A mechanic’s lien is a claim placed against a property by a general contractor or subcontractor. This claim states that funds are owed by the owner on supplies or work completed on a property. Until the lien is resolved, the owner will be unable to sell or refinance the improved property.
The laws for filing a mechanic’s lien vary from state to state. If you are faced with filing a mechanic’s lien in Denver, Colorado, it’s important to know what specific steps need to taken before a lien can be awarded. In this two-part article, the Denver construction attorneys at Cotney Construction will take you through the steps for filing a mechanic’s lien.
Giving Preliminary Notice
In the state of Colorado, general contractors, subcontractors, and suppliers are required to give owners or their agents a Notice of Intent to Lien form 10 days prior to the filing of the claim with the county clerk and recorder. This form can be given to the owner personally or by certified mail.
It is also advised that a Notice of Delivery of Labor and Materials be given to the owner. This will inform them, in detail, of the work that has been completed, the subcontractors that have performed the work, and the materials provided. While a lien may lead to legal action, it is important to be transparent about the services provided. If the owner can see exactly what is owed and why, they may be more willing to pay the owed amount.
Deadline to File
The deadline to file a mechanic’s lien is two months for contractors that only provided labor. This deadline extends to four months if materials were also provided. Please note, this time frame begins on the last day that the labor or materials were provided. An extension may be requested from the county clerk that will extend the deadline to either four months after work has been completed on the project or six months after the date that the extension was granted.
For more information on how to file a mechanic’s lien in Denver, please read part two.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.