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A California deed of trust is recorded on January 15. A mechanic's lien is filed on February 10 for work that began on December 1 of the prior year. Which lien has priority?

Correct Answer

D) The mechanic's lien has priority because the work commenced before the deed of trust was recorded

Under California Civil Code §8450, a mechanic's lien relates back to the date work first commenced on the property, not the date the lien is filed. Since work began on December 1 (before the deed of trust was recorded on January 15), the mechanic's lien has priority over the deed of trust.

Answer Options
A
The deed of trust has priority because it was recorded first
B
The mechanic's lien has priority only if the total amount exceeds the deed of trust balance
C
Both liens have equal priority and proceeds would be split proportionally
D
The mechanic's lien has priority because the work commenced before the deed of trust was recorded

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Related Topics & Key Terms

Key Terms:

mechanic_lienlien_priorityrelation_backdeed_of_trust

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