Friday, February 7, 2014

Oregon's Mechanic Lien Requirements

In the state of Oregon, liens filed on private property are known as mechanics' liens . On public projects, Oregon law does not authorize construction liens. Rather, contractors are protected by payment bond claims. When an Oregon mechanics lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property in the state of Oregon.

On private projects, Oregon law permits contractors, subcontractors, material and equipment suppliers, architects and engineers and others to file Oregon mechanics liens.

Are pre-notices for an Oregon mechanics' lien Claim required? Yes, various pre-notices are required. To maintain an Oregon mechanics lien claim, contractors providing labor, materials or rental equipment must file various pre-lien notice requirements. In the case of residential construction, all original contractors (a contractor with a direct contract with an owner) must provide an “information notice to owner”. Failure to provide such “information notice to owner” will prevent an original contractor from enforcing a claim of construction lien. Similarly, subcontractors, material and equipment suppliers who do not have direct contracts with an owner, are required to provide a “pre-lien notice” to protect their lien rights on residential construction projects. Such “notice of right to a lien” must be filed upon the owner within eight days after beginning work or services or first supplying materials or equipment in order to preserve their lien rights under Oregon law. For commercial projects, an original contractor and all subcontractors and suppliers do not need to provide a “notice of right to a lien” or any other pre-lien notice in order to preserve their lien rights. However, “notice of right to a lien” must be filed by material suppliers who do not have a direct contract with an owner.

In the state of Oregon, a lien must be filed within 75 days after the last day of performing labor or providing materials or within 75 days after the completion of construction. Under Oregon law, “completion of construction” is determined when the project is substantially completed, when a notice of completion is posted and recorded as required by Oregon law, or when the project is abandoned as defined by statute.
For more info on mechanics liens in Oregon, please visit LienItNow

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