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lien priority over lender. read below.

Texas

Would my judgement/lien have priority over the lenders if I prevail?

1 reply

Sep 21, 2020

The key here is the lien regardless of a judgment.  They are separate issues.  You might get a judgment on your claim; however, if your lien can be blocked by that of the lender. There is not enough information provided for even a general response to this question.  However, a general rule on who has priority between a lender and a contractor is “the firstest with the moistest.”  In other words what happened first.    The key legal term is “inception” which merely means who was first.  For a contractor, general or sub, to have a lien that prevails over a lender, the court must find that before the lender’s lien is filed, the claimant on the construction lien must show (1) that there was delivery of material or work was done at the site of construction; (2) that that material or work was visible to someone viewing the land; and (3) that the material work constitutes either (a) material which will be consumed during construction or work done on the land and (b) ,if it is material supplied, the material was to be incorporated in the permanent structure.  The work by one contractor or the delivery of material does not relate back to when some other contractor did work or supplies were delivered.  So some contractors or suppliers can have priority over the lender and others might not. 

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