The Basics of Recording and Foreclosing on a Mechanic’s Lien

Real Estate Lawyer in DenverAccording to the Colorado Lien Statute, a business or individual who didn’t receive payment for the materials and/or labor they provided to the development of real property could place a lien on the owner’s property.

Recording the Mechanic’s Lien

Prior to recording the lien, the claimant should first send an official notice of their intent to record a mechanic’s lien to the owner of the property, at least within 10 days before recording or filing the lien. The claimant could then go ahead and file the mechanic’s lien with county’s Clerk and Recorder strictly within four months of the claimant’s last material delivery or performed labor.

What the Law Says

According to renowned real estate attorneys in Denver and other parts of Colorado, the most common mishap found in liens is that it was recorded before the 10-day expiration of the notice to file, resulting in the invalidation of the lien. In addition, the law states that the claimant should include specific details in the lien. Failing to comply with the statute’s specific requirements for details that should be included in the lien could invalidate the mechanic’s lien, which will leave the claimant few options to get payment.

Upon recording of the lien, the mechanic’s lien will create a hindrance or lien against the owner’s property. However, in plenty of instances, this recording or filing alone won’t end up in the exact payment amount the claimant is pursuing. The claimant will have to enforce the lien by foreclosing upon the lien. To do this, the claimant must file a lis pendens notice to notify the property owner about the impending litigation. Take note that the law provides a strict timeline for starting litigation to foreclose the mechanic’s lien as well as the filing of the lis pendens notice. If the claimant doesn’t meet this deadline, they will lose the lien rights and the lien will be deemed expired.

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The recording and foreclosure of a mechanic’s lien is an immensely potent tool for claimants requiring payment for the materials and/or labor they provided. But because of its potency and effectiveness, the law requires strict adherence to deadlines and requirements to avoid invalidating the mechanic’s lien.

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