How is lien priority determined in New Mexico?

Lien priority in New Mexico is determined by the filing date of the lien, which establishes the order in which claims against a property will be settled in the event of a foreclosure or liquidation. The person or entity that files a lien first generally has the highest priority over subsequent liens, meaning they will be paid first from the proceeds of any sale of the property.

This priority system is crucial because it helps to organize the claims of various creditors and establishes a legal order for repayment. For instance, if a contractor files a lien on a property after completing work, that lien is powerful because it is based on the legal recognition of the contractor's right to be paid for those services rendered.

The other considerations mentioned, such as work completion date, size of the project, and amount of payment due, do not play a direct role in determining lien priority in New Mexico. Instead, they may affect the validity or amount of a lien but not the order in which liens will be satisfied. The clear delineation of priority based on filing dates helps to maintain a fair and predictable system for all parties involved.