Chapter 12 - § 12.15 • SPURIOUS LIENS

• Jurisdiction: Colorado

§ 12.15 • SPURIOUS LIENS

§ 12.15.1—In General

A spurious lien is a purported lien or claim of lien that (1) is not provided for by a specific Colorado or federal statute or by a specific ordinance or charter of a home rule municipality; (2) is not created, suffered, assumed, or agreed to by the owner of the property it purports to encumber; and (3) is not imposed by order, judgment, or decree of a state court or a federal court.⁶⁰⁶ Public officials, particularly judges, seem to be the preferred target of spurious liens.⁶⁰⁷ A mechanic's lien, being provided for by a specific Colorado statute, cannot be a spurious lien.⁶⁰⁸ This is true even though the lien has been waived and therefore is unenforceable.⁶⁰⁹ A homeowners' association assessment lien, being provided for both by the declaration and by the statute, is not a spurious lien.⁶¹⁰

A spurious document is a document that is forged⁶¹¹ or groundless, contains a material misstatement or false claim, or is otherwise patently invalid.⁶¹² A document is not spurious merely because it is invalid. It is spurious only if its proponent can offer no rational legal or factual support for its validity.⁶¹³ A document Quit Claim Deed that purports to convey an interest in property but does not do so because the grantor has no interest to convey is a spurious document.⁶¹⁴

A state or local official or employee may accept or reject for recording or filing any document that he reasonably believes in good faith to be a spurious lien or spurious document,⁶¹⁵ and is not liable to any person or claimant for either such acceptance or rejection.⁶¹⁶ A state or local official or employee is not obligated to accept for recording or filing any lien or claim of lien against a federal official or employee or a state or local official or employee based upon the performance or nonperformance of that official's or employee's duties unless the lien or claim of lien is accompanied by a specific order issued by a state court or federal court authorizing the recording or filing of the lien or claim of lien.⁶¹⁷

§ 12.15.2—Action to Enforce Lien

A spurious lien or spurious document does not hold or affect any real or personal property longer than 35 days after the lien or document has been recorded or filed, unless within the 35 days (1) an action has been commenced to enforce the lien or document in the state district court for the county or city and county in which the lien or document was recorded or filed or the federal district court in Colorado, and (2) a notice of lis pendens stating that such action has been commenced is recorded or filed in the office where the lien or document was recorded or filed.⁶¹⁸ The notice of lis pendens must comply with the requirements of C.R.S. § 38-35-110 and C.R.C.P. 105(f) and must include the civil action number of the action that has been commenced to enforce the lien or document. Failure to comply with these requirements renders the notice of lis pendens void.⁶¹⁹

§ 12.15.3—Declaration of Invalidity

Any person whose real or personal property is affected by a recorded or filed lien or document that he believes is a spurious lien or document may petition the district court in the county or city and county in which the lien or document was...