71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
House Bill 3842
Sponsored by Representative MERKLEY
CHAPTER ................
AN ACT
Relating to construction liens; creating new provisions; and
amending ORS 87.021 and 701.250.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 87.021 is amended to read:
87.021. (1) Except when material, equipment, services or labor
described in ORS 87.010 (1) to (3), (5) and (6) is furnished at
the request of { - the - } { + an + } owner { + who is not
the original contractor + }, a person furnishing any materials,
equipment, services or labor described in ORS 87.010 (1) to (3),
(5) and (6) for which a lien may be perfected under ORS 87.035
shall give a notice of right to a lien to the owner of the site.
The notice of right to a lien may be given at any time during the
progress of the improvement, but the notice only protects the
right to perfect a lien for materials, equipment and labor or
services provided after a date which is eight days, not including
Saturdays, Sundays and other holidays as defined in ORS 187.010,
before the notice is delivered or mailed. However, no lien is
created under ORS 87.010 (5) or (6) for any services provided for
an owner-occupied residence at the request of an agent of the
owner.
(2) The notice required by subsection (1) of this section shall
be substantially in the form set forth in ORS 87.023.
(3)(a) Except as provided in paragraph (b) of this subsection,
a lien created under ORS 87.010 (1) to (3), (5) or (6) may be
perfected under ORS 87.035 only to the extent that the notice
required by subsection (1) of this section is given.
(b) A person who performs labor upon a commercial improvement
or provides labor and material for a commercial improvement or
who rents equipment used in the construction of a commercial
improvement need not give the notice required by subsection (1)
of this section in order to perfect a lien created under ORS
87.010. As used in this paragraph:
(A) 'Commercial improvement' means any structure or building
not used or intended to be used as a residential building, or
other improvements to a site on which such a structure or
building is to be located.
(B) 'Residential building' means a building or structure that
is or will be occupied by the owner as a residence and that
contains not more than four units capable of being used as
residences or homes.
(4) Unless otherwise agreed or the lien claimant who is
required to give the notice under subsection (1) of this section
Enrolled House Bill 3842 (HB 3842-INTRO) Page 1
is in privity with the original contractor, when a provision in
an agreement for the construction of a commercial improvement
requires the original contractor to hold an owner harmless or to
indemnify an owner for a lien created under ORS 87.010 and
perfected under ORS 87.035, that provision is not enforceable as
to any lien which requires that a notice under this section be
given to the owner unless a copy of the notice is delivered
pursuant to ORS 87.018 to the original contractor not later than
10 days after its receipt by the owner.
SECTION 2. { + Section 3 of this 2001 Act is added to and made
a part of ORS chapter 93. + }
SECTION 3. { + (1) If an owner of record sells real property
to a purchaser, the owner shall provide to the purchaser:
(a) A list of all persons described in ORS 87.010 (1), (2), (5)
or (6) with whom the owner has entered into a contract within the
previous two years if the owner has not fully paid the person or
the person disputes that full payment was made;
(b) A copy of a notice of right to a lien, claim of lien,
pleadings to a foreclosure action, satisfaction of lien or waiver
or release of a right to a lien received by the owner within the
past two years; and
(c) A cautionary notice described in ORS 701.250 (3) that is
provided by the Construction Contractors Board.
(2) An owner who violates subsection (1) of this section
commits a Class B misdemeanor. + }
SECTION 4. ORS 701.250 is amended to read:
701.250. (1) Any individual may request and the Construction
Contractors Board shall provide notification of the status of one
or more licensees.
(2) The board may charge a standard fee for the notification
described in subsection (1) of this section not to exceed the
cost of preparation and provision of such notices.
{ + (3) An individual may request and the board shall provide
the individual with a cautionary notice required by section 3 of
this 2001 Act that shall inform a purchaser that under certain
circumstances a mortgagee or lienholder may encumber or claim a
lien upon real property after a sale to the purchaser for a
transaction or activity that occurred before the sale. + }
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Passed by House May 3, 2001
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate May 17, 2001
...........................................................
President of Senate
Enrolled House Bill 3842 (HB 3842-INTRO) Page 2
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2001
...........................................................
Secretary of State
Enrolled House Bill 3842 (HB 3842-INTRO) Page 3