Lien Law Online eLert for 3/5/2010 - Oregon

March 5, 2010

The Oregon chapter of Lien Law Online has been updated and revised to account for recent changes in Oregon law. We would like to welcome our new Contributing Author for Oregon, Thomas A. Larkin, Esq who is with the firm of Stewart Sokol & Gray, LLC in Portland.

Below is a summary of Oregon's 2010 lien law updates:

Information Notice to Owner

Oregon now requires the original contractor on a residential project to furnish an “Information Notice to Owner About Construction Liens” for contracts exceeding $2,000. ORS 87.093(4). Where the contract value is initially below $2,000, but subsequently increases during the course of performance, the contractor must deliver this notice not later than five days after he / she knows or reasonably should know that the contract will exceed $2,000. Id. These provisions change the previous $1,000 minimum contract value requirement for residential improvements. Other statutory Information Notice to Owner requirements remain the same.

The Oregon Legislature redacted a provision requiring delivery of an “Information Notice to Owner About Construction Liens” not later than five days after making an oral contract for a residential improvement.

Definition of Residential Construction and Residential Property

Oregon redefined “Residential construction or improvement” to mean “the original construction of residential property and the repair, replacement, remodeling, alteration or improvement of residential property.” ORS 87.093(8)(a).

“Residential property” now includes a residential dwelling’s driveway, swimming pool, terrace, patio, fence, porch, garage, basement and other adjacent or appurtenant structure to the residential dwelling. ORS 87.093(8)( c). Importantly, this list is not a limitation on what constitutes “residential property.”

Foreclosure

The county or its officer or employee cannot be named a party to a foreclosure suit. ORS 87.083(2).

For the county to release a lien or return the money for a cash deposit to remove the lien, Oregon now requires a person to notify the lien claimant and treasurer that no one commenced a foreclosure suit within the statutory time constraints. ORS 87.088(1). Further, the notice must state that the lien claimant has fifteen (15) calendar days to object to the lien release or return of the money. Id. The notice must inform the claimant that an objection requires documentation evidencing a timely commencement of foreclosure proceedings or that the time to initiate a suit did not expire. Id. In the event of an objection, the treasurer reserves the right to decide how to distribute the money or to commence an interpleader action. Id.

The upated and revised chapter is now online. To review the bio on the new Contributing Author, Thomas A. Larkin, click here.

Contributing Author contact info:

Thomas A. Larkin, Esquire (e-mail)

Stewart Sokol & Gray LLC (website)