Page 50 - State Law Summary of Mechanic's Lien Law

Virginia VA

What is the statutory authority?
Va. Code Ann. § 43-1 et. seq.
What is the Attachment Date of the Mechanic’s Lien?
A lien attaches as of the date work or furnishing materials commences. Va Code
Ann. § 43-21.

What constitutes visible commencement of construction?
There is no visible commencement rule.

What is the priority of the insured construction mortgage/
deed of trust?
Construction mortgages for new commercial construction recorded prior to
or subsequent to the furnishing of work or materials do not have priority over
mechanic’s liens. In the context of a sale pre-existing liens are preferred up to
the value of the land. A lien claimant has priority as to the new improvement or
structure. A deed of trust for repairs or improvements to an existing commercial
building has priority over mechanic’s liens as to both the land and building or
structure. Va. Code Ann. § 43-21.

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 lien claimant must file a lien no later than 90 days from the last day of the month
in which the lienholder last worked or furnished materials or 90 days from the
date the building or structure is completed or the project terminated, whichever is
earlier. Va.Code Ann. §43-4.
What is the period of enforcement of a filed mechanic’s lien?
A claimant enforces a mechanic’s lien by filing a civil action. The claimant must file
the complaint no later than: (i) six months after the date the claimant records the
memorandum of lien; or (ii) 60 days after the completion of the building or
structure; or (iii) 60 days after the date the work on the building or structure was
terminated, whichever is the last to occur. Va. Code Ann. § 43-17.

Is there a procedure to bond over the mechanic’s lien(s)?
Yes. See Va. Code Ann. § 43-71 for procedure to release mechanic’s lien upon
payment into court or filing bond before suit and Va. Code Ann. § 43-70 for
procedure to release mechanic’s lien upon payment into court or filing of bond
after suit brought.

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

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