No lien or encumbrance upon the land created before the work was commenced or materials furnished shall operate upon the building or structure erected thereon, or materials furnished for and used in the same, until the lien in favor of the person doing the work or furnishing the materials shall have been satisfied; nor shall any lien or encumbrance upon the land created after the work was commenced or materials furnished operate on the land, or such building or structure, until the lien in favor of the person doing the work or furnishing the materials shall have been satisfied.
Unless otherwise provided in the subordination agreement, if the holder of the prior recorded lien of a purchase money deed of trust subordinates to the lien of a construction money deed of trust, such subordination shall be limited to the construction money deed of trust and said prior lien shall not be subordinate to mechanics' and materialmen's liens to the extent of the value of the land by virtue of such agreement.
In the enforcement of the liens acquired under the previous sections of this chapter, any lien or encumbrance created on the land before the work was commenced or materials furnished shall be preferred in the distribution of the 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 the residue of the proceeds of sale shall be applied to the satisfaction of the liens provided for in the previous sections of this chapter. Provided that liens filed for performing labor or furnishing materials for the repair or improvement of any building or structure shall be subject to any encumbrance against such land and building or structure of record prior to the commencement of the improvements or repairs or the furnishing of materials or supplies therefor. Nothing contained in the foregoing proviso shall apply to liens that may be filed for the construction or removal of any building or structure.
Notwithstanding the provisions of subsection C of § 43-3, a general contractor may, prior to or after providing any labor, services, or materials, contract to subordinate his lien rights to prior recorded and later recorded deeds of trust, provided that such contract is (i) in writing and (ii) signed by any general contractor whose lien rights are subordinated pursuant to such contract.
Code 1919, § 6436; 1924, p. 413; 1968, c. 568; 2018, cc. 79, 325.
Notes of Decisions
York Fed. Sav. & Loan Ass'n v. William A. Hazel, Inc., 506 S.E.2d 315 (Va. 1998).
· cites it 6× “Hazel contended that there was no material issue of fact to be decided since York Federal had stipulated as to the “validity, amount and enforceability” of Hazel’s mechanic’s hen, thus removing the issue of York Federal’s alleged priority under the provisions of Code § 43-21. As…”
In Re Terry, 262 B.R. 657 (Bankr. E.D. Va. 2001).
· cites it 2× “See Va. Code Ann. § 43-21 (Repl.Vol.1999); In re Bain, 52 B.”
In Re United Am., Inc., 327 B.R. 776 (Bankr. E.D. Va. 2005).
· cites it 2× “” Section 43-21 of the Code of Virginia (1950) provides just that.”
Connemara Corp. v. St. Andrews, L.L.C., 72 Va. Cir. 289 (Lancaster Cir. Ct. 2006).
· cites it 4× “Virginia Code § 43-21, as amended, which would have determined priorities under a perfected lien, was not argued, but is noted.”
Kiser v. Russell Cnty. (In re Kiser), 344 B.R. 432 (Bankr. W.D. Va. 2004).
· cites it 6× “As for the priority between mechanics’ liens and Deeds of Trust, Va.Code § 43-21 provides that No lien or encumbrance upon the land created before the work was commenced or materials furnished shall operate upon the building or structure erected thereon, or materials furnished…”
Strauss v. Princess Anne Marine, 163 S.E.2d 198 (Va. 1968).
· cites it 2× “by an amount in excess of the claims of the mechanics’ lienors,” thereby entitling the mechanics’ liens to the priority over existing hens and encumbrances established by Code, § 43-21. 1 Mrs. Strauss argues that the bulkhead “was not a new independent structure” but “a…”
Breton, LLC v. Lincoln Nat'l Life Ins., 805 F. Supp. 2d 251 (E.D. Va. 2011).
· cites it 2× “Va.Code Ann. § 43-21. No comparable statutory provision exists in Virginia with respect to attorneys’ fees liens; instead, plaintiffs claim of “super-priority” status for attorneys’ fees liens exists solely as a product of Silver & Brown’s imagination.”
Hanson Assocs., P.C. v. Gallery Plaza P'ship, 32 Va. Cir. 356 (Richmond County Cir. Ct. 1994).
· cites it 12× “Plaintiff objects to the commissioner’s finding that the work contemplated on the building constituted repairs and improvements, rather than new construction, within the meaning of Va. Code § 43-21, *357 thereby rendering plaintiff’s mechanic’s lien inferior in priority to the…”
W. T. Jones & Co. v. Foodco Realty, Inc., 206 F. Supp. 878 (W.D. Va. 1962).
· cites it 2× “However that case was decided long before what is now § 43-21 of the Code of Virginia took its present form.”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.