Is The Notice To Lien Document I Received Mean My House Has Lien On It?

Your contractor is required by law to provide the Information Notice About Construction Liens when presenting the initial bid for projects estimated for over $2000. Typically upon ordering materials some vendors will send out a Notice of a Right to Lien document. This notice does not mean your home has a lien on it. It’s only a notice that if they are not paid they can apply a lien on your home. Unless your contractor is a crook and does not pay the owed amount, it’s merely a precaution by vendors who have a substantial amount of money invested.

In Oregon, construction liens generally need to be recorded within 75 days from the date the project was substantially completed, or 75 days from the date that the lien claimant stopped providing labor, material, equipment, or services, whichever happened first. If these potential lien holders have not been paid 75 days after a job has been completed than your contractor is not operating his business ethically. To enforce a lien, the lien holder must file a lawsuit in a proper court within 120 days of the date the lien was filed.

Contractors who have accounts set up with vendors will have specific terms and dates each month that require balances to be paid. If you’re concerned about your contractor’s track record call the vendor who has sent you a notice and ask them if your contractor has been delinquent.  Chances are if your contractor submitted the Notice To Lien Document with his bid he’s a legitimate and responsible contractor, only in rare cases do these liens actually happen.