Spurious Liens and Other Title Issues

As a property owner, the security and marketability of your real estate are important, yet these can be threatened by unexpected liens in your title. Missteps in addressing these issues can lead to stalled transactions, diminished property value, and legal battles. Consulting with a lawyer can provide the guidance needed to protect your assets and ensure a clear title.

Colorado lien laws demands an understanding of the difference between spurious liens and mechanics' liens. At GLO, we specialize in simplifying title issues, offering legal advice to overcome challenges, protect your property interests, and efficiently clear your title.

What Are Spurious Liens

A spurious lien or document in Colorado is defined under section 38-35-201(4)(a) of the Colorado Revised Statutes as a recorded instrument that is false, fraudulent, invalid, or that lacks a legal basis. Essentially, it's a baseless or improper claim filed against your property title, often with the intent to harass, defraud, or improperly encumber your asset. The legislature specifically created a specialized and expedited judicial process, the "order to show cause", to allow property owners to swiftly challenge and remove these types of damaging filings from their property records.

Spurious Liens VS Mechanics' Liens

A spurious lien is a false or groundless document designed to improperly cloud a title. The legislature, recognizing the malicious nature of such filings, has provided an expedited judicial remedy: the "order to show cause" process. This allows a property owner to bring the matter before a court, forcing the party who recorded the spurious document to prove its legitimacy or face its immediate removal and potential liability for the property owner's legal fees and damages. An experienced attorney can help you in initiate this process and effectively argue for the removal of the spurious document.

Conversely, a mechanics' lien, even if ultimately found to be invalid, is not considered spurious under Colorado law. This is a point that homeowners frequently misunderstand. The mechanics' lien statute provides contractors and tradespeople with a legitimate, statutorily defined tool to secure payment for work performed. While its validity hinges on strict adherence to specific timelines, notice requirements, and filing procedures, an improper mechanics' lien does not qualify for the expedited "order to show cause" process. Attempting to treat an improperly filed mechanics' lien as spurious will result in a failed legal challenge, wasted resources, and prolonged title issues. Consulting with a lawyer to help you distinguish the differences between a fraudulent "spurious lien" and a potentially valid "mechanics' lien."

Challenging an Improper Mechanics' Lien

Since an improper mechanics' lien cannot be challenged via the spurious lien statute's expedited process, property owners must pursue different avenues to clear their title. This typically involves challenging the mechanics' lien on its merits or on procedural grounds. Challenging an improper mechanics' lien requires a detailed understanding of the General Mechanics' Lien statute itself. This involves scrutinizing filing deadlines, verifying proper notice of intent to lien, assessing the accuracy of the lien amount, and ensuring the property description is adequate. Each of these elements presents a potential avenue for challenging the lien's validity. An attorney can review the facts of your case against the stringent statutory requirements, identify any procedural missteps or inaccuracies, and build a compelling argument for the lien's invalidation. Read our blog, Lawful Lienor?: How to Protect Your Property After Receiving a Notice of Intent to Lien for more information. They can also advise on alternatives like "bonding over" the lien, which allows property transactions to proceed while the dispute is resolved, a strategic maneuver often unknown to unrepresented individuals. For more information, visit Mechanics Lien Release Bonds: Clearing Your Property Title in Colorado.

How GLO Can Help

The stakes in title disputes are inherently high. An unresolved lien, whether spurious or a defective mechanics' lien, can halt the sale or refinancing of your property, complicate estate planning, and even lead to foreclosure. The legal procedures involved are highly technical, requiring not only a deep knowledge of the relevant statutes and case law but also a keen understanding of court rules and strategic litigation.

At GLO, we provide the expertise to draft precise legal pleadings, present evidence effectively, conduct cross-examinations, and argue complex legal points before a judge. We are also adept at negotiation, often resolving disputes before they escalate to full-blown litigation, saving clients time, stress, and expense. We offer the peace of mind and strategic advantage necessary to navigate these complex legal waters, ensuring your property rights are protected and your title is clear. Visit Mechanic’s Liens in Colorado for more information.

Contact GLO today to resolve title disputes with confidence—through strategic litigation, skilled negotiation, and expert protection of your property rights.