I am loaning money to a contractor for a home he is building for resale. Do I have a right to a lien if he does not repay me according to the terms of the loan?
As a lender in your situation, you should have a promissory note with the contractor (borrower) and then secure it with a Deed of Trust which would allow you to foreclose nonjudicially in the event the borrower defaults. This would be your best option. A promissory note for itself can be difficult to enforce or recover. It would involve a breach of contract claim, and since it is not secured by the real property yu have an uphill battle. I'm located in Kirkland, WA but am licensed in Oregon. Please contact be if you would like to discuss your situation with me.