Florida Broker Practice Exam

Which lien automatically takes priority over other liens created after the first work is done?

1. Vendor's lien

2. Construction lien

3. Estate tax lien

4. Specific lien

The correct answer is: Construction lien

A construction lien automatically takes priority over other liens that are created after the initial work is performed. This legal mechanism allows contractors and suppliers to secure payment for the labor and materials they have provided in a construction project. The primary reason for this priority is to protect those who contribute to the improvement of a property by ensuring they are compensated for their efforts. When work has started on a property, the construction lien establishes a financial claim against that property, giving first priority to those who have enhanced its value. This is particularly important in the construction industry, where ongoing projects may not immediately provide payment, making the lien a necessary security measure for those involved. In contrast, other liens such as vendor's liens, estate tax liens, and specific liens do not automatically gain such precedence in the context of construction work, especially once a construction lien is recorded. This hierarchy protects the rights of those providing services and materials during construction, ensuring they have recourse in the event of non-payment.