Real estate liens are a legal claim against a property for unpaid debts or obligations. If you are planning to buy or sell real estate in Colorado, it’s essential to understand how liens can impact the transaction. In this blog post, we’ll discuss real estate liens and how they can affect buying and selling property in Colorado. We’ll also explain how the agents at Grail Capital can help with any challenging real estate situations.

What is a Real Estate Lien?

A real estate lien is a legal claim against a property, and it can be a significant hurdle for buyers and sellers alike. Liens can be placed on a property for a variety of reasons, including unpaid taxes, unpaid mortgages, unpaid contractors, or unpaid homeowners’ association fees. If a property has a lien, it means that the owner has not fulfilled their financial obligations, and the lienholder has the right to claim a portion of the property’s value.

For buyers, a property with a lien can be a risky investment. If the lienholder is not satisfied, they may be able to foreclose on the property, leaving the buyer with nothing. It’s important to do your due diligence and investigate any liens on a property before making an offer.

For sellers, a lien can make it difficult to sell a property. Buyers may be hesitant to purchase a property with a lien, and even if they are willing, the process of resolving the lien can be time-consuming and costly. Our team of agents at Grail Capital can help you to navigate the process of resolving them.

How Do Liens Affect Buying and Selling Real Estate?

Liens can have a significant impact on buying and selling real estate. If you are buying a property with a lien, you may be responsible for paying off the lien before you can take ownership of the property. This can be a significant financial burden, and it’s essential to do your due diligence and research any liens on a property before you make an offer.

If you are selling a property with a lien, the lienholder has a legal right to collect the amount owed from the sale proceeds. This means that the amount left over for the seller can be significantly reduced, and it may be difficult to sell the property for the desired price.

How Can Grail Capital Help?

Our agents here at Grail Capital are experienced in dealing with real estate liens and can help you navigate any difficult real estate situations. Here are some ways that we can help:

1. Research Liens: Our agents can research any liens on a property before you make an offer. This will help you understand any financial obligations associated with the property and make an informed decision. We can also help you understand the type of lien on the property and its priority, which is essential information when negotiating the sale of the property.

2. Negotiate Liens: If you’re dealing with a lien on a property you own or are interested in purchasing, our agents can negotiate with lienholders to reduce the amount owed or set up a payment plan. This can help you sell a property for the desired price or reduce the financial burden of buying a property. Our agents have experience in handling liens related to property tax, mechanic’s liens, and other types of liens.

3. Provide Legal Support: Our real estate agents can connect you with legal support to help you navigate any legal issues associated with real estate liens. We have a network of trusted attorneys who specialize in real estate law and can help you understand your options and rights.

4. Offer Creative Solutions: Our agents can offer creative solutions to help you buy or sell real estate with liens. This may include rent-to-own agreements, seller financing, or other alternative financing options. We can work with you to find a solution that meets your needs and helps you achieve your real estate goals.

At Grail Capital, we understand that dealing with real estate liens can be a complex and stressful process. That’s why our agents are dedicated to providing you with the support and guidance you need to navigate any difficult real estate situation. Contact us today to learn more about how we can help you handle real estate liens and achieve your real estate goals in Colorado.

The Bottom Line on Real Estate Liens

Real estate liens can have a significant impact on buying and selling property in Colorado. It’s essential to understand how liens work and to do your due diligence before making any real estate transactions. The agents at Grail Capital are experienced in dealing with real estate liens and can help you navigate any challenging real estate situations. Contact us today to learn more about how we can help you achieve your real estate goals. 970-682-3306

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The Colorado lien deadlines worth knowing, by statute

Mechanic’s liens: two months or four, and not by who hired whom

Almost every article on this subject says Colorado gives subcontractors one deadline and general contractors another. It does not. The split in C.R.S. 38-22-109 is between day and piece laborers and everybody else:

Two months after completion of the building or improvement, for a claimant who performed labor by the day or piece without furnishing materials (C.R.S. 38-22-109(4)).
Four months after that claimant’s last labor, or last materials furnished, for “all other lien claimants” (C.R.S. 38-22-109(5)). Generals, subcontractors and material suppliers are all in this group, on the same deadline.

Two more requirements that defeat a lot of liens:

The ten-day notice of intent. Before filing the lien statement, the claimant must serve a notice of intent to file on the owner or reputed owner and on the principal contractor, personally or by registered or certified mail with return receipt, at least ten days before filing, and must record an affidavit of that service with the lien statement (C.R.S. 38-22-109(3)). It is a condition precedent.
The extension notice. Within the two- or four-month period a claimant may record a notice extending the lien-statement deadline to the earlier of four months after completion or six months after the notice is filed. That notice “shall automatically terminate six months after the date said notice is filed” (C.R.S. 38-22-109(10)), and once the work agreement ends the owner may demand its termination (38-22-109(11)).

Six months to sue, and to record that you did

C.R.S. 38-22-110: no lien holds the property longer than six months after the last labor or materials, or after completion of the improvement, “unless an action has been commenced within that time to enforce the same,” and unless a notice stating that such action has been commenced is recorded with the county clerk and recorder within the same period.

Both. A lawsuit with no recorded notice does not preserve the lien, and a recorded notice with no lawsuit does not either. Where several liens are recorded, one claimant’s action and notice suffice if all lien claimants of record are named as parties.

The rule that protects buyers of houses

This one is specific to residential resale and most consumer pages miss it. C.R.S. 38-22-125: against a bona fide purchaser of single- or double-family dwelling property, a lien is not enforceable if it was filed for record more than two months after completion of the building or improvement, unless one of three things is true:

the purchaser had actual knowledge at conveyance that the amounts due remained unpaid;
the lien statement was recorded before the conveyance; or
a notice under 38-22-109(10) was filed within one month after completion or before the conveyance, whichever is later.

If the dwelling was not completed before conveyance, it is deemed complete on conveyance and occupancy. Laborers’ and mechanics’ liens under 38-22-108(1)(a) are carved out, and liens for labor or materials furnished later are still governed by the ordinary deadlines.

HOA assessments prime your mortgage, for six months

C.R.S. 38-33.3-316(1)(a) gives an association a statutory lien on a unit for any assessment levied against it. Fines, fees, late charges and interest may be subject to the lien but are not foreclosable under the article.

Priority under 38-33.3-316(2): the lien is prior to all other liens and encumbrances except liens recorded before the declaration, a first security interest recorded before the assessment became delinquent, and real estate tax liens and other governmental charges. And then the super-lien: it is also prior to that first security interest to the extent of the common expense assessments, based on the association’s periodic budget, that would have become due without acceleration during the six months immediately preceding the institution of a foreclosure by the association or by any holder of a senior security interest.

Two more that matter at closing. The lien is extinguished unless enforcement proceedings are instituted within six years after the amount becomes due (38-33.3-316(5)). And an association that fails to furnish a requested statement of unpaid assessments within 14 calendar days has no right to assert a lien for assessments due as of the date of the request, which is why the status letter gets ordered early.

Colorado also added real preconditions to HOA foreclosure. Under 38-33.3-316(11) the secured balance must equal or exceed six months of common expense assessments, and the board must authorize the action against the specific unit by a recorded vote, a non-delegable duty, with an action filed without evidence of the vote subject to dismissal.

Property tax liens, and the process that changed in 2024

The general tax lien attaches at 12 noon on the assessment date, January 1, and is “a perpetual lien” with “priority over all other liens” until paid (C.R.S. 39-1-107(2), 39-1-105). Taxes are due January 1 of the following year and delinquent June 16 (39-10-102(1)(b)(I)); two installments are allowed, by the last day of February and June 15, paying in full by the last day of April avoids delinquent interest, and delinquent interest runs at 1% a month (39-10-104.5). The treasurer mails the delinquency notice no later than September 1 and holds the lien sale at least 15 days after mailing (39-11-101), which in practice means autumn. Redemption is available to the owner, an agent or assignee, anyone with a legal or equitable claim, or a certificate holder, at any time before a treasurer’s deed is executed (39-12-103), at nine percentage points above the discount rate, rounded, set each September 1 and effective October 1 of that year. For 2026 that rate is 13%.

What changed: HB24-1056, effective July 1, 2024, stopped treasurers from issuing deeds under Article 11 and created a new Article 11.5 of Title 39. At least three years after the tax lien sale, the certificate holder applies for a public auction of a “certificate of option for treasurer’s deed” (C.R.S. 39-11.5-102(1)). The treasurer orders title work, notices known interested parties, and holds the auction 110 to 125 calendar days after first publication (39-11.5-105). The opening bid is the holder’s redemption amount plus the treasurer’s fees and costs, and the certificate goes to the highest bidder. Any overbid goes first to junior lienholders who filed notices of intent to redeem, in recording priority order, and the remainder to the property owner (39-11.5-106).

That last sentence is the reason the statute exists. It came out of the U.S. Supreme Court’s decision in Tyler v. Hennepin County on an owner’s right to surplus equity above the tax debt. If you are reading an article written before mid-2024, or a statute site still showing the old C.R.S. 39-11-120 text, it describes a process that no longer applies.

Statutes cited above are current through the 2026 Colorado legislative session. Figures that move on a schedule should be confirmed for your year. This is general information about Colorado law, not legal advice — have a Colorado attorney or title professional review anything you intend to rely on.

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We buy houses with liens, judgments and title problems across the Front Range, including Englewood, Wheat Ridge and Golden. See every Colorado city we buy in.

Written by Luke Angerhofer, founder of Grail Capital and an active Colorado employing real estate broker (licence ER 100018905, issued 2007). Luke began his career as a licensed Colorado real estate appraiser and has been buying houses directly from Front Range homeowners since founding Grail Capital in 2016. Grail Capital buys across Northern Colorado and the Denver metro. This article is general information about Colorado real estate and is not legal, tax or financial advice. More about Luke and Grail Capital.