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Colorado
Pre-Lien Notice to Owner Regarding Potential Mechanic's Lien for...

Colorado Pre-Lien Notice to Owner Regarding Potential Mechanic's Lien for Services to be Provided to General Contractor

Category:

Liens - Construction - Mechanics

State:

Multi-State

Control #:

US-01003BG

Format:

Instant download

Description

A mechanic's lien is a claim created by statute to secure priority of payment for labor performed or materials furnished in the making of improvements on real property. A mechanic's lien covers the land as well as improvements on the land. Mechanics' liens are purely statutory in origin, and a mechanic's lien may not exist unless it is expressly created by the terms of a statute.

Statutes frequently require the potential lienholder to give notice of a claim of lien. Local statutes must be consulted to determine applicable requirements with respect to particular types of lien notices.

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FAQ

Contractors, subcontractors, laborers, and material suppliers can file what is called a "mechanics lien" on a homeowner's property if they don't get paid.

When a person or entity files a spurious lien, Colorado law provides for an expedited process whereby a property owner can dispose of this lien. Under this law, a property owner can file a petition in Court, and the Court will issue an order to the person or entity that filed the lien to explain why the lien is valid.

Do I need a written contract in order to file a Colorado Mechanics Lien Claim? No. Oral contracts are sufficient if you have sufficient documentation to show the existence of an agreement or that you performed the work for which you are filing a lien.

Timely File Your Lien: Your mechanics lien in Colorado must be filed within 4 months, or 120 days, of the last date you provided labor and materials for the project. However, if you did not provide materials and only provided labor, you only have 2 months from your last day of providing labor to file your lien.

Notice of your intent to lien must be served on the property owner (who is in title as of the date the notice of intent is served) and principal contractor at least 10 days prior to recording the lien. The notice of intent should be served in person or mailed using registered or certified mail with return receipt.

Colorado: Colorado's lien statute is relatively straightforward, and the written contract requirement is based on the contract price. The relevant part of the statute states that if the amount to be paid exceeds $500, the contract must be in writing in order to claim a mechanics lien.

Anyone who supplies labor or materials for a project can file a mechanic's lien. This includes general contractors, subcontractors, and suppliers. If a mechanic's lien is properly utilized, a contractor can force your home into foreclosure to get paid.

Yes. Colorado does require that a Notice of Intent to File a Lien Statement be sent at least 10 days prior to filing a Colorado mechanics lien statement.

A mechanic's lien form is a standard form that must contain: (1) the name of the property owner; (2) the lien claimant (i.e. the person claiming the lien); (3) a description of the property against which the lien is being filed; and (4) a statement of the amount due or owed.

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