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Can I file a mechanics lien?

ColoradoLien DeadlinesMechanics LienRecovery Options

We are getting ready to file lien(s) but this is a strange situation. I was first hired and contracted as a project manager to manage a commercial and residential renovation to then sell. I hired and contracted a contractor to do most of the work (construction, electrical, tile etc). In addition to my project manager role, I also did some of the painting and landscaping to reduce cost. All of my credit cards were used to fund the materials and myself and my contractor's contract stated we would be paid at the sale of the property. Midway through the reno, I was added to the property as a co-owner. Toward the late middle/end of the project/renovation, the investor and the original owner had a disagreement regarding the note (I was not on or added to just the title). The investor ended up taking the property, transfering title to just him and has said and threatened that he will NOT pay anyone or reimburse anyone for labor, time, job or contract(s). My first question is, because I was a contractor first with a contract but then became a co-owner, can I file a lien being owner? When I was added as a co-owner my contract with the original owner stayed in place and I continued to provide labor. Nothing changed there. My contractor is filing a lien against the investor/new owner as the investor/new owner is not continuing the reno or letting him in. I was told along with my contractor, I can file my own lien separately also, against the investor/new owner.....is this true? My second question is, if I can file a lien, would we both be considered GC's? Or is he the GC and I'm a sub? Or visa versa? This is a very complicated situation regarding ownership and contractors and just trying to get paid what I put in and are owned per contracts. Thanks in advance for your help. Beth McClave 719-582-3402

1 reply

Jan 18, 2023

 I am sorry about the issues. You need to hire an attorney as
if you were put on title, you cannot be removed (“investor ended up taking the
property, transfering title to just him ….”) absent your consent so I have no
idea how you would no longer be a co-owner.  

  

The right to lien relates to goes to anyone who qualifies to
be file a lien under the statute, such as contractors and superintendents. To
have a lien on the basis of superintendence on the site, your role must be to
see that the labor was properly applied to the material. If you provided labor,
that is lienable. The fact that you were, apparently, at some point a co-owner
does not negate the lien right. Again, the key is whether you can claim a lien
and your role as project manager would need to be reviewed a bit more by an
attorney. If you are a proper party to file a lien, you must do it separately.
You are not related to your contractor’s work, at least under your limited facts.
 

  

AS to the second question, you could be the GC but your attorney
will want more facts and the contract to determine that.  

  

Reach out and get a consultation with an attorney soon. Most
of us offer free initial consultation. You may have many more claims than
merely a lien right. Moreover, as to your lien, the lien filing and the process
must be perfect or that lien may be invalid.   

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