The purchase and construction of a new home in Colorado is obviously a big deal. A residential transaction is a once-in-a-lifetime experience for many buyers and the single largest financial outlay they will ever make.
Although it may sound like it would have something to do with a car, a mechanic's lien is actually what's used by building materials suppliers or subcontractors to ensure that they're able to recover costs at the end of a construction project. Because the use of the word "mechanic" is confusing, many also refer to this as a materialmen's lien.
Real estate purchasers in Colorado -- whether they are associated with a business or buying for personal uses -- must take care to ensure that the buildings or homes they buy are free of construction defects. This is especially the case with new construction, as that's when the most significant construction defects could still remain undetected.
Imagine you bought a newly constructed, $700,000 home, and several months after you move in, you get hit by a heavy rainstorm -- only to find that the roof leaks. After having someone look into the problem, you find out it's going to cost $20,000 to fix the leaky roof. "Who's going to pay for this?" you'll probably ask.
The best-laid plans of mice and men often lie in ruin because the men didn't have the right checklist. The story is no different when it comes to real estate closings. Many well-intentioned homebuyers have made mistakes that have cost them hundreds of thousands of dollars because there was an undotted "i" or an uncrossed "t" that they forgot to double check.
The builder of your new home must abide by his or her contractual obligations, which you and the builder agreed to before you decided to purchase the property. Failure to adhere to the terms of the contract could result in the builder being liable for financial damages.
Can you imagine buying a $1 million home, only to discover that it requires tens of thousands of dollars worth of termite control treatments? Home sellers are required by law to disclose defects related to the properties they sell. Failing to do so could leave the home seller liable for the cost of repairs later incurred by the purchases of the property.
When builders are creating a new-construction residence, they often sign contracts ahead of time with prospective buyers. However, these contracts are not always for the benefit of the buyer. They're usually drafted for the benefit of the builder. You'll therefore want to avoid agreeing to an in-house builder agreement at all cost. Instead, you may want to create your own home purchase contract.
A mechanic's lien usually applies to real estate construction projects, and they rarely have to do with an actual mechanic. These liens are placed on the value of a Colorado property, when the property owner fails to pay a contractor for specific work that was completed.
Construction managers and construction companies are never perfect. In fact, even those most beautifully-built and expensive luxury Denver homes will have their flaws when we look closely enough. In most cases, those flaws just come with the territory, they're not structurally problematic and only the most detail-oriented person will take note. In other cases, the flaws can represent serious dangers and the threat of health problems to the people who inhabit the homes they affect -- like toxic mold, for example