Page 7 - State Law Summary of Mechanic's Lien Law

Arkansas AR

What is the statutory authority? What is the period of enforcement of a filed mechanic’s lien?
Ark. Code Ann. § 18–44–101 to § 18–44–508. All actions must be commenced within 15 months after filing the lien and
prosecuted without unnecessary delay to final judgment. No lien shall continue
What is the Attachment Date of the Mechanic’s Lien? to exist for more than 15 months after the lien is filed, unless within that time an
A mechanic’s lien attaches as of the date construction or repair commences, A.C.A. action shall be instituted and a lis pendens is filed under A.C.A. § 16-59-101 et seq.
§ 18-44-110(a)(1). See A.C.A. § 18-44-119.

What constitutes visible commencement of construction? Is there a procedure to bond over the mechanic’s lien(s)?
Construction or repair commences when there is a visible activity on the property Yes. See A.C.A. § 18-44-118.
that would lead a reasonable person to believe that construction or repair of an
improvement to the real estate has begun or will soon begin, including, but not Are the ALTA 32/33 Series Endorsements available for the Loan Policy?
limited to, the following: Yes.

a. Delivery of a significant amount of lumber, bricks, pipe, tile, or other
building material to the site;
b. Grading or excavating the site;

c. Laying out lines or grade stakes; or

d. Demolition of an existing structure.
A.C.A. § 18-44-110(a)(2).

What is the priority of the insured construction mortgage/
deed of trust?
A mechanic’s lien has priority over a mortgage for a permanent loan recorded after
construction commences. A.C.A. § 18-44-110(b)(1)(A), (c).

A construction loan recorded before construction commences has priority over
mechanic’s liens. A.C.A. § 18-44-110(b)(1)(B). The construction mortgage, must
contain “purpose” and “mandatory advance” language in order to preserve
priority. If the construction loan proceeds are to be used in part for the “purpose”
of acquiring the real property on which the improvements are to be constructed,
the acquisition money and the construction money must be broken out with exact,
separate amounts and specified in the construction mortgage. See Ashdown
Hardware Co. v. Hughes, 223 Ark. 541, 267 S.W.2d 294 (1954).
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?
The lien must be filed with the circuit court in the county where the property is
located within one hundred twenty (120) days after the work or material is done or
furnished. A.C.A. §18-44-117.

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