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Ownership and Land Use, 15% of the examination

Mechanic's lien

A lien securing payment for labor or materials furnished to improve real property.

Its priority relates back to the date work commenced on the project as a whole, not to the date the individual lien was recorded. That relation-back rule can put a lien ahead of a deed of trust recorded after work began, which is why construction lenders record before any visible work starts and title companies inspect the site.

See also

EncumbranceAny claim, lien, charge or liability attached to and binding on real property.

Test the distinction

A relevant question from Ownership and Land Use, selected because its facts or explanation use this concept.

Ownership and Land Use ยท 15%Encumbrances

Which lien ordinarily receives statutory priority over previously recorded private liens?

Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanor under B&P Code section 123.

Primary sources

Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.

Where this is tested

Property Ownership and Land Use Controls and RegulationsWhat can be owned, how it is held, and what limits its use. Distinguish ownership interests, public and private controls, environmental hazards, and California water-rights rules.15%Practice Ownership and Land Use35 questions on this area, every option explained.Practice

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