                                 CODE OF VIRGINIA

PRIORITIES BETWEEN MECHANICS&#8217; AND OTHER LIENS (§ 43-21)

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&#8217; and materialmen&#8217;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.

HISTORY: Code 1919, § 6436; 1924, p. 413; 1968, c. 568; 2018, cc. 79, 325.