects
- SLS2007007 Insuring Around, Over, or Against Outstanding Enforceable Recorded Defects, Liens, and Encumbrances
- SLS2008003 Mechanic's Liens
- SLS2008006 Builder Transactions and Mechanic's Liens
- SLS2008021 Foreclosures and Mechanic's Liens
- SLS2008024 Vacation Homes and Mechanic's Liens
- SLS2009007 Mechanic's Liens Recap
- Underwriting Manual:
- 12.12 Mechanic's Liens
- Exceptions Manual: