Croessmann & Westberg Home
Priority of Mechanic’s Liens in MD
What priority does my Mechanic’s lien have in Maryland?
In Maryland, mechanic’s liens are not inchoate and therefore have a lower priority than Virginia mechanic’s liens. The lien is not established until the court establishes the lien and any prior established encumbrances have higher priority. This priority also means that lien rights can be cut off with foreclosure or sale if the lien has not already been established. Any bona fide purchaser, including in foreclosure, can purchase the property free of any lien that has yet to be established. This makes it extremely difficult to establish a mechanic’s lien on new construction residential property because homes are usually sold or under contract before the work is finished. All new construction projects are subject to a mechanic’s liens. For repairs or renovations, a mechanic’s lien can only be established if the building has been repaired, rebuilt, ore improved to the extend for 15% of its value. For subcontractors this rule applies to the entire project being 15% of the building’s value not the subcontractor’s individual portion being 15% of the building’s value.
