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 Partial Release of Mechanic's or Construction Lien is a legal document that allows a claimant (such as a contractor or supplier) to release a portion of their lien rights on a property when they have been paid for a specific portion of work or materials provided. This partial release helps in releasing the property from the burden of the full lien amount, allowing the property owner to refinance, sell, or transfer ownership free from the lien claim. There are two types of Colorado Partial Release of Mechanic's or Construction Lien: 1. Partial Release of Lien by Payment: This type of partial release is executed when the claimant has received partial payment for a specific portion of their work or materials, and they wish to release their lien rights on that portion of the property. It is important for the claimant to accurately identify the portion of work or materials being released, along with the corresponding dollar amount received. 2. Partial Release of Lien by Partial Satisfaction: In some cases, instead of making a partial payment, the property owner may provide substitute security or collateral to partially satisfy the lien claim. The claimant can then execute a partial release of lien by acknowledging the receipt of the substitute security and releasing their lien rights on the property related to the amount secured. Both types of Colorado Partial Release of Mechanic's or Construction Lien require certain information to be included, such as: — The legal names and addresses of the claimant (releasing the lien) and the property owner. — A description of the property being released, including the legal description and any relevant parcel numbers. — The date when the partial release is being executed. — The dollar amount being released or satisfied, along with a clear statement that this release pertains only to that specific amount or portion of work/materials provided. — Signatures of both the claimant and the property owner, along with notarization to ensure legal validity. It is important for all parties involved in the construction or improvement of a property in Colorado to understand the significance of executing a Partial Release of Mechanic's or Construction Lien accurately and in a timely manner. Failure to properly release a lien can lead to complications during property transactions or legal proceedings. Therefore, it is recommended to consult with an attorney or seek professional advice to ensure compliance with Colorado lien laws and requirements.
