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Expert Analysis

Have A Game Plan Before Waiving A Mechanic's Lien Priority

Law360, New York (November 10, 2014, 10:29 AM EST) -- In what can only be described as a devastating result for a general contractor, California's Fourth Appellate District held that a general contractor may prospectively waive the priority of a mechanic's lien to the owner's construction lender. Thus, notwithstanding advancing its work prior to the execution of the construction loan and timely recording its mechanic's lien, the waiver left the general contractor out in the cold for over $2 million in receivables against a defunct owner....

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