Legal Question in Real Estate Law in Colorado

Re: Real Estate Liens

Liens are placed upon real estate by filing the lien with the County Clerk in the County in which the property is located.

Beware, however, that one cannot file a lien simply because another owes him money. The lien must be established by statutory operation or by a court Judgment.

There can be serious penalities for the erroneous filing of a lien or the filing of a bogus lien.

Be sure you know what you are doing or you could end up with a substantial money judgment against you for failing to comply strictly with statutory procedures.

Re: Real Estate Liens

Louise Aron

Attorney at Law

Lakewood Office:

1536 South Ingalls

Lakewood, Colorado 80232 USA

(303) 922 7687

fax (303) 922-1370

Cherry Creek Office:

300 South Jackson #100

Denver, Colorado 80209 USA

(303) 780-7339

Satellite offices:

Boulder - 4450 Arapahoe Avenue, #100

DTC - 4610 South Ulster, #150

A TOLL FREE NUMBER is available to clients outside the Denver metro area.

web site http://www.bewellnet.com/louise/

[email protected]

October 6, 2000

LawGuru User

Dear LawGuru User:

Normally a lien is created by court order. There are certain other liens that may attach by reason of disputes between attorneys and clients. There are also mechanics liens, which result from disputes between property owners and unpaid contractors for labor or materials.

Documentation is not standard. I believe that any document can be called a "Lien" and filed with the County Clerk and Recorder of the county in which a property is located. Such a document, when recorded, may affect the title of a property even if it is invalid.

Use of an attorney to prepare a release of a lien and to negotiate its execution is the best way to have the lien removed. If the party who placed the lien is unwilling to negotiate, legal action is needed to remove the lien.

At the time of sale, title companies can sometimes be convinced that a lien is void and should be disregarded. If that occurs, the existence of an invalid lien may not prevent a sale. However, waiting until a sale occurs to address a lien is imprudent. Title companies are as likely as not to require that the amount of the lien be placed in escrow pending settlement between the parties involved, and may impose other obligations on an owner as a precondition before the sale can proceed.

If you wish to have further information about this, please contact me.

Thank you for using LawGuru.

Sincerely,

Louise Aron

Attorney at Law

Main Lakewood Office:

1536 South Ingalls

Lakewood, Colorado 80232 USA

(303) 922 7687

fax (303) 922-1370

Cherry Creek Office:

300 South Jackson #100

Denver, Colorado 80209 USA

(303) 780-7339

Satellite offices:

Boulder - 4450 Arapahoe Avenue, #100

DTC - 4610 South Ulster, #150

A TOLL FREE NUMBER is available to clients outside the Denver metro area.

web site http://www.bewellnet.com/louise/

[email protected]