got a lien question

[Patronus]

So I have a commercial client who hasn't paid me since Nov. of last year. We met after I sent a letter of intent. We came to an agreement to be paid by March 15th. My question is, on March 16th if Im not paid, who do I file the lien on? The "registered agent"? Being a business, Im not quite sure. Thanks...

[last426]

Why do you believe you can lien anything?  Letter of intent to do what?  Normally people sue and win before liens come into play.  Kim

[Vainglory, Esq.]

Mechanic's lien?

You're being very incomplete in your information here.  To start with, what's your trade and what state do you live in?

[Patronus]

Im a general contractor/builder in Colorado. It was my understanding that I pursue a lien on the property in question as to secure that property from being sold or altered prior to my payment. Also, the letter of intent was to inform the client of the past due amount and to try to handle the matter out of small claims court.

[last426]

Im a general contractor/builder in Colorado. It was my understanding that I pursue a lien on the property in question as to secure that property from being sold or altered prior to my payment. Also, the letter of intent was to inform the client of the past due amount and to try to handle the matter out of small claims court.

I have dealt with several stop notices and construction liens in California and can't really give Colorado advice as I am not licensed there.  That being said, at least in California, a lien does not prevent the sale of property -- when suit is filed a lis pendens attaches to the property (telling buyers there is a legal case going on) and most buyers will not buy a law suit.  In my cases, since they were multimillion dollar things, we had the owner and/or general contractor bond around the lien.  Or I would convince the other attorney that my client would not release any funds until all subs were paid.  This doesn't really apply in your situation.

I do know that lien statutes are very rule oriented.  You have to follow them exactly or else your claim for the lien will fail (you still might be able to sue). My best advice is to have an hour consultation with a construction lawyer and have them tell you the precise procedures in Colorado.  To find a good attorney talk to any professional groups you may belong to, friends in the business, or call the Bar.  Perhaps Vainglory has some advice.  Good luck, Kim. 

[Patronus]

...hence the letter of intent. Thanks for your help though. 

[RECHRGD]

In my experience (electrical contracting), you have to file a lien within 30 or 60 days of completion of the work or your SOL.  If there is anything left to do or punch list items, go back and do them, then file the lien.  Bob

[Vainglory, Esq.]

Im a general contractor/builder in Colorado. It was my understanding that I pursue a lien on the property in question as to secure that property from being sold or altered prior to my payment. Also, the letter of intent was to inform the client of the past due amount and to try to handle the matter out of small claims court.

I have dealt with several stop notices and construction liens in California and can't really give Colorado advice as I am not licensed there.  That being said, at least in California, a lien does not prevent the sale of property -- when suit is filed a lis pendens attaches to the property (telling buyers there is a legal case going on) and most buyers will not buy a law suit.  In my cases, since they were multimillion dollar things, we had the owner and/or general contractor bond around the lien.  Or I would convince the other attorney that my client would not release any funds until all subs were paid.  This doesn't really apply in your situation.

I do know that lien statutes are very rule oriented.  You have to follow them exactly or else your claim for the lien will fail (you still might be able to sue). My best advice is to have an hour consultation with a construction lawyer and have them tell you the precise procedures in Colorado.  To find a good attorney talk to any professional groups you may belong to, friends in the business, or call the Bar.  Perhaps Vainglory has some advice.  Good luck, Kim. 

This is about the extent of the advice that I could give.  I'm also licensed in California, but not Colorado, and this type of thing is not my specialty.  I'd look into the rules, as stated here, because my understanding of this process is that liens are often precluded unless you follow certain strict steps and deadlines.

I'm not sure how much money you have into the work, but if it is significant, you could be well-served by spending a couple hundred bucks for a quick consultation with a lawyer who specializes in building trades/construction law/creditors' remedies.

[tatrick2me]

So I have a commercial client who hasn't paid me since Nov. of last year. We met after I sent a letter of intent. We came to an agreement to be paid by March 15th. My question is, on March 16th if Im not paid, who do I file the lien on? The "registered agent"? Being a business, Im not quite sure. Thanks...

You file against the vehicle

[skip68]

Writ of execution of real property.  ?.  ?

[dstryr]

I believe at the beginning of a project in CO, a letter of intent to file needs to be sent to the owner, general, and maybe bonding co.  After non-payment, next step is to file the lien.  Foreclosure on the lien will prompt payment or a sale of the asset to prompt payment.  Foreclosing would stop a sale.  The question is, has your time frame for filing and foreclosing lapsed?  If so, your recourse might only be to sue for payment based on breach of contract if the other party does not perform based on the March 15th agreement.  You have it in writing, right?  Been a few years since I was in CO...