Oregon Construction Contractors (CCB) Practice Test

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Before filing a lawsuit to foreclose, what must a contractor do?

File a labor claim
Send a Notice of Filing a Claim of Lien
Notify their subcontractors
Pay all outstanding bills

The correct answer is: Send a Notice of Filing a Claim of Lien

Before a contractor can file a lawsuit to foreclose on a lien, they are required to send a Notice of Filing a Claim of Lien. This notice serves as an official notification that the contractor has filed a lien against the property due to non-payment or other issues related to the project. It is a critical step in the lien process as it informs all interested parties, such as property owners and other stakeholders, about the contractor's claim to ensure they have an opportunity to address the matter prior to legal action. The notice also establishes a record of the contractor's claim and protects their rights in seeking payment. In many jurisdictions, including Oregon, this step is legally necessary to proceed with a foreclosure action on the lien, reinforcing the importance of following proper legal protocols to enforce lien rights. Other options may involve steps associated with various aspects of contract management or billing disputes but do not fulfill the legal requirement needed before initiating a foreclosure action on a lien. Thus, sending the Notice of Filing a Claim of Lien is crucial to ensuring that all parties are adequately notified, which in turn allows the proper course of legal action to unfold if necessary.