Oregon Construction Contractors (CCB) Practice Test

What does creating a valid lien require from the contractor?

1. A verbal agreement with subcontractors

2. Extensive paperwork including legal documents

3. A simple form submitted to local authorities

4. Only a notary's approval

The correct answer is: Extensive paperwork including legal documents

Creating a valid lien requires extensive paperwork because the process involves several legal steps and documentation to ensure the lien is enforceable. When a contractor files a lien, it serves as a legal claim against a property to secure payment for work completed or materials supplied. This typically necessitates the collection of relevant information, such as the owner's details, a description of the work performed, and the amount owed. In most jurisdictions, including Oregon, this process includes filing specific legal documents with the appropriate local authorities, which often comprise a lien statement or lien notice. Each jurisdiction has its own rules and regulations regarding how liens must be filed and what information must be included, making attention to detail and compliance with legal guidelines crucial. The other options do not adequately capture the complexity and legal requirements of establishing a valid lien. A verbal agreement does not provide the necessary legal standing for a lien. A simple form may not encompass the extensive detail required by law, and relying solely on a notary's approval does not fulfill the comprehensive documentation needed for a lien to be considered valid.