The following excerpt is from In Re South Bay Expressway, No. 10-04516-A11, No. 10-90172-LA (Bankr. S.D. Cal. 2010):
The present case is more analogous to Sontag v. Abbott, 140 Colo. 351, 356-58 (1959). Sontag involved a priority dispute between a trust deed and a mechanic's lien claimant for materials delivered to land at the request of a person having only an option to purchase the land. The mechanic delivered the materials prior to execution of the trust deed and before the optionee had exercised the purchase option and acquired the fee title. Id. at 352-53. Subsequently, the trust deed lender made the loan to the optionee to enable the optionee to purchase the land and pay for construction of the improvements, which the lender secured with a first trust deed upon the land "together with improvements now thereon and improvements hereafter constructed thereon." Id. at 353.
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