Page 29 - State Law Summary of Mechanic's Lien Law

Missouri MO

What is the statutory authority?
Mo. St. §§ 429.010 to 429.430.
What is the Attachment Date of the Mechanic’s Lien?
A properly filed mechanic’s lien attaches as of the visible commencement of
actual operations on the ground for the erection of the building or making of
the improvement. Mo. St. § 429.060. Also see H.B. Deal Construction Co. v. Labor
Discount Center, Inc. (Mo.), 418 S.W.2d 940.

What constitutes visible commencement of construction?
The visible commencement of actual operations on the ground for the erection
of the building or making of the improvement which makes it apparent that a
building has been commenced or that an improvement is to be made, done with
the intention and formed purposes to continue the work until completed. H.B. Deal
Construction Co. v. Labor Discount Center, Inc. (Mo.), 418 S.W.2d 940.

What is the priority of the insured construction mortgage/
deed of trust?
Under Mo. St. § 429.050 the lien for work done attaches to the buildings, erections
or improvements for which they are furnished, or work was done, in preference to
any prior lien or encumbrance or mortgage upon the land. This section applies to
new construction and not to improvements or repairs of existing structures.

If priority of the insured mortgage/deed of trust is lost, is there a
statutory procedure to regain priority?
No.

When does a mechanic’s lien have to be filed for claimant to maintain
lien rights?
Under Mo. St. § 429.080 within 6 months after indebtedness shall have accrued.
The term “accrued” has been interpreted to mean when the lien claimant last
performed labor or furnished materials, rather than when payment becomes due
under the terms of the contract.
See In re Trilogy Development Co., Bkrtcy.W.D.Mo.2011, 468 B.R. 854.

What is the period of enforcement of a filed mechanic’s lien?
Under Mo. St. § 429.170, a lawsuit to enforce a mechanic’s lien must be commenced
within 6 months after the filing of the lien. If no lawsuit is filed within 6 months,
the lien expires and is no longer valid. If the lien is amended, the 6 month deadline
starts from the date the amended lien was filed.

Is there a procedure to bond over the mechanic’s lien(s)?
Yes - as to residential real property. Under Mo. St. § 429.016(17), a lien may be
bonded off by depositing a sum of money or a surety bond with the office of the
circuit clerk. The bond (or the sum of money) must be at least 150% of the lien
claim. Further, Mo. St. § 429.016(17)(2) requires that a Certificate of Deposit be
signed by the circuit clerk, recorded with the recorder of deeds, and a copy must
be sent to the claimant.

Are the ALTA 32/33 Series Endorsements available for the Loan Policy?
Yes.

RETURN TO INDEX