Uncovering the Oregon Lien Law

Do you need help filing a Claim of Lien in the state of Oregon? Are you unsure if a Notice of Right to Lien is required? If you have questions concerning Oregon’s Lien Law, you’ve come to the right place. As an Oregon Lien Service provider, we make it a point to be very familiar with Oregon’s Lien Law and follow them exactly as they are written. Oregon’s Lien Law is very explicit, and if your business plans to regain unpaid funds through a Claim of Lien, you will need to understand how to make best use of the Oregon’s Lien Law.

The Oregon Lien Laws have many conditions to consider before preparing and serving your Claim of Lien. Below are four critical concepts to keep in mind as you begin the Claim of Lien process:

Eligibility Requirements for Filing a Claim of Lien are Very Specific

Unlike other states that may be more liberal concerning who may file a Claim of Lien, Oregon’s Lien Law has specific eligibility requirements. According to § 87.010, those who may file a Claim of Lien include:

“1) Any person performing labor upon, transporting or furnishing any material to be used in, or renting equipment used in the construction of any improvement to real property;

2) Any person who engages in or rents equipment for the preparation of a lot or parcel of land, or improves or rents equipment for the improvement of a street or road adjoining a lot or parcel of land at the request of the owner of the lot or parcel;

3) Trustees of an employee benefit plan;

4) An architect, landscape architect, land surveyor or registered engineer who, at the request of the owner or an agent of the owner, prepares plans, drawings or specifications that are intended for use in or to facilitate the construction of an improvement or who supervises the construction.”

A Notice of Right to Lien Must be delivered within 8 Days of Furnishing Labor or Materials

Oregon allows a very limited period for serving your Notice of Right to Lien. According to the law, anyone furnishing labor and/or materials to the project who is not in direct contract with the property owner must prepare and deliver a Notice of Right to Lien within 8 days of first furnishing the labor and materials required for the project. The notice must be delivered via certified mail to both the property owner and the lender (if applicable); if not, Lien Rights may be lost. If you have complied with this condition and need to advance the lien process, then:

A formal Claim of Lien Must be Filed and Served, within 75 Days of the Project’s Completion or Last Furnishing Date

If the claimant has served a Notice of Right to Lien to the property owner and lender, he or she can file a Claim of Lien. The deadline to file a Claim of Lien in Oregon is the earlier of the two: 75 days of the last date materials and/or labor were furnished for the project OR 75 days after the completion of the project. Keep in mind that if your Claim of Lien is filed too early, your claim could be invalid. Wait until your project has either completed or all of the materials and/or labor have been furnished.

No lien created under ORS 87.010 shall bind any improvement for a longer period than 120 days.

From the day that you prepare, record, and serve your lien, you have 120 days to take action. On the 121st day the lien becomes invalid and must be removed with prejudice. Failure to begin a lawsuit within the 120-day window is a sure way to loose all of the security you have been granted by the recorded lien. Do not wait very long after filing your lien to get your attorney involved.

These are just a few key provisions included in the Oregon Lien Law. There are hundreds more that are just as important to the success of your Claim of Lien. Do not risk your Lien Rights by trying to navigate the laws on your own – hire a Notice of Right to Lien and Claim of Lien Service to prepare and serve your Oregon Notices of Right to Lien and Claims of Lien.

CRM Lien Services will thoroughly research and verify all of the information included in your Notice of Right to Lien and Claim of Lien so your Lien Rights are fully protected. We stay current with the changes to the Oregon Lien Law so your notices are prepared according to the latest statutes.

If you’d like to request a proposal for our services, click here.

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