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Can we sell our house?

ColoradoMechanics Lien

Liens were filed against our house because the builder did not pay subcontractors…. However the builder was paid in full!! We would like to sell/transfer ownership of the house. Is this possible with existing liens? The builder is currently charged but has rejected the legal offer made to him and is now awaiting trial from what we understand. Please help with any pertinent information. Thank you.

5 replies

Sep 2, 2021
I am sorry for the issue. Is this a single-family dwelling unit? Did you make payment in full before the subcontractor's liens were filed? If so, then under CO law you have a complete defense to enforcement of the mechanics' lien. Contact a construction attorney for advice and explanation of this defense, if applicable, to your title company. Essentially, if the defense applies the title company should be fine with issuing a policy that does not require payment of the lien. Alternatively, there could be a deemed completed defense. Reach out to a Colorado construction attorney for advice. Most of us offer free initial consultations.
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Sep 2, 2021
you can bond around the lien, close the house and turn contractor into plaintiff to sue on the bond.
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Sep 3, 2021
It is a single family dwelling and payments were made up to $20,000 and with the advise of a lawyer that money was used to get some major things done to be able to live in the house. We found out today that the builder accepted the DA plea agreement. However we we’re told he has 10 years to make restitution. We were told to contact his insurance company to pay the restitution to remove the liens.
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Sep 3, 2021
If you did not pay the GC in full before the subcontractor filed its lien, the complete defense does not apply. You can bond around the lien.
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Sep 3, 2021
A homeowner who pays a GC has an affirm. defense of payment in full to avoid a HO paying twice. CRS title 38. Please call my office. 3/322-4115.
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