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Mechanic’s Liens in
Mechanic’s Liens in Virginia:
Virginia: An
AnException
Exception to
to the
the Rule

Construction
Construction Law
LawMusings
Musingshas
hasdiscussed
discussed mechanic’s
mechanic’s liens
liens on
on numerous
numerous occasions.
occasions.

As discussed
discussed in in earlier posts, the general
posts, the general rule is that
that aa mechanic’s lien jumps
jumps to to the
the head
head
of the line of liens when filed. This is true in most instances. In the typical
line of liens when filed. This is true in most instances. In the typical case, case, a
contractor puts building and,
puts up a building and, when
when the
the owner
owner refuses payment, itit files aa mechanic’s
refuses payment, mechanic’s
lien that takes priority over all
takes priority all other
other liens on that property, including
including the
the construction
loan
loan deed of trust
deed of trust (or
(or mortgage, depending on
mortgage, depending on your
your state’s
state’s property
property laws).
laws).

However, in in Virginia,
Virginia,an anexception
exceptionexists.
exists. The
The Virginia
VirginiaCode
Codeprovides
providesthat
thatininaacase
case
where there is aa loan
loan on
on the
the land
land with
with a deed of
a deed of trust,
trust, and
and then
then aaconstruction
construction loan
loan with
with its
own security in the
in the land, the first lien holder can
first lien holder can enforce its lien up to the
lien up to the value of the
original and
original and unimproved
unimproved land on which itit placedplaced its lien.
lien. The mechanic’s lien holder
takes priority on
takes priority on any
any value
value added
added to to the
the property
property based on any
based on any improvements
improvements (i. (i. e.
e. the
the
building itself)
building itself) over
over any
any other liens.

When the
When the construction
constructionloan
loanisissecured
secured by
bythe
thesame
same deed
deed of
of trust
trust as
as the
the purchase loan, the
purchase loan, the
mechanic’s lien takes precedence. Of course, these are the general rules. Your
mechanic’s lien takes precedence. Of course, these are the general rules. Your particular particular
situation
situation must
must be examined carefully
be examined carefully by
by an
an attorney
attorney or
or other
other professional
professional experienced in
experienced in
liens to
mechanic’s liens to determine
determinethe thepriority
priority of
of your lien.