Do I Have to Pay a Contractor Before They Remove a Mechanics' Lien in Colorado?
When a mechanics' lien appears on a Colorado home—often without warning—it creates an immediate sense of pressure. Homeowners imagine the worst: that their home is at risk, that their credit is damaged, that a sale or refinance will collapse unless they surrender to whatever demands the contractor is making. Some contractors lean into that fear. They tell the homeowner that the “only way” to remove the lien is to pay the full amount demanded, even if the charges are disputed, the work is defective, or the project is incomplete.
But a mechanic’s lien is not proof of wrongdoing by the homeowner, nor is it a debt that automatically requires payment. It is a claim—nothing more—and Colorado law places significant limits on when a contractor may enforce that claim. Payment is sometimes part of a resolution, but far less often than most homeowners believe.
Understanding the true legal landscape allows homeowners to respond from a place of clarity rather than fear. If you are just beginning to learn about lien law generally, Understanding Mechanics Liens in Colorado: A Homeowner’s Guide provides helpful background before diving into this more nuanced question.
A Recorded Lien Does Not Mean the Contractor Is Owed Money
One of the most important things a homeowner can understand is that a mechanic’s lien is recorded without any review of whether it is valid. County clerks do not evaluate whether the contractor’s work was complete, lawful, defect-free, or performed under the proper permits or licenses. They do not verify whether the charges are accurate, or whether the contractor materially breached the contract long before payment became an issue.
Because recording a lien is largely a ministerial act, a lien may be invalid from the moment it appears. Contractors file liens when they have not substantially performed, when they have inflated invoices, when they have abandoned the job, and even when their work violates building codes. Many liens collapse as soon as a proper review is conducted.
This is why Colorado law does not require homeowners to pay simply because a lien exists. The lien must be scrutinized—not assumed to be legitimate. Articles such as What to Do When a Contractor Files a Lien for Incomplete Work and What Happens When a Contractor Files a Lien for Defective Work explain how performance problems often defeat lien rights entirely.
Why Payment Is Often the Least Appropriate Option
Payment is sometimes portrayed as the fastest path to removing a lien, but paying a disputed claim can entangle the homeowner in deeper legal difficulties. Once money changes hands, the contractor may argue that the homeowner accepted the work, that the disputes were resolved, or that the payment extinguished claims for defective or incomplete performance. In some cases, paying an invalid lien makes recovering damages significantly harder.
Homeowners are especially vulnerable when the lien is based on inflated invoice amounts. Contractors who pad hours, claim materials never delivered, or bill for unauthorized upgrades often follow those invoices with a lien designed to force payment before the homeowner can investigate. Our article Mechanic’s Liens for Overbilling or Inflated Invoices explains why these liens are frequently unenforceable and why payment under such circumstances is rarely appropriate.
Similarly, liens filed by contractors operating without required trade licenses or permits often fail on their face. A homeowner does not have to pay unlawful charges to remove a lien rooted in illegal activity, as detailed in Can an Unlicensed or Non-Permitted Contractor File a Mechanic’s Lien?.
In each of these situations, paying is not only unnecessary—it can worsen the dispute.
When Payment Might Be Part of a Resolution
There are cases where payment is appropriate, though they are far narrower than lien threats often imply. When the contractor has substantially performed, when the invoice is accurate, when the work passes inspection, and when the dispute is limited to minor punch-list items, a homeowner may choose to resolve the lien through payment accompanied by a signed release. But these circumstances reflect a generally successful project, not the contentious disputes that lead homeowners to search for lien-defense guidance.
Even when payment is contemplated, it should only occur after the homeowner receives a written lien release, confirmation that subcontractors and suppliers have been paid, and clarity about whether the payment resolves all outstanding claims.
Why Bonding Around the Lien Often Makes More Sense Than Paying
Homeowners frequently believe they must pay a contractor to save a pending sale or refinance. Colorado law provides a far more practical option: bonding around the lien. By posting a surety bond with the court, the lien is removed from the property and attached instead to the bond. The home is immediately cleared for sale or refinancing, and the contractor loses the ability to foreclose on the property itself.
Bonding allows the homeowner to continue challenging the lien’s validity without sacrificing the transaction underway. It is a powerful tool for neutralizing a contractor’s leverage without rewarding improper billing or incomplete work. The mechanics of this process are explained in How Colorado Property Owners Can Bond Around a Mechanic’s Lien.
Why Legal Guidance Often Changes Everything
Contractors rely on homeowners not knowing lien rules, not realizing how often liens fail, and not understanding the alternatives to payment. Once a homeowner receives legal advice, the dynamic shifts quickly. An attorney can determine whether the lien is enforceable, whether the contractor has substantially performed, whether the charges are inflated, and whether the underlying work violates building codes or municipal permitting laws. Often, the lien is no more than a pressure tactic—and once challenged, it loses power.
Homeowners who understand their rights are rarely required to pay to clear their title. What initially seems like a crisis becomes manageable once the lien is viewed not as a judgment but as a claim subject to strict statutory scrutiny.
A Mechanic’s Lien Is Not a Pay-to-Remove Demand
The strongest reassurance for homeowners is this: a mechanic’s lien does not force payment. It does not require a homeowner to fund defective work, reward a contractor who abandoned a project, or validate inflated invoices.
A lien is simply one part of a larger dispute—a dispute governed by contract law, building codes, CDARA, and Colorado’s lien statute. Whether payment is appropriate depends entirely on the facts. And in many cases, the homeowner’s best path forward involves challenging the lien, bonding around it, or asserting defects—not paying for work that failed to meet the standards required by law.
The information provided on this website is for general informational purposes only and should not be construed as legal advice or legal opinion. You should not act or refrain from acting on the basis of any information provided on this website without seeking legal advice from an attorney.