Construction Liens in Oregon

Overview

Construction liens in Oregon are also referred to as Mechanic's liens.

Sources

Authorized Claimants

For the purposes of construction of any improvement upon real property at the instance of the property owner or construction agent of the owner, the following people may file a construction lien:

Any person performing labor related to the construction;
Any person transporting or furnishing any material to be used in the construction;
Any person who engages in or rents equipment for construction purposes; or
An architect, landscape architect, land surveyor or registered engineer who prepares plans, drawings, surveys or specifications that are used for the construction.

ORS §§ 87.001 et. seq.

Lien Priority

(1) A lien created under ORS 87.010(2) or (6) and perfected under ORS 87.035, upon any lot or parcel of land shall be preferred to any lien, mortgage or other encumbrance which attached to the land after or was unrecorded at the time of commencement of the improvement. (2) a lien created under ORS 87.010(1), (4) or (5) and perfected under ORS 87.035, upon any improvement shall be preferred to all prior liens, mortgages or other encumbrances upon the land upon which the improvement was constructed. (2015 ORS 87.025(1) and (2))

Notices and Registries

There are no specific notice or registration requirements to file or record a construction lien in Oregon.

Perfecting a Lien

A construction lien shall be perfected not later than 75 days after ceasing to provide labor, rent equipment, furnish materials or prepare plans, drawings, surveys, etc. or 75 days after completion of construction, whichever is earlier.

To perfect a construction lien, a claim must be filed with the recording officer of the county in which the real property is located.

The claim must contain:

    * A statement of demand;
    * The name of the owner of the property;
    * The name of the person by whom the claimant was employed; and
    * A description of the property to be charged with the lien, including the address if known.

Note that a legal description is not required. The claim must also include a verified oath by the claimant or someone having knowledge of the facts by penalty of perjury.

ORS § 87.035

Enforcement Deadlines

No lien created under ORS 87.010 shall bind any improvement for a longer period than 120 days after the claim of lien is filed unless suit is brought in a proper court within that time to enforce the lien, or if extended payment is provided and the terms thereof are stated in the claim of lien, then 120 days after the expiration of such extended payment, but no lien shall be continued in force for a longer time than two years from the time the claim of lien is filed (2015 ORS 87.055)