Owner Contractor Affidavit Waiver and Indemnity Agreement

NOTICES TO OWNER

CCB Recommended Contract Addendum to Satisfy Contract Terms Requirement

OAR 812-012-0110

1. List of Required Construction Contractor Board (CCB) Consumer Notices

Oregon law requires construction contractors to give homeowners certain notices before and during a construction project. The following is a list of the forms. It is important to read and understand these forms.

a. Consumer Protection Notice.

b. Information Notice to Owner About Construction Liens

c. Notice of Procedure

2. Explanation of Property Owner’s Rights

a. Consumers have the right to receive the products and services agreed to in the contract.

b. Consumers have the right to resolve disputes through means outlined in the contract.

c. Consumers have the right to file a complaint with the CCB. Any arbitration or mediation clauses in the contract may prevent the CCB from processing.

3. Arbitration/Mediation Clause

a. An “arbitration or mediation clause” is a written portion of a contract designed to settle how the parties will solve disputes that may arise during, or after the construction project. Arbitration clauses are very important. They may limit a consumer’s ability to have their dispute resolved by the Oregon court system or the Oregon Construction Contractors Board.

b. The following box should be checked by the contractor:

This contract contains an arbitration or mediation clause.

This contract DOES NOT contain an arbitration or mediation clause.

c. The Oregon Construction Contractors Board urges consumers to read and understand the entire contract – including any arbitration clause before signing a construction contract. Consumers are not obligated to accept contract terms proposed by the contractor, including arbitration provisions. These may be negotiated to the satisfaction of both parties.

4. Offer of Written Warranty (New Residential Structure Only)

Purchaser acknowledges the contractor has offered warranty against defects in materials and workmanship to the purchaser. Buyer has accepted or rejected the offer of warranty. (see appendix in contract.)

CONSUMER PROTECTION NOTICE

Actions to help make your project successful

(ORS 701.330 (1))

Oregon law requires contractors to provide the homeowner with this notice at the time of written contract, for work on a residential structure. This notice explains licensing, bond and insurance requirements, and steps that consumers can take to help protect their interests.

START OUT YOUR PROJECT RIGHT

1. Make sure your contractor is properly licensed before you sign a contract. Visit www.oregon.gov/ccb, and click on the link, Check on a Contractor’s License, or call our offices at 503-378-4621. To be licensed in Oregon, contractors must take training and pass a test on business practices and law. Licensing is not a guarantee of the contractor’s work.

• A license requires the contractor to maintain a surety bond and liability insurance. The CCB surety bond provides a limited amount of financial security if the contractor is ordered to pay damages in contract disputes. It is not intended to be a safety net for consumer damages. Consumers with large projects may wish to look into performance bonds. Liability insurance coverage provides for property damage and bodily injury caused by the contractor. It does not cover contract disputes, including poor workmanship.

• If your contractor is not licensed - the CCB bond and dispute resolution services will not be available to you.

2. What you should know about bids, contracts, and change orders:

• Bids - Do not automatically accept the lowest bid - A low bid may make it necessary for the contractor to use lower quality materials and to cut corners in workmanship.

• Contracts and Change Orders - Always get it in writing. Your contractor is required to provide a written contract if the contract price is more than $2000. The CCB recommends that all contracts be in writing.

• Contracts should be as detailed as possible - Some items to include are materials and costs, permits, estimated start and completion dates, debris removal, and arbitration clauses. Make sure the contractor’s name, CCB number, and contact information is included in the contract.

• Read and understand your contract before signing it - Don’t be pressured into signing your contract without taking the time needed to go through it. Make sure it includes enough details to avoid misunderstandings and to protect you and your property.

3. Additional contract information you should know:

• A Payment Schedule - should be included in the contract. Stick to the schedule and never pay in full for a project before the work is complete.

• Special Note on Liens - Subcontractors and material suppliers that work on your project are often paid by the general contractor. If a general contractor fails to pay, the subcontractor may file a lien on your property. For information on construction liens, visit the CCB’s Consumer Help Page at www.oregon.gov/ccb, or contact an attorney.

• Warranty on new residential construction - Contractors must make an offer of a warranty when constructing a new residential structure. Consumers may accept or refuse the warranty.

4. If you should have a problem with your contractor - You can file a complaint with the CCB against a licensed contractor within one year of the substantial completion of work on your project. Contact the CCB office at 503-378-4621 for help.

Visit the CCB website at for more information on having a successful project. www.oregon.gov/ccb

NOTICE OF RIGHT TO A LIEN

WARNING: READ THIS NOTICE. PROTECT YOURSELF FROM PAYING ANY CONTRACTOR OR SUPPLIER TWICE FOR THE SAME SERVICE.

To: Date of mailing:

Owner's address

This is to inform you that has begun to provide ordered by for improvements to property you own. The property is located at .

A lien may be claimed for all materials, equipment, labor and services furnished after a date that is eight days, not including Saturdays, Sundays and other holidays, as defined in ORS 187.010, before this notice was mailed to you.

Even if you or your mortgage lender have made full payment to the contractor who ordered these materials or services, your property may still be subject to a lien unless the supplier providing this notice is paid.

THIS IS NOT A LIEN. It is a notice sent to you for your protection in compliance with the construction lien laws of the State of Oregon.

This notice has been sent to you by:

NAME:

ADDRESS:

TELEPHONE:

INFORMATION NOTICE TO OWNER ABOUT CONSTRUCTION LIENS

IMPORTANT INFORMATION FOR YOUR PROTECTION

Under Oregon's laws, those who work on your property or provide labor, equipment, services or materials and are not paid have a right to enforce their claim for payment against your property. This claim is known as a construction lien. If your contractor fails to pay subcontractors, material suppliers, rental equipment suppliers, service providers or laborers or neglects to make other legally required payments, the people who are owed money can look to your property for payment, even if you have paid your contractor in full.

The law states that all people hired by a contractor to provide you with materials, equipment, labor or services must give you a notice of right to a lien to let you know what they have provided.

WAYS TO PROTECT YOURSELF ARE:

— RECOGNIZE that this notice of right to a lien may result in a lien against your property unless all those supplying a notice of right to a lien have been paid.

— LEARN more about the lien laws and the meaning of this notice by contacting the Construction Contractors Board, an attorney or the firm sending this notice.

— ASK for a statement of the labor, equipment, services or materials provided to your property from each party that sends you a notice of right to a lien.

— WHEN PAYING your contractor for materials, equipment, labor or services, you may make checks payable jointly to the contractor and the firm furnishing materials, equipment, labor or services for which you have received a notice of right to a lien.

— OR use one of the methods suggested by the "Information Notice to Owners." If you have not received such a notice, contact the Construction Contractors Board.

— GET EVIDENCE that all firms from whom you have received a notice of right to a lien have been paid or have waived the right to claim a lien against your property.

— CONSULT an attorney, a professional escrow company or your mortgage lender.

Signing this Information Notice verifies only that you have received it. Your signature does not give your contractor or those who provide material, labor, equipment, or services, any additional rights to place a lien on your property.

Job Site Address:

NOTICE OF PROCEDURE REGARDING RESIDENTIAL CONSTRUCTION ARBITRATIONS AND LAWSUITS

Oregon law contains important requirements that homeowners must follow before starting an arbitration or court action against any contractor, subcontractor, or supplier (materials or equipment) for construction defects.

Before you start an arbitration or court action, you must do the following:

1. Deliver a written notice of any conditions that you believe are defective to the contractor, subcontractor, or supplier that you believe is responsible for the alleged defect.

2. Allow the contractor, subcontractor, supplier, or its agent, to visually inspect the possible defects and also allow the contractor, subcontractor, or supplier to do reasonable testing.

3. Provide the contractor, subcontractor, supplier, or its agent, the opportunity to make an offer to repair or pay for the defects. You are not obligated to accept any offer made.

There are strict procedures and deadlines that must be followed under Oregon law. Failure to follow those procedures or meet those deadlines will affect your right to start an arbitration or court action.

You should contact an attorney for information on the procedures and deadlines required under Oregon law.

Your contractor is supplying this notice to you as required by Oregon law.

NOTICE OF COMPLIANCE WITH THE HOMEBUYER PROTECTION ACT (HPA)

In compliance with Oregon law, the below mentioned Seller has selected to comply with the requirements of ORS 87.007.

1. ADDRESS or DESCRIPTION OF PROPERTY

Address or Location City, State Zip Code

2. DATE OF PURCHASE (CHOOSE ONE)

A. ORS 87.007 (which includes the provisions listed in part B of this form) does not apply to the sale of the above described Property.

B. ORS 87.007 applies to the sale of the above described Property. Seller complied with ORS 87.007(2) by (check which one applies):

1. Title Insurance as provided for in ORS 87.007(2)(a).

2. Retained in Escrow not less than 25 percent of the sale price as provided for in ORS 87.007(2)(b).

3. Bond or Letter of Credit as provided for in ORS 87.007(2)(c).

4. Written Waivers received from every person claiming a lien as provided for in ORS 87.007(2)(d).

5. Completed Sale After the Deadline for perfecting liens as provided for in ORS 87.007(2)(e).

3. SELLER INFORMATION

Company Name (if applicable)

Agent of Company or Individual Seller

Title of Company Agent (if applicable)

Signature Date

4. BUYER INFORMATION

Buyer Name

Agent of Company or Individual Buyer

Title of Company Agent (if applicable)

Signature Date

INSTRUCTIONS

These instructions are provided to assist sellers of residential property with the Oregon Homebuyer Protection Act (HPA), codified in ORS 87.007. The HPA protects residential property buyers against construction liens filed in county records after the sale of the property where such liens arise out of new construction, additions or remodeling within 90 days of the date of the sale.

Disclaimer

These instructions do not constitute legal advice. For questions, please contact an attorney.

Who must complete this form?

A residential property owner selling –

• A new single family residence, condominium unit or residential building (containing four or fewer dwelling units), or

• An existing single family residence, condominium unit or residential building (containing four or fewer dwelling units) that had at least $50,000 worth of improvements, additions or remodeling completed within 90 days of the date of the sale.

Instructions for Section A

If the property fits the description above, but the seller knows that no person may file a lien against the property, the seller may check the box in Section A of the form.

Instructions for Section B

If the seller knows that it is possible for someone to file a lien against the property, the seller must check Section B of the form and at least one corresponding box that applies to the action the seller took, or will take, to comply with the HPA.

Box 1 Title Insurance – The seller has or will purchase or provide an owner’s extended coverage title insurance policy or equivalent that does not except filed or unfiled claims of lien. A standard title insurance or a lender’s title insurance policy may not be sufficient. See ORS 87.007(2)(a).

Box 2 Retain in Escrow – The seller will arrange to retain in escrow an amount of not less than 25 percent of the sales price of the property. The escrow will pay any claims of lien not paid by the seller filed after the date of the sale. Any unused funds will be released to the seller upon fulfillment of the following conditions:

• Claims of lien have not been filed against the property and at least 90 days have passed since the date the construction was completed.

• One or more claims of lien were filed against the property, at least 135 days have passed since the date the liens were filed, and the liens were released or waived. See ORS 87.007(2)(b).

Box 3 Bond or Letter of Credit – The seller has or will maintain a bond or letter of credit. A Construction Contractors Board bond, required for licensure under ORS chapter 701, is not sufficient. See ORS 87.007(2)(c).

Box 4 Written Waivers – The seller has or will obtain written waivers from every subcontractor or supplier who claims liens of $5,000 or more. Provide copies of the waivers to the buyer no later than the date of the sale. (The CCB recommends consulting an attorney for assistance with preparing forms for waivers). See ORS 87.007(2)(d).

Box 5 Completed Sale after the Deadline – The sale will not be completed until at least 75 days after the completion of all construction. See ORS 87.007(2)(e).

Additional Instructions

The seller and the buyer must sign and date the form on or before the closing date of the sale. Both parties should retain a copy of the form. Compliance with the HPA is the sole responsibility of the seller.