Sometimes overly aggressive parties file documents with the county clerk and recorder to either prevent real property from being sold or to transfer interests to themselves. But in 1997, the Colorado legislature passed a law to deal with just this type of situation. The Spurious Lien Statute provides an expedited procedure to remove invalid liens and documents. See C.R.S. sec. 38-35-201 et seq.
Werge Law represented a limited liability company that owns agricultural property in Southeastern Colorado. Following a dispute over a related cannabis business, a disgruntled former associate filed a certificate of authority and a quitclaim deed purporting to transfer the property to himself. Werge Law filed a spurious lien petition on behalf of its client, and following a hearing, obtained a decree nullifying the deed, and transferring title back to its client with an award of attorney fees. See Sunlife AG v. Peterson, No. 2019CV30000 (Colo. Dist. Crowley, Jan. 24, 2019).
Separately, Werge Law represented the owner of land and gold mining interests in and around Cripple Creek, Colorado. The client entered into an agreement to sell the land and to share in the proceeds with a debt collection company. However, when the client finally found a buyer, the debt collection company decided it wanted the property itself and filed a lis pendens to prevent the third-party sale. Werge Law filed a spurious lien petition on behalf of its client, and following an evidentiary hearing, the Court directed the debt collection company to release the lis pendens, and entered an award of attorney fees against it. See High Country Dreams v. New Falls Corporation, No. 2019CV30064 (Colo. Dist. Teller, Sep. 13, 2019).
Fraudsters beware: filing invalid documents impacting real property rights can result in serious consequences against you. And if you are dealing with a situation involving an allegedly improperly liened property, or any other matter involving disputes between small businesses or individuals, Werge Law is here to assist.