"Residential" Lien Changes Have Broad Impact
Date 11/30/2010
As found in the St. Louis Construction News and Real Estate:
A highly controversial overhaul of the procedure to perfect mechanics' liens against residential property took effect August 28, 2010. The new law applies to any residential property transferred on or after November 1, 2010. While the law applies only to "residential real property," there is a broad definition of what kinds of property are included.
There are four basic components to the new law. Foremost, lien rights will be lost if the lien claimant does not record with the recorder of deeds a "notice of right" at least 5 days before the property is sold. Second, the law enumerates specific documents which must be included in the lien statement. Next, there are rules interpreting the efficacy of lien waiver forms. Finally, the law permits an owner to provide collateral in lieu of the lien as a means of clearing title. In other states this is referred to as "bonding around the lien."
For the Full Article: http://www.stlouiscnr.com/columns/article/residential_lien_changes_have_broad_impact/