Biggest Problem...Missouri Home Owners Don't Know About the Law

By
Managing Real Estate Broker with Keller Williams Realty Diamond Partners Inc. KSBR00216695 MO2001030405
https://activerain.com/droplet/4GCm

Missouri property owners who contract to improve their home with the intent to sell it are required to notify contractors and other potential lien holders of the owner's intent to sell. This notice must be recoreded 45 calendar days prior to the closing date. I think for a long time some title companies, realtors and Missouri home owners were not aware of this. I just recently saw a title company stop a closing because the NOIS, Notice of Intent to Sell, was not filed. 

This law was signed July 12, 2010 and went into affect November 1, 2010. I know several closings have slipped by without filing an NOIS. I expect that to change quickly. 

Here it is in a nutshell: If a residential property owner in Missouri hires contractors to improve their property with the intent to sell it afterwards they are required to record a NOIS, Notice of Intent to Sell, with the Recorder of Deeds for the county the property is located in 45 calendar days prior to closing. This notice must include the intended date of sale/closing date. The property owner is also required to post a copy of the notice at the property or jobsite office. After this notice is filed a contractor or any individual that wants to file a mechanic's lien against the property in connection with the work they completed on this property is required to file a notice of rights with the Recorder of Deeds at least 5 days prior to the date of intended sale/closing date. Any contractor who does not record a notice of rights will forfeit their right to put a lien against the property. If a contractor requests provide a copy of the notice and legal description the home owner is required to give this to the contractor within 5 calendar days. 

If a home owner does not file the NOIS there are some hoops that they can jump through to prevent the 45 day wait. One of those methods is producing a signed lien waiver from all the contractors who worked on the property. If you are faced with this situation check with the title company closing the sale to see what they require. 

My post does not include all the details. The fine print and details on this can be found online. I just want to spread the word. It is amazing that this law has been in affect for 5 years and so many closings have slipped through without the NOIS. The title companies are all becoming more aware of this and are stopping closings. Don't delay your sale because this was not filed.

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Topic:
Real Estate Sales and Marketing
Tags:
investment property
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home investor
missouri home for sale
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Anonymous
Melissa

If the home doesn't sell by the 45 days of intended close date, is the NOIS valid for a period after that....like 6 months?

May 20, 2019 06:43 AM #1
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