Although the term “mechanic’s lien” might cause you to think about a lien that’s place on something like a car due to repair costs that require payment, a mechanical lien is attached to real estate such as buildings or lands by individuals who supplied labor or materials for the property’s improvement.
To illustrate, let’s say that a contractor renovated your master bath, you could potentially face a mechanic’s lien filed by a subcontractor regardless if you’ve already paid your contractors all that you owe them. When this happens, you’ll be unable to sell or even refinance your house without settling the lien, or worst, you might even be faced with foreclosure.
Filing Requirements for Mechanic’s Liens in Colorado
Luckily for you and other homeowners, Colorado has stringent rules about obtaining and filing a mechanic’s lien on real estate. For instance, the complainants should file a lien within four months following their last labor performance or materials delivery, unless they only performed labor. In this case, they should file within two months of their last performance of labor.
In addition, prior to the filing of a lien, the complainant should first file a notice of their intent to file a lien within 10 days of actually filing the mechanic’s lien. This notice of intent should likewise be served to you, as well as your prime contractor, in the event that the complainant is a subcontractor, to give you a chance to resolve the matter.
What You Could Do
In the event that a complainant has already placed a mechanic’s lien on your property or if you’ve already received their notice of intent, your best recourse is to seek help from a real estate lawyer. A real estate lawyer in Denver may agree that some of the most common issues that could lead to a defective lien include:
- Work on your property is still ongoing.
- Failing to meet the deadlines related to filing a lien.
- The work delivered was outside not included in the original contract.
- A lien statement containing incomplete or relevant details.
Your attorney will be able to evaluate your case and figure out if any of these aforementioned defenses could apply.
