Lien Priority Calculator

Lien priority in California is determined by multiple factors depending on the lien type:

• Property Tax Liens: Always first priority under California Revenue & Tax Code §2192
• Recording Date: For mortgages, deeds of trust, and UCC-1 filings, the date of recording typically determines priority
• Federal Statutory Liens: PACA trusts and other federal liens may supersede state liens
• Mechanics Liens: Relate back to work commencement date, not filing date
• Judgment Liens: Priority based on when abstract of judgment is recorded

Under California Civil Code §8450, mechanics liens relate back to the date work commenced on the property, not the date the lien is recorded. This means a mechanics lien can have priority over other liens recorded between the work commencement date and the mechanics lien filing date.

For example: If work began January 1st but the lien isn't filed until March 1st, the lien's priority date is January 1st—even though a judgment lien recorded February 15th. This makes mechanics liens particularly powerful in construction disputes.

A PACA (Perishable Agricultural Commodities Act) trust is a federal statutory trust created under 7 U.S.C. §499e. It protects producers and suppliers of agricultural products by giving them priority over other creditors for payment of goods sold.

PACA trusts are superior to all secured creditors because they are created by federal law and protect essential suppliers. If property is subject to a PACA trust (common in agricultural settings), PACA creditors receive payment before most other secured creditors.

Under California Commercial Code §9324, purchase money security interests (PMSIs) can have super-priority over earlier UCC-1 filings, provided they are:

• Properly perfected (typically within 20 days for inventory and fixtures)
• Used to acquire the specific collateral
• Properly documented with notice to earlier creditors

This means a newer PMSI from a purchase money lender can take priority over an older, blanket UCC-1 filing from another lender.

When property value is insufficient to pay all liens, the property is said to be "underwater" or in negative equity. In this scenario:

• Higher-Priority Creditors: Receive payment first, up to the full value of their claim (up to property value)
• Lower-Priority Creditors: Receive a pro-rata share of remaining value, or nothing if funds are exhausted
• Your Recovery: May be significantly reduced or eliminated

This is why lien position is so critical. Even a secured creditor can receive nothing if they are in a very junior position and the property is significantly underwater.

Under California Code of Civil Procedure §683.310, a judgment lien is valid for 10 years from the date the abstract of judgment is recorded. However:

• The judgment itself may be renewed for additional 10-year periods
• The lien must be renewed before it expires to maintain priority
• Property tax sales, foreclosure, or other events can extinguish the lien

For maximum effectiveness, ensure your abstract of judgment is properly recorded and regularly renewed.

Mortgages and deeds of trust on real property are prioritized by their recording date:

• First Mortgage/First Deed of Trust: Recorded first, has priority in foreclosure
• Second Mortgage/Junior Liens: Recorded later, have junior priority
• In Foreclosure: First lienholders' claims are satisfied first; junior liens may be eliminated if property sells for less than first lien amount

This is why mortgage position matters significantly for recovery potential.

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