This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
Colorado Release of Mechanic's or Construction Lien
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Multi-State
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US-01028BG
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FAQ
To remove a lien on a motor vehicle, the owner (or agent with proper identification and power attorney) must provide our office with: The title with the lien release section properly signed and dated by the financial institution or lienholder. If completing this by mail a completed DR2395 Title Application is required.
After the mechanic's lien statement is filed, the lien claimant must foreclose within six months after the last materials were delivered or the improvements were completed. § 38-22-109(6).
If you're looking to file a Colorado mechanics lien, there are two general requirements: Contractors must file a Notice of Intent to Lien 10 days before filing the lien. An affidavit proving the Notice of Intent to lien was sent to the property owner must also be included when filing a lien with the County Recorder.
If contractors and suppliers don't get paid on a construction project in Colorado, they can file a lien to secure payment (even if they were hired by a tenant). A mechanics lien is a legal tool that provides the unpaid party with a security interest in the property.
A mechanic's lien is a lien granted by Colorado statute to any person who supplies labor, materials, equipment, machinery, or services which enhance the value of your property. The mechanic's lien law favors the contractor over the owner.
File a Surety Bond The district court will hold the surety bond and remove the lien. However, you will unfortunately not have access to the money until either the contractor forecloses on the surety bond or you can prove the lien is unenforceable.
Mechanic's Lien Priority In the event of foreclosure or a sale of the property, Colorado law provides that mechanic's liens hold priority over other encumbrances recorded after the commencement of the work. However, they may be secondary to other encumbrances such as prior recorded mortgages.
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.
