What can I do about a lien from a subcontractor after paying my contractor?

Full question:

We had a riding arena built on our property. The job was completed and we paid the contractor in full. It turns out the contractor has now filed for bankruptcy and he did not pay one of his subs in full. Now I have a lien against my property and the sub is asking for the $14,000 the contractor owes. What can I do? I have a signed contract signed by the contractor stating all his subs have been paid in full.

• Category: Contractors
• Subcategory: Construction Liens
• Date: 04/07/2025
• State: Oregon

Answer:

If a subcontractor has filed a lien against your property, you can take several steps to address the situation:

You may file a bond with the county recorder and serve the lien claimant with a demand to release the lien. You must also file an affidavit of service with the county recorder. If the lien is not released within ten days of your demand, the lien claimant must either release the lien or file a suit to enforce it within the time specified in Oregon law (ORS 87.055). If they fail to do so, they may be liable for your costs, or at least $500, in addition to other legal remedies.

According to ORS 87.076, you can either post a bond or deposit money equal to one hundred fifty percent of the lien amount, or at least $1,000, with the county. This bond or deposit can be made at any time after the lien is filed. You must also notify the lien claimant of this action within twenty days (ORS 87.078).

If you have already paid the contractor for the work, you may also seek a stay of the foreclosure proceedings by filing a complaint with the Construction Contractors Board (ORS 87.058). This requires submitting a certified copy of your complaint and an affidavit confirming that you are the property owner.

For more detailed guidance, consider consulting with a legal professional familiar with construction law in Oregon.