Customer withholding payment on a job in Oregon? We can help!
An Oregon mechanic's lien, also called a contractor lien or construction lien, is a legal tool that allows Oregon contractors, subcontractors, and suppliers/laborers to leverage the value of a property they have done work on to receive the wages they are owed. When filing a mechanic's lien, you can force the sale of the property in question to collect what you are owed. A mechanic's lien is an effective way to get paid if the property owner doesn't comply with the contract terms.
Liens are powerful tools that can damage the worth and reputation of a property; they are just as powerful as a lawsuit, but cost considerably less. Liens are extremely serious and all states — including Oregon — treat them this way.
The most commonly asked questions and topics regarding Oregon mechanics’ liens are listed below. If you don’t see what you’re looking for, contact us today to talk with our team of experts. As the regional lien expert, Northwest Lien has been assisting Oregonians with lien services in the construction industry for over 20 years. We're looking forward to doing the same for you!
Overview
In Oregon, contractors and suppliers have strong lien rights. If you are in this position and do not receive payment for a job, you can file a lien to help speed up the payment process and to protect yourself — though certain requirements must be met to be eligible for this protection.
Here are a few key things we want you to know about filing Oregon mechanics’ liens:
Oregon has the shortest preliminary notice deadlines in the country. For any residential project exceeding $2,000, a general contractor must provide the Information Notice to Owner when the contract is signed or within five days of the contractor’s discovery that the contract will exceed $2,000.
For other parties (suppliers and subcontractors) on residential projects, the Oregon Notice of Right to Lien needs to be sent within eight days of the project being first furnished. For commercial projects, only those who supply materials must send the preliminary notice (within eight days of the first furnishing), but it is smart for all parties to do this, which will help protect their rights to file a lien.
Oregon law is generally pretty specific, especially when it comes to eligibility for filing a lien. Learn more about who is eligible for this right below in the “How to File” section of this page.
Deadlines are very important in Oregon. The consequences for attempting to file a lien after your deadline has passed are more severe in Oregon than in other states and, in a worst-case scenario, could result in revoking your Oregon contractor’s license.
The deadline for filing an Oregon mechanic’s lien on your specific project is one of the two following dates, whichever happens first:
Ensure you wait until whichever deadline applies to you to file a lien. If you file too early, the lien claim will be considered premature and invalid.
Use the links in the blue bar below to find more helpful information.
Know your deadlines! Oregon lien deadlines are some of the shortest in the country, making missed deadlines the most common and costly mistakes local companies make when trying to recover payment.
The deadline that applies to you depends on a number of factors, including the role you played in the project and the document you’re trying to file. We’ve listed general deadlines for Oregon lienholders below.
Notice to Owner Deadlines
WITH CONTRACT
Information Notice to Owner at time of contract execution for residential projects.
Mechanic's Lien Deadlines
75 DAYS
Lien must be filed within 75 days after last labor or materials furnished or completion of project (whichever happens first).
Preliminary Notice Deadlines
8 DAYS
Preliminary notice, or "Notice of Right to Lien", served on owner (and lender, if any) within 8 days of providing labor/materials on residential projects.
Mechanic's Lien Deadlines
75 DAYS
Lien must be filed within 75 days after last labor or materials furnished or completion of project (whichever happens first).
Preliminary Notice Deadlines
8 DAYS
Preliminary notice, or "Notice of Right to Lien", served on owner (and lender, if any) within 8 days of providing labor/materials on residential projects.
Mechanic's Lien Deadlines
75 DAYS
Lien must be filed within 75 days after last labor or materials furnished or completion of project (whichever comes first).
Filing a mechanic’s lien in Oregon requires you to take certain steps and meet specific requirements. We’ll give you a good overview here but, for more detailed information, visit our comprehensive guide linked below.
FULL GUIDE: HOW TO FILE A MECHANIC’S LIEN IN OREGON
You must determine if you are one of the parties with the right to file a mechanic’s lien in Oregon. According to Oregon law, certain professionals can file Oregon mechanics’ liens for the work done. These people include:
To be eligible to file a lien, you must have also had to have filed an Oregon preliminary notice within the deadline and there must not be a construction lien waiver in place.
Since each situation is different, the laws may seem ambiguous. It can be challenging to determine if you have the right to file a mechanic’s lien in Oregon. Working with an industry professional on this matter can help you better understand your rights.
When preparing the lien document, there is specific information you must include. This includes:
Once this information is included on the lien form, you can file the mechanic’s lien.
Once the form is complete, you can file the lien in person, online, or by mail. Even if it is not the state where your business is headquartered, the lien is required to be recorded in the county recording office where the actual project occurred. If the project was done in several counties, the lien must be filed in all the associated county recording offices.
After the county auditor records the lien, it’s the claimant’s responsibility to send a copy of it to the property owner. This must be done within 20 days of the recording. If you forget to send the lien to the property owner, it will not invalidate the lien — but it will mean you won’t be able to recover the legal fees you were charged during the lien process.
In most situations, filing a lien is enough to convince a property owner to settle their debts. However, in some situations, you may find a property owner who needs a bit of a nudge to break out their checkbook. Luckily, you have other notices and legal forms to use if needed, including demand letters and a Notice of Intent to Foreclose.
Oregon liens will only be good for 120 days from the recorded date. Because of this, you may need to take more aggressive legal steps — such as enforcing the lien, i.e., taking it to court.
After receiving payment, it’s necessary to release the mechanic’s lien using an Oregon lien release (not to be confused with a lien waiver). The process is similar to what you do to file one, and you must submit and record another document in the same county of the recording office where you filed the original paperwork.
You only have to include a property description in Oregon for identification purposes. This usually includes the address, if you know what it is. This is one of the few steps in filing a mechanic’s lien in Oregon that is more relaxed than in other states.
While the legal property description isn’t required, it is smart to include it if you have this. This will ensure superior legal coverage.
For an Oregon mechanic’s lien, you can only include the contractual interest and recording fee in the lien amount. While this is true, it may be possible to recover reasonable court costs and attorney fees during the foreclosure proceedings.
Yes. It is a requirement to have the lien notarized. The claimant’s attorney can sign the lien if they know the situation; however, any party signing the lien can be subject to court proceedings as a fact witness.
Mechanic liens in Oregon are documents that are recorded in the county recorder’s office. To ensure your mechanic’s lien is valid, it’s required to record the lien where the work is physically done. Each Oregon county has specific requirements for filing a mechanic’s lien.
You must send notice that the lien was filed and a copy of the lien to the mortgagee, owner, and anyone else with a recorded security interest in the property. This must be done within 20 days of filing the lien.
You have just 120 days to file or begin the action to enforce when filing a mechanic’s lien in Oregon. It is possible to have the deadline extended by 120 time periods for up to two years. However, this is only the case if the parties have agreed on the extended payment plan and the plan’s terms are outlined in the lien paperwork.
In most situations, no. The mechanic’s lien only has priority over a lien or other encumbrance attached to the land afterward. Your lien also has priority over others if these were unrecorded at the time you first provided the labor and/or materials.
Special priority is given to laborers who filed a mechanic’s lien, but this needs to be noted in the lien documents to show what portion of the lien is for labor costs. If you provided materials and labor to the project, separate the lien to indicate what part is for labor and what is for materials. You don’t have to file two different claims but do need to note what amount is for labor only.
After the lien is paid, the release has to be filed within 10 days of the claimant receiving the written request to have it released. Learn more about canceling a lien in Oregon.
If you filed the lien with Northwest Lien, let us know when you’ve been paid and we will release the lien.
Several factors impact the cost of a mechanic’s lien. Working with an attorney will help you know what to expect to pay.
A mechanic’s lien, also known as a construction lien, is a legal claim entitling eligible parties to force the sale of a property if payment is not received for work done on the property. When you file a lien in Oregon and payment is still not fulfilled, you have the right to require the County Sheriff to sell the property you put work into. From there, you can collect the amount you’re owed from the sale proceeds.
Filing a lien is the single most effective method to secure payment for the labor and/or materials you put on a person’s property. Even if you have a contract with the property owner, filing a lien is almost always less expensive and time-consuming than suing for breach of contract.
In fact, in many cases, filing a lien is enough legal action to persuade property owners to settle their debts to the lienholder. Put simply, property owners do not want liens on their property. Because the lienholder has the right to seize the property, most lending institutions or other prospective buyers won’t touch a property that has a lien filed against it. With fewer interested purchasers often comes less potential profit for the property owner if they’re looking to sell, leaving them with a clouded property title and limited options.
Lien law is a tricky landscape to navigate. The team at Northwest Lien can help you take the guesswork out of filing a lien or notice, allowing you to feel confident in your filing process without having to pay for a lawyer. Experts in Oregon lien law, we find the legal description, legal owner, mail out to all parties involved, and keep accurate records. Northwest Lien also keeps you informed of all important deadlines.
Not just anyone can walk into the recording office and file a lien. Clouding someone’s title and potentially forcing foreclosure is serious business, so many state laws impose some requirements that you need to be aware of before you start work on the property.
In Oregon, the parties entitled to mechanic’s lien protection are clearly defined by statute. These parties include: 1) any person performing labor upon, transporting or furnishing any material to be used in, or renting equipment used in the construction of any improvement; 2) any person who engages in or rents equipment for the preparation of a lot or parcel of land, or improves or rents equipment for the improvement of a street or road adjoining a lot or parcel of land at the request of the owner of the lot or parcel; 3) trustees of an employee benefit plan; 4) an architect, landscape architect, land surveyor or registered engineer who, at the request of the owner or an agent of the owner, prepares plans, drawings or specifications that are intended for use in or to facilitate the construction of an improvement or who supervises the construction. Note also that there are written contract requirements in some cases and if the project requires a written contract, the lien claimant must have a valid Oregon contractor’s license.
Get more details on who can file a lien in Oregon.
In Oregon, a mechanic’s lien must be filed within the earliest of either 75 days after the claimant’s last furnishing of labor and/or materials, or 75 days after completion of construction. If the lien is filed prior to the completion of the project or before the last furnishing of labor and/or materials (whichever is appropriate) the lien is premature and invalid.
Learn more about Oregon lien deadlines.
File your notice first! In Oregon, notice that the lien was filed (a copy of the lien) must be provided to the owner, mortgagee, and anyone with a previously recorded security interest in the property within 20 days from the filing of the lien. The copy of the claim must be served by personal service, certified mail return receipt requested, or another method with written third-party verification of delivery. Actual receipt is required.
Learn more about filing a mechanic’s lien in Oregon.
Check your deadlines to make sure you are within the timeframe of being able to file an Oregon mechanic’s lien. If you provided labor, professional services, equipment or any other form of service to a construction project in Oregon and are within the deadlines, you can file a mechanic’s lien against the property in order to secure payment for your services.
You can file your Oregon lien right here on our website by choosing the “Order Online” option and filling out the necessary information about your project. After submitting the lien, you can track its progress to being officially recorded with the appropriate county. Or, learn more about filing a mechanic’s lien in Oregon.
An action to enforce an Oregon mechanic’s lien must be initiated within 120 days after the filing of lien. However, this time may be extended in periods of 120 days for up to 2 years; but only if an extended payment plan has been arranged between the parties and the terms of the plan are stated in the lien itself.
No other document in the construction industry is as powerful at securing payment than liens. They create the best chance for you to get paid. At Northwest Lien, we have an excellent track record of securing payment for our customers who file a lien. Last year alone, we helped our clients secure over $2 million in collections.
Once the lien has been satisfied, a writing should be filed in the county where the original lien was filed noting the full or partial satisfaction of the lien. If you filed the lien with Northwest Lien, let us know when you’ve been paid and we will release the lien.
Learn more about canceling a lien in Oregon.
Yes, in most cases a lien is not valid unless notice has been sent to the relevant parties ahead of time.
It’s imperative to get preliminary notice out quickly. Oregon has the shortest preliminary notice deadline in the country. On residential projects exceeding $2,000, general contractors must deliver an Information Notice to Owner at the time of signing the contract with the owner, or within 5 days of the date of when the contractor knows that the contract will exceed $2,000. For any other parties (subcontractors and suppliers) on a residential project, the Notice of Right to Lien must be sent within 8 days of first furnishing to the project. On commercial projects, only material suppliers are required to send a preliminary notice (within 8 days of first furnishing), but is advisable for all parties to send it to fully protect their lien rights.
In short, it is best practice for all parties involved in a project to submit a preliminary notice in Oregon.
Oregon has two different types of notices. Contractors employed directly by the property owner are required to send an Information Notice to Owner. All lien claimants without a direct contract with the owner are required to send a Notice of Right to Lien.
Important to remember:
Any and all necessary details. The Oregon preliminary notice forms require specific language and information. Save yourself some time by submitting your notice here with Northwest Lien and we take care of the rest.
The Oregon Notice of Right to Lien is required to be submitted within 8 days of first furnishing labor and/or materials on a project. The Information Notice to Owner must be delivered at the same time as the contract with the owner is signed. If you send a Notice of Right to Lien late, it applies to the preceding 8 days from the date on which the notice is given. Failure to give the Information Notice to Owner when required is fatal to an Oregon lien claim.
Important to remember:
Both the Notice of Right to Lien and the Information Notice to Owner may be served by either personal delivery, or by registered or certified mail, return receipt requested. The Information Notice to Owner may also be sent by first-class mail as long as a certificate of mailing is provided.
Important to remember: