“Mechanic’s Liens” in Colorado - Personal Injury Legal Blogs Posted by Bradley P. Pollock - Lawyers.com

“Mechanic’s Liens” in Colorado

With construction projects being abandoned or unfinished across the country, many contractors, laborers and material providers have found themselves without any compensation for the work or materials that they have provided.  Many contractors and subcontractors use mechanic’s liens in order to achieve recovery.  The term “mechanic’s lien” is deceiving.  The term doesn’t apply to a modern day mechanic or a person working on automobiles.  A mechanic’s lien is used by a person supplying labor, materials, tools or equipment for work on real property.  If the materialman or laborer is not paid for his or her service, a mechanic’s lien is filed against the property that was improved.  If the mechanic’s lien is properly noticed and filed, the lien can be foreclosed upon, allowing the property to be sold and Typically, a mechanics lien is used by a general contractor or a subcontractor on a construction job that has not been paid.   This blog post details the notice and filing requirements that are necessary in order to properly perfect a mechanic’s lien.

The first step in asserting a mechanic’s lien is giving notice to the property owner and the principal contractor on the project.  When a lien is filed before notice is given, the lien is ineffective.  To give proper notice, the owner of the property and the principal contractor that worked on the property must be given notice of the lien ten days before the lien is filed with the county clerk and recorder.  The notice can be personally served or can be served by certified or registered mail.

Once the lien has been properly noticed and the ten day period has elapsed, the lien can be filed with the county Clerk and Recorder’s Office.  When a lien claimant does not supply materials or laborers, that claimant has two months from the last date of work performed to file a lien.  All other lien claimants, including those that have provided materials and/or laborers, have four months from the last date of work performed to file a lien.  The last day of work can be an important and contentious issue in mechanic’s lien cases.  Work that is considered “trivial” does not count for timing purposes and a work day that contains only trivial work will not be counted as the last day of work performed.  Therefore, certain touch up work, clean up and other work that is considered insignificant should not be counted as the last day of work.

The mechanic’s lien statute prescribes the type of information that must be included in a proper lien statement.  A proper lien statement accurately identifies the owner of the property (if known), accurately gives the legal description of the property, accurately identifies the name of the person or entity claiming the lien, accurately identifies the principal contractor (if the lien is claimed by a subcontractor) and finally, accurately identifies the amount claimed by the lien holder.   When the lien is filed, the filer must include an affidavit that the owner and principal contractor have been served at least ten days before the filing.  It is important for a lien claimant to accurately reflect the proper amount that the claimant is entitled to.  If the claimant claims an amount that is excessive, the claimant is entitled to no recovery whatsoever.  Even if the claimant is truly entitled to a lesser amount, claiming an amount in excess of what is actually owed means that the claimant will make no recover.

Mechanic’s lien law is complicated, and requires the assistance of experienced attorneys.  The requirements and concepts outlined above only begin to touch on the nuances that surround this area of law.  Even properly noticing and filing a lien does not guarantee recovery in the event of foreclosure.  The feasability of recovery also depends on the ranks of other liens and mortgage holders.  Properly noticing, perfecting and foreclosing upon a mechanic’s lien is difficult.  Failure to properly follow the statutory guidelines can result in significant losses.  If you have not been compensated for the labor or materials you contributed to a construction project, contact the attorneys at Bell & Pollock today regarding your options.

If you or a loved one has been injured, call the law firm of Bell &
Pollock, P.C., 303-795-5900 or www.bellpollock.com and
www.championsofthepeople.com
,
Denver Injury Attorneys, Champions of the People.  You can access all
of our free podcasts on our website, just click on "Bell & Pollock
on the Radio"

If you or a loved one has been injured, call the law firm of Bell &
Pollock, P.C., 303-795-5900 or www.bellpollock.com and
www.championsofthepeople.com,
Denver Injury Attorneys, Champions of the People.  You can access all
of our free podcasts on our website, just click on "Bell & Pollock
on the Radio"

View Attorney Profile

Bradley P. Pollock

Licensed since 1978

Member at firm Bell & Pollock, P.C.

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Licensed since 1978

Member at firm Bell & Pollock, P.C.

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