Menu
Home>Levelset Community>Legal Help>How do I respond to a "notice of intention" when a sub-contractor is trying to place a lien on my house after closing?

How do I respond to a "notice of intention" when a sub-contractor is trying to place a lien on my house after closing?

ColoradoBankruptcyMechanics Lien

I recently bought a house from a contractor. The contractor has filed for bankruptcy and now I am receiving "notice of intention" documents from sub-contractors that the contractor has not paid. Can those sub-contractors legally collect from me since I closed on the house with no liens attached to the property at closing? How do I respond to the "notice of intention" from the sub-contractors?

1 reply

Oct 23, 2019
A subcontractor or supplier who's gone unpaid on a Colorado construction project may still be entitled to file a mechanics lien even after the project property is sold. Ultimately, it may come down to how long ago the property was sold. Colorado mechanics lien deadlines and property sales The Colorado mechanics lien statute actually anticipates the situation where work is performed immediately before the property is sold, and the deadline to file a Colorado mechanics lien changes once the property is sold. In fact, if there's a sale of the project property, the lien deadline is shortened. If the property in question is a 1 or 2 family home, and if someone purchases the home without the knowledge of the potential lien, the deadline to file a Colorado mechanics lien is shortened to 2 months after the last date when labor or materials were delivered. This shortened timeframe doesn't apply to laborers, though - they will still operate under their normal timeframe for lien (generally - 2 months from project completion). So, if more than 2 months pass after a home is purchased, a lien claimant won't be able to file a valid and unenforceable lien against that property thereafter. But, if the lien is filed within the proper timeframe, the purchaser of the property may well be responsible for the lien. Colorado's Notice of Intent to Lien requirement A Colorado mechanics lien claimant must send a Notice of Intent to Lien before they can file a valid and enforceable lien. The document must be sent at least 10 days before their lien claim can be filed - and, this won't extend the timeframe to file a lien. So, for all intents and purposes, the deadline to file a Colorado mechanics lien will be 10 days before the apparent deadline since the claimant must get the ball rolling. More on the document here: What Is a Colorado Notice of Intent to Lien? Of course, there are some requirements as to what the notice must contain and how it should be sent. Generally, it can be given by personal service or it can be mailed via certified mail, return receipt requested. Sometimes, failure to send by the required method of service will mean that service is ineffective. Though, if the owner has actually received the notice, the details on how the notice was sent may be irrelevant. How to respond to a Notice of Intent to Lien Every situation is different, so it's hard to prescribe one exact response for a Notice of Intent. However, Levelset wrote this article which discusses several potential courses of action: I Just Received a Notice of Intent to Lien – What Should I Do Now? As mentioned in that article, a good step may be to assess the relevant timeframes and requirements to ensure that the claimant is even entitled to lien. Levelset discusses those requirements and timeframes in great detail, here: Colorado Mechanics Lien Guide and FAQs.
0 people found this helpful
Helpful
Related Topics