Bradford Publishing Blog | Colorado Law Articles & Topics

What is a mechanics’ lien?

Colorado law provides a powerful tool for contractors, subcontractors, suppliers and others involved with construction or repair of improvements on real property, to collect money owed to them – a mechanics’ lien. In most circumstances, if you provided labor, materials, equipment, or services for a construction project and you haven’t been paid, you are entitled to a lien on the project and the related real property.

A mechanics’ lien is a security interest, much like a mortgage or a deed of trust, on real property (land) and any construction or improvements on the real property. Like a deed of trust, a mechanics’ lien is paid out of the proceeds of the sale of the real property against which the lien has been filed.

Although it says it is for a mechanic, it is not for use by an auto mechanic who has not been paid for work on a vehicle. Mechanics’ liens can be attached to undeveloped land, existing structures, partially or fully completed new construction projects, and commercial or residential projects.

Who can file a mechanics’ lien?

Lumberjack Lumber Company provided the decking materials for a new apartment complex but didn’t get paid by the subcontractor who ordered the materials to build the decks. The subcontractor who was hired to do all the bathroom tile work didn’t get paid by Premier Construction Management Company who is responsible for the entire project. A-1 Landscaping Company planted 20 new trees at the entrance to the local golf course, but hasn’t been paid. In each of these examples the companies or individuals who provided the materials or did the work and didn’t get paid have a right to file a mechanics’ lien to collect what they are owed.

Does it work?

If you follow precisely all the rules and requirements of the Colorado statutes, your mechanics’ lien will give you a security interest in the construction project and the real property, and will require the owner, developer or general contractor to pay the amounts you are owed. You must, however, follow the laws exactly, and you may have to file a lawsuit.

Bradford Publishing’s helpful booklet “Know Your Mechanic’s Lien Rights: A Guide to Colorado Law,” will give you an overview of the legal process, and provide guidance and instructions about basic mechanics’ lien procedures and forms.

Homeowners often wonder what their monthly HOA dues or fees pay for. You might think your HOA fees are too high. The official name for HOA dues is “common interest community assessments,” and before you object to neighborhood or condo fees, learn how HOA boards set dues, see what goes into the HOA budget, and – if necessary – find out how you can fight an increase.

Colorado law says dues or “assessments” must be based on a budget “adopted no less frequently” than once a year. Your HOA or common interest community association must prepare and adopt a budget before charging dues.

An HOA budget usually includes the following expenses: administrative costs (including legal advice, accounting, office supplies and postage); utilities (water, electricity, and natural gas); and maintenance (including landscaping, pool, gutter, and elevator maintenance). It may also include contributions to reserve accounts.  Reserve accounts are special pots of money to pay for big expenses, such as a new roof or asphalt paving. Continue reading “Home Owners Association (HOA) Dues 101” »

Many couples wonder about the difference between simply living together and entering into a common law or “common-law” marriage. Common law marriage takes place when you don’t get a license or go through a recognized ceremony, but live together as if married. You are also public that your relationship is that of husband and wife.

Sounds complicated? Here’s some clarification.

In Colorado, you are common law married if:

1.    You live together (“cohabit”) in Colorado or in another state that recognizes common law marriage while “holding yourselves out” as married. (It doesn’t matter for how long. You act as though you are married, with the intention of being (not getting) married. For instance, you introduce each other as wife and husband, use the same last name, hold joint bank or mortgage accounts or file married/joint income tax returns; and

2.    Neither of you is married to someone else during this time, either by a marriage license and a ceremony (called a statutory marriage) or by common law; and

3.    Both of you are at least 18 years old.  A common law marriage entered into before September 1, 2006, has no age requirement.

Engaged and living together?
If you introduce each other as fiancées, partners, or some other term other than “husband”, “wife”, or “spouse”, and talk about getting married some day, or never talk about it, then you are not common law married no matter how long you live together.

Common law divorce?
Although the state of Colorado recognizes common law marriage, the state does not provide for common law divorce. If you are common law married and you want a divorce or legal separation, you can only obtain it from the court.

For more information about dissolving a common law marriage, check out the “Friendly Divorce Guidebook for Colorado” by M. Arden Hauer, MA, JD

If you’ve read Parts I and II of, “Which One Do I Choose,” you may have decided whether a quitclaim or warranty deed is best for you. Now it’s time to decide which deed to use based on ownership of the property.

How will the property be owned?

The person(s) buying or receiving title to the property is called the grantee. To select a Colorado deed, you need to know how the grantee(s) will own the property after it is bought or acquired. Different forms are used depending on whether the grantee will be an individual, tenant in common, or joint tenant.

What are the different ways to own real property? And why does the deed  matter when you die?

In Colorado, a person can own property in one of three ways:
•    Individual. One person owns the property. As the sole owner, you can list your property in your will. If there is no will, your property will be distributed according to the probate laws of Colorado when you die.
•    Joint tenants (with right of survivorship). This type of ownership can exist between two or more people. This is most common between a husband and wife, but could be multiple owners, like three sisters, or perhaps five friends who own a cabin together. If one owner dies, the other owners listed on the deed automatically inherit the share of the person who died. Continue reading “So Many Deeds. Which One Do I Choose? (Part III)” »

Check your governing documents, see the paperwork, and be nice to board members.

Almost all community associations regularly assess their members—usually monthly—for the budgeted expenses of operating the association and maintaining any common property. Occasionally, associations also levy what is called a “special assessment.”

What is a “special assessment”?

As the name suggests, a special assessment is out of the ordinary and is levied for an unbudgeted expense. The money goes to either fund a particular project or meet a budget shortfall. Special assessments can be in the thousands of dollars and generate considerable community controversy.

Colorado law sets no specific limitations on the governing board’s ability to levy special assessments. However, the governing documents often incorporate restrictions on special assessments. These restrictions may limit the purposes for which a special assessment may be levied and may also prescribe procedures for levying the assessment including that any assessment be approved by a vote—sometimes a super-majority vote—of the association members.

Step 1: Learn the Rules Continue reading “How to Understand and Challenge Special Assessments in Colorado” »

Not all cases, and not all Coloradans, are a good fit for limited scope representation (a.k.a. unbundled legal services).  Before choosing between limited scope or full representation, consider your personality type and knowledge base as well as the type of case you need settled.

Can you handle the truth?

Well, not necessarily the truth—but can you handle the work? For example, how familiar with the legal process are you? Do you have the time and inclination to fill out paperwork, gather financial information and follow through?

As a limited representation client, you will need to do at least some (or the majority) of the legwork in your case, depending on what services you purchase from your attorney. Good candidates are those that have been through the legal process before (i.e. a prior divorce or custody battle), strong analytical skills, familiarity with how the law works, good follow-through skills and the time to move paperwork through the system.

If there’s an opposing party, who are you up against?

In some cases, you may use unbundled services to perform simple tasks, like writing a will or acting as an executor.  But, other times, you may have a legal “foe.” Continue reading “Is Your Case Right for Limited Scope Representation?” »

The title to real property may be changed by using a legal form called a deed. But which deed is right for you—a quitclaim deed or a warranty deed?

What does a warranty deed do?

Warranty deeds are different from quitclaim deeds in that the seller “warrants” or guarantees that he or she actually has a claim on the property and that the title is free of anything that could cause problems with the ownership of the property. The warranty deeds from Bradford Publishing include a phrase that says that the title is “free and clear from all former and other grants, bargains, sales, liens, taxes, assessments, encumbrances and restrictions of whatever kind or nature soever.” Because of this warranty, a seller who signs this warranty deed can be held legally responsible for any title problems.

Despite this, most properties have a few restrictions that will be passed along with the title to the new owners and listed on the deed. These might be taxes that will still be charged after the sale, covenants, and any easements. Exceptions like these usually won’t cause any problems with the sale and can be found on the title insurance policy or title commitment.

Different types of warranty deeds give different protection.

There are two different types of warranty deeds: general and special. Continue reading “So Many Deeds. Which One Do I Choose? (Part II)” »

You know why it’s important to have a will, you know what will happen should you die without a will, and you’ve decided whether or not to hire a lawyer. Now it’s time to write your will. But where do you begin?

Evaluating your estate

Start by evaluating your estate. The first step in writing a will is to figure out what your estate consists of. Having a list of everything important you own will make it easier to decide what needs to be addressed in your will. If you are working with a lawyer for estate planning, this list will save you time and money.

What should I include on my list?

This is a list of items typically included in estate planning. You may not have all of these and you could have items that are not included here. Remember to write down the value of each item.

•    Life insurance policies, face value (policy amount) and cash values
•    401 (k) plans, retirement funds, IRAs, Keoghs, annuities, etc.
•    Bank Accounts, Savings bonds, CDs
•    Investments—Stock and money market accounts, bonds, mutual funds, etc.
•    Business interests and property Continue reading “Happy New Year!” »

For many landlords, perfect records are an ideal to be aimed for, perhaps not ever achieved. We know how it is. You’re busy; things get lost; and you have a generally good relationship with your tenants. In two previous posts, we talked about keeping property maintenance records, landlord-tenant correspondence, a rent ledger and rental criteria/property showing records.

In this final post on landlord record-keeping, we focused on something that directly affects your bottom line: a record of income and rental tax deductions.

Income and expense records

Even the most laid-back landlords can appreciate the importance of tracking income and expenses–because doing so can help you pay fewer taxes. For best results, track rental income and expenses every month. Don’t wait until the end of the year to do this because you’re likely to forget about small outlays.
Some common landlord rental tax deductions include: Continue reading “Real Estate Record-Keeping for Colorado Landlords<BR>(Part III)” »