Page 41 - State Law Summary of Mechanic's Lien Law

Oregon OR

What is the statutory authority?
Oregon Revised Statutes, Chapter 87, §§ 87.001 to 87.093; ORS § 701.305.
What is the Attachment Date of the Mechanic’s Lien?
The attachment of the lien relates to date of commencement of the improvements.
ORS § 87.025(7).

What constitutes visible commencement of construction?
Commencement of the improvement means the first actual preparation or
construction upon the site or the first delivery to the site of materials of such
substantial character as to notify interested persons that preparation or
construction upon the site has begun or is about to begin. ORS § 87.005(1).

What is the priority of the insured construction mortgage/
deed of trust?
A construction mortgage cannot obtain initial priority over mechanic’s liens.
Mechanic’s liens are generally superior to all prior liens and mortgages as to
improvements. ORS § 87.025. No lien for materials or supplies shall have priority
over any recorded mortgage on either land or improvements unless lien claimant,
not later than 8 days after the date of delivery of material or supplies for which lien
is claimed delivers lender a copy of notice. ORS § 87.021 and § 87.025(3). Mechanic’s
liens for alteration and repair do not obtain priority over existing mortgages unless
the mortgage was given for the purpose of financing the alteration or repair of the
improvement. ORS § 87.025(6).

If priority of the insured mortgage/deed of trust is lost, is there a
statutory procedure to regain priority?
No.
When does a mechanic’s lien have to be filed for claimant to maintain
lien rights?
A lien must be perfected not later than 75 days after the person has made their final
contribution to the property in the form of labor, rental equipment, or furnishing
materials or 75 days after completion of construction, whichever is earlier. ORS §
87.035(1). Construction lien claimants under other subsections of ORS § 87.010
have until 75 days after completion of construction.
What is the period of enforcement of a filed mechanic’s lien?
A lien shall be valid for no longer than 120 days after the claim of lien is filed unless
suit is brought in proper court within that time. If an extended payment period is
provided by a lien claimant and the terms are stated in the lien claim, the 120 day
time period runs from the last day of the extended time period set out in the lien
claim. No lien shall be continued in force for a longer time than 2 years from the
time the claim of lien is filed under ORS § 87.035 by an agreement to extend
payment. ORS § 87.055.

Is there a procedure to bond over the mechanic’s lien(s)?
Under ORS § 87.076, the property owner may file a surety bond with the county
recording officer where the lien is filed. The bond must be at least 150% of the lien
amount or $1,000, whichever is greater.

Are the ALTA 32/33 Series Endorsements available for the Loan Policy?
Yes.

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