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Where do I file the lein on if the building is leased ?

We didnt get paid for the 2and half of the polyespartic Coating system d ok ne in a dispensary. The property isnt theirs but they are refusing to pay because of the lines in the Coating, they are being unreasonable and dont want to pay for it now that it's done. We have a contract for 12,800$ The first half was paid and now they won't pay the 2and half because it's not completely 100% perfect. Who do I put the lein on ? The property that construction was done at ? Even though the property owner has nothing to do V with this ?

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Dec 4, 2019

To get a little legal, mechanics liens are involuntary security interests against an improved property to secure money owed for the improvement of that property. When available, a mechanics lien is always tied to an interest in the improved property itself, not some other property of the party requesting the work. So, for example, if it is the GC who isn't paying a sub, the sub's lien rights would still be against the project property itself, not the GC's property. This can be a bit nuanced with respect to a tenant improvement, however. While the lien is still related to the improved property it may attach to either the owner's underlying interest in the property or the tenant's leasehold interest in the property, depending on certain factors. While this determination can sometimes be complicated, Colorado makes it pretty easy. There are two categories of Colorado mechanics liens. One (when the work is originally requested by the property owner) is referred to as the Section 101 mechanics lien. If, on the other hand, the work is commissioned by a tenant, the lien is referred to as a Section 105 mechanics lien. For all practical purposes, the two types of mechanics liens are identical, if available. The exception is simply that on a tenant improvement, the property owner can take steps to avoid mechanics lien liability To do so, property owners must post a “notice of non-liability” within 5 days of becoming aware that construction is being performed at the site. If this notice is not posted or posted late, the property is subject to the mechanics lien. Since these notices are rarely posted within he first 5 days of a project, construction participants usually enjoy full mechanics lien rights when working on a tenant improvement in Colorado.

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Dec 4, 2019

Those who have performed work which permanently improves the property where their work was performed will generally be entitled to file a mechanics lien in order to recover payment. Generally, that lien would attach to the title of the land. However, when work is done for a tenant, rather than an owner, the owner's interest in the land might not be subject to lien. Still, the tenant's interest may be lienable. Levelset discusses that here: What Happens to Mechanics Lien Rights If My Project is a Tenant Improvement? Colorado plays by its own rules, though, as I'll explore below.

Colorado mechanics lien rights and tenant improvements

Levelset actually has a fair amount of content on the subject, so before diving in - here are some links that should be valuable: - Are there lien rights when work is initiated by a tenant in Colorado? - Colorado Mechanics Lien Available Even When Tenants Contract For Work When work is commissioned by a tenant, rather than an owner, claimants are generally entitled to what's called a "Section 105 mechanics lien." Basically, this simply refers to the fact that work was done for a tenant rather than for the owner, themselves and there isn't much of a practical difference. Importantly, however: When work is being done for a tenant and not the owner, the owner is then entitled to post a "Notice of Nonresponsibility" to the property. And, if this notice is posted or delivered to potential claimants within 5 days of the project's start, then lien claims won't be available against the property. Ultimately, everything comes down to whether an owner has properly and timely posted or sent a Notice of Nonresponsibility. If the owner did properly provide that notice on time, then a lien claim can't be filed against their property. If the owner did not, then a lien claimant is able to file a mechanics lien against the owner's land even though the tenant is the one who authorized the improvement.

Sending a Notice of Intent to Lien may be enough to get paid

Note that Colorado is one of a small minority of states which requires lien claimants to send a Notice of Intent to Lien before they can file a mechanics lien. So, this is a necessary step of the lien process in Colorado. But also, the mere threat of a lien claim will be enough to get paid considering the drastic nature of mechanics liens. So, warning an owner and customer that a lien will soon be filed will often be enough to get paid, in and of itself. But, either way - a Notice of Intent to Lien must be sent in Colorado at least 10 days prior to the lien being filed. More on Colorado's Notice of Intent requirements here: - What Is a Colorado Notice of Intent to Lien? - Colorado Preliminary Notice Guide and FAQs

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