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Property sold while under a GC Contract

ColoradoConstruction Contract

I am a GC, a property just sold that we were under contract with. The buyer is the city in which this property is located, Colorado is the state. We’ve negotiated with the insurance up to $260,000 in which the seller has collected $200,000. Our negotiations by the way, we have started the demo on the project and then put on hold. The sale of the property was going on while we were negotiating the settlement, and doing demo. Long story short the property sold, and we have a 20% provision in our contract. The seller did not disclosed to title or the buyer that there is an open Contract. We’ve opened a claim against title insurance and let the seller, buyer, and title all know that we are prepared to file a 10 day intent to lien and will lien and start lis-penance immediately after. Are we doing this right? Thanks in advance

2 replies

May 28, 2021

This is too complicated to tackle by message. Your best case lies against the prior owner. I do not see where a title company would be on the hook, unless something was recorded prior to sale. You may also have claims against the new owner. Pursue the prior owner first.

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May 28, 2021
An attorney would need to review the contract, the title insurance, and get many more facts to provide advice. This is extremely complicated especially if the buyer is the city. It is unclear as to whether you filed a lien. Your attorney would have told you to file the lien while you are negotiating. This being "under contract" would not show up in the title work. Again, your post is not entirely clear as to this contract, if a lien was filed, this negotiation with the insurer and the like and all of that is important for your attorney to understand. Do not file a lis pendens before getting legal advice. As a general rule, lis pendens should not be filed until after an action is filed in a Colorado court of record. Reach out to attorneys today on this matter and before you think about filing a lien and a lis pendens.
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