Chapter 10 : Mechanics' Liens

• Library: Standards for Examination of Real Estate Titles in Arkansas (2021 Ed.)

CHAPTER 10: MECHANICS' LIENS

Standard 10.1 No Release of Lien Necessary

A mechanic's lien may be disregarded if a lawsuit for foreclosure of the lien and a lis pendens have not been filed within 15 months after the filing of the lien. Under these circumstances, no release shall be required by the title examiner.¹³⁸ However, the examiner should require a release of any mechanics' liens that have been filed of record less than 15 months ago.

Standard 10.2 Filing Time Frame

A mechanic's or materialman's lien may be filed within 120 days after work has been performed or materials supplied.¹³⁹ The examiner should require assurances that all accounts have been fully paid.¹⁴⁰

Standard 10.3 Priorities

A mechanic's or materialman's lien shall have priority as to the value of the "improvement on which the labor was performed or the materials or fixtures were furnished in preference to any encumbrance existing on the real estate prior to the commencement of construction or repair of the improvement."¹⁴¹

There is one exception to this rule, and that is when a "prior encumbrance was given for the purpose of funding construction or repair of the improvement." In this case, the prior encumbrance will have priority over the mechanic's/materialman's lien.¹⁴²

Construction Mortgage Property

In order to establish the priority of a construction mortgage over a materialman's lien, it must be shown that: (1) the mortgage must...