Lien Priority Issues

Once a mechanic’s lien has been perfected, it attaches as of the first date that such labor, materials, machinery, or equipment was furnished, and has priority over any other lien secured by a deed of trust, or otherwise which is created after such date. A mechanic’s lien is subordinate to any other lien created by a deed of trust or otherwise which is recorded or otherwise perfected prior to the first date labor, materials, machinery, or equipment was furnished.

As among mechanic’s lienors only; laborers, artisans, mechanics, workmen, and materialmen have first liens and when perfected and preserved take precedence over any lien of a contractor or subcontractor indebted to them to the extent of the amount of the lien of such contractor or subcontractor. The lien of a subcontractor takes precedence over the lien of a contractor indebted to subcontractor upon the subcontract to the extent of the amount of the lien of such contractor. Every assignment or proceeding in attachment of a contract between an owner and contractor or contractor or subcontractor is subordinate to the liens of all subcontractors, laborers, workmen, artisans & materialmen who perfect and preserve their liens.

All such mechanic’s lien holders are of equal dignity without priority among themselves except as provided by statute. It has been held that in determining priority among creditors, all mechanic’s liens attach at the date of the first provision of work or materials.

As the mechanic’s lien attaches when the labor has begun or the materials have begun to be furnished, the lien takes precedence over all other subsequent liens, created by deed of trust or otherwise. However, the lien will only attach to such title as the person who contracted for the work and materials had at the time the lien attached, and does not attach to a title subsequently taken.