In Colorado there are two types of mechanic’s liens, and understanding the difference between them is critical for both owners and contractors. One type provides for mechanic’s lien remedies to those who supply labor, materials, services and other lienable benefits for the improvement of property, under contract with a property owner or the owner’s agent. We will call that a “Section 101” lien—the section of the Colorado mechanic’s lien statute that creates the remedy.
The other lien type arises when construction work is contracted by someone other than the property owner (for example, a tenant) and when the owner fails to post or serve notice that its property will not be liable for mechanic’s liens. Those notices must be given no later than five days after owners become aware that lienable work is being performed on their properties. That lien may be called a “Section 105” lien, again referring to the applicable section of the Colorado mechanic’s lien statute.