I am an Oregon homeowner who received a Notice of Right to A Lien from the lumber company, who supplied the materials to my general contractor for a $19k construction project on my home. The notice came via registered USPS mail and I had to sign for it at my doorstep. The notice could easily be perceived as a threat if a homeowner did not know about construction lien laws in their state. Seeing the word "lien" is enough to make your heart skip a beat. I can't imagine this is a common and standard practice of sending these notices out to homeowners unless there is a questionable relationship between the subcontractor or supplier and the general contractor. How common is this practice in Oregon? Do contractors routinely attach the notice to every contract they prepare for a homeowner? Do subcontractors and material companies automatically generate the notice and send via registered mail to homeowners for every residential project? Or, does the industry pick and choose which jobs they think are more at risk?
Sending a Notice of Right to Lien in Oregon is a relatively common practice. This notice is required by law to be sent by subcontractors and suppliers on most residential projects to secure the right to file a lien; if and when a payment problem that arises on the project.
I agree that seeing the term "lien" on any legal document can be unsettling. But keep in mind that a preliminary notice is not any indication of any payment issues or perceived financial problems. Consider it a proactive means to ensure that the company is going to get paid on the project. Some companies generate them for every project, others send them only on projects over a predetermined dollar amount, and some don't send them at all. But as a property owner, there is no cause for concern when a preliminary notice is received.
In fact, besides securing the ability to file a lien if unpaid, it also offers valuable information and points of contact to property owners and general contractors about who is involved on the project, and what they are providing. That way both the owner and GC can ensure that they are getting paid, and requesting a lien waiver when they're paid to ensure that no claims are filed against the property.
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