43-21 - Priorities between mechanics' and other liens. - Virginia Statutes

§ 43-21. Priorities between mechanics' and other liens.

No lien or encumbrance upon the land created before the work was commenced ormaterials furnished shall operate upon the building or structure erectedthereon, or materials furnished for and used in the same, until the lien infavor of the person doing the work or furnishing the materials shall havebeen satisfied; nor shall any lien or encumbrance upon the land created afterthe work was commenced or materials furnished operate on the land, or suchbuilding or structure, until the lien in favor of the person doing the workor furnishing the materials shall have been satisfied.

Unless otherwise provided in the subordination agreement, if the holder ofthe prior recorded lien of a purchase money deed of trust subordinates to thelien of a construction money deed of trust, such subordination shall belimited to the construction money deed of trust and said prior lien shall notbe subordinate to mechanics' and materialmen's liens to the extent of thevalue of the land by virtue of such agreement.

In the enforcement of the liens acquired under the previous sections of thischapter, any lien or encumbrance created on the land before the work wascommenced or materials furnished shall be preferred in the distribution ofthe proceeds of sale only to the extent of the value of the land estimated,exclusive of the buildings or structures, at the time of sale, and theresidue of the proceeds of sale shall be applied to the satisfaction of theliens provided for in the previous sections of this chapter. Provided thatliens filed for performing labor or furnishing materials for the repair orimprovement of any building or structure shall be subject to any encumbranceagainst such land and building or structure of record prior to thecommencement of the improvements or repairs or the furnishing of materials orsupplies therefor. Nothing contained in the foregoing proviso shall apply toliens that may be filed for the construction or removal of any building orstructure.

(Code 1919, § 6436; 1924, p. 413; 1968, c. 568.)