A subcontractor provides $28,000 worth of plumbing work but is not paid by the general contractor. Under HRS 507, what is the priority of the mechanics lien compared to a mortgage recorded before construction began?
Correct Answer
D) Mortgage has priority over the lien
Under Hawaii mechanics lien law, properly recorded mortgages that predate the commencement of construction have priority over subsequently filed mechanics liens.
Why This Is the Correct Answer
Under Hawaii Revised Statutes 507, mechanics liens are subordinate to mortgages that were properly recorded before construction commenced. This follows the general principle of 'first in time, first in right' in real estate law. Since the mortgage was recorded before construction began, it has superior priority over any mechanics liens that arise during or after construction, regardless of the lien amount or when the lien is filed.
Why the Other Options Are Wrong
Option A: Priority depends on the amount of each claim
Priority in Hawaii mechanics lien law is not determined by the monetary amount of competing claims. The timing of recording and commencement of construction determines priority, not the dollar value of the mortgage versus the lien amount.
Option B: Equal priority - pro rata distribution
Hawaii law does not provide for equal priority or pro rata distribution between pre-construction mortgages and mechanics liens. There is a clear hierarchy where properly recorded mortgages that predate construction have superior priority over subsequently arising mechanics liens.
Option C: Lien has priority over the mortgage
This reverses the actual priority under HRS 507. Mechanics liens do not have priority over mortgages that were recorded before construction began. The lien is subordinate to the pre-existing mortgage, not superior to it.
Memory Technique
Remember 'First Mortgage First' - mortgages recorded before construction started get first priority, mechanics liens come after. Think: the bank got there before the hammers started swinging.
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Under HRS 507, what is the deadline for filing a mechanics lien for work performed on a single-family residence?
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