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Which type of lien has the highest priority, a mechanics lien or UCC?

California
Anonymous Contractor

My company filed a UCC against a customer with an outstanding balance. We've identified and reached out to our customers client and informed them that we've filed a UCC1 and any monies owed to this customer is technically owed to us. Our customers client said they will need to make sure all the subs and suppliers on their current job are paid first and if there is any money left over they will issue a joint check. It's my understanding that this company is trying to avoid mechanics liens on the project they are currently working on so it has put us at the bottom of the list to get paid. Shouldn't our UCC filing put us first in line to get paid or do mechanics liens get first priority?

1 reply

Attorney at GinnLaw, P.C.
| 86 reviews
Apr 28, 2021
Your question does not explain the circumstances surrounding how you obtained the right to record a UCC1. In general, you should be pursuing your mechanics lien rights by serving a preliminary notice and recording a lien once your work is completed. A mechanics lien is a very powerful tool for collection. Regardless of whether you have a perfected UCC1 or a mechanics lien, you still need to file a lawsuit to enforce your rights. There are strict deadlines for timely recording of a mechanics lien, so I suggest you contact an attorney familiar with construction claims to assist you.
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