Oregon Construction Contractors (CCB) Practice Test

Is it true that a lien is created only after specific steps are taken by the person providing labor or materials?

1. True

2. False

3. It varies by state

4. True, but with exceptions

The correct answer is: True

A lien, specifically a mechanics lien in the context of construction, is indeed created only after certain specific steps are taken by the person or entity providing labor or materials. This process typically involves providing notice to the property owner, documenting the work or materials supplied, and, in many cases, filing a lien with the appropriate governmental agency or court. The rationale behind this requirement is to protect property owners from unexpected claims against their property and to ensure that contractors and suppliers have followed proper procedures before filing a lien. Each state may have its own specific rules and timelines for how and when these steps must be completed, but the fundamental concept remains consistent: a lien does not arise solely from providing work or materials; it necessitates following the required legal procedures. This understanding is important as it emphasizes the legal obligations and responsibilities of contractors and suppliers in securing their rights to payment while ensuring transparency in the construction process. Each state's statutes may detail these processes further, which explains why some might consider the variance based on geography.