Hawaii Real Estate State Practice Exam

Does a mechanic's lien filed today for work that started two weeks ago have priority over a mortgage filed five days ago?

1. Yes

2. No

3. Only if the owner consents

4. Only if it is recorded

The correct answer is: Yes

A mechanic's lien generally grants priority over a mortgage if the work was performed first, even if the lien is recorded after the mortgage. In this scenario, since the work for which the mechanic's lien is being filed started two weeks ago, it takes precedence over the mortgage that was filed just five days ago. Mechanic's liens are designed to protect contractors and laborers who provide services or materials for property improvements. Their priority is established based on the date the work began, rather than when the lien is recorded, as long as it is properly filed later. This principle ensures that those who contribute to the improvement of a property have a secured interest in that property, which can supersede other claims like a mortgage that was established afterward, creating a safeguard for the rights of construction professionals involved in the property’s enhancement.