Home>Levelset Community>Legal Help>We are a Pool company that did work for another pool company and we complete our part Labor and material. Since completion the pool company
We are a Pool company that did work for another pool company and we complete our part Labor and material. Since completion the pool company
has gone out of business and we are wanting to get paid from home owner. Homeowner has paid company that went out of business. we are wanting to file a lien. Can we and what is the time frame we can do this? we are in Missouri
1 reply
Aug 16, 2019
In Missouri, subcontractors who perform work on residential property will only be entitled to file a mechanics lien if the owner has signed a Consent of Owner document - typically given by the prime contractor or included in the prime contract. So, if working as a subcontractor on a MO residential project, lien rights might not always be available.
But, if the right to lien is available - Missouri appears to be a "Full Price" lien state. Meaning, even if an owner has paid their contractor in full, a sub-tier lien claimant will be able to file a mechanics lien for the full amount of what they're owed.
Now, if hired directly by the property owner, this limitation on mechanics lien rights would not exist. Prime contractors are generally able to file a mechanics lien on residential property regardless of whether a Consent of Owner has been signed.
Deadline to file a Missouri mechanics lien
In Missouri, a mechanics lien must be filed within 6 months from the last day when labor or materials were furnished to the project.
Notice of Intent to Lien
Note, though, that there's an additional step to filing a lien for claimants hired by someone other than the property owner. Before a sub-tier claimant can file a mechanics lien in Missouri, the claimant must send a Notice of Intent to Lien. This must be sent at least 10 days before filing a mechanics lien.
However, even when a Notice of Intent to Lien isn't necessarily required, it's generally a good idea to add this step into the mechanics lien process. A Notice of Intent to Lien works like a warning shot. It informs the property owner that if payment isn't made, a mechanics lien will be filed. Considering the drastic nature of mechanics lien filings, most owners will be more willing to talk payment if they know what the stakes are for nonpayment. And, by sending a warning like a Notice of Intent to Lien, many claimants find they're able to recover payment without actually having to file a mechanics lien. More on that here: What Is a Notice of Intent to Lien and Should You Send One?