Mortgages – Priorities -Mechanics’ Lien Attaching to Optionee’s Interest in Land Superior to Purchase Money Mortgage
The holder of an option to purchase land ordered building materials from plaintiff. The materials were delivered the same day. The option was subsequently exercised by the vendee, and a warranty deed received from the vendor. At the same time a deed of trust was executed and delivered by the vendee to the defendant to secure a loan for the purchase money. The trust deed was properly recorded. Upon a failure of payment, plaintiff filed its mechanic’s lien. Defendant subsequently foreclosed its trust deed. Plaintiff commenced this action to foreclose its lien. The trial court held the mechanic’s lien superior to the trust deed. On appeal, held, affirmed. An optionee is the “owner” of property within the meaning of the statute; the mechanic’s lien attaches when the materials are first delivered and there is no exception, in the case of a purchase money mortgage, to the statutory language giving mechanics’ liens priority over other subsequent encumbrances. Sontag v. Abbott, (Colo. 1959) 344 P. (2d) 961.