Page 15 - State Law Summary of Mechanic's Lien Law

Hawaii HI

What is the statutory authority?
Hawaii Revised Statutes §§ 507-41 to 507-49.
What is the Attachment Date of the Mechanic’s Lien?
A mechanic’s lien shall relate to and take effect from the time of the visible
commencement of operations for the improvement. H.R.S. § 507-46.

What constitutes visible commencement of construction?
Visible commencement of operations means the first actual work of improvement
as part of a continuous operation, or the first delivery to the site of materials to
be used as part of a continuous operation in the improvement, of such manifest
and substantial character as to notify interested persons that the real property is
being improved or is about to be improved. H.R.S. § 507-41.
What is the priority of the insured construction mortgage/
deed of trust?
A mortgage recorded prior to visible commencement has priority over a
subsequently filed mechanic’s lien. A mortgage recorded subsequent to visible
commencement but prior to completion of the project has priority so long as all
the funds advanced and secured by the mortgage are applied to the project and
the mortgage contains language that the mortgage secures the funds advanced
for construction of the improvements. H.R.S. § 507.46.

If priority of the insured mortgage/deed of trust is lost, is there a
statutory procedure to regain priority?
No.

When does a mechanic’s lien have to be filed for claimant to maintain
lien rights?
A claimant must file an Application and Notice of Lien in the Circuit Court of
the circuit where the property is located no later than 45 days after the date of
completion of the improvement against which it is filed. H.R.S. § 507-43.

What is the period of enforcement of a filed mechanic’s lien?
A mechanic’s lien expires three (3) months after entry of an Order Directing Lien
to Attach unless an action is filed to enforce the lien within this time period.
H.R.S. § 507-43(e).

Is there a procedure to bond over the mechanic’s lien(s)?
Yes. H.R.S. § 507-45 provides that any mechanic’s and materialmen’s lien may
be discharged at any time by the owner, lessee, principal or intermediate
subcontractor by filing cash or a bond for two times the sum of the amount the
claim is filed. The bond is filed with the clerk of the circuit court of the county in
which the property is located or with the assistant registrar of the land court, if
registered land is affected, except when the lien attaches solely to interest of the
lessees in a leasehold time share interest.

Are the ALTA 32/33 Series Endorsements available for the Loan Policy?
Yes.

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