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Mechanic's Liens Archives

Construction Law - Be Certain of Your First Date of Improvement

In a recent unpublished decision, Breidenbach Company, LLC vs. Prosperity Real Estate Investments, LLC (Minn. Ct. App., July 20, 2010), the Minnesota Court of Appeals was asked to determine whether a mechanic's lien was superior and prior to a mortgage held by a bank.  The Contractor and the property owner entered into a contract for demolition and new construction of residential property in Minneapolis in April, 2007.  The project was financed by a construction loan, which was recorded on June 18, 2007.  The bank took photographs on that date, which reflected that the contractor had made no visible improvements as of that date.

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