A mechanic’s lien is a security interest in real or personal property that is acquired by someone who adds material or labor to improve the property. A mechanic’s lien usually remains in effect until the lien holder (the auto repair shop) is paid for the material or labor added to the property. For a movable piece of property like a car, the property owner’s failure to pay the auto repair shop for material or labor may allow the auto repair shop to keep possession of the car until the owner pays for the material and labor. In the auto repair context, a mechanic’s lien is sometimes called a garageman’s lien.
In Colorado, a mechanic's lien, also known as a garageman's lien in the context of auto repairs, is a legal claim against a vehicle for unpaid repairs or improvements made by an auto repair shop or mechanic. Under Colorado law, mechanics and auto repair shops can assert a lien for labor, parts, and materials provided in repairing a vehicle. This lien gives the repair shop the right to retain possession of the vehicle until the debt is paid. The process for perfecting a mechanic's lien, which includes filing a lien statement with the appropriate county recorder's office, must be followed within a specific timeframe after the work is completed. If the vehicle owner fails to pay the debt, the lienholder may enforce the lien by selling the vehicle through a lien sale, after providing proper notice to the vehicle owner and adhering to the statutory requirements. It's important for both vehicle owners and repair shops to understand their rights and obligations under Colorado's mechanic's lien laws to ensure proper legal procedures are followed.