Solon, Ohio Real Estate Lien Lawyer | Lien Priority

Lien priority determines the order in which creditors get paid when a property is sold or foreclosed upon, and it can have a significant impact on your financial interests.

At Cavell Law, our real estate litigation attorney has extensive experience helping clients resolve a wide range of real estate disputes, including lien priority issues. We understand the various types of liens that can affect real property in Ohio, including mortgages, mechanic’s liens, tax liens, and judgment liens, and we know how to protect our client’s rights and interests in any situation.

If you are involved in a real estate dispute involving lien priority or other issues, contact Cavell Law today to discuss your case.

Ohio Lien Priority Laws and Principles

In Ohio, lien priority is generally governed by the “first in time, first in right” rule. This means that the lien that is recorded first in the county recorder’s office has priority over later-recorded liens. However, there are some important exceptions and nuances to this rule.

For example, Ohio Revised Code section 1311.13 gives mechanic’s liens a special priority status. If a mechanic’s lien is properly perfected, it will have priority over any liens recorded after the first day of work or the first delivery of materials to the project site, even if those liens were recorded before the mechanic’s lien itself.

Similarly, Ohio law also provides that a mortgage lien takes priority over most other types of liens, even if the mortgage is recorded after the other liens attach. However, this priority can be affected by issues such as proper recording, notice, and the presence of subordination agreements.

As an experienced Ohio lien priority law firm, we stay up-to-date on all the relevant laws and court decisions that can impact our clients’ cases. We know how to navigate the complex web of statutes and case law to achieve the best possible outcomes for our clients.

Mechanic’s Liens and Lien Priority

Mechanic’s liens are a powerful tool for contractors, subcontractors, and suppliers to secure payment for their work on construction projects. In Ohio, the rules governing mechanic’s liens are found in Ohio Revised Code Chapter 1311.

To have a valid mechanic’s lien in Ohio, a claimant must follow specific steps and deadlines for serving notices, recording affidavits, and filing foreclosure actions. Failure to strictly comply with these requirements can result in the loss of lien rights.

When it comes to priority, mechanic’s liens in Ohio generally have priority over any liens that are recorded after the first day of work or the first delivery of materials to the project site. However, there are some exceptions and limitations to this rule, such as in the case of a mortgage lien that was recorded before the work began.

Protecting Lien Rights in Construction Projects

If you’re a contractor, subcontractor, or supplier in Ohio, it’s essential to understand your lien rights and take proactive steps to protect them. Some best practices include:

• Properly serving and recording a Notice of Commencement at the start of the project
• Timely serving and recording Notices of Furnishing and Affidavits of Mechanic’s Lien
• Carefully tracking deadlines and following up on unpaid invoices
• Communicating regularly with the property owner and general contractor
• Consulting with an experienced mechanic’s lien attorney at the first sign of payment issues

At Cavell Law, we have deep knowledge of Ohio mechanic’s lien law and a proven track record of success in helping our clients assert and enforce their lien rights. Whether you need guidance on preserving your lien rights or assistance with filing and foreclosing on a mechanic’s lien, we’re here to help.

Mortgage Foreclosure and Lien Priority

Mortgage liens are one of the most common types of liens on real property in Ohio. When a property owner takes out a loan to purchase or refinance a property, the lender typically records a mortgage lien to secure repayment of the debt.

If the property owner defaults on the loan, the lender may initiate a foreclosure action to take possession of the property and sell it to satisfy the outstanding debt. The priority of the mortgage lien relative to other liens on the property can have a significant impact on the distribution of the foreclosure sale proceeds.

In Ohio, a properly recorded mortgage lien generally has priority over most other types of liens, even if the mortgage is recorded after the other liens attach. However, there are some important exceptions and limitations to this rule, such as in the case of certain tax liens or mechanic’s liens that have priority under Ohio law.

Subordination, Non-Disturbance, and Attornment Agreements (SNDAs)

In some cases, lenders and tenants may enter into subordination, non-disturbance, and attornment agreements (SNDAs) to manage lien priority and protect their respective interests.

An SNDA typically provides that the tenant’s lease will be subordinate to the lender’s mortgage, but that the lender will agree not to disturb the tenant’s possession of the property as long as the tenant is not in default under the lease. The tenant, in turn, agrees to attorn to (i.e., recognize) the lender as its new landlord if the lender acquires the property through foreclosure.

SNDAs can be complex documents with significant legal and financial implications for all parties involved. At Cavell Law, we have extensive experience negotiating and drafting SNDAs that protect our clients’ rights and interests while facilitating successful real estate transactions.

Judgment Liens and Lien Priority

A judgment lien is a type of lien that can be placed on real property in Ohio when a creditor obtains a court judgment against the property owner. Under Ohio Revised Code section 2329.02, a judgment lien attaches to all real property owned by the judgment debtor in the county where the lien is recorded.

Judgment liens generally have priority over any liens that are recorded after the judgment lien is filed. However, they are typically subordinate to prior recorded mortgages, tax liens, and other types of liens that have priority under Ohio law.

Enforcing a judgment lien can be a complex process that involves filing a foreclosure action and navigating various legal and procedural requirements. At Cavell Law, we have significant experience representing both judgment creditors and property owners in judgment lien matters, and we know how to achieve successful outcomes for our clients.

Tax Liens and Lien Priority

Tax liens are another type of lien that can have a significant impact on real estate transactions and disputes in Ohio. When a property owner fails to pay their property taxes, the county auditor may record a tax lien against the property to secure payment of the delinquent taxes.

In Ohio, tax liens generally have priority over most other types of liens, including mortgages and judgment liens. This is because Ohio Revised Code section 5721.10 gives tax liens a “super priority” status that allows them to jump ahead of other liens in the priority line.

If a tax lien is not satisfied, the county may initiate a tax lien foreclosure action to take possession of the property and sell it to recover the unpaid taxes. This can create significant risks and challenges for other lienholders and interested parties.

At Cavell Law, we have deep knowledge of Ohio tax lien law and a proven track record of success in helping our clients navigate these complex issues. Whether you are a property owner facing a tax lien foreclosure or a lienholder seeking to protect your interests, we can provide the skilled guidance and advocacy you need.

Contact Our Solon, Ohio Lien Priority Attorney

If you are involved in a real estate transaction or dispute that involves lien priority issues in Ohio, it’s essential to have experienced legal counsel on your side. At Cavell Law, our real estate litigation attorney has been helping clients successfully resolve lien priority matters for years.

We understand the high stakes involved in these cases and the importance of protecting our client’s financial interests. Whether you are a lender, property owner, contractor, or other interested party, we can provide the personalized guidance and powerful advocacy you need to achieve your goals.

To learn more about how we can assist with your Ohio lien priority matter, we invite you to contact our office to schedule a consultation. We look forward to putting our knowledge and experience to work for you.