Oregon Construction Contractors (CCB) Practice Test

What is involved in creating a valid lien?

1. A simple signature from the contractor

2. A notary, legal description, recording fee, and deadlines

3. Only a written statement from the contractor

4. Verbal acknowledgment from the project owner

The correct answer is: A notary, legal description, recording fee, and deadlines

Creating a valid lien requires several specific components that ensure its legality and enforceability. In Oregon, a valid lien generally includes a notary to confirm the authenticity of the document, a legal description of the property that accurately identifies the location and boundaries affected by the lien, the payment of a recording fee, and adherence to strict deadlines for filing. The notary acts as a witness to the signing of the lien, which adds an essential level of validity and prevents disputes regarding the authenticity of the document. The legal description is crucial because it delineates exactly what property is being claimed, ensuring that there can be no confusion about the scope of the lien. Recording the lien with the appropriate governmental office is necessary to make the lien a public record, thus enforcing it against the property in question. Lastly, there are often specific statutory deadlines that must be met to file a lien; missing these deadlines could invalidate the claim altogether. These elements are crucial for protecting the rights of contractors and suppliers and securing their ability to pursue payment if they have not been compensated for their work or materials. They provide the legal framework necessary to ensure that any claims made against a property are valid and enforceable.