Commentary: Understand the Two Different Types of Mechanics Liens
• A statement that neither the property nor the owner will be responsible for payment for labor, services, materials or other lienable items used in the construction, alteration, addition to, removal or repair of the property.
The notice must be posted in a conspicuous place on the property within those five days and remain continuously posted while construction work is in progress. It’s a good idea to be able to prove the continuous posting by dated photographs. Alternatively, such notice may be served by personal delivery upon whoever is performing work or supplying materials or other services for the construction.
The distinction between the two types of mechanic’s liens is critical for several reasons. Contractors, subcontractors, suppliers and others working on projects for tenants or other non-owners that are posted on time with notices of non-liability must be aware that they cannot rely upon mechanic’s lien remedies for payment.
On the flip side, owners who do not contract for construction and construction-related services on their properties need to be diligent in discovering that construction work is being done on their property so that they can give timely notices of non-liability if they wish. Otherwise, their properties may be subjected to mechanic’s liens that they may have to pay to preserve their property interests.
Colorado mechanic’s lien laws may either be swords or shields, depending upon the taking of timely actions by those who rely upon them for payment or those who need to protect their properties against potentially costly mechanic’s liens.
Timely action to either protect or preserve mechanic’s lien rights is essential.
Albert B. Wolf is a principal in the Denver law firm of Wolf Slatkin & Madison P.C. This column was written with the intent of providing general legal information intended to be reasonably accurate although not comprehensive. Readers are therefore urged to consult their attorneys for any specific legal advice they may desire concerning the subject matter of this column.
