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Article Date: 10/01/2012


'First Spade Rule' Gives Mechanic's Liens Priority over Mortgage Deed


Mechanic’s liens took priority over a pre-existing purchase money deed of trust. The deed of trust was not recorded until after work commenced at the site. Under the “first spade rule,” the liens related back in time to the commencement of work, taking priority over the deed of trust.

 



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