Lien Law

This is the full html version of the consumer publication about Missouri lien law.

Introduction to Missouri Lien Law

Home owners who have contractors working on their houses should not sign a "consent of owner" statement unless they want to be liable for paying twice for the same labor or materials.

When you hire a general contractor to build a home or to do home repair or remodeling work, the general contractor becomes the middleman between you and any others who provide labor or supplies for the project.

In most cases, home owners pay their general contractors, who in turn pay their material suppliers and subcontractors.

But there have been cases in which the home owner paid the contractor in full, but the contractor failed to pay his subcontractors. The subcontractors then filed liens on the home owner's property, forcing the home owner to pay for the work or labor a second time.

However, the state's lien law protects property owners from double payment unless a consent of owner statement was signed.

Consent of owner statement

The law states a home owner who has home improvement or repair work done cannot have a lien placed against his property by anyone other than the general contractor, unless the home owner has signed a consent of owner statement.

This statement says the property owner will pick up the costs of materials, supplies and labor for a project if the contractor does not pay.

If you sign a consent of owner statement, you give up your protection against double payment. If you are asked to sign a statement, use caution.

The consent of owner provision, however, applies only to home improvements and repairs; it does not apply to home building.

Notice to owner statement

When building a new home, your contractor must provide you with a "notice to owner" statement. This statement tells you liens may be filed against your property by subcontractors and suppliers.

To avoid liens on your property, the notice to owner statement says you may ask your contractor for lien waivers from all persons supplying materials or services. If you don't get lien waivers, you may have to pay twice, the notice states.

Lien waivers

A lien waiver is a receipt that states workers and suppliers will not ask you for money you already have paid the contractor. Therefore, you may want to ask your contractor to provide you with lien waivers from all subcontractors before starting work.

Do not settle for a contractor's promise he will pay everybody. If you cannot get the lien waivers, select another contractor or ask your present contractor to choose subcontractors from whom lien waivers can be obtained.

In addition to waivers as a safeguard against liens, most banks or other lending institutions require home owners to buy title insurance.

Check references of contractors

One of the best things you can do to protect yourself from liens is to check the background of any contractor you are considering hiring for home building, improvements or repairs. It's best to work with companies that are known to you or recommended to you by someone you trust.

Also, you can search for consumer complaints against a company by using the "Know MO" feature on our Web site.

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