A contractor performs $12,500 of electrical work on a residential addition in Oregon. The property owner refuses to pay the final invoice of $3,200. To perfect a construction lien under ORS 87, the contractor must record the lien claim in which location?
Correct Answer
C) County recorder's office where the property is located
Construction liens must be recorded in the county recorder's office where the improved property is located, per ORS 87.
Why This Is the Correct Answer
The county recorder's office where the property is located is correct. Under ORS 87, construction liens are interests in real property, and real property interests are recorded in the county where the property sits. Recording at the county recorder's office provides public notice to all parties (buyers, lenders) that a lien encumbers the property.
Why the Other Options Are Wrong
Option A: Local building department
The local building department is incorrect. The building department issues permits and inspects construction; it does not record legal claims or property interests. Liens filed there would have no legal effect.
Option B: Oregon Secretary of State office
The Oregon Secretary of State office is incorrect. The Secretary of State handles UCC filings (personal property security interests) and business registrations, not real property liens. Construction liens are real property matters recorded at the county level.
Option D: Oregon Construction Contractors Board office
The Oregon Construction Contractors Board office is incorrect. The CCB licenses contractors and handles complaints/disputes, but it is not a recording office. The CCB cannot record real property interests.
Memory Technique
Think of construction liens like deeds — both are interests in real property, and both are recorded at the county recorder. 'Lien on the land → county in command.'
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Previous Question
A subcontractor completes electrical work worth $3,200 on March 15th. The general contractor fails to pay. If the subcontractor wants to file a lien, what is the latest date they can file under ORS 87?
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