Mechanics' Lien Release - Colorado

MECHANICS' LIEN RELEASE

State of Colorado

Governed by Colorado Revised Statutes Title 38, Article 22 (C.R.S. § 38-22-101 et seq.)

PART 1: FULL RELEASE AND SATISFACTION OF MECHANICS' LIEN

RECORDING REQUESTED BY:

Name: [________________________________]
Address: [________________________________]
City/State/ZIP: [________________________________]

WHEN RECORDED, MAIL TO:

Name: [________________________________]
Address: [________________________________]
City/State/ZIP: [________________________________]

FULL RELEASE AND SATISFACTION OF MECHANICS' LIEN

Pursuant to C.R.S. § 38-22-118

County of Recording: [________________________________], Colorado
Clerk and Recorder Reception/Document Number: [________________________________]
Date of Original Lien Recording: [__/__/____]
Book: [________] Page: [________] (if applicable)

PROPERTY INFORMATION:

Legal Description of Property:
[________________________________]
[________________________________]
[________________________________]

Schedule/Parcel Number: [________________________________]
Street Address (if applicable): [________________________________]
City: [________________________________], Colorado [________]
County: [________________________________]

PARTIES:

ORIGINAL LIEN INFORMATION:

RELEASE AND SATISFACTION STATEMENT

IMPORTANT: Under C.R.S. § 38-22-118, a lien claimant must enter satisfaction of the lien within ten (10) days after written request from any interested party, upon payment of the lien amount plus costs. Failure to do so results in a penalty of $10.00 per day for each day of neglect or refusal.

KNOW ALL PERSONS BY THESE PRESENTS:

The undersigned, [________________________________] ("Claimant"), being the holder of that certain Statement of Claim of Mechanics' Lien recorded on [__/__/____], as Reception/Document Number [________________________________], in the Office of the Clerk and Recorder of [________________________________] County, Colorado, against the real property described above, hereby acknowledges and states as follows:

1. Payment Received. Claimant acknowledges receipt of full payment in the amount of $[________________________________] on [__/__/____] in complete satisfaction of all amounts due and owing under the above-referenced Statement of Claim of Mechanics' Lien, including all principal, interest, costs of filing, recording, acknowledgment of satisfaction, and accrued costs of suit (if any).

2. Full Release and Satisfaction. Claimant hereby unconditionally and irrevocably releases, satisfies, discharges, and cancels the above-referenced Statement of Claim of Mechanics' Lien in its entirety, pursuant to C.R.S. § 38-22-118.

3. Timely Compliance. This Release is being executed and recorded within ten (10) days of the written request for satisfaction as required by C.R.S. § 38-22-118.

4. Authority. The undersigned represents and warrants that he/she/they have full authority to execute this Release and Satisfaction on behalf of the Claimant.

5. No Further Claims. Claimant agrees that it shall make no further claim of lien against the subject property for the labor, materials, machinery, or other items described in the original Statement of Claim.

6. Recording Authorization. Claimant hereby authorizes the Clerk and Recorder of [________________________________] County, Colorado, to record this Full Release and Satisfaction.

EXECUTION

CLAIMANT / RELEASING PARTY:

Signature: ______________________________
Printed Name: [________________________________]
Title (if applicable): [________________________________]
Date: [__/__/____]

If Claimant is an Entity:

Entity Name: [________________________________]
By: ______________________________
Name: [________________________________]
Title: [________________________________]
Date: [__/__/____]

NOTARIZATION

STATE OF COLORADO
COUNTY OF [________________________________]

The foregoing instrument was acknowledged before me this [____] day of [________________________________], 20[____], by [________________________________].

WITNESS my hand and official seal.

Notary Public: ______________________________
My Commission Expires: [__/__/____]
[NOTARY SEAL]

PART 2: PARTIAL RELEASE OF MECHANICS' LIEN

PARTIAL RELEASE AND SATISFACTION OF MECHANICS' LIEN

County of Recording: [________________________________], Colorado
Original Lien Reception/Document Number: [________________________________]
Date of Original Lien Recording: [__/__/____]

The undersigned, [________________________________] ("Claimant"), being the holder of that certain Statement of Claim of Mechanics' Lien recorded on [__/__/____], as Reception/Document Number [________________________________], in the Office of the Clerk and Recorder of [________________________________] County, Colorado, for the original amount of $[________________________________], hereby states:

1. Partial Payment Received. Claimant acknowledges receipt of partial payment in the amount of $[________________________________] on [__/__/____].

2. Partial Release. Claimant hereby releases and discharges the above-referenced Statement of Claim of Mechanics' Lien to the extent of:

☐ Reduction in Amount. The lien amount is hereby reduced from $[________________________________] to $[________________________________]. The lien remains in full force and effect for the remaining balance of $[________________________________].

☐ Release of Portion of Property. The following portion of the property is hereby released from the lien:
[________________________________]
[________________________________]
Schedule/Parcel Number(s): [________________________________]
The lien remains in full force and effect against the remaining property.

3. Remaining Lien. Except as expressly released herein, the above-referenced Statement of Claim of Mechanics' Lien remains in full force and effect, and all rights of the Claimant to enforce the remaining lien are expressly reserved.

4. Enforcement Deadline. Claimant acknowledges that C.R.S. § 38-22-110 generally measures the action and recorded-notice deadline from the applicable last-work, last-furnishing, or completion event stated in the statute, not from the lien-statement recording date.

CLAIMANT / RELEASING PARTY:

Signature: ______________________________
Printed Name: [________________________________]
Title: [________________________________]
Date: [__/__/____]

[NOTARIZATION REQUIRED - Use notary block from Part 1]

PART 3: RELEASE OF LIEN BY BOND OR DEPOSIT

RELEASE OF MECHANICS' LIEN BY BOND OR CASH DEPOSIT

Pursuant to C.R.S. § 38-22-131

County of Recording: [________________________________], Colorado
Original Lien Reception/Document Number: [________________________________]

NOTICE OF BOND/DEPOSIT TO RELEASE MECHANICS' LIEN

NOTICE IS HEREBY GIVEN that pursuant to C.R.S. § 38-22-131, a surety bond or cash deposit has been filed to release the mechanics' lien described below:

BOND/DEPOSIT REQUIREMENTS UNDER C.R.S. § 38-22-131:

Under Colorado law, a mechanics' lien may be released from the property by depositing cash or a corporate surety bond with the District Court Registry:

• Amount: Equal to one hundred fifty percent (150%) of the lien claim amount, plus an additional amount to cover costs
• Cash Deposit: Must be deposited with the clerk of the district court
• Surety Bond: Must be issued by a corporate surety authorized in Colorado
• Court Approval: The court must approve the bond or deposit
• Certificate of Release: Upon court approval, the court issues a certificate of release to be recorded with the County Clerk and Recorder

Effect of Bond/Deposit:

• Upon recording of the certificate of release, the lien against the property is immediately discharged and released in full
• Any lis pendens or notice of action related to the lien is also discharged
• The lien claimant's rights are transferred to the bond or deposit
• The claimant must proceed against the bond or deposit rather than the property

CERTIFICATE OF RELEASE BY BOND/DEPOSIT

This certifies that the Statement of Claim of Mechanics' Lien recorded as Reception/Document Number [________________________________] in [________________________________] County, Colorado, has been released from the real property by court order upon the filing of a bond/deposit pursuant to C.R.S. § 38-22-131.

Court Order Date: [__/__/____]
Case Number: [________________________________]
Certificate of Release Number: [________________________________]

Filed by: [________________________________]
Date: [__/__/____]

PART 4: DEMAND FOR RELEASE OF MECHANICS' LIEN

WRITTEN DEMAND TO SATISFY AND RELEASE MECHANICS' LIEN

Pursuant to C.R.S. § 38-22-118

Date: [__/__/____]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

To: [________________________________] (Lien Claimant)
Address: [________________________________]
City/State/ZIP: [________________________________]

From: [________________________________] (Property Owner/Interested Party)
Address: [________________________________]
City/State/ZIP: [________________________________]

Re: Demand for Satisfaction and Release of Mechanics' Lien
Property: [________________________________]
County: [________________________________], Colorado
Reception/Document Number: [________________________________]
Date Recorded: [__/__/____]

Dear [________________________________]:

This letter constitutes a formal written request pursuant to C.R.S. § 38-22-118 for the satisfaction and release of the above-referenced mechanics' lien.

FACTUAL BASIS FOR DEMAND:

☐ Full Payment Made. The lien claim has been paid in full, including all costs of filing, recording, and acknowledgment of satisfaction. Payment in the amount of $[________________________________] was made on [__/__/____] via [________________________________].

☐ Valid Tender Refused. A valid tender of payment in the full amount of the lien claim was made on [__/__/____] and refused. Under C.R.S. § 38-22-118, a valid tender of payment, refused by the claimant, is equivalent to payment.

☐ Lien Enforcement Period Expired. Under C.R.S. § 38-22-110, the action and recorded notice of commencement generally must occur within six months after the applicable last-work or completion event stated in the statute. The enforcement period expired on [__/__/____].

☐ The lien is invalid because: [________________________________]

☐ Other: [________________________________]

STATUTORY DEADLINE AND PENALTIES - C.R.S. § 38-22-118:

Under Colorado law, upon payment of the lien amount together with costs of filing, recording, acknowledgment of satisfaction, and any accrued costs of suit, you are required to enter or cause to be entered an acknowledgment of satisfaction of record within ten (10) days of this written request.

If you neglect or refuse to do so, you will forfeit and pay $10.00 per day for every day of such neglect or refusal, to be recovered in the same manner as other debts.

DEMAND:

You are hereby requested to enter satisfaction and release of the above-referenced mechanics' lien within ten (10) days of receipt of this written request.

Sincerely,

Signature: ______________________________
Printed Name: [________________________________]
Date: [__/__/____]

Enclosures:
☐ Proof of payment (if applicable)
☐ Copy of original Statement of Claim

PART 5: MOTION TO RELEASE / DISCHARGE MECHANICS' LIEN

IN THE DISTRICT COURT, [________________________________] COUNTY, COLORADO

Case No.: [________________________________]
Division: [________________________________]

[________________________________],
Plaintiff,

v.

[________________________________],
Defendant.

MOTION TO RELEASE AND DISCHARGE MECHANICS' LIEN

Plaintiff [________________________________] ("Movant"), by and through undersigned counsel, respectfully moves this Court for an Order releasing and discharging the Statement of Claim of Mechanics' Lien recorded by [________________________________] ("Lien Claimant"), and states as follows:

I. JURISDICTION

1. This Court has jurisdiction pursuant to C.R.S. § 38-22-101 et seq. and C.R.C.P. Rule 105.

II. BACKGROUND

2. On or about [__/__/____], Lien Claimant recorded a Statement of Claim of Mechanics' Lien as Reception/Document Number [________________________________] in the Office of the Clerk and Recorder of [________________________________] County, Colorado, against real property located at [________________________________] ("Property").

3. The Statement of Claim was recorded in the amount of $[________________________________].

III. GROUNDS FOR RELEASE

Movant seeks release of the mechanics' lien on the following grounds:

☐ A. Full Payment and Failure to Release. The amounts claimed under the lien have been paid in full. A written request for satisfaction was served on [__/__/____] pursuant to C.R.S. § 38-22-118. More than ten (10) days have passed and the Lien Claimant has failed to enter satisfaction.

☐ B. Lien Enforcement Period Expired. Under C.R.S. § 38-22-110, the action and recorded notice of commencement generally must occur within six months after the applicable last-work or completion event stated in the statute. The enforcement period expired on [__/__/____].

☐ C. Untimely Filing. The Statement of Claim was not filed within the time required by C.R.S. § 38-22-109(4) or (5) (the two-month rule applies to the day/piece labor claimant described in subsection (4); other claimants generally use subsection (5)'s four-month rule).

☐ D. Excessive Amount Under Current § 38-22-128. The lien amount exceeds the amount due, there was no reasonable possibility the excess was due, and the claimant knew the claim exceeded the amount then due; counsel also analyzed subsections (2) and (3), including the good-faith rule.

☐ E. Bond/Deposit Substitution. Movant has deposited or is prepared to deposit a surety bond or cash deposit pursuant to C.R.S. § 38-22-131 in the amount of $[________________________________] (150% of the lien claim).

☐ F. Defective Lien. The lien is defective because: [________________________________]

IV. DAILY PENALTY

Pursuant to C.R.S. § 38-22-118, Lien Claimant is subject to a penalty of $10.00 per day for each day of neglect or refusal to enter satisfaction after the 10-day written request period. As of the date of this Motion, [____] days have elapsed since the written request, resulting in accrued penalties of $[________________________________].

V. RELIEF REQUESTED

WHEREFORE, Movant respectfully requests that this Court:

1. Enter an Order releasing and discharging the above-referenced mechanics' lien;
2. Direct the Clerk and Recorder of [________________________________] County to note the discharge;
3. Award Movant the statutory penalty of $10.00 per day under C.R.S. § 38-22-118;
4. Award only those costs or attorney fees authorized by an identified current statute, rule, contract, or other authority stated here: [________________________________];
5. Grant such other relief as the Court deems just and proper.

Respectfully submitted,

Signature: ______________________________
Printed Name: [________________________________]
Colorado Attorney Registration No.: [________________________________]
Firm: [________________________________]
Address: [________________________________]
Phone: [________________________________]
Email: [________________________________]

RECORDING INSTRUCTIONS AND INFORMATION

Colorado Clerk and Recorder Information

In Colorado, mechanics' liens and lien releases are recorded with the County Clerk and Recorder in the county where the property is located.

Recording Requirements:

• Documents must be on 8.5" x 11" paper (white)
• Minimum margins: 1-inch on all sides; 3-inch top margin on first page recommended
• Black ink, legible print
• Original signatures or certified copies
• Notarization required for recordable documents
• Include Reception/Document Number referencing the original lien
• Recording fees vary by county; check with the specific Clerk and Recorder
• Colorado uses "Reception Numbers" rather than Book/Page in most counties

Colorado has 64 counties, each with its own Clerk and Recorder.

COLORADO-SPECIFIC STATUTORY REQUIREMENTS AND PRACTITIONER NOTES

Key Deadlines and Requirements

Practitioner Notes

1. Ten-Day Release Deadline with Daily Penalty. C.R.S. § 38-22-118 imposes a clear obligation: upon the payment or qualifying tender stated in the section and written request, the claimant must enter satisfaction within 10 days or pay $10.00 per day. Do not add attorney fees without separate authority.

2. Valid Tender Equals Payment. Under C.R.S. § 38-22-118, a valid tender of payment that is refused by the claimant is treated as equivalent to payment. This prevents a claimant from refusing payment to keep a lien active.

3. Current Excessive-Amount Standard. Effective August 12, 2026, C.R.S. § 38-22-128(1) requires proof that the filed amount was greater than due, there was no reasonable possibility it was due, and the claimant knew it exceeded the amount then due. Subsections (2) and (3) address a later lower award and a good-faith belief about value.

4. Six-Month Enforcement Window. Under C.R.S. § 38-22-110, the action and recorded notice generally must occur within six months after the applicable last-work, last-furnishing, or completion event identified by the statute, not six months after recording the lien statement.

5. Bond/Deposit Procedure. Under C.R.S. § 38-22-131, the property owner may deposit cash or a surety bond equal to 150% of the lien amount with the District Court. Upon approval, the court issues a Certificate of Release that is recorded to discharge the lien from the property.

6. Notice of Lien Law. Under C.R.S. § 38-22-105.5, owners of single-family, owner-occupied residences are entitled to notice regarding their lien rights. Failure to provide this notice may limit lien rights.

7. Trust Fund Doctrine. Colorado imposes a trust fund obligation on certain construction funds under C.R.S. § 38-22-127, which can affect lien release obligations.

8. Lis Pendens. When a lien foreclosure action is filed, a lis pendens is typically recorded. The bond/deposit release procedure under § 38-22-131 also discharges any related lis pendens.

SOURCES AND REFERENCES

• Colorado Revised Statutes Title 38, Article 22: §§ 38-22-101 through 38-22-133
• C.R.S. § 38-22-118: Satisfaction of lien; failure to release
• C.R.S. § 38-22-131: Release of lien by bond or deposit
• C.R.S. § 38-22-128: Penalty for overstated lien
• Colorado Judicial Branch: https://www.courts.state.co.us/

This template is provided for informational purposes only by ezel.ai and does not constitute legal advice. Consult a qualified Colorado attorney before using this form. Laws and recording requirements are subject to change.