Title 101: Making Sense of Title Insurance in Commercial Transactions

WHO MAY CLAIM Every person who performs work or furnishes supplies, laborers, equipment, or materials used in construction, alteration, improvement, or repair to property. Includes architects, engineers, and/or draftsmen who provide plans in anticipation. CO ST § 38-22-101 DEADLINE TO PERFECT Lien recordation date contingent upon who is filing (day/piece laborers or other): • Day/Piece Laborer: Before 2 months after completion of improvement. • Others: Before expiration of 4 months after lienor’s last work or materials furnished. Either party can extend the lien deadline by filing a notice per CO ST § 38-22-109 (10) to the earlier of 4 months after completion or 6 months after recording said notice. CO ST § 38-22-109 BROKEN PRIORITY Once filed, lien priority relates back to the date of commencement of the first work under the contract between owner and first contractor. If the contract is not in writing, then date of first work on structure or improvement. “Commencement” of work is any work began, visible or not. This includes design work by architects and engineers. Bankers Trust Co. v. El Paso Pre-Cast Co., 560 P.2d 457 (1977). CO ST § 38-22-106 DURATION OF LIEN Lien will expire if no action commenced within 6 months after one of three dates, whichever occurs last: (1) the date of last work performed by any party; (2) the date of last materials furnished by any party; or (3) the date of completion of the building or improvement. Subject to the above, a statement of lien pursuant to CO ST § 38-22-109 will expire after a year of filing unless an affidavit by the person or one of the persons claiming the lien is refiled within thirty days after each annual anniversary of the filing of said lien statement. CO ST § 38-22-109 CO ST § 38-22-110 CONTENTS OF LIEN (1) Sworn (by lienor or one who has knowledge of fact) written statement; (2) name of the owner/ reputed owner of property, if known; (3) name of lienor, name of labor/material furnisher, and name of contractor when lien claimed by subcontractor (if contractor name not known, statement to that effect); (4) property description sufficient to ID the same; (5) statement of amount due or owing; and (6) affidavit of service of intent to file lien statement. Failure to strictly comply with the foregoing will render lien unenforceable. Wellons, Inc. v. Eagle Valley Clean Energy, LLC, 15- CV-01252-RBJ, 2017 WL 2224538, at 6 (D.Colo. May 22, 2017). CO ST § 38-22-109 COLORADO COLORADO – 508 – 1. This chart is to be used strictly as a guideline to facilitate mechanic’s lien inquiries. Parties using this resource should ensure they are independently confirming the information contained herein before relying on the same. NATIONAL COMMERCIAL SERVICES BY STATE MECHANIC’S LIEN

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