If contractors and suppliers are not paid for their work on a construction project in Oregon, they have the right to file a mechanics lien or construction lien to ensure payment. A mechanics lien acts as a legal safeguard, granting the unpaid party a security interest in the property.

At CRM Lien Services, we specialize in ensuring that you get paid quickly and reliably. We can prepare and file mechanics liens for you, taking into account Mechanics Lien Oregon and state-specific rules and regulations. This page details the regulations, necessary steps, and deadlines that must be adhered to when filing a mechanics lien in Oregon.

Key Takeaways

• Eligibility for Filing: A range of construction participants, including contractors, subcontractors, and design professionals, can file a mechanics lien in Oregon.
• Preliminary Notices: Preliminary notices must be sent within eight days of starting work on a project, and they are essential for preserving lien rights.
• Filing Deadlines and Requirements: Liens must be filed within 75 days after the last labor or materials are provided. Accurate and detailed documentation is crucial for the lien to be enforceable.
• Construction Lien Law: Oregon’s construction lien law permits filing mechanics liens and material man’s liens on construction projects. This law ensures payment for work done on a property and protects those who contributed to the property but do not have a direct contract with the owner.

Who Can File a Mechanics Lien in Oregon?

In Oregon, statutes clearly define the parties eligible for mechanics lien rights, also known as construction liens. This group includes general contractors, subcontractors (at all tiers), laborers, material suppliers, equipment lessors, and various design professionals, such as architects, landscape architects, land surveyors, and registered engineers.

Is a Written Contract Necessary to File a Mechanics Lien in Oregon?

Typically, a written contract is not necessary. However, for residential projects or zero-lot-line dwellings where the contract price exceeds $2,000, a written agreement between the original contractor and the property owner is mandatory. Without such a contract, the original contractor cannot file a lien for property improvements.

Should the contract price surpass $2,000 during the project, the contractor is obliged to provide a written contract within five days of realizing the price increase.

It’s important to note that the absence of a required written contract does not invalidate the agreement itself, but it does prevent the prime contractor from filing a mechanics lien in Oregon.

When Is the Deadline to File an Oregon Mechanics Lien?

In Oregon, a mechanics lien must be filed within 75 days after the claimant last provides labor and/or materials, or 75 days following the completion of construction, whichever comes first.

Filing a lien before the project is completed or before the last provision of labor and/or materials renders the lien premature and thus invalid. Additionally, the lien must include a ‘lien sufficient’ description of the property to be charged, including the address, if known, as part of filing a claim.

It’s important to note that issuing a formal written change order can reset the ‘last furnishing’ date for Oregon mechanics liens.

Do I Need to Send Notice That the Mechanics Lien Was Recorded in Oregon?

It is advisable to notify the owner, mortgagee, and any parties with a prior recorded security interest in the property by sending them a copy of the filed lien within 20 days of its filing. This notification should include a copy of the lien claim and must be delivered via personal service, registered or certified mail with return receipt requested, or other delivery methods that include third-party verification of receipt.

Note: While failing to send this notice does not invalidate the lien itself, it does forfeit the right to recover attorney fees and costs in the event of a foreclosure action.

Who Must Send a Notice of Right to Lien in Oregon?

Best practice dictates sending preliminary notices for every construction project, regardless of the state. In Oregon, there are two primary types of preliminary notices: the notice of right to lien and the information notice to the owner.

Contractors directly hired by the property owner must provide an information notice to the owner. Typically, this notice is only required for the owner, but if the property is sold within 75 days, the purchaser should also receive the notice.

For all other lien claimants who do not have a direct contract with the owner, it is mandatory to send a notice of right to lien. This notice should be sent to the property owner, the mortgagee, the general contractor, and any parties with a prior recorded interest in the property to ensure full protection of the lien claimant’s rights. Providing a ‘right to a lien’ notice is crucial for subcontractors, material suppliers, or equipment rental companies to claim a valid lien if they are not paid.

What Should Be Included in an Oregon Notice of Right to Lien?

The Oregon Notice of Right to Lien mandates the inclusion of specific language and details.

At a minimum, all notices should contain:

• Your name and address
• The property owner’s name
• The complete mailing address of the property
• The name of the individual who contracted your services for the construction project
• The date you mailed the form
• A brief description of the services you plan to provide for the project, including any equipment and supplies utilized.

When Do I Send a Preliminary Notice in Oregon?

The information notice to the owner should be provided concurrently with the signing of the contract with the owner. The notice of right to lien, on the other hand, must be issued within eight days of initially providing labor and/or materials to a project.

If the notice of right to lien is sent late, it will only cover the labor and materials provided in the eight days prior to the notice’s issuance. Moreover, neglecting to provide the information notice to the owner when required can jeopardize the validity of a future mechanics lien Oregon claim.

5 Essential Things to Know About Oregon Mechanics Liens

Contractors and suppliers in Oregon have robust lien rights. If they are not paid for a job, filing a mechanics lien can expedite payment and offer protection. However, adherence to specific requirements and rules is crucial. Understanding the Oregon mechanics lien law is essential to properly file a lien and protect the right to be paid.

Here are five essential aspects of Oregon lien law:

1. Eligibility Criteria Are Specific: Oregon’s mechanics lien law explicitly defines who can file a lien. Eligible parties include those performing labor, transporting or furnishing materials, renting equipment for construction, engaging in land preparation, or supervising construction at the owner’s request, such as architects and engineers. Also, for projects requiring a written contract, lien claimants must be licensed.
2. Deadline for Filing: The deadline to file a lien in Oregon is either 75 days after the last provision of labor/materials or 75 days following project completion, whichever is earlier. Filing too soon results in a premature and invalid claim.
3. Rapid Preliminary Notice is Critical: Oregon requires quick action on preliminary notices, having the shortest deadlines nationwide. For residential projects over $2,000, general contractors must deliver an Information Notice to the Owner when the contract is signed or within five days of recognizing the contract will exceed $2,000. Subcontractors and suppliers must send a Notice of Right to Lien within eight days of starting work. Material suppliers have similar requirements for commercial projects, but all parties are advised to send notices to safeguard their lien rights fully.
4. Potential Priority Over Mortgages: In Oregon, the priority of mechanics liens over mortgages can be complex. To gain priority, it’s crucial to send a Notice of Right to Lien to the mortgagee. Additionally, labor liens are given special priority, so it’s beneficial to distinguish in your lien the amounts attributed to labor versus materials, although separate filings are not required.
5. No Legal Property Description Needed: A mechanics lien in Oregon does not require a legal property description. Instead, a sufficient description to identify the property, including its physical address if known, is adequate for filing.

How to File a Mechanics Lien in Oregon?

Navigating the complexities of payment for construction projects can be daunting, and unfortunately, it’s often more challenging than it needs to be. One effective strategy to safeguard against nonpayment is the use of a mechanics lien. In Oregon, these liens serve as a robust mechanism to ensure that those involved in construction are compensated for their labor and materials. If you find yourself unpaid after providing work or materials on a construction job in Oregon, a mechanics lien could be your pathway to securing payment.

Understanding and leveraging Oregon’s lien rights is crucial. These rights are potent and far-reaching, but they come with a set of prerequisites that must be meticulously followed to maintain the eligibility to file a lien and to ensure its validity.

Steps to File a Mechanics Lien in Oregon

1. Preliminary Notice Requirements: The initial step in Oregon involves adhering to preliminary notice requirements. For direct contracts with the property owner on residential projects exceeding $2,000, a preliminary Information Notice to the Owner is necessary. All other participants must issue a Notice of Right to Lien for all residential projects. Timing is critical here; notices must be sent within 8 days of commencing work. Although missing this deadline isn’t necessarily fatal to a lien claim, it limits the protection to the period starting eight days prior to the notice issuance. Failing to provide any notice, however, is a significant misstep that invalidates a lien claim.
2. Preparing the Mechanics Lien Form: Once you’ve met the preliminary notice requirements, the next step involves preparing the mechanics lien form. This might seem straightforward, but the complexity of lien laws requires attention to detail to avoid pitfalls. The form must adhere to strict formatting and content specifications dictated by Oregon law.
3. Filling Out the Lien Form Accurately: Your mechanic’s lien in Oregon must include all required information according to Oregon statute § 87.035. This includes a true statement of demand after deducting all just credits and offsets, the name of the property owner or reputed owner, the party who hired the claimant, and a proper description of the property. Each piece of information must be precise to avoid jeopardizing the lien’s validity.
4. Signing and Notarization: After filling out the form, the lien must be signed and notarized. This verification step is crucial as it subjects the signatory to penalties for false statements under Oregon law.
5. Filing the Lien: The completed form must then be filed at the correct county recording office within 75 days of the last provided labor or materials, or upon project completion, whichever comes first. It’s important to understand the specific requirements of the recording office, including the filing fees and the process for electronic or in-person submissions.
6. Serving the Lien: Finally, Oregon law requires that the filed lien be served on the property owner and any mortgagees within 20 days of filing. This step is mandatory, and failing to comply can affect the recovery of costs and attorney fees in the event of a lien foreclosure.

Get in Touch

For contractors and suppliers in Oregon, navigating the mechanics lien process is crucial to ensuring timely and guaranteed payment for services rendered on construction projects. Mechanics liens provide a legal safeguard, establishing a security interest in the property involved, thereby prioritizing the claimant’s right to payment.

At CRM Lien Services, we have been serving customers across the country with required reference documentation for lien claims since 1986. We assist property owners in navigating the mechanics lien process, informing them about their rights and responsibilities, including providing notices, securing payment, and releasing mechanic’s liens. We have a wealth of expertise, are licensed and insured, and have a team of highly knowledgeable document processors. If you’re looking for a straightforward process for filing a mechanics lien, give us a call or shoot us an email.

We would love to work with you and help you lower your risk and get paid fast!