US Laws, Codes, Statutes & Cases

Chapter 87 — Statutory Liens

 

2007 EDITION

 

STATUTORY LIENS

 

MORTGAGES AND LIENS

 

CONSTRUCTION LIENS

 

87.001       Short title

 

87.005       Definitions for ORS 87.001 to 87.060 and 87.075 to 87.093

 

87.007       Protection of purchasers of residential property from construction liens that may be perfected after sale of property completed; requirements for sale of residential property; seller options; rules; delivery of form to purchaser; penalty; damages; defenses

 

87.010       Construction liens; who is entitled to lien

 

87.015       Land and interests therein subject to lien; leaseholds

 

87.018       Delivery of notices

 

87.021       Notice to owners; notice from owner to original contractor; effect of failure to give notice

 

87.023       Notice of right to lien; form of notice

 

87.025       Priority of perfected liens; right to sell improvements separately from land; notice to mortgagee; list of materials or supplies

 

87.027       Right of owner to demand list of services, materials, equipment and labor; penalty for failure to provide list

 

87.030       Effect of owner’s knowledge of improvement; notice of nonresponsibility

 

87.035       Perfecting lien; filing claim of lien; contents of claim

 

87.037       Prohibition against claim of lien

 

87.039       Notice of filing claim of lien; effect of failure to give notice

 

87.045       Completion date of improvement; notice of completion, abandonment or nonabandonment; contents of notice

 

87.050       Recording

 

87.055       Duration of lien; when suit to enforce lien commences

 

87.057       Notice of intent to foreclose; list of materials furnished and statement of prices; effect of failure to give notice

 

87.058       Stay of foreclosure proceedings; requirements; procedure; duration of stay

 

87.060       Foreclosure; right to jury trial; distribution of proceeds of foreclosure sale

 

87.070       Amount of recovery by contractor; respective rights of contractor and owner

 

87.075       Exemption of building materials from attachment by third persons

 

87.076       Bond or deposit of money; amount; demand for release of lien; effect

 

87.078       Notice of filing bond or depositing money; contents of notice; effect of failure to give notice

 

87.081       Filing affidavit with county officer

 

87.083       Foreclosure after filing of bond or deposit of money; effect of filing or deposit; disposition of bond or money

 

87.086       Determination of adequacy of bond

 

87.088       Release of lien or return of money

 

87.091       Form for waiver of application of provisions of ORS 87.007

 

87.093       Information Notice to Owner; rules; contents; when notice must be delivered; effect of failure to deliver notice; penalty

 

LIENS GENERALLY

 

87.142       Definitions for ORS 87.142 to 87.490 and 87.910

 

87.146       Priorities of liens

 

POSSESSORY CHATTEL LIENS

 

87.152       Possessory lien for labor or material expended on chattel

 

87.156       Innkeeper’s lien

 

87.159       Lien for care of animal

 

87.162       Landlord’s lien

 

87.166       Attachment of liens

 

87.172       Time period before foreclosure allowed

 

87.176       Fees for storage of chattel; notice to lien debtor; effect of failure to comply

 

87.177       Bond or deposit of money for lien for storage of chattel; amount; notice to lien claimant; filing affidavit with county officer

 

87.178       Foreclosure after filing of bond or deposit of money; effect of filing or deposit; disposition of bond or money

 

87.179       Determination of adequacy of bond

 

87.181       Release of lien or return of money

 

87.182       Effect of prior security interest on method of foreclosure

 

87.186       Location of foreclosure sale

 

87.192       Notice of foreclosure sale to lien debtor; public notice

 

87.196       Notice of foreclosure sale to secured parties; effect of notice; effect of failure to give notice

 

87.202       Statement of account of foreclosure sale

 

87.206       Disposition of proceeds of foreclosure sale

 

87.212       Liability for improper sale of fungible chattels

 

87.214       Disposal of property left with launderer or dry cleaner

 

NONPOSSESSORY CHATTEL LIENS

 

87.216       Nonpossessory lien for labor or material expended on chattel

 

87.222       Logger’s, woodworker’s and timberland owner’s lien

 

87.226       Agricultural services lien

 

87.228       Effect on agricultural services lien when payment for produce is made prior to filing of lien claim

 

87.232       Fishing lien and fish worker’s lien

 

87.236       Attachment of liens; attachment to proceeds

 

87.242       Filing notice of claim of lien; contents of notice; effect of failure to file notice

 

87.246       Recording; fees

 

87.252       Notice to owner and holders of security interests; effect of failure to comply

 

87.256       Limitation on extent of liens

 

87.262       Foreclosure

 

87.266       Duration of liens

 

87.272       Petition for foreclosure without suit

 

87.276       Evidence admissible; issuance of show cause order

 

87.282       Waiver of right to hearing before filing of petition

 

87.288       Show cause order; contents; service

 

87.296       Waiver of right to hearing after issuance of show cause order

 

87.302       Authority of court on sustaining validity of lien claim

 

87.306       Foreclosure by sale without suit; notice of sale to secured parties; public notice of sale by sheriff

 

87.312       Effect of notice of foreclosure sale to secured parties; failure to give notice

 

87.316       Disposition of proceeds of foreclosure sale

 

87.322       Effect of prior security interest on foreclosure of nonpossessory lien for labor or material expended on chattel

 

87.326       Protection from theft and damage of chattel subject to lien

 

87.332       Injury or removal of chattel subject to lien

 

87.336       Costs and attorney fees in foreclosure by suit

 

87.342       Bond, letter of credit or deposit of money to discharge lien on chattel; amount; recording; notice to lien claimant

 

87.346       Filing certificate of lien satisfaction upon payment of claim; liability for failure to discharge lien; notice of discharge

 

LIENS ON REAL PROPERTY

 

87.352       Mining labor and material lien

 

87.356       Lien for preparing land for irrigation or cultivation

 

87.358       Nurseryman’s lien

 

87.362       Irrigation power lien

 

87.364       Attachment of liens

 

87.366       Filing notice of claim of lien; contents of notice; effect of failure to file notice

 

87.372       Recording

 

87.376       Duration of liens

 

87.382       Foreclosure

 

87.386       Costs and attorney fees in foreclosure

 

87.392       Priorities of liens

 

ATTORNEY’S LIEN

 

87.430       Attorney’s possessory lien

 

87.435       Bond, letter of credit or deposit of money to discharge attorney’s possessory lien; recording; notice to attorney

 

87.440       Determination of adequacy of bond or letter of credit

 

87.445       Attorney’s lien upon actions and judgments

 

87.450       Filing notice of claim of lien on judgment for sum of money

 

87.455       Filing notice of claim of lien on judgment for possession of personal property; recording; foreclosure

 

87.460       Filing of notice of claim of lien on judgment for possession of real property; recording; foreclosure

 

87.465       Effect of failure to file notice of claim of lien; effect of failure to foreclose

 

87.470       Contents of notice of claim of lien

 

87.475       Effect of settlement on attorney’s lien; satisfaction of judgment

 

87.480       Attorney’s right and power over actions and judgments

 

87.485       Attorney fees

 

87.490              Priority of attorney’s lien upon actions and judgments

 

LIEN FOR LONG TERM CARE

 

87.501       Definitions for ORS 87.501 to 87.542

 

87.503       Lien for long term care; statement concerning lien to be given to care recipient

 

87.507       Perfecting lien; notice of lien; serving notice of lien; time to perfect lien

 

87.512       Contents of notice of lien

 

87.517       Recording notice of lien

 

87.522       Foreclosure of lien; attorney fees

 

87.527       Limitations on property subject to lien

 

87.533       Assets and income that are exempt from lien

 

87.537       Duration of lien

 

87.539       Discharge or release of lien claim; recordation; penalty for failure to discharge or release lien claim

 

87.542       Priority of lien

 

MEDICAL SERVICES LIEN

 

87.555       Hospital and physician lien

 

87.560       Limitations on extent of lien

 

87.565       Notice of lien required

 

87.570       Form of notice

 

87.575       Hospital and physician lien docket

 

87.581       Liability of person or insurer to hospital and physician; conditions; deadline for filing claim

 

87.585       Foreclosure

 

AMBULANCE SERVICES LIEN

 

87.603       Definitions for ORS 87.603 to 87.633

 

87.607       Ambulance services lien

 

87.613       Notice of lien required

 

87.617       Form of notice; contents

 

87.623       Notices recorded in hospital lien docket

 

87.627       Payment after notice of lien; liability to provider of services; exception

 

87.633       Foreclosure

 

SELF-SERVICE STORAGE FACILITY LIEN

 

87.685       Definitions for ORS 87.685 to 87.693

 

87.686       Rental agreement; statement of insurance held by owner

 

87.687       Self-service storage facility owner’s possessory lien; attachment of lien; priority of lien

 

87.689       Notice of foreclosure and sale

 

87.691       Sale of property subject to lien; advertisement of sale; satisfaction of lien before sale; use of sale proceeds

 

87.693       ORS 87.687 as exclusive law for creating lien; exception

 

87.695       Short title

 

AGRICULTURAL PRODUCE LIEN

 

87.700       Definitions for ORS 87.228 and 87.700 to 87.736

 

87.705       Agricultural produce lien; date lien attaches

 

87.710       Filing notice of lien; duration of lien; contents of notice; notice to secured parties; effect of failure to give notice to secured parties

 

87.715       Priority

 

87.725       Foreclosure; costs allowable to prevailing plaintiff

 

87.730       Expiration of lien for failure to bring timely foreclosure suit

 

87.735       Filing certificate of lien satisfaction upon payment for produce; liability of producer for failure to discharge lien

 

87.736       Form of notices filed under ORS 87.710 and certificates filed under ORS 87.735; fees for filing and for furnishing copies

 

GRAIN PRODUCER’S LIEN

 

87.750       Definitions for ORS 87.750 to 87.777

 

87.755       Grain producer’s lien; date lien attaches; priority

 

87.762       Filing notice of lien; duration of lien; contents of notice; notice to secured parties; effect of failure to give notice to secured parties

 

87.767       Form of notice; public record; fee

 

87.772       Expiration of lien for failure to bring timely foreclosure action; manner of foreclosure

 

87.777       Filing certificate of lien satisfaction upon payment for grain; liability of producer for failure to discharge lien

 

UNIFORM FEDERAL TAX LIEN REGISTRATION ACT

 

87.806       Filing of federal tax liens

 

87.811       Certification of tax lien notices

 

87.816       Keeping of index and files with respect to tax liens; certification by filing officer; fee; rules

 

87.821       Filing and indexing fee; rules

 

87.826       Construction

 

87.831       Short title

 

LIEN FOR CONTRIBUTIONS TO EMPLOYEE BENEFIT PLAN

 

87.855       Lien for contributions to employee benefit plan; priority

 

87.860       Filing of claim of lien

 

87.865       Foreclosure; joinder or consolidation; costs; limitation

 

MOLDER’S LIEN

 

87.870       Definitions for ORS 87.870 to 87.876

 

87.872       Lien for mold created or work performed with mold

 

87.876       Sale of mold

 

MISCELLANEOUS PROVISIONS

 

87.910       Cost of preparing lien notice

 

87.920       Recording of document not to create lien, affect title or constitute notice except as authorized by law

 

87.930       Secretary of State to furnish list of persons who have filed financing statement

 

CONSTRUCTION LIENS

 

      87.001 Short title. ORS 87.001 to 87.060 and 87.075 to 87.093 shall be known and may be cited as the Construction Lien Law. [1975 c.466 §1]

 

      87.005 Definitions for ORS 87.001 to 87.060 and 87.075 to 87.093. As used in ORS 87.001 to 87.060 and 87.075 to 87.093:

      (1) “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.

      (2) “Construction” includes creation or making of an improvement, and alteration, partial construction and repairs done in and upon an improvement.

      (3) “Construction agent” includes a contractor, architect, builder or other person having charge of construction or preparation.

      (4) “Contractor” means a person who contracts on predetermined terms to be responsible for the performance of all or part of a job of preparation or construction in accordance with established specifications or plans, retaining control of means, method and manner of accomplishing the desired result, and who provides:

      (a) Labor at the site; or

      (b) Materials, supplies and labor at the site.

      (5) “Improvement” includes any building, wharf, bridge, ditch, flume, reservoir, well, tunnel, fence, street, sidewalk, machinery, aqueduct and all other structures and superstructures, whenever it can be made applicable thereto.

      (6) “Mortgagee” means a person who has a valid subsisting mortgage of record or trust deed of record securing a loan upon land or an improvement.

      (7) “Original contractor” means a contractor who has a contractual relationship with the owner.

      (8) “Owner” means:

      (a) A person who is or claims to be the owner in fee or a lesser estate of the land on which preparation or construction is performed;

      (b) A person who has entered into a contract for the purchase of an interest in the land or improvement thereon sought to be charged with a lien created under ORS 87.010; or

      (c) A person to whom a valid subsisting lease on land or an improvement is made, and who possesses an interest in the land or improvement by reason of that lease.

      (9) “Preparation” includes excavating, surveying, landscaping, demolition and detachment of existing structures, leveling, filling in, and other preparation of land for construction.

      (10) “Site” means the land on which construction or preparation is performed.

      (11) “Subcontractor” means a contractor who has no direct contractual relationship with the owner. [Amended by 1957 c.651 §1; 1973 c.671 §1; 1975 c.466 §2; 1977 c.596 §1; 2005 c.22 §52]

 

      87.007 Protection of purchasers of residential property from construction liens that may be perfected after sale of property completed; requirements for sale of residential property; seller options; rules; delivery of form to purchaser; penalty; damages; defenses. (1) This section applies to a sale of the following residential property:

      (a) A new single family residence or a single family residence where the sales price for original construction or contract price for improvements to the residence completed within three months prior to the date of the sale of the property is $50,000 or more.

      (b) A new condominium unit or a condominium unit where the sales price for original construction or contract price for improvements to the condominium unit completed within three months prior to the date of the sale of the property is $50,000 or more. As used in this paragraph, “condominium unit” has the meaning given that term in ORS 100.005.

      (c) A new residential building or a residential building where the sales price for original construction or contract price for improvements to the residential building completed within three months prior to the date of the sale of the property is $50,000 or more. As used in this paragraph, “residential building” means a building or structure containing not more than four dwelling units capable of being used as residences or homes.

      (2) For purposes of protecting purchasers of residential property with respect to claims of lien that arise before the date the sale of the residential property is completed but may be perfected under ORS 87.035 after the date the sale of the property is completed, when an owner of record sells residential property to a purchaser, the owner shall provide such protection by one of the following methods:

      (a) Purchase or otherwise provide title insurance on behalf of the purchaser by a policy issued:

      (A) Without exception for filed and unfiled claims of construction lien existing at the date of closing of the purchase; and

      (B) On forms and at rates filed with, but not disapproved by, the Director of the Department of Consumer and Business Services.

      (b) Retain in escrow, as defined in ORS 696.505, an amount of funds that is not less than 25 percent of the sale price of the residential property. The funds shall be maintained in or released from escrow pursuant to written instructions to the escrow agent from the owner that sold the property and the purchaser. The written instructions shall provide that any claims of lien that are perfected after the date of the sale of the property and that are not paid by the owner that sold the property shall be paid upon demand by the purchaser from the amount maintained in escrow. The escrow agent shall release the unused funds from escrow to the owner that sold the property if the escrow agent receives a request from the owner that sold the property and the owner provides documentation from a title company that:

      (A) Claims of lien have not been perfected against the property and 90 days have passed since the date that construction was completed; or

      (B) One or more claims of lien have been perfected against the property, that 135 days have passed since the date that each such claim of lien was filed and that all such perfected claims of lien have been released or waived.

      (c) Maintain a bond or letter of credit in an amount that is not less than 25 percent of the sale price of the property. The Construction Contractors Board shall prescribe by rule the amount, terms and conditions of the bond or letter of credit to be maintained under this paragraph.

      (d) Obtain written waivers from every person claiming a lien or liens in an aggregate amount that exceeds $5,000 with respect to the property under ORS 87.010, 87.021 or 87.035, and provide copies of the waivers to the purchaser not later than the date the sale of the property is completed.

      (e) Complete the sale of the residential property after the deadline for perfecting all claims of liens under ORS 87.035 with respect to the property.

      (f) Obtain a signed written waiver from the purchaser of the residential property. The waiver shall be in a form described in ORS 87.091 and shall specify that the provisions of paragraphs (a) to (e) of this subsection do not apply to the sale of the residential property. The waiver must be printed on a form that is separate from any residential property sales contract or agreement and may be signed by the purchaser at any time after the purchaser enters into the sales contract or agreement with respect to the residential property and before closing of the transaction.

      (3) Not later than the date the sale of the residential property is completed, the owner who sold the property shall complete, sign and deliver to the purchaser a form specifying the method that the owner has selected to comply with the requirements of subsection (2) of this section or that subsection (2) of this section does not apply to the sale of the property. The notice shall be in a form designated by the Construction Contractors Board by rule under ORS 701.235.

      (4) A real estate licensee, as defined in ORS 696.010, acting in the professional capacity of a licensee may not be liable in any criminal, civil or administrative proceeding arising out of the failure of an owner of record to comply with subsection (2) or (3) of this section.

      (5) Violation of subsection (3) of this section is a Class A violation.

      (6) In addition to any other remedy or penalty provided by law, a purchaser may bring an action to recover up to twice the amount of actual damages caused by a violation of subsection (2) of this section. The court may award to the prevailing party, in addition to costs and disbursements, reasonable attorney fees. Any action brought under this subsection must be commenced not later than two years after the date the sale of the property is completed.

      (7) For purposes of subsections (5) and (6) of this section and ORS 646.608:

      (a) It is a defense to a violation of subsection (2) or (3) of this section that there is no enforcement or attempted enforcement of any claim of lien against the property that is the subject of the sale arising before the date the sale of the property is completed; and

      (b) As to any claim of lien, it is a defense to a violation of subsection (2) or (3) of this section if the owner that sold the property:

      (A) Proves that the claim of lien against the property that is the subject of the sale is invalid; or

      (B) Satisfies the claim of lien or obtains a release from the claim of lien on the property that is the subject of the sale.

      (8) A violation of subsection (2) or (3) of this section is not considered to have occurred with respect to a lien described in ORS 87.010 during the period that the validity of the lien is disputed in a judicial proceeding or a proceeding described in ORS chapter 701.

      (9) Nothing in this section requires the payment of a lien that is not otherwise valid. This section does not apply to claims of lien perfected by persons furnishing any materials, equipment, services or labor at the request of the purchaser of the residential property. [2003 c.778 §2]

 

      87.010 Construction liens; who is entitled to lien. (1) Any person performing labor upon, transporting or furnishing any material to be used in, or renting equipment used in the construction of any improvement shall have a lien upon the improvement for the labor, transportation or material furnished or equipment rented at the instance of the owner of the improvement or the construction agent of the owner.

      (2) Any person who engages in or rents equipment for the preparation of a lot or parcel of land, or improves or rents equipment for the improvement of a street or road adjoining a lot or parcel of land at the request of the owner of the lot or parcel, shall have a lien upon the land for work done, materials furnished or equipment rented.

      (3) A lien for rented equipment under subsection (1) or (2) of this section shall be limited to the reasonable rental value of the equipment notwithstanding the terms of the underlying rental agreement.

      (4) Trustees of an employee benefit plan shall have a lien upon the improvement for the amount of contributions, due to labor performed on that improvement, required to be paid by agreement or otherwise into a fund of the employee benefit plan.

      (5) An architect, landscape architect, land surveyor or registered engineer who, at the request of the owner or an agent of the owner, prepares plans, drawings or specifications that are intended for use in or to facilitate the construction of an improvement or who supervises the construction shall have a lien upon the land and structures necessary for the use of the plans, drawings or specifications so provided or supervision performed.

      (6) A landscape architect, land surveyor or other person who prepares plans, drawings, surveys or specifications that are used for the landscaping or preparation of a lot or parcel of land or who supervises the landscaping or preparation shall have a lien upon the land for the plans, drawings, surveys or specifications used or supervision performed. [Amended by 1957 c.651 §2; 1973 c.671 §2; 1975 c.466 §3; 1977 c.596 §2; 1981 c.757 §1]

 

      87.015 Land and interests therein subject to lien; leaseholds. (1) The site together with the land that may be required for the convenient use and occupation of the improvement constructed on the site, to be determined by the court at the time of the