Mechanic's Lien Forms
A
mechanic's lien, also known as a
construction lien, is a legal claim against the title to a property for the benefit of those who have not been paid for labor or materials they supplied to improve the property.
Who files a mechanic’s lien?
Contractors, subcontractors, or suppliers may file a
Mechanic’s Lien against a property where they have worked if they have not been paid. A subcontractor who has not been paid may file a lien against the property even if the general contractor was paid for the work.
What is a Lien waiver?
Some property owners ask contractors to sign a lien waiver either before the contractor starts work or as the work progresses and the contractors have been partially paid. By signing a
lien waiver, the contractor agrees to not file a lien on your property.
Mechanic’s lien procedure
There are strict rules about the time limits, advance notices required and specific information needed for filing a
mechanic’s lien. Generally, a lien must be filed within four months of your last work on a job and the
notice of intent to file a lien must be sent ten days prior to filing the lien. There are other limits and very specific information requirements.
Learning about mechanic’s liens
Mechanics’ liens are a potent mechanism for collecting unpaid past due debts. Still, mechanic’s liens don’t work in every circumstance. Bradford’s concise pamphlet,
Know Your Mechanic’s Lien Rights: A Guide to Colorado Law, provides the basics of mechanics’ liens and crucial information about when to file.
The Notice of Intent to File a Lien Statement gives notice to the appropriate parties that a
Mechanic’s Lien will be filed if the monies claimed are not paid to the Lien Claimant within the time period allowed. After the proper
notice of intent has been given, the Statement of
Lien should be filed with the County Clerk and Recorder in the county where the property is located.
The Notice of Intent and Statement of Lien must be delivered to the owner and principal contractor either by personal service or registered or certified mail, return receipt requested. Affidavits have to be filled out and notarized, to verify that the Lien Claimant followed the correct procedures and waited the appropriate time before filing the Mechanic’s Lien.
**The timing involved with filing a Mechanic’s lien is crucial. Reading "Know Your Mechanic’s Lien Rights: A Guide to Colorado Law" and consulting with an attorney experienced in construction law is highly encouraged.**