Under Tennessee lien law, which party has priority when multiple liens are filed against the same property?
Correct Answer
C) All liens share equal priority
Tennessee lien law provides that all properly filed mechanic's liens share equal priority regardless of filing order or claim amount.
Why This Is the Correct Answer
Under Tennessee lien law, all properly filed mechanic's liens share equal priority regardless of when they were filed, who filed them, or the amount of the claim. This means that if a property is sold to satisfy liens, all lienholders receive proportional payment based on their claim amounts rather than any hierarchical priority system. This equal priority principle ensures fair treatment among all parties who provided labor or materials for the property improvement.
Why the Other Options Are Wrong
Option A: General contractors have priority over subcontractors
Tennessee law does not establish a hierarchy between general contractors and subcontractors regarding lien priority. Both types of contractors have equal standing when their liens are properly filed, regardless of their contractual relationship or position in the construction chain.
Option B: The first to file the lien
Filing order does not determine priority under Tennessee lien law. Unlike some other legal contexts where 'first in time, first in right' applies, mechanic's liens in Tennessee all share equal priority regardless of which was filed first or last.
Option D: The contractor with the largest claim amount
The dollar amount of a lien claim does not affect its priority status in Tennessee. A small subcontractor's lien has the same priority as a large general contractor's lien, though payment distribution may be proportional to claim amounts.
Memory Technique
Remember 'Tennessee Treats All Equally' - in Tennessee, all properly filed mechanic's liens share equal priority, treating every legitimate claimant fairly regardless of size, timing, or contractor type.
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A Tennessee residential contractor has 8 employees with a total weekly payroll of $6,400. If the workers' compensation rate is $2.85 per $100 of payroll, what is the weekly workers' compensation premium?
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