Mind Your Ps and Qs When Filing A Colorado Mechanics Lien

Mind Your Ps and Qs When Filing A Colorado Mechanics Lien

Filing a mechanics lien in Colorado is unlike filing in any other state, and that’s because Colorado has an unique Notice of Intent to Lien requirement that must be closely adhered to. If you don’t properly prepare and serve a Notice of Intent a full 10-days prior to liening, your mechanics lien is doomed.

The Notice of Intent to Lien document is in general quite interesting, and that’s because it’s a very misunderstood document.  I can’t count the number of times folks have called me and asked whether they need to file a notice of intent to lien prior to liening.  90% of the time, in 90% of the states…you don’t.  Check out this blog post that identifies those states with a Notice of Intent to Lien requirement (there are only 9 states).

Colorado is an exception. Not only is it an exception and a state that requires a Notice of Intent to Lien delivery, but the requirements are quite strict and the notice of intent to lien is in-depth.

For starters, Colorado requires that you attach a fully completed and executed Lien Statement with the notice.  That means you need to have your mechanics lien fully prepared and executed before sending the Notice of Intent to Lien document. You must, therefore, have already researched the legal property description, the legal property owner, and had the lien fully prepared and notarized.  That’s quite a lot of work for a notice.

Following this, you must follow some detailed requirements in the law in serving the notice.  Namely:

  1. You must serve the notice at least 10 full calendar days before you file your lien.  Make sure you leave enough time to record the lien before the deadline!  If you wait too long, you may not have time to send the notice, wait 10 days, and then record the lien.  And, don’t record your lien early.  If you do that, you’re doomed.
  2. You must serve it in accordance with the statutory requirements.  This means it must be served on the property owner either personally, or by certified mail with return receipt requested.
  3. Finally, you must prove the the lien was served by having an affidavit executed indicating the notice was served personally or mail served.  This affidavit (and the notice of intent) must eventually be attached with the mechanics lien filed in the county’s recording office.

There are plenty traps for the unwary, so be careful.  But most of all, at least understand the notice of intent requirement, and get on top of it before its too late.

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Mind Your Ps and Qs When Filing A Colorado Mechanics Lien
Mind Your Ps and Qs When Filing A Colorado Mechanics Lien
Mind Your Ps and Qs When Filing A Colorado Mechanics Lien
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About Scott Wolfe Jr

Scott Wolfe Jr. is the CEO of Zlien, a company that provides software and services to help building material supply and construction companies reduce their credit risk and default receivables through the management of mechanics lien and bond claim compliance. He is also the founding author of the Lien Blog, a leading online publication about liens, security instruments and getting paid on every account. Scott is a licensed attorney in six states with extensive experience in corporate credit management and collections law, with a specific emphasis on utilizing mechanic liens, UCC filings and other security instruments to protect and manage receivables. You can connect with him via Twitter, LinkedIn and Google+.Read Scott's Biography Post Here