The first step in recording a mechanic's lien in Colorado is to fill out the appropriate mechanic's lien form. While a mechanic's lien is not overly complicated, it is important that the lien form the contractor is using is the correct form for the contractor and that it is filled out completely with the correct information. The lien document must contain:
- the name of the property owner (or reputed owner of the property if the owner is unknown)
- the correct legal name of the contractor,
- a description of the property by which it can be identified,
- the name of the general or prime contractor (if the filing party is a subcontractor)
- the amount due or owing,
- Signature of the filing party notarized by a notary.
The second step in the process is sending a notice of intent to lien to the property owner at least 10 days before the contractor plans to record the lien statement. The purpose of sending a notice of intent to lien is to give the property owner and general contractor (if applicable) additional notice of the impending lien. Mechanic's liens can cause issues for property owners and general contractors, so they typically want to avoid liens whenever possible. It is a requirement in Colorado that all property owners receive a notice of intent to lien at least 10 days before the lien is recorded with the county recorder's office. While Colorado has no formal requirements about what information must be included in the notice, it is best to include:
- the property owner's name
- the name and address of the filing party,
- a description of the property by which it can be identified, and
- a statement indicating the amount due,
In addition to the notice document, a completed mechanic's lien form needs to be included with the notice of intent to lien. This means that the lien document needs to be completed before the notice can be sent to the property owner.
The third step in successfully recording a mechanic's lien is filing the mechanic's lien and appropriate documents with the County Recorder's Office in the county where the property is located. It is important to identify the proper county for filing. This is the county where the property, or principal part of the property, is located, not the location of the owner or the location of the filing party. The contractor should not file the mechanic's lien until 10 days after sending the notice of intent. Each recorder's office has different procedures, so it is best to check with the office before filing to ensure that all necessary documents are ready to be filed. In Colorado, it is required that an affidavit of service, a statement sworn by the filing party or the person delivering the notice that the notice was delivered to the property owner on the stated date, is included with the filing. The contractor should be ready to pay all applicable recording fees when filing the mechanic's lien.
Recording a mechanic's lien in Colorado is a step-by-step process that requires strict compliance. The filing party needs to include the correct information, give notice of its intent to lien at least 10 days before recording the lien, and file the lien correctly with the County Recorder's office. Failure to follow this process can result in the mechanic's lien being invalid and potential loss of lien rights.
The information contained on this blog is intended to be general information only and not legal advice. This blog topic is not intended to be fully comprehensive. For these reasons, we suggest you seek a licensed attorney to help you review your mechanics' liens. If you have any questions about the contents of this blog or if you need legal advice, please contact the Beavers O'Connell Group at (720)538-0363 or contact the firm on BOG's Contact Us page.