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Why You Need Experienced Counsel to Attack Spurious LIENS & Encumbrances on Property

You may discover that there is a cloud on the title to your property because a lien or other encumbrance has been recorded against it. This often comes to light during key transactions or property changes, such as when you attempt to sell or refinance your home and a title search is performed, or after completing a remodel or construction project that involved contractors, permits, or financing. In these situations, unpaid debts, contractor or mechanic’s liens, judgment liens, easements, or other recorded claims may surface, potentially delaying or preventing the transaction until the issue is resolved.

Step 1: Is the document recognized as Valid under law?

When this occurs, the first and most critical step is determining whether the purported lien is a document recognized under applicable state or federal law. The procedure for addressing a lien that is fraudulent on its face is very different from the procedure for challenging a lien that is legally recognized but disputed as to its validity or amount. An experienced attorney understands these distinctions and knows which process applies.

Step 2: what procedure should I use to challenge the lien?

Mechanics’ liens are among the most common encumbrances affecting both residential and commercial property owners. Courts in both Kansas and Colorado have made clear that fraudulent lien statutes are not the proper mechanism for challenging the validity of a mechanics’ lien.[1] Using the wrong procedure can result in dismissal of your claims and, in some cases, court-imposed sanctions.

Step 3: determine whether the lien has been perfected and is timely.

Once the proper legal framework is identified, the next step is determining whether the lien was validly perfected and timely enforced. This analysis often involves whether the contractor complied with strict statutory deadlines—generally recording the lien within 120 days of the last date of work and filing suit to foreclose the lien within six months of that date. These requirements are technical and unforgiving.

Step 4: Follow the proper legal procedures to remove it.

Failure to follow the proper legal procedures can put your property rights at risk and create avoidable problems for you and your legal counsel. Using the wrong approach may result in delays, added costs, or even the loss of certain legal protections. In some cases, courts have gone so far as to sanction attorneys for using improper methods to challenge mechanic’s liens, highlighting the importance of handling these matters correctly from the outset. The attorneys at Volpe Law have the experience necessary to navigate you through disputes regarding encumbrances on your property and have pursued appropriate legal remedies for their clients.

[1] See In re District at City Center, LLC, 462 P.3d 181 (Kan. Ct. App. 2020); Tuscany, LLC v. Western States, 128 P.3d 274 (Colo. App. 2005).