Notice of Right to a Lien
(Construction Lien) (OR)

Summary

This notice of right template to a lien may be used by a potential lien claimant in Oregon to provide the statutorily required notice that it is performing work on real property that may later give it the right to place a construction lien on the property. This template contains practical guidance and drafting notes. This template is illustrative only. Each lawyer must depend on their own legal research, knowledge of the law, and expertise in using or modifying this template. The template of the notice of right to lien is set forth in Or. Rev. Stat. Ann. § 87.023. In Oregon, a notice of right to a lien informs the property owner and, in some circumstances, the holders of secured interests against the real property (mortgagees) that the person giving the notice may claim a construction lien against the premises. The status of the lien claimant, the type of project, and the type of work dictate when and to whom a notice of right to a lien must be sent. See Or. Rev. Stat. Ann. § 87.021. The notice of right to a lien may be given at any time prior to completion of the construction project, but it only protects the right to claim a lien for materials, equipment, and labor provided after the eighth business day before the notice is delivered or mailed. Or. Rev. Stat. Ann. §§ 87.021(1), 87.025(3) (material supplier's notice to mortgagee). Thus, it should be given as soon as possible after the claimant first performs labor or provides materials or rental equipment on a project. Failure to give the notice of right to a lien to an owner when and if required will result in loss of all lien rights. Or. Rev. Stat. Ann. § 87.021(3)(a). Failure to give the same notice to a mortgagee, as required, will result in the lien being inferior to the mortgagee's interest for at least that portion of the lien for which notice was required. Or. Rev. Stat. Ann. § 87.025(3). For guidance on construction liens in Oregon, see Construction Lien Resource Kit (OR), Claim of Construction Lien (OR), Construction Liens (OR), Notice of Right to Lien Chart (Construction Lien) (OR), and Notice of Recording of Construction Lien (OR). For more on construction liens generally, see Mechanic's Lien Resource Kit, Mechanic's Lien State Laws Survey, Prompt Payment Acts and Lien Waivers (Private Construction) State Law Survey, and Public Construction Projects Performance and Payment Bonds State Law Survey. For a list of key resources covering construction, see Construction Resource Kit. For a list of key resources covering construction-related tasks for associates, in-house attorneys, and interns, see First Year Associate Resource Kit: Construction, Junior Associate Resource Kit: Construction, Summer Associate Resource Kit: Construction, In-House Construction Resource Kit, and Federal Government Summer Intern Resource Kit: Construction.