What is a Spurious Lien & How do I Remove a Spurious Lien from my Property?

Removing a Lien: How to defend against a spurious lien on property

Most homeowners are familiar with liens. Generally, a lien is a document recorded with the county that gives another party an interest in your property (e.g., mortgages and mechanic's liens). But not all liens are valid. If a lien is recorded on your property and you think it is invalid, fraudulent, or spurious, you may need to take action to protect your assets. Colorado law provides property owners with an expedited process to dispute and remove improper liens from their property. Here, we will discuss what a spurious lien is and the process to remove it from your property.

Colorado law protects property owners against liens or documents created to cloud title to harass another. If the facts or the law do not support these documents or filings, they are considered spurious.

For example, if a document states that you agreed to a lien on your property for a sum, or states you transferred ownership of your property, when you did not agree to do so, that document creates a cloud on title. The filing "clouds title" because it affects the true title interests and creates a dispute over ownership.

Spurious or groundless filings are not taken lightly. Colorado law provides expedited legal action for property owners disputing spurious filings and imposes harsh penalties against liable parties. These penalties can include court fines and costs, and attorney fees.

What is a Spurious Lien? What is a Spurious Document?

Under Colorado Law, a "spurious lien" is defined as a lien recorded against real property that: (i) is not provided for by law; (ii) was not created or agreed to by the property owner; or (iii) is not authorized by a court order or judgment. C.R.S. § 38-35-201(4).

Similarly, but with its distinctions, a "spurious document" is a document that is: (i) forged or groundless; (ii) contains a material misstatement or false claim; or (iii) is otherwise patently invalid. C.R.S. 38-35-201(3).

While the definitions are similar, they differ and reflect different legal approaches. In general, spurious documents are defined by the specific defects that make them inherently spurious. In contrast, spurious liens are spurious because they do not fall into any of the three recognized lien categories. Thus, any lien that is not authorized by the law, court order, or created by the property owner is spurious.

It is important to note that mechanic's liens are expressly created by statute and therefore do not fall within this definition. Other issues with a mechanic's lien could render it invalid, such as overstatement of the amount or fraud, but such a lien still would not be considered spurious.

How to Remove a Spurious Lien or Spurious Document:

Colorado created an expedited court process that lets owners dispute spurious filings without the time and expense of full-blown litigation. To initiate an action in court, the owner files a petition with the court. C.R.C.P. 105.1. A hearing date is set by the court, which will occur within 14 to 21 days of filing the petition.

The owner must properly serve the petition documents on the responsible party or "the respondent" and notify them of the hearing date. The respondent may file a response before the hearing. The moving party must comply with all procedural rules and notice requirements provided by the statute. If not, the court may dismiss the petition, forcing the party to start all over. If you are unclear on the rules, you should seek legal advice. If the court finds the lien or document spurious, it will declare the document invalid and remove it from the public record.

How We Can Help:

Spurious liens and spurious documents can involve complex legal issues. Navigating this process can be complex and require legal assistance. Our attorneys are experienced in this area of law. If you have questions or concerns, call our office at (720) 500-7855 and talk with one of our lawyers!