Because construction liens can affect other interests in real property, both public notice and actual notice to certain parties with recorded interests are essential to a fair lien system. In Oregon, timely recording a claim of lien with the county recorder provides the required public notice and is a prerequisite to a valid lien. Oregon’s Construction Lien Law also requires notice upon the occurrence of specific events, including the recording of the lien claim, the recording of a lien release bond, and before commencement of a lien foreclosure action. These notice requirements reflect the legislature’s effort to balance the interests of construction lien claimants against those of other property interest holders and are rooted in due process principles. Accordingly, compliance with the Construction Lien Law’s notice provisions is critical, as failure to comply can result in serious consequences, including the loss of lien rights.
