Why This Little-Known Requirement Could Delay Your Closing—and How to Avoid It
If you’re a real estate investor, flipper, or homeowner preparing to sell a renovated property in Missouri, there’s one critical document that could delay your closing if overlooked: the Notice of Intended Sale (NOIS).
Let’s walk through a common scenario:
You’ve purchased a single-family home at a great price. You put months of effort into renovating it—new roof, kitchen upgrades, bathroom remodels—the works. Your agent has lined up a buyer at a fair market value, giving you a healthy profit margin. You’re under contract, and everything looks good…
Then the title company calls.
They inform you that you cannot close on the agreed-upon date. Why? Because you need to file a Notice of Intended Sale. And worse, Missouri law requires you to wait 45 days after filing before the closing can proceed.
What Is a Notice of Intended Sale (NOIS)?
In Missouri, the Notice of Intended Sale is a legal document filed to alert any contractors or subcontractors who may have completed work on a property that it is being sold. It gives them advance notice to file a mechanic’s lien if they have not been paid.
The notice is recorded with the county and must be on file at least 45 days prior to closing.
Why the NOIS Is Important
The state of Missouri mandates this step to protect buyers and lenders from unresolved mechanic’s liens, which are legal claims contractors can file if they haven’t been paid for labor or materials. A lien can complicate or even derail a property sale.
A mechanic’s lien is a legal claim placed on a property by a contractor, subcontractor, or supplier who has not been paid for labor, materials, or services provided during construction or renovation. In the context of real estate, it serves as a way for these parties to secure payment by attaching their claim to the property itself. If unresolved, a mechanic’s lien can delay or even prevent the sale or refinancing of a home, as it must typically be cleared before the title can transfer to a new owner.
The NOIS acts as a public announcement, ensuring all parties are aware of the pending sale and giving contractors a window to raise any unpaid claims before ownership transfers.
Who Needs to File a NOIS?
You may be subject to the NOIS requirement if:
- You are selling residential real estate in Missouri, and
- The seller (you or your company) purchased the property within the last 12 months, and/or
- You’ve completed material renovations or construction on the property in the past year
If any of these apply, you fall under Missouri Revised Statute 429.016, which governs mechanic’s liens on residential properties.
Avoiding Delays: When and How to File a NOIS
There are two ideal situations where filing early can save you headaches:
- Real Estate Investors or House Flippers
If you plan to renovate and resell a property, file the NOIS immediately after purchase, before renovations begin. - Homeowners Making Major Improvements Before Selling
Planning to remodel your kitchen or add a new bathroom before listing your home? File the NOIS early in the process.
Filing early prevents surprises when you go under contract and ensures your 45-day window is already counting down or complete by the time you’re ready to close.
Final Thoughts
Don’t let a paperwork oversight cost you a sale. While the Notice of Intended Sale isn’t widely discussed outside legal or title circles, it’s an essential part of real estate transactions involving recent renovations in Missouri.
If you’re unsure whether it applies to you, talk to one of our loan advisors early in the process. Proactive filing ensures a smooth, timely closing and protects everyone involved.