AR HB1271

Mechanics' and materialmen's liens for labor or materials become subject to (rather than preferred over) encumbrances that existed on real estate prior to construction commencement

Construction loan mortgages receive priority over all mechanics' and materialmen's liens when the encumbrance was given to fund the construction or repair

Lenders may rely on affidavits from licensed appraisers, architects, surveyors, or engineers certifying no work has commenced, filed within 4 business days before or after the mortgage filing

For residential properties (single one-to-four family units), the affidavit may be made by a lender employee, designee, or licensed title agent

When construction begins before mortgage recordation, only liens for labor, materials, or supplies provided before the mortgage recording have priority over the construction loan mortgage