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In construction, which lien holder is paid first between suppliers, laborers, and general contractors?

WisconsinLien Priority
Anonymous Contractor

All 3 liens exist on a property upon which improvements were made under contract for payment. We are concerned with the order of priorities for debt settlement if the courts sell the property.

1 reply

Levelset Admin at Levelset
| 1,000 reviews
Apr 23, 2020
All Wisconsin mechanics lien claimants will have the same priority when filing liens on the same project. According to § 779.11 of the Wisconsin mechanics lien statue, claimants will be paid proportionally if there aren't enough proceeds to pay all claims. So, practically: The property would be sold and the costs of getting the property sold would be paid first. Then, any liens, mortgages, or encumbrances with higher priority would be paid out. Then, lien claimants would split what's left - and the amount received will be based on the size of the claims and how much is left to go around.
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