How to Remove a Mechanics' Lien in Colorado: A Homeowner’s Step-by-Step Guide
A mechanics' lien is one of the most disruptive events a Colorado homeowner can face. The document itself is simple—usually a few pages recorded with the county clerk—but the consequences are immediate and tangible. A lien can stall a refinance, derail a home sale, freeze equity, create public records suggesting a legal dispute, and even open the door to a foreclosure action if left unchallenged.
Homeowners often first encounter liens in the context of a broader conflict: incomplete work, suspected overbilling, abandonment, unpermitted construction, or a contractor who refuses to correct defects. For this reason, removing a lien from title is rarely just a paperwork exercise. It is part of a larger strategy to protect the home, unwind a dispute, and hold a contractor accountable.
If you’re unfamiliar with the fundamentals of lien law, you may want to begin with Understanding Mechanics Liens in Colorado: A Homeowner’s Guide and then return here once you have the larger context.
Step One: Determine Whether the Lien Is Legally Valid
The first step in removing a mechanic’s lien is to determine whether the lien ever had legal force in the first place. Colorado’s lien statute, C.R.S. § 38-22-101 et seq., is rigid in its requirements. Many liens fail because the contractor did not comply with strict recording deadlines, misstated the property description, inflated the amount claimed, failed to verify the lien under oath, or never had lien rights to begin with.
Timing is often decisive. Colorado requires lien claimants to record their lien within a short, statutory window tied to the last date they furnished labor or materials. A late lien is unenforceable as a matter of law. Our article How Long Does a Contractor Have to File a Mechanic’s Lien? explains these timing requirements in depth.
Likewise, liens filed by contractors who abandoned the job, left work incomplete, or failed to obtain required permits often collapse once the facts are examined. Those issues are explored in Can a Contractor File a Mechanic’s Lien After Abandoning the Job? and What to Do When a Contractor Files a Lien for Incomplete Work.
Many homeowners are relieved to discover that the lien clouding title was never enforceable—making removal much simpler.
Step Two: Request a Voluntary Release (When Appropriate)
When the lien is clearly invalid—or when the underlying dispute is modest—some homeowners choose to request a voluntary release. This strategy works best when the contractor made an honest mistake or when the relationship has not fully deteriorated.
In practice, however, voluntary releases are the exception rather than the rule. Contractors who file liens often do so as a pressure tactic or because they believe the lien gives them leverage. Those situations, discussed in Fraudulent or Retaliatory Mechanic’s Liens in Colorado, rarely resolve through casual negotiation.
If the contractor refuses to release the lien voluntarily, homeowners must move to the next step.
Step Three: Use Colorado’s Bonding Procedure to Clear Title Quickly
When a home sale or refinance is approaching—or when the homeowner needs immediate clarity on title—Colorado law allows the homeowner to bond around the mechanic’s lien. This procedure removes the lien from the property and transfers the dispute to a surety bond held by the court.
Once the bond is posted and approved, the lien no longer clouds the property. Title companies will generally proceed with closing, and the contractor cannot foreclose on the home. The contractor’s only remaining recourse is to pursue claims against the bond itself, which must still be supported by a valid, enforceable lien.
Homeowners facing urgent deadlines may want to review How Colorado Property Owners Can Bond Around a Mechanic’s Lien for a deeper explanation of this process. Bonding around a lien does not resolve the underlying dispute—but it buys time and removes the immediate threat to the home.
Step Four: Challenge the Lien in Court (If Necessary)
If the contractor refuses to release the lien and bonding is not the preferred approach, homeowners may seek judicial relief. Colorado courts may invalidate liens for many reasons, including improper verification, lack of substantial performance, unlicensed work, failure to obtain permits, inflated amounts, abandonment, or untimely recording.
A petition to declare the lien invalid is often paired with claims for breach of contract, defective workmanship, or slander of title. Contractors who knowingly file false or excessive liens may be liable for damages under Colorado law.
Court action is also appropriate when the contractor has filed a lien in retaliation for legitimate homeowner complaints, a pattern analyzed in Fraudulent or Retaliatory Mechanic’s Liens in Colorado.
A successful court challenge results not only in lien removal but often in attorney-fee awards against the contractor who recorded the wrongful lien.
Step Five: Allow the Lien to Expire (In Limited Circumstances)
Colorado mechanic’s liens do not last indefinitely. After recording the lien, the contractor must commence a lien foreclosure action within a specific statutory period—typically six months after the last labor or completion of the project—and must record a lis pendens (notice of commencement of action) with the county clerk.
If the contractor misses these steps, the lien expires by operation of law. However, expiration does not automatically remove the lien from the public record. Even an unenforceable lien may continue to cloud title until it is formally released or otherwise cleared.
Because expiration analysis is fact-intensive and the homeowner may still need to take affirmative steps to remove the recorded document, this approach is best handled with legal guidance.
Step Six: Address the Larger Dispute Behind the Lien
Removing a lien is only one part of restoring a homeowner’s position. Most liens arise from deeper problems: defective construction, incomplete work, abandonment, billing fraud, or contract violations. The lien is only the symptom. The underlying dispute often involves claims for:
breach of contract,
negligent construction,
violations of building codes and permitting laws, and
misrepresentations or consumer-protection violations.
Articles such as Can an Unlicensed or Non-Permitted Contractor File a Mechanic’s Lien? and Mechanic’s Liens for Overbilling or Inflated Invoices are valuable companion pieces to help homeowners understand how these issues shape lien-defense strategy.
The most successful outcomes come from addressing the lien and the underlying construction problems together.
When Removing a Lien Requires Legal Representation
A mechanic’s lien is not simply a formality—it is an attempt to convert a private billing dispute into a claim against your home. Contractors who misuse the lien process frequently demonstrate the same disregard for building codes, safety standards, and contractual obligations throughout the project.
An experienced Colorado construction attorney can evaluate whether the lien is enforceable, guide the homeowner through bonding or judicial removal, and position the homeowner to assert their own claims. In many cases, a wrongful lien becomes the pivot point that allows the homeowner to resolve the entire dispute on favorable terms.
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.