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Lien Priority in Oregon

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A mechanic’s lien may be a contractor’s last resort in acquiring payment for labor and materials, but a contractor, most likely, won’t be the only party involved. Other parties and lenders could be seeking repayment as well. Wouldn’t it be nice to have a leg up on the competition? You might if you’re considering filing a mechanic’s lien in Oregon.

Generally, liens are addressed in the order in which they are received. However, it is possible in Oregon for a lien to cut in line and be granted priority over others. Below, a Portland construction attorney at Cotney Construction Law will describe the situation in which a mechanic’s lien is granted priority over other interests.

Super Lien

Like every other state, Oregon has its own way of handling a mechanic’s lien. As mentioned, a lien may be granted priority over other interests. This comes into play when a property is foreclosed upon and lenders like mortgagees are looking for payment. The state of Oregon does grant priority to mechanic’s liens when labor is provided. If you’ve provided labor on a project, you will only need to follow Oregon’s rules for filing to be granted priority. This includes sending a Notice of Right to Lien to any lenders with interests in the property, like construction lenders or a mortgagee. If this notice is not sent, the amounts for labor and materials must be listed separately.

Deadlines to File

Oregon has the earliest deadline of any state for sending a preliminary notice. On residential projects, a Notice to Owner must be submitted at the time that the contract is signed, or five days after the contractor becomes aware that the contract will exceed $2,000. For subcontractors and suppliers, this deadline is eight days after work has begun or materials have been supplied.

In all cases, the deadline to file a mechanic’s lien is 75 days after work has been completed on the project, or labor or materials have been provided.

With such strict deadlines, it is vital that you speak with a Portland construction lawyer today. They can ensure that your mechanic’s lien complies with Oregon law and gets the attention that it needs.

If you would like to speak with a Portland construction lawyer, please contact us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.