Colorado § 38-22-125 - Bona fide purchaser.

§ 38-22-125. Bona fide purchaser.

No lien, excepting those claimed by laborers or mechanics as defined in section 38-22-108 (1)(a), filed for record more than two months after completion of the building, improvement, or structure shall encumber the interest of any bona fide purchaser for value of real property, the principal improvement upon which is a single- or double-family dwelling, unless said purchaser at the time of conveyance has actual knowledge that the amounts due and secured by such lien have not been paid, or unless such lien statement has been recorded prior to conveyance, or unless a notice as provided in section 38-22-109 (10) has been filed within one month subsequent to completion or prior to conveyance, whichever is later; except that nothing in this section shall extend the time for recording lien statements as provided in section 38-22-109 (4), (5), and (10). For the purposes of this section, the dwelling shall be deemed complete upon conveyance and occupancy if not completed before. The lien for items of labor, work, or material which shall thereafter be furnished shall be effective and may be claimed within the time thereafter as provided in section 38-22-109 (4), (5), and (10), and their priority shall not be affected by this section.

Source: L. 65: p. 854, § 5. C.R.S. 1963: § 86-3-25. L. 75: Entire section amended, p. 1424, § 4, effective October 1.

ANNOTATION

All bona fide purchasers possess, prior to closing, an equitable interest in the property purchased which may be subject to a mechanics' lien. Richter Plumbing & Heating v. Rademacher, 729 P.2d 1009 (Colo. App. 1986).

Perfection of lien against bona fide purchaser. In "deemed completed" situations such as that at issue here, a claimant may perfect a lien as against the interest of a bona fide purchaser only: (1) If a lien statement is filed either before or within two months after the date of conveyance and occupancy; (2) if a § 38-22-109 (10) notice is filed within one month after that time; or (3) if it can be shown that the bona fide purchaser had, at the time of conveyance, actual knowledge of nonpayment. Richter Plumbing & Heating v. Rademacher, 729 P.2d 1009 (Colo. App. 1986).