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How do I remove a mechanics’ lien from my property?

On Behalf of | Jun 29, 2015 | Firm News, Lien, Mechanics' Lien |

There are a few different ways you can deal with a mechanics’ lien on your property in Colorado. All of these methods come with different timelines and challenges.

First, as with any legal matter, you can attempt to negotiate with the other party. It is important you come from possession devoid of emotion. Negotiations can quickly go south, a third party may be necessary to get your points across.

Second, if you are not in a rush to remove the lien from your property you can wait out the duration of the lien. In Colorado, a mechanics’ lien is enforceable by the lien claimant (the individual placing the lien on your property) for up to 6 months after one of the following events: the date of last work performed; the date of last materials furnished; or the date of completion of the building or improvement. There are a number of technicalities that alter this formulation and you may want to ensure this is correct for your specific situation.

Third, you can file a surety bond with the District Court where your property is located. If you need to sell your house, or refinance within the next couple weeks and cannot wait for the lien to become unenforceable you may want to file a surety bond with the court. The surety bond has to be 1.5 times the value of the lien. The District Court will hold the bond and the lien will be removed. Unfortunately you will not have access to the money until either the lienor forecloses on the surety bond or you can prove the lien is unenforceable. This is by far the most expensive of the three, but at least you will be free to refinance or sell your home.

Fourth, if you believe that there is no basis for the lien at all, then it may be what is known as a “spurious lien,” and you may be able to get a hearing within just a few weeks to remove the lien.  The great benefit of something like this is that it may entitle you to attorney fees.