Missouri
Construction Lending State Compliance Library
State statute reference
Last updated April 10, 2025
Disclaimer: Information on this website is provided for informational purposes only and is not intended to be legal advice or establish an attorney-client relationship. Construction law can change at any time, so the information on this website may not be the most up-to-date information available. The information on this website is posted “as is” and no representations are made that the content is without errors. Use of this website does not create an attorney-client relationship between Land Gorilla, content creators, law firms, and any other contributors to this website. Users of this website should contact their own legal counsel for advice with respect to any legal matters.
Missouri Construction Lien Law
Lien Law Overview
Missouri’s mechanics lien laws are codified under Chapter 429 of the Missouri Revised Statutes (RSMo). These statutes provide lien rights to general contractors, subcontractors, material suppliers, equipment lessors, and certain design professionals. A mechanic’s lien attaches to the building or improvement and the land upon which it is situated.
Strict compliance with statutory requirements is necessary to perfect and enforce a lien. The priority of these liens is highly dependent on the timing of the mortgage and the nature of the construction.
Lien Waivers
Lien Waiver Summary
Missouri law, under RSMo § 429.005.1, expressly prohibits the waiver of lien rights in advance of furnishing labor or materials. Any clause or agreement attempting to waive lien rights before work is performed is considered void and unenforceable. This provision ensures that lien rights are preserved until after labor or materials are supplied, reinforcing protections for contractors and suppliers.
Missouri permits lien waivers, and while it provides a statutory form for unconditional final waivers, it does not prescribe conditional waiver forms. Other types of waivers (e.g., conditional, progress) are not prohibited by statute and may be used, provided they are clearly drafted.
Best Practice: Lenders should collect clearly defined lien waivers at each draw and ensure final waivers match statutory language.
Use of other lien waivers in Missouri
Missouri does not prohibit the use of non-statutory lien waivers such as:
- Unconditional Progress Waivers: Waives lien rights upon execution regardless of payment. It should only be used after payment is verified.
- Conditional Progress Waivers: Waives lien rights only upon actual receipt of a progress payment.
- Conditional Final Waivers: Waives final lien rights contingent upon receipt of final payment.
These forms must be carefully drafted to be clear, unambiguous, and accurately reflect the scope of work and consideration.
NOTE: Missouri law prohibits waiving lien rights in advance of performing the work. Therefore, lien waivers should only be executed after work has begun and not in advance of labor or material provision. This ensures compliance with state law.
Statutory Form
Required*
Notary
Not Required
Electronic Signature
Acceptable**
*Required for unconditional final lien waivers. Only a single waiver exists for use as an unconditional final waiver. It must comply with statutory language. Referenced in RSMo § 429.016. Forms may be obtained through county recorder or clerk offices, legal counsel, or legal form libraries. Accuracy and statutory compliance are essential.
**Acceptable, if compliant with Missouri’s Uniform Electronic Transactions Act
Are title companies required by law to manage construction loan disbursements?
No. Missouri law does not require title companies to manage disbursements. However, they are commonly used for issuing date-down endorsements and overseeing lien waiver collection.
Can a mechanics lien have priority over a pre-existing mortgage in Missouri?
It depends on the construction type and timing of the mortgage.
- Mechanics liens do not have priority for repairs or improvements to existing structures when a mortgage was previously recorded [Trusts Investments, Inc. v. Davis].
- Under RSMo. § 429.060, mechanics’ liens are preferred to encumbrances that attach after the commencement of construction.
- Under RSMo. § 429.050, mechanics’ liens take precedence as to the improvements themselves, even over prior mortgages, but only for new construction.
- Courts have recognized that lender conduct, such as active involvement in construction, may waive mortgage priority [Dave Kolb Grading, Inc. v. Lieberman Corp.].
Missouri Lien Priority Matrix
| Mortgage | New Construction | Improvements/Renovations |
|---|---|---|
| Mortgage Consummated Before Construction Started | Mortgage has priority over lien, unless lender waives priority through involvement (Kolb, §429.060). In this context, ’involvement’ refers to the lender’s active participation in the construction process beyond typical financing activities. For example, if a lender selects subcontractors, approves detailed construction decisions, or exercises decision-making authority beyond that of a standard financier, the lender may be deemed to have ’stepped into the shoes’ of an owner or contractor, thus waiving lien priority protections. | Mortgage has priority (Trusts Investments v. Davis) |
| Mortgage Consummated After Construction Started | Mechanics lien likely has priority over mortgage (§429.060; Baebler) | Mechanics lien does not have priority (§429.050; Trusts Investments) |
Notices
Notice of Commencement (or similar like event)
No, Missouri does not have a Notice of Commencement, however Missouri does require a Notice to Owner (Disclosure Notice) from general contractors before receiving payment. Notifies the owner that subcontractors and suppliers may have lien rights. Statutory text available in RSMo § 429.012.
BEST PRACTICE: While it may seem that the loss of a general contractor’s lien rights (due to failure to provide a Notice to Owner) benefits the lender by reducing the number of potential lien claimants, this view oversimplifies the legal and practical risks. Requiring the Notice to Owner helps the construction lender in several key ways:
- Legal Compliance and Predictability: Ensures that parties follow the statutory lien process, reducing ambiguity and legal exposure.
- Clarity of Risk: Properly executed notices help clarify which parties have lien rights and align the title insurer’s coverage and exceptions.
- Protects Borrower Relationship: Keeps the borrower informed, reducing the chance of payment disputes or reputational damage to the lender.
- Preserves Title Insurance: Title companies often require proof of compliance with lien statutes to maintain mechanic’s lien coverage.
- Subcontractor Risk Remains: Even if the GC loses lien rights, subcontractors and suppliers may still preserve theirs, so risk is not eliminated.
- Avoids Litigation Exposure: If the GC loses lien rights and payment disputes arise, they may pursue claims outside the lien process, complicating resolution.
For these reasons, it is a best practice for construction lenders to require that the Notice to Owner be properly completed and delivered on applicable projects.
Notice of Completion
Not applicable.
Preliminary Lien Notifications
Statutory Lien Forms
- Notice to Owner (Disclosure Notice): Required from general contractors before receiving payment. Notifies the owner that subcontractors and suppliers may have lien rights. Statutory text available in RSMo § 429.012. View
- Consent of Owner: Required for subcontractors and suppliers working on owner-occupied residential projects (1–4 units) without a direct contract. Ensures they retain lien rights. Referenced in RSMo § 429.013. View
- Notice of Intent to Lien: Must be sent by claimants without a direct contract at least 10 days before filing a lien. Alerts the owner to unpaid claims. Referenced in RSMo § 429.100. View
- Mechanics Lien Statement: The formal document filed with the circuit court clerk to perfect the lien. It must contain specific statutory elements. Referenced in RSMo § 429.080. View
- Statutory Lien Waiver Form: Used primarily for unconditional final waivers. Must comply with statutory language. Referenced in RSMo § 429.016. View
Forms may be obtained through county recorder or clerk offices, legal counsel, or legal form libraries. Accuracy and statutory compliance are essential.
Missouri Statutory Lien Forms Matrix
| Form | Party Responsible | When to Complete | Benefit to Lender | Benefit to Owner | Implications of Not Using |
|---|---|---|---|---|---|
| Notice to Owner (Disclosure Notice) | General Contractor | Before accepting first payment from property owner | Ensures owner is aware of potential liens from subs/suppliers | Informs of risk exposure; allows proactive resolution of issues | Owner may be unaware of potential lien exposure |
| Consent of Owner | Subcontractor or Supplier (without direct contract) | Before beginning work on owner-occupied residential property | Supports enforceability of lien rights by lower-tier participants | Clarifies liability to lower-tier participants | Lien rights may be forfeited for subs/suppliers on residential projects |
| Notice of Intent to Lien | Subcontractor or Supplier (without direct contract) | At least 10 days before filing a lien statement | Provides notice of unpaid amounts before liens are filed | Allows last chance to resolve non-payment before lien | Lien claimant may lose ability to file a lien |
| Mechanics Lien Statement | Any lien claimant | After project work is completed and lien rights are being enforced | Establishes lien for enforcement and title claim resolution | Puts timeline and scope around lien exposure | Lien is not perfected and cannot be enforced |
| Statutory Lien Waiver Form | Any party waiving lien rights | Upon receiving final payment (or as allowed, after work is performed) | Serves as evidence that lien rights have been waived | Clears title and reduces lien risk for closing or refinancing | Lien rights may not be waived properly, increasing risk of post-payment liens |
Title Practices
Missouri utilizes American Land Title Association (ALTA) title endorsements. These standardized forms are employed to modify or expand the coverage of title insurance policies. The availability and application of specific ALTA endorsements can vary based on local practices and regulations within Missouri. Therefore, it’s advisable to consult with a local title insurance professional to determine the appropriate endorsements for a particular transaction.
Contractor Licensing
Missouri utilizes American Land Title Association (ALTA) title endorsements. These standardized forms are employed to modify or expand the coverage of title insurance policies. The availability and application of specific ALTA endorsements can vary based on local practices and regulations within Missouri. Therefore, it’s advisable to consult with a local title insurance professional to determine the appropriate endorsements for a particular transaction.
Missouri Construction Lending Documents Kit
Disclaimer: These forms are provided for informational purposes only and are not intended to be legal advice or establish an attorney-client relationship. They are posted ‘as is’ and we do not warrant that they are the most current version. Users of these forms should consult their legal counsel before using for their particular transaction.
Download the Missouri documents kit by filling out the form. The package includes the following:
Statutory Lien Waiver Form
Used primarily for unconditional final waivers. Must comply with statutory language. Referenced in RSMo § 429.01
Notice to Owner (Disclosure Notice)
Required from general contractors before receiving payment. Notifies the owner that subcontractors and suppliers may have lien rights. Statutory text available in RSMo § 429.012.
Additional documents can be found at the following links:
Consent of Owner: Required for subcontractors and suppliers working on owner-occupied residential projects (1–4 units) without a direct contract. Ensures they retain lien rights. Referenced in RSMo § 429.013.
Notice of Intent to Lien: Must be sent by claimants without a direct contract at least 10 days before filing a lien. Alerts the owner to unpaid claims. Referenced in RSMo § 429.100.
Mechanics Lien Statement: The formal document filed with the circuit court clerk to perfect the lien. It must contain specific statutory elements. Referenced in RSMo § 429.080.
Have Questions?
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