Full question:
We paid a licensed contractor for sheetrock, they did not pay the supplier, the supplier filed a lien but has not filed a lawsuit within 120 days to enforce the lien, yet the lien is still on our property, how do we get this removed?
- Category: Contractors
- Subcategory: Construction Liens
- Date:
- State: Oregon
Answer:
If suit to enforce the lien isn't brouht within 120 days of filing the lien, it is no longer enforceable unless an extension agreement is made. I suggest contacting the county clerk where the lien was filed for applicable procedures on discharging the lien, as procedures vary by local office. Once the lien is discharged by the clerk, it will no longer appear in the property records.
Please see the following OR statutes:
87.088. The county recording officer shall record a written release of
the lien or the county treasurer in whose office money is deposited under
ORS 87.076 shall return the money to the person who made the deposit
when if:
(1) The person who filed the bond or deposited the money under ORS 87.076
notifies the lien claimant and the treasurer in writing and by certified
mail that a suit to foreclose the lien is was not commenced within the
time specified by ORS 87.055;. The notice shall provide that the lien
claimant has 15 calendar days in which to object to the release of the
lien and the return of the money and to provide documentation that
demonstrates that a suit was timely commenced or that the time for
commencement has not expired. If the treasurer receives an objection, the
treasurer may decide how to distribute the money or may commence an
interpleader proceeding under ORCP 31.
(2) The person who recorded filed the bond or deposited the money
presents a certified copy of a court's order for the release of the bond
or all or some of the money to that the person; or.
(3) The person who recorded filed the bond or deposited the money
presents a written release of lien signed by the lien claimant.
87.055 Duration of lien; when suit to enforce lien commences.
No lien created under ORS 87.010 shall bind any improvement for a
longer period than 120 days after the claim of lien is filed unless
suit is brought in a proper court within that time to enforce the
lien, or if extended payment is provided and the terms thereof are
stated in the claim of lien, then 120 days after the expiration of
such extended payment, but no lien shall be continued in force for a
longer time than two years from the time the claim of lien is filed
under ORS 87.035 by any agreement to extend payment. For purposes of
this section:
(1) Subject to subsection (2) of this section, a suit to enforce the
lien shall be deemed commenced as provided in ORS 12.020.
(2) With regard to other parties who are construction lien claimants
under ORS 87.035, a suit to enforce the lien shall be deemed to
commence when the complaint is filed, whether or not summons or
service with regard to such parties is completed within the time
required by ORS 12.020.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
