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What are the details and requirements of a partial lien satisfaction in Oregon?

OregonLien Releases
Anonymous Contractor

Filed a lien, recieved a payment but 550$ balance remaining. Too small to justify pursuing foreclosure but still would be nice to get. Does the lien still remain as a cloud on the title and what are the requirements to file a partial lien satisfaction?

1 reply

Matt Viator
Construction Lawyer
Levelset Admin at Levelset
| 997 reviews
Dec 11, 2018
First - I'm glad you got paid! Even if there is still some money on the table... To the topic at hand - partial lien releases can be tricky, and most states' lien statutes don't actually have provisions specifically providing for the partial release of a lien. Still, filing a document releasing a portion of a lien may be attempted, and it's not an uncommon practice. Of course, it'd be important to make very clear that only a portion of the lien claim is being released. As far as what happens to a lien that's not released - typically, such a lien will remain in the record as an encumbrance on the property, even beyond the time for enforcing the lien. zlien discusses that idea in these articles: Do you Have to Cancel a Mechanics Lien, or Will It Expire? and Does a Mechanics Lien Affect the Property Title Forever? Note, though, that once a mechanics lien has expired, it's often a good idea to release the lien to avoid potential penalty. Further, if an owner demands the release of a lien under § 87.076 of the Oregon mechanics lien statute and the lien is not thereafter enforced or released, a claimant could become liable to the owner for damages.
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