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How much time should I give the real estate agent until I can sue?

My husband is doing remodeling jobs for a property here in Missouri for this real estate agent. The contract stated that payments will be done everyweek and based on the bid's price. The person who hired him to do the job kept giving him excuses as to why he can't pay yet. It's been three weeks and the agent never ran out of excuses. The contract did not state about lien. But will I be able to file a mechanic's lien for this property? Until how long should I wait to give him a grace period to pay me?

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Oct 25, 2019

Generally, those who perform construction work but go unpaid for that work will be entitled to file a mechanics line in order to help recover payment. But, there are some unique rules to keep in mind in Missouri, plus a mechanics lien is usually reserved as the nuclear option when a payment dispute is afoot. Plus, even when a lien claim isn't available, there are other options that can help with recovery. Consent of Lien in a Missouri construction contract In Missouri, when a contract does not include a Consent of Lien provision, only the project's original contractor will be entitled to lien. Generally, an "original contractor" is a party hired by the owner, but if someone hires a contractor on behalf of the owner - acting as the owner's agent, then that contractor would likely be an "original contractor" for the purposes of filing a Missouri mechanics lien. So, if a contractor performing work on an owner-occupied residential property is considered an "original contractor," they'll generally be entitled to mechanics lien rights, regardless of whether the Consent of Owner was included in the contract. Plus, keep in mind that if the owner doesn't reside at the property and doesn't intend to moving forward - it might not be a owner-occupied residential property at all. Additional notice required to preserve lien rights A Notice to Owner must be sent in order for an original contractor to preserve their right to lien. This document doesn't have to be in the contract like a Consent of Owner does, but it must be exchanged before receiving any payments. So, if no payment has been made on a given contract, then there may still be time to send a Notice to Owner for the work done on that particular property. And, to be sure, a Notice to Owner would need to be sent for each property where a lien claim might be filed. You can learn more about Missouri's notice requirements here: Missouri Preliminary Notice Guide and FAQs. Recovery options before resorting to a mechanics lien claim Note that a mechanics lien is generally the nuclear option. Before resorting to a mechanics lien claim, claimants typically attempt recovery through less-adversarial means. For one, something as simple as sending invoice reminders might be effective. A slight nudge in the right direction and a reminder that payment is due will often do the trick. Escalating things a bit, demand letters can also work to compel payment. A demand letter shows recipients that the payment dispute is being taken seriously and that, if unpaid, the claimant isn't afraid to take whatever action is necessary. More on that option here: Demand Letters for Contractors – How To Write One That Gets You Paid. Finally, many claimants can force payment by sending a warning like a Notice of Intent to Lien. Claimants other than original contractors must send a Notice of Intent to Lien to the property owner before filing a Missouri mechanics lien. But, regardless of whether it's actually required, a Notice of Intent to Lien is a powerful recovery tool, itself. Often, an owner isn't even aware of the payment dispute and the potential for a lien claim - and, making them aware of that fact can put additional pressure on a customer to make payment. Regardless - nobody likes a lien filing, so owners will typically do what it takes to make sure on isn't filed. More on that here: What Is a Notice of Intent to Lien and Should You Send One? Filing a Missouri mechanics lien Sometimes a lien will be inevitable. In those cases, here are two great resources for Missouri's mechanics lien requirements: (1) Missouri Mechanics Lien Guide and FAQs (2) How to File a Missouri Mechanics Lien Determining how long to wait before pursuing claims Determining how long to wait before filing a mechanics lien or pursuing a lawsuit can be tough. Ultimately, it's up to each individual claimant since that decision will be based heavily on the circumstances of the business and the situation in general. Still, it's a good idea to keep an eye on all relevant deadlines and to be sure that the ability to make a specific claim is lost. Looking to Missouri's mechanics lien deadline - a Missouri mechanics lien must generally be filed within 6 months from the last date of furnishing labor or materials to the project. Note, though, that the sale of property can throw a wrench in the mechanics lien process. So, it's generally a good idea to try and recover payment before a given property is transferred. What's more, if a residential owner files a Notice of Intended Sale document in Missouri, the mechanics lien claimant must file and additional document - a filed Notice of Lien Rights - at least 5 days prior to the sale. So, as a sale becomes a more realistic possibility, there's a greater chance the Notice of Intended Sale is filed and that additional requirements will be necessary.

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