A homeowner in California hires a contractor to build a pool. The contractor starts work on April 1. On April 10, the homeowner refinances and records a new deed of trust. The contractor completes the pool on May 15 but is never paid. The contractor records a mechanics' lien on June 1. In a foreclosure, which lien has priority?
Correct Answer
B) The mechanics' lien, because it relates back to April 1 when work commenced
Under California Civil Code §8450, a mechanics' lien relates back to the date that work first commenced on the project. Work commenced on April 1, which is before the deed of trust was recorded on April 10. Therefore, the mechanics' lien has priority over the deed of trust because its effective date (April 1) precedes the recording of the deed of trust (April 10).
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Related Topics & Key Terms
Key Terms:
Related Concepts
An easement is a legal right to use another person's land for a specific purpose without owning it. It is a nonpossessory interest in real property that typically runs with the land.
An easement by necessity is created by court order when a property is landlocked and has no access to a public road. It arises from the necessity of accessing the property, not from long-term use.
An easement by prescription is acquired through continuous, open, notorious, hostile, and uninterrupted use of another's land for a statutory period. It is similar to adverse possession but grants use rights, not ownership.
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