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As the property owner, you agree that the lender will have a lien over your property. In the event that you default, then the lender has the legal right to foreclose and sell your property to recover the amount which you owe.
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.
The Construction Trust Fund Statute in Colorado aims to ensure that funds paid by owners or lenders for a construction project are held in trust for the benefit of contractors, subcontractors, and suppliers who have provided the project's labor, services, or materials.
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.
General contractors are not licensed by the state of Colorado, so to file a complaint against a contractor, submit a complaint with the Colorado Attorney General. Online: An online complaint form can be filed here. Once completed, you may submit the complaint.
How to Deal With a Bad Contractor Fire the Contractor. Firing your contractor may seem obvious, but it's not an easy step when things go seriously wrong. ... Request a Hearing. ... Hire an Attorney. ... Take Your Case to Small Claims Court. ... File Complaints and Bad Reviews.
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.
In Colorado, if the amount to be paid is over $500, the construction contract must be in writing in order to claim a Mechanics Lien. Any agreement for work or materials below this amount is not required to be in writing to file a valid Mechanics Lien claim.