Property Ownership

In Missouri, a 'mechanic's lien' is filed by:

AAutomobile mechanics

BContractors, subcontractors, and suppliers who provided labor or materials to improve real property✓ Correct

CMortgage lenders only

DMREC for unpaid license fees

Explanation

Missouri's mechanic's lien law (Chapter 429 RSMo) allows contractors, subcontractors, and material suppliers to file liens against property for unpaid work or materials used to improve that property.

People Also Study

Key Terms to Know

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

Private Mortgage Insurance (PMI)

Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.

Deed of Trust

A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).