Title 101: Making Sense of Title Insurance in Commercial Transactions

WHO MAY CLAIM Anyone who performs labor or furnishes material in the construction of an improvement (includes work performed by design professionals). OR REV STAT § 87.010 DEADLINE TO PERFECT Lien must be filed by the earlier of (1) 75 days after person has ceased to provide labor or materials or (2) 75 days after completion of construction. OR REV STAT § 87.035 BROKEN PRIORITY Lien date relates back to the date of commencement. Commencement: first actual preparation or construction upon the site/first delivery to the site such as would notify interested parties that construction, alteration, or repair upon site has begun. OR REV STAT § 87.005(1) EXCEPTIONS: • Purchase Money Mortgage: Will have priority over mechanic’s lien irrespective of commencement/ recording date where no knowledge of work (as to land only). Drake Lumber Co. v. Paget Mortg. Co., 274 P.2d 804, 813, 203 Or. 66, 86 (Or. 1954) • Construction Loan Mortgages: Will always have a subordinate interest irrespective of commencement/recording date. OR REV STAT § 87.025(6) OR REV STAT § 87.025 DURATION OF LIEN Lien will expire after 120 days if not enforced. Can be extended by extended payments if the terms thereof are stated in the claim of lien. However, cannot extend beyond two years from filing date. OR REV STAT § 87.055 CONTENTS OF LIEN (1) Statement verified by oath of person filing or having knowledge of facts; (2) trust statement of demand after credits/offsets; (3) name of (reputed) owner, if known; (4) name of person who employed claimant or to whom equipment was furnished; and (5) description of property sufficient to ID. Substantial compliance required. As such, none of the above requirements can be omitted. Misstatements cannot be so erroneous to raise presumption of fraud. Lambert v. Stupek, 1964, 237 Or. 498, 392 P.2d 255 OR REV STAT § 87.035 OREGON OREGON – 540 – 1. This chart is to be used strictly as a guideline to facilitate mechanic’s lien inquiries. Parties using this resource should ensure they are independently confirming the information contained herein before relying on the same. NATIONAL COMMERCIAL SERVICES BY STATE MECHANIC’S LIEN

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