Colorado Lien: A Complete Guide to Liens in the State

A lien is a legal claim usually filed by a creditor against a debtor’s property because of unpaid debts or obligations. Once recorded, a lien provides the creditor with a security interest in the property, restricting the owner’s ability to sell, refinance, or transfer it until the debt is resolved. It is important for property owners and buyers in Colorado to understand the state’s specific laws on liens.

What Is a Lien in Colorado?

Under Title 38 of the Colorado Revised Statutes, a lien gives creditors a valid assertion or security interest in a debtor’s property for the payment of their debts. Liens may be attached to real property (homes, land, commercial buildings) or personal property (vehicles, equipment, or other assets). Once filed, liens are classified as part of the public record.

A lien may delay or block the refinancing and sales of a property, so it is important for buyers to conduct a lien search before closing. In general, liens are one of the enforcement tools that a creditor may use to secure repayment.

Types of Liens in Colorado

There are several types of liens that are available to creditors in Colorado. A short list is outlined below:

1. Property Tax Liens - If a debtor refuses to pay the property taxes on their Colorado home, the county treasurer may hold a tax lien sale on such property.
2. Mechanic’s Liens - These are security interests filed by contractors, subcontractors, suppliers, or other professionals for unpaid labor or materials.
3. Judgment Lien - This is a lien created when a court issues a judgment in favor of the creditor when a debtor is unable to pay their funds. The lien is recorded with the county clerks and recorders.
4. Mortgage Liens - Colorado laws allow mortgage liens to be attached to property that is financed through a mortgage loan. The lien remains in place until the loan is paid in full and may be extended without the written agreement of the property owner.
5. Federal or State Tax Liens - These are filed by the Internal Revenue Service or the Colorado Department of Revenue against an individual’s property for unpaid taxes. The lien may be attached to real or personal property of an individual.
6. HOA or Municipal Liens - These are filed by homeowners’ associations for unpaid dues and by cities for unpaid utilities, code violations, or special fees.
7. Child Support Liens - These are liens granted by the courts for failure to pay child support.
8. Hospital Liens - These are liens filed by hospitals in the courts for unpaid medical bills of a victim who was injured by an offender.
9. Restitution Liens - If an offender fails to pay a court-ordered restitution to their victims, the court may place a restitution lien on their property.

How to Search for Liens in Colorado

In Colorado, a typical lien document includes the name of the lienholder, the amount of debt, the filing date, and a detailed property description. According to the Colorado Open Records Act, lien records are public and accessible to interested individuals through multiple sources, including:

• County Clerk and Recorder’s Offices: Individuals may access liens in Colorado from each county clerk and recorder’s office. They may search for the liens through the property owner’s name, legal description, or parcel number.
• Online County Databases: Many counties, including Denver, Jefferson, and Arapahoe, provide search tools that allow record seekers to view liens.
• Colorado Courts: Individuals may request judgment liens through the Colorado Judicial Branch’s case search system or visit the court clerk’s office in person.

Lien Records in Major Colorado Cities

Individuals may access certified copies or detailed reports of lien records in every county office for a fee. Lien searches in Colorado vary by county and are accessible to the public in major cities through local clerk and recorder’s offices:

• Denver (Denver County): The Denver Clerk and Recorder offers an online system where individuals may search for recorded documents, including liens.
• Colorado Springs (El Paso County): El Paso County provides online access to lien and property records.
• Aurora (Arapahoe and Adams Counties): Searches can be conducted through the respective county recorder’s offices.
• Fort Collins (Larimer County): The Larimer County Clerk and Recorder manages lien records with in-person and online access.
• Boulder (Boulder County): Lien searches are available through the Boulder County Recording Division.

How Long Does a Lien Stay on Property in Colorado?

In Colorado, the duration of the lien varies from six to 20 years, depending on the lien type:

• Property Tax Liens: It remains active until redeemed (three years) or the tax lien certificate is foreclosed.
• Mechanic’s Liens: They must be enforced within six months of project completion, or they expire.
• Judgment Liens: This lien is valid for six years with the possibility of renewal.
• Mortgage Liens: They last until the loan is fully paid and the lender records a release.
• Tax Liens (IRS/State): Federal liens generally last for 10 years and are subject to renewal.

How to Remove a Lien in Colorado

Removing a lien in Colorado is proof that an individual (debtor) has satisfied the lien’s conditions and repaid their debt entirely. The main methods include:

• Full Payment: Payment of a debt in full requires the lienholder to issue a lien release.
• Negotiated Settlement: Creditors may accept partial payments or structured plans from their debtors, after which a release is filed.
• Court Petition: If the lien is invalid or improperly filed, property owners may request court removal of the lien.
• Recording a Release or Satisfaction: The lienholder must provide an official release, which must then be recorded with the county.

Liens in Colorado are an important legal mechanism that ensures creditors recover their funds from their debtors. Individuals should consult their county recorder, a title company, or an attorney to inquire about the lien laws in the state. In Colorado, it is vital for the public to understand the types of liens, how to search for them, their duration, and the removal process.