The requirements for pursuing a lien are so
strict. Why?
Foreclosure of a lien is a serious matter – someone
can lose his or her property. The strict requirements
are also intended to prevent abuses which may result in
homeowners having to pay twice for the same materials,
equipment, services, or labor.
What do I need to do after I le a lien and
it is recorded?
Within 20 days after the lien is led, the lien claimant
must mail a written notice to the owner and any
mortgage or trust deed holder, stating that the lien claim
has been led. A copy of the lien must be attached to
the written notice. Failure to deliver this notice does
not invalidate the lien, but you will be unable to recover
costs, disbursements or attorney fees upon foreclosure
of the lien.
What happens after a lien is filed and
recorded?
Either the property owner pays the amount you are
owed, or you may le a lawsuit to foreclose the lien.
Within 120 days of the date you recorded the lien, you
must bring a lawsuit to foreclose on the lien. The lien
will become invalid after 120 days if a court action is
not led.
How do I initiate a foreclosure action?
The CCB cannot help you le a foreclosure action, which
is a type of lawsuit led in court. You will need to talk to
an attorney.
As the general contractor, I just want to get
the money that the property owner owes
me. Is there an easier way for a general
contractor to get paid?
If you are the general contractor and you improved
property at the owner’s request, you must le a lien to
rightfully claim an interest in the property, to obtain your
payment. However, if you prefer, you may le a claim
in state small claims court (for amounts of $7,500 or
less), or in state circuit court (for larger amounts). The
CCB has no authority to resolve contractor disputes
against property owners. The CCB may get involved
if the property owner requests the dispute resolution
assistance.
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If a general contractor
has not been paid by
the property owner, he
or she can either le a
lien claim, le a claim
in state small claims
court, or in state circuit
court.
Can a subcontractor, laborer, material
supplier, or equipment rental company le
a lien against a licensed general contractor
who did not pay them in full?
Usually, the answer is no. The only time that a lien
can be led against the general contractor is if the
general contractor owns the property. In that case,
subcontractors do have lien rights – without providing
an Information Notice to Owner About Construction
Liens.
Are there other ways that subcontractors,
laborers, material suppliers, and equipment
rental companies can get the money that
they are owed by a general contractor?
Yes. A subcontractor, material supplier, or equipment
rental company can le a complaint with the CCB or le
a lawsuit in court. If either the CCB complaint process
or lawsuit is successful, payment may be made from
the contractor’s bond. Bond payments to non-owner
complainants is limited to $3,000. If the person ling
the complaint does not receive full payment from the
bond, they can le the CCB order with any county clerk,
where it will have the same effect as a court judgment.
See an attorney for more information.
How does a subcontractor, employee,
material supplier, or equipment rental
company file a complaint with the CCB
against the general contractor?
You should obtain the appropriate complaint form from
the CCB website, or contact the CCB at 503-378-4621
and ask for a form. There are three forms that you may
obtain online at www.oregon.gov/ccb:
• Breach of Contract Complaint Form for
Subcontractors
• Breach of Contract Complaint Form for Employees
• Breach of Contract Complaint Form for Material/
Equipment
You must le the complaint within one year of the date
of the debt.
Suppose a property owner, who has had a
valid lien led against his or her property,
les a complaint with the CCB. What does
this mean?
If the general contractor was paid in full, a property
owner may le a complaint with the CCB against the
general contractor to obtain an award to pay all or part
of the money owed to a subcontractor, material supplier,
or equipment rental company.
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If a general contractor
has not paid
subcontractors or
other suppliers, those
persons may le a
complaint with the
CCB.