Whether you have heard the term “lien” in the past or are just hearing it for the first time, you may not have a solid understanding of this common legal tool. The word “lien,” pronounced as lean, means that a party has an interest in a property due to the obligation of the property owner to perform an action, make a payment, or settle a debt. A lien is a matter of public record and appears whenever anyone runs a title search on the property. There are several different types of liens across the country, each serving a different purpose depending on the location, industry, and context. In this blog post, the Northwest Lien team takes a step back to explain the various types of liens in Oregon specifically.
A preliminary example to wrap your head around the concept of liens? When a taxpayer gets behind on payment, the Internal Revenue Service (IRS) will place a lien on a piece of property the taxpayer owns, forcing the property to be put on the market. Once the property has sold, the IRS will receive the funds they’re owed first to ensure the taxpayer’s debt is settled; the property owner would receive the rest of the proceeds after the party that filed the lien receives payment. This type of lien, known as a tax lien, is just one common example of a lien in Oregon and other states across the US.
Each lien falls into both a category and a type. The types of liens in Oregon include general or specific, and voluntary or involuntary. When a person has a general lien filed against them, it attaches to their combined assets and not a specific type of property. Assets can include checking and savings account balances, real estate holdings, a vehicle, and other valuables.
Liens in the specific category include those attached to a defined asset. When someone borrows a large amount of money, for example, the lender may require him or her to offer collateral to secure the loan. That means if you pledged your vehicle as collateral on a loan, the lender could take possession of it if you fall behind on payments or default on the loan entirely. Unlike a general lien open to all assets, holders of a specific lien can only take ownership of one item.
The other distinction with types of liens in Oregon is whether they are voluntary or involuntary. While most people assume they would never voluntarily agree to a lien, that is what they do when obtaining a mortgage loan. You sign paperwork at a real estate closing that you agree to the lender placing a lien on the property if you stop making payments. Involuntary liens are more common, however, and often involve a mechanic’s lien (our personal favorite kind of lien) or a judgment lien. For reference, a mechanic’s lien in Oregon is also sometimes called a construction lien … but we’ll get to that.
We mentioned the example of the IRS placing a lien against commercial or residential property for non-payment of taxes, and also mentioned that this was an example of a tax lien at work. A tax lien is an involuntary general lien that prioritizes the IRS for payment above other creditors and the property owner when he or she sells personal or business property. The purpose of a tax lien is not to force the property into foreclosure but to ensure the IRS receives payment first at the time of sale.
A judgment lien is a claim upon property as a result of a lawsuit. When one party sues another in a lawsuit and wins, the judge may place a lien against the losing party’s property on behalf of the winning party. The person owing money in the lawsuit will have the opportunity to pay it first before having a lien placed on his or her property.
As mentioned above, a mortgage lien is a claim on a property that enables a bank/property owner to force the sale of the property if the homebuyer does not meet their mortgage payments. Mortgages fall under the definition of secured loans that automatically create a lien against the property if the borrower fails to meet the loan terms. The property itself acts as a form of collateral rather than the borrower offering another type of personal property to obtain the mortgage loan.
Finally — we saved the best for last! An Oregon mechanic’s lien, or Oregon construction lien, acts as a type of security for licensed general contractors and others in the construction industry. Under statutory rights laws in Oregon, a mechanic’s lien is both involuntary and specific. All 50 states have different variations of laws that allow contractors and suppliers in the construction industry the legal right to file a mechanic’s lien to force payment for services and supplies.
Oregon law provides you with the legal right to file a mechanic’s lien as a general contractor, subcontractor, materials supplier, or a party who provided another type of professional service related to the repair or construction of residential or commercial property.
Before you can file a mechanic’s lien in Oregon, you need to present the property owner with an Oregon Notice of Right to Lien. This does not necessarily mean you will follow through with placing a lien against the property. Taking this action simply preserves your right to file a construction lien in Oregon if you do not receive timely payment of your invoices.
Learn how to file a mechanic’s lien in Oregon.
If you’ve determined that a mechanic’s lien is the type of lien you need, then lucky you! That just so happens to be Northwest Lien’s area of expertise. Filing preliminary lien notices and a mechanic’s lien in Oregon takes time away from the many other tasks you must attend to as a construction worker. We invite you to contact Northwest Lien to learn more about our membership packages offering pre-filled lien forms, free title searches, assistance from a dedicated account manager, and much more. You work hard for your clients, and we’re here to work hard for you.
In Oregon, a lien on a house is a legal claim against the property’s value that secures repayment of a specific debt, such as unpaid construction work, taxes, or a court judgment. It becomes part of the public record, usually must be paid off before the owner can sell or refinance, and can lead to foreclosure if it remains unpaid.
The most common lien on real property is a mortgage lien, which secures the loan used to buy or refinance the home and must usually be paid off first from any sale proceeds. Other frequently seen liens include property tax liens, construction/mechanics liens, and judgment liens from unpaid debts.
Oregon lien law sets the rules for when and how different creditors, like contractors, suppliers, or judgment creditors, can record liens against property and enforce them through foreclosure. It includes strict requirements for notices, filing deadlines, and priority between competing liens, so property owners and contractors must follow the statutes carefully. Visit oregon.gov for more information.
To put a lien on a property in Oregon, a claimant typically completes the required lien form, follows any notice or timing rules that apply to their type of claim, and then records the lien in the county where the property is located. The recorded lien must accurately identify the property, parties, and amount owed to remain enforceable.
To find liens on a property in Oregon, search the public land records maintained by the county recorder or clerk where the property is located. Many counties provide online databases, and a full title search or title company report can help uncover older or harder-to-find liens.
In many Oregon lien contexts, the “3-year rule” refers to a time limit within which a creditor must take specific legal action, such as enforcing or renewing a judgment or lien, to keep it effective. If the creditor does not act within the applicable period, the lien or judgment may become more complicated or impossible to enforce.
Yes, many liens in Oregon expire if they are not enforced or renewed within specific timeframes set by law. For example, certain construction-related liens and judgment liens must be foreclosed or renewed within a defined period, or they lose their effectiveness against the property.
In general, the lien with the highest priority is the one given priority by statute or recorded earliest in time, often a purchase-money mortgage or a properly recorded deed of trust. Certain liens, like property tax liens, can jump ahead in priority and must be paid before most other claims.
