Tom is purchasing a home in Stillwater, Oklahoma and is applying for a conventional mortgage. His lender informs him that lien priority in Oklahoma is determined by recording. Tom's mortgage is recorded on June 1. A contractor who did work on the property before Tom purchased it files a mechanic's lien on June 15. Which lien has priority?
Correct Answer
A) The mechanic's lien has priority because it arose from work performed before the mortgage was recorded.
Under Oklahoma law, mechanic's and materialman's liens relate back to the date the work or materials were first furnished, not the date the lien is filed. If the contractor began work on the property before Tom's mortgage was recorded, the mechanic's lien relates back to that earlier date and takes priority over the subsequently recorded mortgage. This 'relation back' doctrine is a critical Oklahoma-specific lien priority rule that can surprise buyers and lenders.
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