Property Ownership

What is a 'mechanics' lien priority' in Illinois construction projects?

AMechanics' liens always have the highest priority over all other liens
BIn Illinois, mechanics' liens relate back to the date of the first furnishing of labor or materials (not the filing date), giving them priority over mortgages recorded after the first furnishing✓ Correct
CMechanics' liens are always subordinate to construction mortgages
DPriority is determined by the date the work is completed, not when it begins

Explanation

Illinois mechanics' lien law provides that a mechanics' lien's priority relates back to the date of first furnishing of labor or materials to the project—not the date of recording. This 'relation back' doctrine means a mechanic's lien can have priority over mortgages recorded after construction began, even if the lien is filed later. Construction lenders in Illinois must obtain title insurance with mechanics' lien coverage and use proper escrow procedures to protect their priority.

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