How can someone file for a lien against my property when I don’t owe them any money?
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How can someone file for a lien against my property when I don’t owe them any money?
A contractor has filed for a lien against my new home, based on some unpaid concrete work that was to be paid by the builder who I just bought the home from. I have never contracted work with the company filing the lien and owe them no money. How can they file for a lien on the property when it is our builder, not us, who owes them? Should we speak with a real estate attorney? In Colorado Springs, CO.
Asked on June 18, 2011 under Real Estate Law, Colorado
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
What has been filed against your property is known as a "mechanics lien". In CO as, as in other states, any person supplying labor, laborers, or material to be used in the construction, improvement, alteration, addition to, or repair of a home or building can file such a lien if they are not paid for their work. This includes "subcontractors" (those people hired by your contractor).
They will be a hearing on the matter. There are defenses that you can assert. However, this all can get very complicated. You are best advised to consult directly with a real estate attorney in your area. One thing is for sure, do not ignore this situation, the results of such a lien can be severe.
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