I am frequently asked this question by both contractors and commercial property owners. Generally, owners of commercial property (at least in Missouri and Kansas) will not be liable for contracts entered into by their tenants unless the tenant is acting as an agent of the owner, or the lease requires the tenant to make certain improvements that enhance the value of the property.
I often receive calls from my construction clients asking “How long do I have to file a mechanic’s lien in Kansas?” The solution to this dilemma is to file a Notice of Extension of Lien with the Clerk of the District Court in the county where the project is located.
There are times when an owner may want to sell their real property during a construction project. As an owner, what are the key issues you should consider? As the general contractor, what is likely to be requested by the owner and by the buyer’s lender? This blog post addresses some of the larger issues that will need to be resolved in the transaction and should provide a general roadmap of how to structure the process.
A recent decision from the Missouri Court of Appeals Western District examined a couple of interesting items in the world of Missouri mechanic’s liens. Of interest to Midwest Construction Law Blog readers are two items: (1) what does a contractor need to prove in a breach of contract claim; and (2) how can a misstatement in a mechanic’s lien invalidate the entire lien? In R.K. Matthew Investment, Inc. v. Beulhah Mae Housing, LLC, the Court of Appeals offered us some guidance on these two important topics.
Drafting a mechanic’s lien and “notice of intent” (§429.100) involves crucial steps that can be harmful to your case if overlooked. Whether you forgot to verify the “just and true account” (§429.080) of the amount due, or are unsure of the proper county for filing your lien, you can avoid these service errors by taking the time to learn the following steps involved in filing and drafting a mechanic’s lien in Missouri.
The ever complex world of Missouri mechanic’s lien priority was given a shot of clarity on September 11, 2012, when the Supreme Court of Missouri in Bob DeGeorge Associates, Inc., KD Christian Construction, Co., v. Hawthorn Bank outlined whether or not a purchase money deed of trust will always have priority over a mechanic’s lien.
With Iowa’s recent passage of House File 675, requiring the creation of a computerized data base for residential mechanic’s liens, the state took a step forward in helping contractors and potential buyers determine if there are liens on residential property. Whether this will help contractors receive payment for the work they have provided on such properties is yet to be seen but it is a step in the right direction.