What is a spurious lien and what can you do about one?

A mechanic’s lien is a legal document that protects a person’s right to seek payment from a person who contracted with that person to do a job. Most liens are legitimate, but a lien is spurious when a person files a lien without legal grounds.

What can you do if someone files a spurious lien on your property?

What is a spurious lien?

Colorado law defines a spurious lien as a lien that is not provided for by statute, imposed by a court order or judgment or agreed to by the property owner. Because the state does not verify whether a lien is accurate or valid, a spurious lien may appear on a title search for a property even if there is no factual basis for it.

What can I do about a spurious lien?

First, verify that the lien exists by performing a records search on the Colorado Secretary of State site or ask the recorder and county clerk in the county where your property is. If the lien exists, file a UCC Information Statement. This statement notifies anyone searching the title that you are disputing the lien. You can then file a petition with the court to have the lien removed from the property. If the judge finds in your favor, the party who filed the lien may have to pay your court costs.

The intent of mechanic’s liens is to protect contractors and subcontractors against contractors or property owners who refuse to pay for work completed. However, the law requires that liens must have a valid purpose for the practice to be legal.