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“Notice of Intended Sale” filing a must

“Notice of Intended Sale” filing a must

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

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Matt Kastner

Matt Kastner is an Investment Real Estate Consultant at St. Louis Real Estate Society in St. Louis, Missouri. He is also develops properties on the side through Threshold Properties. When he isn't representing investors in the purchase or sale of multifamily properties, rehabs, foreclosures and other income producing properties, he is often taking on rehab projects himself. He lives in South St. Louis and has been in the real estate business since 2004.

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18 thoughts on ““Notice of Intended Sale” filing a must”

  • Karen Goodman

    April 24, 2011 at 9:58 am

    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.

    Reply
    • Matt Kastner

      April 26, 2011 at 5:25 pm

      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.

      Reply
  • Rebecca Meier

    April 25, 2011 at 8:50 am

    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

    Reply
    • Munish

      September 7, 2016 at 9:54 am

      can you please email me copy of Notice of intented Sale

      Reply
      • Matt Kastner

        September 7, 2016 at 12:37 pm

        Unfortunately Munish, we do not have a copy we can give out to the public. I would recommend asking your title company as they will have an attorney approved form available.

        Reply
    • Jack Yunker

      October 18, 2016 at 2:58 pm

      I am a local investor and rehabbed my first house and found out I need to fill this form out. Can someone please email me a form of this.

      Reply
      • Matt Kastner

        October 19, 2016 at 8:44 am

        I’m sorry Jack, but we don’t have this form to give out as its a legal form. Dealing directly with your title company is the general route I would recommend.

        Reply
  • adam kruse

    May 9, 2011 at 6:30 am

    So this means that a rehabber can never rehab and resell a house in less than 45 days?

    Reply
    • Matt Kastner

      May 9, 2011 at 9:32 am

      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.

      Reply
  • Jame@Doral Homes

    May 31, 2012 at 9:16 pm

    What happens once a person files a Notice of Intended Sale and than change his mind?

    Reply
    • Matt Kastner

      June 4, 2012 at 9:58 am

      A good question. To be honest, I do not know for sure, but my assumption is pretty much nothing. The intent does not obligate you to sell, it is merely designed to inform any contractor that might do work for you that you intend to sell the building so as to protect them from getting stiffed by a property owner who sells a house before they can file a a mechanic’s lien. I would ask you title company, but you should be fine.

      Reply
  • Kelly Britt

    April 2, 2014 at 11:21 am

    Good information as I’m currently trying to get a buyer closed on one where this was not filed. It appears that the title companies will close them but a lot of documentation is required to prove that there are not any unpaid bills. A little cumbersome to go this route. The notice of intent is a much easier way.

    Reply
    • Pam Russina

      April 18, 2017 at 10:52 am

      Hi Kelly, I ran across your comment. We are in a situation where the NOI has not been filed and will lose our buyer if the close date is delayed. What sort of documentation was required to prove that there are not any unpaid bills (we’ve already provided paid invoices and lien waivers)?

      Reply
      • Matt Kastner

        April 18, 2017 at 11:25 am

        Pam, you really should talk to your title company. Sometimes paid receipts and waivers suffice, but that depends on the title company and the type and amount of work done. In the end, it is up to the underwriter.

        Reply
  • Tom Seibel

    July 30, 2014 at 9:46 am

    Is a notice of intent to sell required for new construction?

    Reply
    • Matt Kastner

      July 28, 2016 at 3:00 pm

      I don’t know, but probably. The law that requires it was intended from protecting contractors from not getting paid and that same problem can happen with new construction. I would consult your title company.

      Reply
  • Daren Aubuchon

    July 28, 2016 at 1:49 pm

    Can somebody email me this form please!

    Thanks,

    Daren

    Reply
    • Matt Kastner

      July 28, 2016 at 2:59 pm

      I’m sorry, but we don’t have this form to give out as its a legal form. Dealing directly with your title company is the general route I would recommend.

      Reply

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