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What are homeowner’s rights when it comes to lien?

ColoradoMechanics LienPayment DisputesRight to Lien

Hello! I’m an homeowner and had some work done in my house and used a general contractor. I paid 50% and the remaining balance was supposed to be paid when the project is completed. We had lots of problems and mistakes were made. We failed inspection and the general contractor wants me to pay the remainder. I said not until the job is completed. He quit! Today I received an intent to lien. I’m in Colorado. Thank you.

1 reply

Mar 12, 2020
Colorado contractors' right to file a lien is pretty strong. Contractors can still get their liens filed even if there's a dispute over what is owed and even if there are potential workmanship issues. Of course, an owner is absolutely entitled to challenge a lien claim filed against their property if they believe the lien is in excess of what's owed or if the contractor's work is so flawed that payment is being rightfully withheld. With that in mind, options will be limited for fending off a Colorado mechanics lien claim before the lien's even been filed. Certainly, an owner can threaten legal action in response and that can help to keep a claimant from filing an improper lien. Where there's official documentation showing a contractor's work to be defective - like reports on failed inspections - it should be easy to show a claimant that their lien would be improper, and it might be less challenging to bring them to the negotiating table to try and find a resolution for moving forward. However, options, like bonding off the lien claim or challenging the filed lien, won't be on the table until after the lien has actually been filed. Ultimately, though, mechanics lien filings are serious business. If a lien will soon be filed, then it'd be wise to consult a local Colorado construction attorney to see about how to best dispute that lien claim. They'll be able to review the project documentation and circumstances then advise on how best to move forward. As a final note - these two articles should be valuable: (1) I Just Received a Notice of Intent to Lien – What Should I Do Now?; and (2) A Mechanics Lien Was Filed on My Property – What Do I Do Now?
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