Five Things You Should Know About Construction Liens

Five Things You Should Know About Construction Liens:

1. Who is Entitled to a Construction Lien

Architects, landscape architects, builders, suppliers, land surveyors, painters, roofers, registered engineers, and anyone who performs a service or has an investment in the property or land may have a lien on the land or structures that their services benefited. A contractor must be properly licensed and the contractor must remain licensed throughout the performance of the work in order to file a lien. If a contractor is not properly licensed, the contractor’s rights may be called into question.

2. Interests Subject to Lien

Interests subject to lien on an improvement under construction include, but are not limited to any land that may be necessary for the use and occupancy of the improvement and the actual site of the improvement. The lien can only cover the interest in the site and land of the person that requested the improvement to be done.

3. Contents of Claim of Lien

When filing for a lien, it must contain the following: Name of the owner; Description of the Property; Itemization of the properties credits and offsets along with any balance owing; and the verification that the lien is legitimate and valid.

4. Timing of Foreclosure

A suit to foreclose a claim of lien must commence within 120 days once the lein has been filed. After that time, the lien expires. Once a lein expires it cannot be renewed.

5. Attorney Fees

Typically, the winning party in a foreclosure suit is entitled to request reimbursement for their attorney fees. This amount could easily exceed the amount of the lien.

Have questions regarding the Construction Lien process? Need assistance with a Construction Law, Business Law, Fire, Wind or Water Insurance Claim, Insurance Law, or Litigation in Oregon or Washington? Contact us today.