Oregon Construction Contractors (CCB) Practice Test

What is an accurate statement about construction liens?

1. They always take precedence over all debts

2. Only some have priority over mortgages

3. They are irrelevant to property disputes

4. All must be filed simultaneously

The correct answer is: Only some have priority over mortgages

An accurate statement about construction liens is that only some have priority over mortgages. In general, construction liens are a legal claim against a property that is typically filed by contractors, subcontractors, or suppliers who have not been paid for their work or materials. The priority of a construction lien in relation to mortgages depends on several factors, including when the work was performed or materials were provided, and when the lien was filed compared to the recording of the mortgage. For example, if a mortgage was recorded before the work began or before the lien was filed, the mortgage may take precedence. On the other hand, if the construction lien is filed before the mortgage is recorded, it can have priority. Therefore, it's important to understand that the priority of construction liens is situational and depends on the specifics of each case, contrary to the notion that they universally take precedence or are irrelevant. Additionally, the idea that all liens must be filed simultaneously does not reflect the practicalities of how construction liens are employed in legal practices, as they can be filed at different times based on the project and payment timeline.