An Affidavit of Commencement should be recorded no later than 30 days from the date of commencement of construction. The date included in the affidavit is prima facie evidence of the date that construction commenced. The mechanic’s lien contract must be executed and recorded prior to commencement of work, or the Bank’s lien is invalid. Also, a subcontractor’s, materialmen’s or mechanic’s lien “relates back” to the date that work under the original contract commenced so documenting the loan file with evidence of the commencement date is important. If any work is commenced prior to the recording of the construction deed of trust, then all lien claimants under the contract will have lien priority in front of the Bank. [TPC §53.124]
At or near closing, the Bank should conduct an inspection to insure that no work has commenced. A picture of the unaltered site, with no dirt work, clearing or other evidence of any commencement of work should be included in the loan file.