Under Arizona lien law, which party has priority when multiple liens are filed against the same property?
Correct Answer
B) All properly filed liens have equal priority based on commencement of work
Under A.R.S. 33-981, properly filed mechanic's liens have equal priority based on when work commenced on the project, not when liens were filed.
Why This Is the Correct Answer
Under Arizona Revised Statutes 33-981, properly filed mechanic's liens have equal priority based on when work commenced on the project, not when individual liens were filed or their amounts. This means all valid liens share the same priority date - the commencement of work on the entire project. This protects all parties who contributed to the project improvement and ensures fair treatment regardless of filing order or contract size.
Why the Other Options Are Wrong
Option A: The contractor who filed first
Filing order does not determine lien priority in Arizona. Multiple liens filed against the same property all relate back to the commencement of work date, giving them equal priority regardless of which contractor filed their lien first.
Option C: The contractor with the largest lien amount
Lien amount has no bearing on priority under Arizona law. A small subcontractor's lien has the same priority as a large general contractor's lien, as both relate back to the project's commencement date.
Option D: Subcontractors have priority over general contractors
Arizona law does not give subcontractors automatic priority over general contractors. All properly filed liens have equal priority based on work commencement, regardless of the contractor's role in the project hierarchy.
Memory Technique
Remember 'EQUAL WORK = EQUAL PRIORITY' - all liens relate back to when work commenced, not when filed or their size.
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A subcontractor provided materials worth $18,000 to a residential project. The general contractor paid $12,000, leaving $6,000 unpaid. If the subcontractor files a lien and the property sells, what additional costs can they potentially recover under Arizona lien law?