Sending a notice of right to lien Oregon is essential to preserving mechanics lien rights, which play a key role in ensuring you receive payment. While this notice functions as a type of preliminary notice, Oregon has specific rules that set it apart from the standard requirements in other states. This guide explores Oregon’s unique preliminary notice process, including the notice of right to lien and the information notice to owner. We’ll cover who needs to send and receive these notices, the required details, and the proper timing and methods to ensure compliance.
Key Takeaways
- Timely Delivery is Crucial: In Oregon, the Notice of Right to Lien must be sent within 8 days of starting work or supplying materials. Failing to meet this deadline can limit lien rights to only the work completed in the 8 days prior to the notice.
- Who Needs to Send Notices: Contractors with a direct contract with the property owner must send an Information Notice to Owner, while subcontractors and material suppliers without a direct contract must send a Notice of Right to Lien to protect their lien rights.
- Required Notice Details: Both notices must include specific information, such as the claimant’s contact details, a description of the work or materials provided, and the property owner’s information, ensuring compliance with Oregon’s statutory requirements.
Who Needs to Send an Oregon Notice of Right to Lien on Private Projects?
The requirements for preliminary notice in Oregon vary depending on the project type and the claimant’s role. There are two primary notices to consider: the Information Notice to Owner and the Notice of Right to Lien.
Information Notice to Owner
For owner-occupied residential projects with a contract value of $2,000 or more (or when the value reaches $2,000), any party with a direct contract with the property owner must provide an Information Notice to Owner to preserve their lien rights.
Notice of Right to Lien
Residential Projects
Claimants without a direct contract with the property owner are required to serve a Notice of Right to Lien to maintain lien rights.
Commercial Projects
Claimants supplying only materials or specially fabricated materials, without installing them, and who do not have a direct contract with the owner must also serve this notice.
It’s important to note that if a lien claimant is only seeking compensation for labor, an Oregon Notice of Right to Lien is not mandatory. However, to ensure the most comprehensive protection of lien rights, it’s generally recommended for all potential claimants to file the notice.
What’s the Deadline to Send an Oregon Notice of Right to Lien?
Information Notice to Owner
The Information Notice to Owner must be provided at the time the construction contract is signed with the property owner. If the contract initially falls below $2,000 but later exceeds this amount, the notice must be served within five days after the contractor becomes aware or reasonably should have known that the contract value will surpass $2,000.
Notice of Right to Lien
For both residential and commercial projects, the Notice of Right to Lien must be issued during the work. It must be delivered no later than eight business days from the date the contractor or supplier first provides labor or materials to the project.
What Information Is Required on a Preliminary Notice in Oregon?
Information Notice to Owner
The Information Notice to Owner must follow the format prescribed by the Oregon Construction Contractors Board, with signatures from both the contractor and the property owner. It should
Notice of Right to Lien
The Notice of Right to Lien should align closely with the format outlined in Or. Rev. Stat. §87.023. It must include the following details:
- The date the notice was mailed (if applicable).
- The property owner’s name and address.
- The claimant’s contact information, including name, address, and phone number.
- The name of the party who hired the claimant.
- A summary of the labor or materials supplied.
- A description of the property.
- Required statutory information about lien rights
How Should a Preliminary Notice Be Sent in Oregon?
Information Notice to Owner
The Information Notice to Owner can be delivered through personal service, sent via registered or certified mail with a return receipt requested, or sent by first-class mail, provided there is a certificate of mailing to confirm delivery.
Notice of Right to Lien
The Notice of Right to Lien may be served through personal delivery or by sending it through registered or certified mail with a return receipt requested for verification.
Is the Oregon Preliminary Notice Considered Served When Sent or When Received?
There can be some ambiguity regarding delivery. Typically, a preliminary notice is deemed served upon sending if dispatched via certified or registered mail with a return receipt requested. When delivered in person, it is considered served once the recipient has physically received it.
Oregon statutes do not explicitly address the implications of a notice being refused. As a precaution, it is recommended to ensure the notice is actually received to avoid potential issues.
What If I Send a Preliminary Notice Late on Private Projects in Oregon?
Information Notice to Owner
Not delivering the Information Notice to Owner on time can result in losing lien rights. Additionally, this delay may lead to the contractor’s license being suspended and fines of up to $5,000.
Notice of Right to Lien
Submitting a Notice of Right to Lien after the deadline does not invalidate the notice, but it will only apply retroactively to the 8 days before it was delivered. If the notice is not sent at all, the lien claimant may only file a lien for labor costs, provided the labor and material expenses are distinctly separated.
Who Needs to Send an Oregon Notice of Right to Lien on Public Projects?
Sending a preliminary notice is not mandatory for preserving the right to file a claim against the payment bond on public works projects in Oregon. However, providing notice can be beneficial for fostering transparency and communication throughout the project.
It is also advisable for involved parties to obtain a copy of the payment bond. This ensures they are aware of any specific notice requirements outlined in the bond terms.
Are Notices of Right to Lien a Common and Standard Practice in Oregon?
Issuing a Notice of Right to Lien Oregon is standard practice, particularly for subcontractors and suppliers on most residential projects. This legal requirement helps protect their ability to file a mechanics lien in case of payment disputes.
While seeing the word “lien” on a notice may feel intimidating, it’s important to understand that this does not indicate a payment issue or financial trouble. Instead, it’s a proactive step that companies often take to safeguard their right to be paid for their contributions to the project. Some businesses send this notice for all jobs, others for projects over a certain value, and some may not send it at all. For property owners, receiving this notice should not raise concerns.
Beyond securing lien rights, the Notice of Right to Lien also serves an informational purpose. It helps property owners and general contractors identify who is working on the project and the materials or services being provided. This transparency allows owners and GCs to confirm payments are being properly allocated and request lien waivers after payment, minimizing the risk of future claims.
About Oregon Notice of Right to Lien
Oregon stands out for its notably short deadlines for sending Oregon preliminary notices. While some states require notice to be included in a contract or delivered even before work begins, Oregon’s deadlines are among the fastest in the country.
Getting preliminary notices sent promptly is critical. As mentioned, Oregon’s deadlines are the shortest nationwide. For subcontractors, suppliers, and other project participants who do not have a direct contract with the property owner, a preliminary notice—referred to as a Notice of Right to Lien in Oregon—must be delivered within 8 days of starting work or supplying materials on a residential project. This tight timeframe can easily be missed without careful planning and preparation.
For commercial projects, the preliminary notice requirements are more limited. Only material suppliers (including those providing specially fabricated materials) who do not install the materials and have no direct contract with the property owner are specifically required to send a Notice of Right to Lien. The deadline for this notice is also 8 days from the first delivery or service. However, it is generally wise for all potential lien claimants to provide the notice to ensure maximum protection of their rights.
For contractors working directly with property owners, the requirements differ. On residential projects valued at over $2,000, general contractors must deliver an Information Notice to Owner. This notice should be provided at the time the contract is signed or within 5 days of realizing the contract will exceed the $2,000 threshold.
How to Send Notice of Right to Lien in Oregon?
It’s a good practice for all parties involved in a construction project to send preliminary notices, regardless of the state. In Oregon, however, there are two key types of preliminary notices:
- Information Notice to Owner: Contractors who contract directly with the property owner are required to serve this notice. It typically only needs to be sent to the owner, but if the property is sold within 75 days of the notice, it should also be delivered to the purchaser.
- Notice of Right to Lien: All lien claimants who do not have a direct contract with the property owner must serve a Notice of Right to Lien. To fully safeguard lien rights, this notice should be sent to the property owner, the mortgage lender, the general contractor, and any parties with previously recorded interests in the property.
What Should an Oregon Notice of Right to Lien Include?
The Notice of Right to Lien in Oregon must contain specific details to meet legal requirements. At a minimum, it should include:
- The claimant’s name and address
- The property owner’s name
- The complete address of the property
- The name of the person or entity that hired you for the project
- The date the notice was sent
- A brief description of the labor, materials, equipment, or services you are providing
To save time, you can use an Oregon Notice of Right to Lien form, which is designed to meet all statutory requirements.
When Should Preliminary Notices Be Sent in Oregon?
- Information Notice to Owner: This notice must be delivered at the same time the contract is signed with the property owner.
- Notice of Right to Lien: This must be submitted within 8 days of first providing labor, materials, or equipment on the project. If delivered late, the notice will only apply to work completed in the 8 days prior to the notice date. Failing to serve an Information Notice to Owner when required may completely invalidate your lien rights.
How to Serve Preliminary Notices in Oregon
Both the Notice of Right to Lien and the Information Notice to Owner can be served by:
- Personal Delivery: Considered delivered when physically received by the recipient.
- Certified or Registered Mail (Return Receipt Requested): Considered delivered on the date the notice is sent.
- First-Class Mail (Information Notice to Owner Only): Must include a certificate of mailing to validate delivery.
Since Oregon law does not clarify whether refusal to accept the notice affects its validity, confirming actual receipt is highly recommended to protect your rights.
Don’t Miss Deadlines
To stay on top of your deadlines, consider using a lien or notice deadline calculator. These tools can help ensure you submit notices and secure your rights on time for every project.
Final Notes on Thresholds
Remember that specific price thresholds apply for serving an Information Notice to Owner, so ensure your project complies with these requirements. By adhering to Oregon’s rules, you can protect your payment rights and avoid costly disputes.
Get in Touch
Understanding and adhering to Oregon’s Notice of Right to Lien requirements is crucial for protecting your mechanics lien rights. The state’s specific rules, including strict deadlines and distinct notice formats, make timely and accurate compliance essential. By ensuring you serve the required notices—such as the Information Notice to Owner and the Notice of Right to Lien—you can safeguard your right to payment and foster transparency in construction projects. Staying proactive, leveraging tools like deadline calculators, and thoroughly following the guidelines will help you navigate Oregon’s lien process effectively and avoid potential disputes.
At CRM Lien Services, we have been serving customers across the country with required reference documentation for lien claims since 1986. We provide expert guidance, helping contractors and suppliers safeguard their payment rights through seamless and timely preliminary notice and lien filings.
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 preliminary notice and mechanics lien, give us a call or shoot us an email.
