What is a Lien in Oregon?
A lien in Oregon refers to a secured interest in a property following the owner's obligation to pay or settle a debt. A lien is established when a debtor uses an asset as a form of collateral to bind the debtor's obligation to pay. The Oregon Circuit Court has jurisdiction over all matters concerning liens, and Oregon courts typically issue the judicial orders required to enforce a lien.
According to Oregon's laws on liens, the criteria for claiming a lien is:
- If the loan or a promise to perform a duty is not fulfilled
- If the lien has not exceeded its time frame, which is typically within six months of serving the "notice of claim of lien."
- If the lien does not supersede another type of lien. For instance, a tax lien supersedes all other types of lien. Also, a construction lien in Oregon supersedes a mortgage lien.
A lien is a public record that can be viewed if someone performs a title search on the land. Therefore, it must be filed with the county recorder's office.
Types of Lien in Oregon
There are a variety of liens in Oregon, serving various purposes, and based on different factors such as location, industry, and context. Firstly, there are two broad categories of liens: general and specific. A general lien attaches the combined assets of the individual, while the specific lien targets a specific asset belonging to the culprit. Assets may include checking and savings balances, real estate holdings, vehicles, and other valuables.
There are also voluntary and involuntary liens. The difference is that a lien is voluntary when the property owner gives consent, which is often the case each time an individual sign a mortgage. On the other hand, the law enforces an involuntary lien; and a typical example is the judgment lien.
A few examples of liens include tax, judgment, mortgage, and mechanic's liens. There is a vast range of liens available at the official government website of the state of Oregon.
What is a Property Lien in Oregon?
A property lien is a legitimate claim on a debtor's property if a loan or an obligation is not fulfilled at the set time. The laws governing the lien in Oregon enable a creditor to claim an asset if a loan or duty is not fulfilled according to an agreement. A property lien comprises all physical assets, including land, buildings, cars, equipment, machinery, and any other kind of real estate or personal property. Based on the state's rules, a person filing a lien must serve a notice of rights for a rental or owned property to protect the right to a lien. A claimant must file a "Notice of Right to a Lien" for rented property. For an owned property, the claimant has to give the debtor the following documents:
- Information Notice To Owner
- Consumer Protection Notice, and
- Notice of Procedure
Only a written contract gives a claimant the right to a property lien in Oregon.
How Do You Know if a Property Has a Lien in Oregon?
There are a few reasons why a person might be interested in finding out if there is a lien on a property. It is either there is an intent of purchase for such a property, or the individual already owns the property and seeks to verify if there is an existing lien on such an asset. Another reason could be that individual desires to sell a property and deems it fit to run a check so that the intending buyer confirms the nonexistence of a lien upon such property.
Firstly, a voluntary lien is established with the property owner's consent. Hence, the owner should be fully aware of that lien's existence upon the property. However, when the lien is involuntary, the situation might be a little tricky.
There are various government repositories where lien information can be retrieved, spans across all sorts of varying information. In the case of a lien, every county has a database for which such information is stored. To verify the lien status of a property in Oregon, visit the official government repository where the information is stored.
If the requestor seeking to ascertain the lien status of property happens to be the lienee, the individual ought to have received a notification of a lien filing on such property beforehand. Whatever the case, the best thing to do when determining if a property in Oregon has a lien on it or not is to consult the official government database for where such records are stored. For real estate, the requesting party may retrieve the title deed (the deed constituting the evidence of a person's legal ownership) from the county repository by making an in-person request to the county clerk's office or using the online index.
What is a Tax Lien in Oregon?
An Oregon tax lien is a statutory claim on the property of a person or company that defaults in tax payments to the government. All properties, including personal and financial assets, are subject to a lien. The Internal Revenue Service (IRS) evaluates the extent of indebtedness and provides the owner with a notification and a payment request. If the owner defaults on payment, the government's claim on the property is filed as a public record to notify creditors. The government's claim on a debtor's property does not usually end in foreclosure; it is meant to accelerate the payment process. However, the tax lien is settled before any other liens are applied when there is a foreclosure.
What is a Mortgage Lien in Oregon?
An Oregon mortgage lien is a financial claim on real estate used to secure a loan. If the creditor defaults, the lien requires the lender to seize the property and sell it at auction to recoup the debt. Mortgage liens are voluntary and specific. Hence, the creditor can only reclaim the specific property that the loan financed.
What is a Mechanics Lien in Oregon?
Oregon mechanics' liens are created by legislative rights and are involuntary yet, at the same time, specific. The mechanics' lien law places contractors, subcontractors, architects, land surveyors, builders, machinists, and other artisans at an advantage to enforce payment for services rendered. The law makes provisions for anyone who performs labor or service to have the right of lien, whether there is an express or implied contract. Mechanics' liens can be filed in Oregon by parties who provide labor or materials unless there is a waiver. Mechanics' liens are involuntary and specific.
In Oregon, a mechanics' lien must be filed within seventy-five days of the last day of delivery of services or materials. This is vital to the lienholder's rights. Liens are filed with the Recorder of Deeds in the county where the property is situated.
What is a UCC Lien?
The Uniform Commercial Code creates a common legal and contractual framework that allows companies from different states to do business together. The policies are mainly based on the practices of small businesses and entrepreneurs, which is aimed at clearing up any uncertainty about how each state should regulate such operations. The UCC is divided into nine articles, all of which apply to product transactions, negotiable instruments, banks' liability, letters of credit, bill of lading, etc. The UCC lien, referred to as the UCC-1 statement, is a directive of the Uniform Commercial Code, which governs business deals and activities in the U.S. This lien makes it possible for creditors to file a legal notice that publicly asserts their right to seize properties from debtors in case of loan defaults. The ninth article of the UCC requires that a creditor incorporates the UCC-1 statement into a business loan contract for it to be considered effective. The statement must include detailed information on the borrower and describe all assets that have been designated as collateral for the loan.
A UCC lien is a specific lien when the creditor is given rights to a particular asset owned by the debtor. Most real estate transactions are specific. On the other hand, the UCC lien is a blanket lien when the creditor is given a secured right over a range of assets belonging to the debtor; the assets must be listed in the collateral section of the UCC-1 statement. UCC liens are filed with the Oregon Secretary of State.
What is a Judgment Lien?
An Oregon judgment lien compels a debtor to pay back debt. In Oregon, a judgment lien can be placed on any debtor's property — house, car, jewelry, equipment. Typically, it is a general and an involuntary lien. A claimant must file the judgment with the county circuit clerk if the debtor's property is situated outside the county where the judgment was issued. However, if the judgment was issued in the same county as the property, the debtor's property is automatically bound by the court's rulings. In Oregon, a judgment lien is limited by the following:
- An exemption on the debtor's primary residence
- An existing tax lien
- A bankruptcy proceeding that resulted in a foreclosure
Voluntary Lien Vs. Involuntary Lien in Oregon?
A voluntary lien is created when a property owner gives another party the legal right to collateral property to settle a debt. If the owner fails to pay, the property can be seized. This is particularly true when it comes to mortgage liens. On the other hand, involuntary liens are levied on a property without the owner's permission. A judge or another administrative body can, for example, put a lien on a piece of real estate if debts are not paid. Examples of involuntary liens include tax liens and judgment liens.
How Do I Check for Liens in Oregon?
Information regarding liens in Oregon is public record. Anyone needing such information can find it in the liens section on the Oregon official website.
However, the records available on the website might not be complete. Thus, requestors will be required to query the county clerk's office in the judicial district where the case was filed.
Free Lien Search in Oregon
In Oregon County, there is a provision for free lien searches, using the search tool on the county's official web page. Some of the searches available on the site include general information on liens, types of lien, lien forms, lien payment policy, etc.
How Creditors Collect Payment Through a Lien in Oregon
When a creditor obtains a lien in Oregon, they automatically receive rights over the liened property, provided the debtor cannot meet the terms of the agreement. The creditor can proceed to enforce the lien by foreclosing or selling the property to recover the outstanding debt.
How Do I Get a Lien Removed in Oregon?
The first and most obvious way to have the lien removed in Oregon is to pay off the debt. This is the surest way to have a lien removed.
If the lien claim is fraudulent and contains false information, the lien may be deemed invalid by a court order. In this case, the lienee may petition the court with proof that the lien was established on untrue claims. Alternatively, lienees may wait out the statute of limitations on the lien. However, this option is unreliable since the creditor can renew liens before expiration.
How Long Does a Lien Stay on Your Property in Oregon?
In Oregon, a lien can stay on a property for varying lengths of time, depending on the nature of the lien.
Voluntary liens remain on the property until the debt is paid. Once the debt is settled, the property owner can begin to make the necessary arrangements for retrieval. However, involuntary Liens like judgment liens remain attached to the property even if ownership is transferred for ten years.