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. From 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.
PLEASE NOTE THAT WE DO NOT HAVE A COPY OF THIS DOCUMENT TO PROVIDE. EITHER CONTACT YOUR TITLE COMPANY OR YOUR REALTOR (IF YOU HAVE ONE) TO INQUIRE ABOUT GETTING A COPY