Mechanic's liens in Virginia

Mechanic's Liens in Virginia

Construction subcontractors and suppliers must understand mechanic's lien security as a proactive credit management planning tool. You must understand your security opportunities from the beginning of each transaction so that you can properly assess your risk with each customer and each project.

Previously, we discussed Maryland mechanic's hens. In the following months, we will provide detailed discussions of mechanic's hens laws in other states. To better understand some of this discussion on Virginia mechanic's liens, you may need to refer to the general mechanic's Hen article in the October issue of Business Credit or at our website at www.FullertonLaw.com

Distinctive Features of law in State

Priority determines which lien gets paid first after a foreclosure sale, which lien survives a sale of the property or survives bankruptcy. A Virginia mechanic's lien may have the highest priority of any in the United States. The mechanic's hen claimant will have priority over the construction loan bank. The Virginia mechanic's lien will also survive a foreclosure or any other sale of the property. Bankruptcy will not defeat lien rights.