Lien laws protect certain professions (such as contractors and mechanics) from clients who refuse to pay for the work performed. The lien attaches to property of the client; if the client cannot pay or refuses to pay, the court may order the property to be foreclosed and pay the contractor out of the proceeds. Contractors and mechanics in Oregon must follow the Oregon lien procedure; if the procedure is not followed, the lien will not attach to the property.
Send the owner the following notices: Consumer Protection Notice, Notice of Procedure, and Information Notice to Owner About Construction Loans. These forms educate the owner about Oregon construction loans. They must be provided on or before the date work begins or before a contract for the work is signed. This form is available online. Failure to provide this notice results in forfeiture of the right to pursue a lien.
Read More: How to Record a Lien
Provide the owner with a Notice of Right to a Lien. This form is also available online. The notice must contain the names and addresses of the contractor and his or her employees and a description of the services provided. This notice must be provide within eight days after work begins.
File a Claim of Lien with the county recorder’s office located in the Oregon county where the property is situated. This must be provided within 75 days after the work is complete.
Provide the owner with a notice indicating the Claim of Lien was filed. This notice must be provided within 20 days after filing. Attach a copy of the Claim of Lien to the notice.
Initiate a lawsuit to collect on the lien if you are not paid by the owner within 120 days. The complaint must detail the lien and state that each required notice was given and other procedures were followed. To file this document, deliver the complaint to the court clerk in the Oregon county court located in the county where the property is.
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