Montana Construction Lien Law: Lien Priority

In Montana, the liens of contractors, suppliers, architects, engineers and others relate back to and take effect prior to construction loans.  In most states, lien claimants must discover the date of first visible work on the property and if that date is before a loan is recorded, then the liens will have priority over the loan.  However, in Montana, the law specifically provides that construction loans are behind the liens of those who improve the property.  Therefore, it is not required that visible work occurred before a loan is in place for the liens of contractors and suppliers to be ahead of the construction loan.

This rule applies not only to new construction, but it also applies to repair and remedial work.  Additionally, if the loan is for the purchase of the property and if money from the loan is also used to pay for construction, then the contractors and suppliers liens will have priority over the purchase money loan.  Alternatively, if the money is exclusively used for purchase, then it is less likely that the liens of contractors and suppliers will have priority.

For more information on Montana Construction Lien law see:

Montana Lien Law: Notice of Right to Claim Lien

Montana Mechanics Lien Law: Notice of Lien Claim