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State law determines whether or not a mortgage will have priority over a mechanic's lien.

A. True
B. False

1 Answer

5 votes

Final answer:

State law determines if a mortgage has priority over a mechanic's lien, and this is true. The priority status of liens differs by state statutes and legal principles.

Step-by-step explanation:

State law does indeed determine whether or not a mortgage will have priority over a mechanic's lien. Therefore, the correct answer to the student's question is A. True. Mechanic's liens are designed to ensure that contractors and subcontractors receive payment for their work. However, the precedence of these liens compared to other types of liens, like mortgages, can vary depending on the state law. Some states may have a 'first in time, first in right' policy, meaning whichever lien was recorded first will take priority, while others have specific statutes that grant mechanic's liens superior status or a different order of priority.

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