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Colorado lien waiver requirements
Colorado lien waivers must include a statement that all third-party debts tied to the work have been paid or will be paid on time.
Colo. Rev. Stat. §§ 38-22-101 to 38-22-133
The short version
Colorado does not prescribe a waiver form, but § 38-22-119 puts a specific clause inside any agreement to waive. The waiver has to include a statement by the person waiving that all debts owed to third parties tied to the goods or services covered by the waiver have been paid or will be paid on time. That clause is the price of entry. Without it, the waiver is on shaky ground.
At a glance
- § 38-22-119 requires a third-party debt statement inside the waiver
- 10-day notice of intent required before recording a lien
- Lien must be recorded within 2 or 4 months of last work (suppliers vs. principals)
- Foreclosure suit and lis pendens due within 6 months
The third-party debt clause
Section 38-22-119 is the part of the chapter that matters for waivers. It says an agreement to waive lien rights has to contain, in substance, a statement by the person waiving that all debts owed to third parties for the work covered by the waiver have been paid or will be paid in a timely way.
The practical read: a one-line sub waiver that just says I waive my lien rights skips the required clause. Your template should include language like all debts owed by the undersigned to any third party in connection with the work covered by this waiver have been paid or will be paid in a timely manner. That is what Colorado is asking for.
The ten-day notice of intent
Colorado requires a claimant to send written notice of intent to file a mechanic's lien to the owner and the principal contractor at least ten days before recording the lien statement. The lien itself has to be recorded within four months of last furnishing for principal contractors or two months for laborers and material suppliers.
For a GC tracking risk, the ten-day notice is the trip-wire. If a sub mails one, the lien is two weeks away. Use that window to send the conditional waiver, clear the payment, and close out the claim before it lands at the clerk's office.
The six-month foreclosure window
Recording the lien is only step one. Under § 38-22-110, the claimant has six months from the last day of work or the last day materials were furnished to file a foreclosure action and a lis pendens. Without that filing, the lien expires automatically.
This makes Colorado liens self-clearing if the claimant lets the clock run. For a GC dealing with a recorded but stale lien, six months from last work is the date to mark in the calendar. Do not pay to clear a lien that will expire on its own — unless a closing or refinance forces your hand.
Questions
Does Colorado require a specific lien waiver form?
No. Colorado does not prescribe a form, but § 38-22-119 requires the waiver to include a statement that third-party debts tied to the work have been paid or will be paid on time.
How much notice does a Colorado claimant need to give before recording a lien?
Ten days. The claimant has to serve a written notice of intent on the owner and the principal contractor at least ten days before recording the lien statement.
When does a recorded Colorado lien expire?
If the claimant does not file a foreclosure suit and lis pendens within six months of last work, the lien expires automatically under § 38-22-110.
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