Oregon Construction Contractors (CCB) Practice Test

Who should a residential original contractor give a notice of Right to Lien to?

1. The client

2. The mortgagee

3. The local government

4. The subcontractors

The correct answer is: The mortgagee

The correct choice is that a residential original contractor should give a notice of Right to Lien to the mortgagee. In the context of construction law, the notice of Right to Lien is an important document that protects the rights of the contractor in the event of non-payment. When a contractor provides work or materials for a property that is financed by a mortgage, the mortgagee (i.e., the bank or lender that holds the mortgage on the property) has a vested interest in the property's value and is responsible for ensuring that the loan remains secure. By informing the mortgagee of the lien right, the contractor ensures that the lender is aware of any potential claims against the property. This can prevent complications if payments are not made, as the mortgagee may have the ability to intervene or take measures to protect their investment in the property. While the client is essential in the contractual relationship, the mortgagee's interest in the property makes it crucial for the contractor to notify them as part of lien rights. Local government entities and subcontractors also have roles in the construction process, but they are not the primary focus when it comes to lien notices in this scenario.