Oregon

Oregon at a Glance

1. Mechanic's Lien Rules

Plain English

In Oregon, anyone supplying a job who wasn't hired by the owner must give the owner a notice of right to a lien, except that on a commercial job, workers, labor-and-material subcontractors and equipment renters don't need one (material-only suppliers still do). It protects only work and materials from 8 business days before the notice was delivered or mailed, so late notice costs money. To perfect the lien, the claimant files a claim of lien with the county recording officer within 75 days after it stops work (or 75 days after completion, if that is earlier). The claimant then has 120 days to sue. Liens on the land beat mortgages that attached after work began or were unrecorded then. A material supplier beats a recorded mortgage only if it sent the mortgagee notice within 8 business days of delivery. An owner can release a lien by posting a bond or deposit of 150% of the claim.

Key Rules

Notice of right to lien (ORS 87.021). Protects work from 8 business days (excluding weekends and holidays) before delivery; no lien for some services on owner-occupied homes requested by the owner's agent. Not required for labor, labor and materials, or equipment rental on a commercial improvement (anything other than an owner-occupied residence of 4 or fewer units).

Perfection (ORS 87.035). Within 75 days after ceasing work or completion of construction, whichever is earlier, for contractors and suppliers; others within 75 days after completion.

Duration (ORS 87.055). 120 days after filing unless suit is brought (2-year outside limit with recorded extended payment terms).

Priority (ORS 87.025). Land liens beat later or unrecorded encumbrances; improvement liens can beat prior encumbrances on the improvement; supplier liens need 8-day notice to the mortgagee.

Release (ORS 87.076). Surety bond or deposit of 150% of the claim or $1,000, whichever is greater.

Practice Points

1. Check for mortgagee notices from suppliers; they can prime the insured loan.
2. Track the 120-day suit window for recorded claims.
3. Get lien waivers and an owner's affidavit covering the last 75 days.

Citations

• ORS 87.021 (notice of right to lien): https://www.oregonlegislature.gov/bills_laws/ors/ors087.html
• ORS 87.025 (priority): https://www.oregonlegislature.gov/bills_laws/ors/ors087.html
• ORS 87.035 (75 days): https://www.oregonlegislature.gov/bills_laws/ors/ors087.html
• ORS 87.055 (120-day suit): https://www.oregonlegislature.gov/bills_laws/ors/ors087.html
• ORS 87.076 (bond or deposit): https://www.oregonlegislature.gov/bills_laws/ors/ors087.html

2. Execution and Notarization Requirements for Recording

Plain English

Oregon is a race-notice state: an unrecorded deed or land sale contract is void against a later good-faith buyer for value who records first. Oregon bans new local transfer taxes. Only taxes in effect on March 31, 1997 survive, and Washington County is the one to remember: $1 per $1,000 of the price, due within 15 days of recording. Deeds are signed by the grantor and acknowledged before a notary; no seal is needed. Oregon notaries may notarize for remotely located signers by audio-video technology.

Key Rules

• Recording act (ORS 93.640). Race-notice.
• Transfer tax ban (ORS 306.815; Or. Const. art. IX, § 15). Statute bars local taxes not in effect March 31, 1997; the constitution (Measure 79, 2012) bars state and local transfer taxes not operative on Dec. 31, 2009.
• Washington County tax (County Code ch. 3.04). $1 per $1,000 of the selling price, including assumed debt; pay or apply for an exemption within 15 days of recording. Liability is between buyer and seller.
• Deed formalities (ORS 93.410). Signed by the grantors and acknowledged before a notary or listed judge; no seal required.
• Remote notarization (ORS 194.277). Notarial acts for remotely located individuals by real-time audio-video communication.

Practice Points

1. Record promptly; race-notice rewards the first to record.
2. Washington County deals: collect the transfer tax or the exemption form.
3. Land sale contracts: record a memorandum.

Citations

• ORS 93.640 (recording act): https://www.oregonlegislature.gov/bills_laws/ors/ors093.html
• ORS 306.815 (transfer tax ban): https://www.oregonlegislature.gov/bills_laws/ors/ors306.html
• Washington County transfer tax: https://www.washingtoncountyor.gov/at/recording/transfer-tax-exemption
• ORS 93.410 (execution and acknowledgment of deeds): https://www.oregonlegislature.gov/bills_laws/ors/ors093.html
• ORS 194.277 (remote notarization): https://www.oregonlegislature.gov/bills_laws/ors/ors194.html

3. Securing Future Advances

Plain English

Oregon's line of credit instrument statute protects advances under a credit agreement. The front page (or a memorandum) must carry the legend "line of credit mortgage," "line of credit trust deed" or "line of credit instrument" in capitals or underlined, state the maximum principal, and state the maturity date. Such an instrument has priority from recording for later advances up to the maximum, optional or obligatory, even if the lender knows of an intervening lien. For residential lines (4 or fewer units including the borrower's home), the borrower can freeze the debt by a signed, acknowledged notice to the lender, who must record it within 20 days.

Key Rules

• Line of credit instrument (ORS 86.155(1)(b)). Legend, maximum principal, and maturity on the front page.
• Priority (ORS 86.155(2)). From recording, regardless of the lender's knowledge of intervening liens, for principal advances up to the stated maximum; for interest and protective advances even above it; and, for non-residential lines whose front page says so, for advances to complete construction.
• Increases (ORS 86.155(3)). Advances above the original maximum rank from recording of an amendment stating the new maximum.
• Residential limits (ORS 86.155(4)-(6)). Debtor's notice by personal service or certified mail; the lender endorses the balance and records within 20 days, or the debtor may record it.

Practice Points

1. Check the legend. No legend, no statutory protection.
2. Read the maximum and maturity.
3. HELOC payoffs: use the statutory limiting procedure or a freeze letter.

Citations

• ORS 86.155 (line of credit instruments): https://www.oregonlegislature.gov/bills_laws/ors/ors086.html

4. Subdivision Statutes and Regulations

Plain English

Oregon land division is governed by ORS chapter 92. Nobody may sell a lot in a subdivision until the required approval is obtained, or even negotiate to sell before a tentative plan is approved. Partitions follow similar rules. No lot or parcel may be sold until the plat is acknowledged and recorded. A buyer of an unlawfully created unit of land has a statutory remedy.

Key Rules

• No sale before approval (ORS 92.016). Applies to subdivisions and partitions.
• Lawfully established units (ORS 92.010, 92.017). Definitions and protection.
• Remedy for unlawful units (ORS 92.018). Buyer's remedy.
• Plat recordation (ORS 92.025). No sale of a subdivision lot or partition parcel until the plat is acknowledged and recorded; the approved tentative plan may be used in negotiating.

Practice Points

1. New parcel? Confirm it is a lawfully established unit of land.
2. Pre-plat sales: confirm the tentative plan was approved.
3. Read plat notes and declarations.

Citations

• ORS 92.016 and chapter 92 (subdivisions and partitions): https://www.oregonlegislature.gov/bills_laws/ors/ors092.html

5. Title Premium Rates

Plain English

Oregon's rate statute sets special standards for title insurance. The Director of the Department of Consumer and Business Services reviews title filings, and a filing takes effect on its stated date but no earlier than 30 days after the Director receives it (extendable 30 days). A title rating organization must show adequate representation for title producers. Oregon also requires title insurers, directly or through their agents, to own and maintain title plants for the counties they serve.

Key Rules

• Rate standards (ORS 737.310). Title insurance has its own standards.
• Filing and waiting period (ORS 737.320). Not effective earlier than 30 days after receipt.
• Rating organizations (ORS 737.350). A title rating organization must show adequate representation for title producers.
• Title plants (ORS 731.438). At least the preceding 50 years (except years before 1960), with a general index, maps and posted tract indexes.

Practice Points

1. Quote from the insurer's filed Oregon rates.
2. No unfiled discounts.
3. Confirm escrow charges are separate from premium.

Citations

• ORS chapter 737 (rate regulation): https://www.oregonlegislature.gov/bills_laws/ors/ors737.html
• ORS 731.438 (title plants): https://www.oregonlegislature.gov/bills_laws/ors/ors731.html

6. Recording Taxes & Fees on Deeds and Mortgages

Plain English

Oregon has no statewide transfer tax, and new local transfer taxes are barred. The one survivor is Washington County, at $1 per $1,000. Oregon has no mortgage tax, but most recorded documents pay a $60 affordable-housing fee on top of per-page fees.

Key Rules

(a) Deed transfer, conveyance or excise tax

• Local only. ORS 306.815 bars local real estate transfer taxes not in effect on March 31, 1997. Washington County's $1 per $1,000 is grandfathered. The county treats liability as between buyer and seller.
• Constitutional bar (Or. Const. art. IX, § 15). Oregon voters barred new real estate transfer taxes in the constitution (Measure 79, 2012); taxes operative on Dec. 31, 2009 survive.

(b) Mortgage, indebtedness or intangible tax

• None. Oregon has no mortgage, indebtedness or intangible tax on recording a mortgage or deed of trust, so future advances, credit lines, refinances and modifications carry no state recording tax (only recording fees).

(c) Other recording taxes and fees

• Recording fees of $5 per page (ORS 205.320) plus $71 in additional fees on most documents (ORS 205.323): $1 for the land information system, $10 for county assessment and taxation, and the $60 fee that funds affordable housing programs (ORS 294.187).

Practice Points

1. Washington County: collect $1 per $1,000.
2. Budget the $60 fee on each recorded document, including the deed of trust.

Citations

• ORS 306.815: https://www.oregonlegislature.gov/bills_laws/ors/ors306.html
• ORS 205.320, 205.323 (recording fees): https://www.oregonlegislature.gov/bills_laws/ors/ors205.html