Mechanic`s Lien IV

Determining the starting time for a mechanic`s lien is very important, Mechanic`s liens have priority as of the date work began or materials were first furnished for the particular job. A mechanic`s lien has priority over any other liens filed after the commencement of labor or delivery of materials with the exception of government liens (taxes and special assesments). This means that if there is a foreclosure action, the mechanic`s lien would be paid before any other liens that were recorded after work started on the job at hand.

This includes trust deeds or mortgages recorded prior to the filing of the mechanic`s lien, but after the start of work. Lenders will make a physical inspection of the property to determine that no materials have been delivered and no work has been done before the recording of a construction loan to assure the priority of their trust deed or mortgage.

For example :

Mechanic`s Lien has the priority over Trust Deed:

(1) Start of work june 15

(2) Trust Deed recorded June 18

(3) Notice Of Completion September 1

(4) Mechanic`s Lien recorded September 28