If you are a real estate investor in the State of Missouri who rehabs homes for resale, read carefully. As of November 1, 2010, if you will be performing any significant renovation work on a property for the purpose of resale, you will need to file an official notice in recognition of this fact. Specifically, you must file a Notice of Intended Sale and have it officially recorded in your local jurisdiction.
This document is fairly simple, but since it must be notarized and recorded at least 45 calendar days prior to the closing of resale, there should be no time wasted in beginning the process. If you purchase a building with the intent to rehab it for sale, it might be easiest to simply fill out the form and have it notarized while at the title company for the original purchase. Since there will be a notary present, this will save you a trip on a future occasion.
This document was made necessary following the passage of new rules regarding mechanic’s liens in Missouri. These new laws are designed to protect contractors from being swindled out of money owed to them by predatory developers. You can thank the rise of development scams in the 2000′s by folks such as DHP Investments for the need for such changes. Fron this point on, failing to file the Notice of Intended Sale will likely cause major closing delays upon resale. Recording the document as soon as possible after purchase will help you to avoid any possible issues down the line. In the City of St. Louis, the fee for recording the document is only $33, so it’s not too expensive. Just make sure you plan ahead, and you’ll never have a problem. For more information of the new laws on mechanic liens in the State of Missouri click here.
Download a copy of the Notice of Intended Sale
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Thanks for the heads up. I’ve got a new listing that would fall under this rule and am following up to make sure that the proper documents have been filed.
It’s certainly easy to take care of if you plan ahead. The big problem seems to be that even a lot of seasoned rehabbers are unaware of this new requirement. Hopefully the word keeps spreading. Glad to be of help.
Hi Karen,
I have a copy of the Notice of Intended Sale; let me know if you would like me to email you a copy.
Rebecca Meier
Business Development
Continental Title Company
So this means that a rehabber can never rehab and resell a house in less than 45 days?
Technically, it is possible, but in reality you are correct. That said, for myself and most rehabbers I have talked to, they don’t consider that much of an issue. If the doc is filed immediately, you could rehab the place in as quickly as two weeks and that would leave a month for the buyer to close. They are going to probably want that anyway so it really isn’t a big deal in most cases.