Back to Table of Contents

Mechanic’s Liens

The Mechanics’ Lien law provides special protection to contractors, subcontractors, laborers and suppliers who furnish labor or materials to repair, remodel or build your home.

If any of these people are not paid for the services or materials they have provided, your home may be subject to a mechanics’ lien and eventual sale in a legal proceeding to enforce the lien. This result can occur even when the homeowner has made full payment for the work of improvement.

The mechanics’ lien is a right that a state gives to workers and suppliers to record a lien and ensure payment. This lien may be recorded where the property owner has paid the contractor in full and the contractor then fails to pay the subcontractors, suppliers, or laborers. Thus, in the worst case, a homeowner may actually end up paying twice for the same work.

The theory is that the value of the property upon which the labor or materials have been bestowed has been increased by virtue of these efforts and the homeowner who has reaped this benefit is required in return to act as the ultimate guarantor of full payment to the persons responsible for this increase in value. In practice, a homeowner faced with a valid mechanics’ lien may be compelled to pay the lien claimant and then pursue conventional legal remedies against the contractor or subcontractor who initially failed to pay the lien claimant but who himself was paid by the homeowner. Another justification for this result relates to the relative financial strengths of the parties to a work of improvement. The law views the property owner as being in a better situation to absorb the financial setback occasioned by having to pay the amount of a valid mechanics’ lien, as opposed to a laborer or material man who is viewed as being less able to absorb the financial burdens occasioned by not being paid for services or materials provided in connection with a work of improvement.

The best protection against these claims is for the homeowner to employ reputable firms with sufficient experience and capital and/or require completion and payment bonding of the construction work. The issuance of checks payable jointly to the contractor, material men and suppliers is another protective measure, as is the careful disbursement of funds in phases based upon the percentage of completion of the project at a given point in the construction process. The protection offered by mechanics’ lien releases can also be helpful.

Even if a mechanics’ lien is recorded against your property you may be able to resolve the problem without further payment to the lien claimant. This possibility exists where the proper procedure for establishing the lien was not followed. While it is true that persons who have provided labor, services, or materials to a job site may record mechanics’ liens, each is required to strictly adhere to a well-established procedure in order to create a valid mechanics’ lien.

Needless to say, this is one area of the law that is very complex, thus it may be worthwhile to consult an attorney if you become aware that a mechanics’ lien has been recorded against your property. In the event you discover that a lien has been recorded but no effort has been made to enforce the lien, a title company may decide to ignore the lien. However, be prepared to be presented with a positive plan to eliminate the title problems created by this type of lien. This may be accomplished by means of a recorded mechanics’ lien release from the person who created the lien, or other measures acceptable to the title company.

As in all areas of the real estate field, the best advice is to investigate the quality, integrity, and business reputation of the firm with whom you are dealing. Once you are satisfied you are dealing with a reputable company and before you begin your construction project, discuss your concerns about possible mechanics’ lien problems and work out, in advance, a method of ensuring that they will not occur.

Back to Table of Contents


Best of the best colorado community media logo, BBB A+ Accreditation logo
 

HQ Homes Flat Fee Listing Full Service, Why Sell With HQ Homes Button

HQ Homes Flat Fee Listing Full Service, Why Buy With HQ Homes Button

Google Reviews
 

Zillow Reviews

Client Reviews
3675193
"Mark was very helpful in keeping us informed every step of the way..The house sold the very first weekend for $30k more than it was listed for, I ... more "
5.0/5.0
by susansoukup4964
3642089
"Mark was wonderful to work with. He was professional and attentive. He is a pleasure to communicate with and always available to answer questions. He ... more "
5.0/5.0
by angboz00
3581850
"Mark has sold 2 houses for us and has always been able to answer any questions quickly and accurately. He is patient, friendly, professional and knows ... more "
5.0/5.0
by user480131

 

Featured Cities and Neighborhoods
Search Listings, Open Houses and Market Reports

Arvada
Arvada ListingsArvada Open HousesArvada Market Reports

Aurora
Aurora ListingsAurora Open HousesAurora Market Reports

Brighton
Brighton ListingsBrighton Open HousesBrighton Market Reports
  Castle Pines
Castle Pines ListingsCastle Pines Open HousesCastle Pines Market Reports

Castle Rock

Castle Rock ListingsCastle Rock Open HousesCastle Rock Market Reports

Centennial

Centennial ListingsCentennial Open HousesCentennial Market Reports 
 
 Colorado Springs
Colorado Springs ListingsColorado Springs Open HousesColorado Springs Market Reports

Commerce City

Commerce City ListingsCommerce City Open HousesCommerce City Market Reports


Denver
Denver ListingsDenver Open HousesDenver Market Reports


Denver County
Denver County ListingsDenver County Open HousesDenver County Market Reports
 

  Elizabeth
Elizabeth ListingsElizabeth Open HousesElizabeth Market Reports


Englewood

Englewood ListingsEnglewood Open HousesEnglewood Market Reports


Highlands Ranch
Highlands Ranch ListingsHighlands Ranch Open HousesHighlands Ranch Market Reports
  

Littleton
Littleton ListingsLittleton Open HousesLittleton Market Reports

Lone Tree

Lone Tree Listings - Lone Tree Open Houses - Lone Tree Market Reports


Parker
Parker ListingsParker Open HousesParker Market Reports
    Reunion Area - 80022
Reunion ListingsReunion Open HousesReunion Market Reports

Roxborough
Roxborough Listings Roxborough Open HousesRoxborough Market Reports

Thornton
Thornton ListingsThornton Open HousesThornton Market Reports

Westminster
Westminster ListingsWestminster Open HousesWestminster Market Reports
   
 

*Subject to lender approval, RESPA  Act, and our legal disclaimer - We reserve the right to change the home buyer’s rebate program and home seller's program at any time for any reason without notice. *+ Buyers agent co-op, Call for details.

© 2019 HQHomesales. All Rights Reserved

Real Estate Websites by iHOUSEweb iconiHOUSEweb | Admin Menu