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Oregon Real Estate Law
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Primary Legal Concerns for Home Buyers and Sellers
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Under Oregon
law, the seller has a legal duty to disclose all known information.
As a general rule, a seller is legally required to deliver a property
disclosure or disclaimer form. The buyer then has five or seven
business days, depending on the form used, to revoke his offer based
on the information provided. A seller can be held liable for any
intentional misinformation or omissions on these forms.
For sellers, the main legal concerns are the buyer's
failure to close and the possible existence of some condition the seller
doesn't know about that may result in a dispute after the transaction
has closed (for example, a leaky oil tank of which the seller was unaware).
Attorneys are often contacted after the agreement has
been signed and communication lines have been severed. It
is important to remember that attorneys are skilled in preventing disputes
as well as resolving them, so it's best to contact an attorney before
finalizing any agreements.
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Oregon Real Estate Agency
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 The
Oregon Real Estate
Agency is the state agency responsible for regulating real
estate activity, including licensing of real estate salespersons, brokers,
and property managers.
The agency is administered by the Real Estate Commissioner
who is appointed by the governor. The Agency's statutory authority
is contained in the following laws and rules:
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Real Estate, Property Management and Escrow, ORS
Chapter 696
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Oregon Subdivision and Series Partition Control
Statutes, ORS 92.305 to 92.990
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Condominiums, ORS 100.005 to 100.990
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Timeshare estates, Membership Campgrounds, ORS
94.803 to 94.989
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Telemarketing Organization, ORS 696.392, 696.600
to 696.627
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Oregon Administrative Rules, Real Estate Agency
Chapter 863, Divisions 1-60
Other pertinent statutes that are not administered
by the Agency are:
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Seller's Property Disclosure and Disclaimer Statements,
ORS 105.465.490
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Residential Landlord and Tenant, ORS Chapter 90.
The complete text of the laws in
Oregon
Revised Statutes Chapter 696 (Real Estate and Escrow Activities),
and rules in
Oregon Adminstrative Rules Chapter 863 are available online.
Visit the Oregon Real Estate Agency
FAQs
page for information about real estate regulations in Oregon.
This is an good page for consumers to get an overview of Oregon
real estate law.
Each year the agency processes and tests more than
5,000 license applicants and monitors regulated activities in over 4,700
escrow and real estate offices. Land developers with offerings to Oregon
citizens have thousands of disclosure filings with the agency.
The agency provides educational material and seminars
for real estate professionals. The agency also conducts investigations
and hearings when complaints are filed against licensees, registrants
and real property developers.
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Representation
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With the advent of buyer's agents, both buyers and
sellers have the benefit of exclusive representation. Real
estate agents are required to disclose whom they represent and the terms
of the representation by providing an agency disclosure form when a
working relationship is initiated.
The primary duty an agent owes his client is to place
his client's interests above everyone else's, including her/his own.
To the party he does not represent, he must disclose all essential information
about the property and treat that party fairly and honestly. When
a licensee represents both parties, limited representation applies.
While real estate agents perform vital functions in
the industry, it is not wise or fair to ask them to provide services
outside the scope of their profession. Legal, tax, construction,
inspection, title and financing concerns should be directed to professionals
in those areas.
Real Estate Agency Disclosure Pamphlet
Agents in Oregon and Washington
are required by law to provide an Agency Disclosure Pamphlet to the
consumer, disclose whom they represent and the terms of that representation,
and have the consumer acknowledge this agency representation. Understanding
the different agency roles will assist you in choosing how you want
to work with an agent in your real estate transaction.
These pamphlets describes agency relationships and
the duties and responsibilities of real estate licensees in Oregon.
This pamphlet is informational only and neither the pamphlet nor its
delivery to you may be construed to be evidence of intent to create
an agency relationship.
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Fairness
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The issue of fairness in real estate law deals primarily
with the parties acting in good faith, executing their best efforts,
and treating everyone equally. Under federal and/or Oregon law,
a homeowner may not discriminate on the basis of race, color, sex, marital
status, familial status, handicap, religion or national origin when
negotiating price, terms or other conditions. Cities and counties
may also provide additional protection.
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Lease-Options and Land Sale Contracts
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Lease-options are a way of purchasing property
by paying money (or other consideration) in addition to the rent, which
is credited toward future purchase of the property. Lease-options
are, in effect, three separate agreements which are used to document
the parties' intent -- lease, option, and purchase agreement.
Timing is essential with all the agreements, but particularly
crucial with the option that the renter uses to notify the seller of
his desire to buy. As a rule, if the renter fails to exercise
the option by the agreed date, the option money is forfeited, along
with any interest in the property except for the right to inhabit under
the terms of the lease.
A land sale contract is a form of seller financing
wherein the seller retains legal title until the contract conditions
are satisfied. A land sale contract also provides the seller the
right to declare forfeiture (take the property back) if the buyer defaults.
This remedy is generally faster and less expensive than foreclosure.
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Oregon DEQ Consumer Corner
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The
Oregon Department
of Environment Quality will help you understand the most common
household activities DEQ regulates to protect your health and the environment.
They'll also let you know how to protect yourself as a consumer.
Topics cover include:
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Oregon Law on Underground Oil Storage Tanks
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 A
primary environmental concern for buyers and sellers is the presence
of hazardous substances, including petroleum from
underground heating oil storage tanks (USTs) and indoor pollutants.
With the large number of USTs in Oregon, steps should be taken to determine
whether a tank exists and, if so, whether decommissioning and/or clean
up are required.
According to the Department of Environmental Quality
(DEQ), there are approximately 210,000 residential underground heating
oil storage tanks in the State of Oregon. Oregon DEQ says there are
approximately 60,000 underground heating oil tanks still in use and
150,000 that have been abandoned, i.e., not properly decommissioned.
Many of these tanks still contain fuel, and therefore pose potential
environmental liability. Statistically 60-70% of underground heating
oil tanks on record have leaked some product into the soil.
The rules and regulations about oil tanks are complicated.
If you purchase a home where an underground storage tank exists (average
life of a tank is 25 years) and you were unaware of the tank when you
purchased the home, you can undergo considerable financial expense if
the tank begins to leak when you are the home owner or should you decide
to sell it later.
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Lead Paint
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Lead is a soft, blue-gray, naturally occurring metal.
It has been used for centuries for medicinal, industrial, commercial
and household purpose. At the same time, lead that enters the body --
especially when it happens to young children -- can be quite toxic and
destructive.
The US Department of Housing and Urban Development
(HUD) estimates that 75% of the houses built before 1978 contain some
lead-based paint. The director of that agency described lead as the
"number one environmental threat to the health of children in the United
States." In 1992, the United States Environmental Protection Agency
(EPA) and Agency for Toxic Substances and Disease Registry (ATSDR) issued
a priority list of 275 hazardous substances. Lead was number one on
that list.
Because it does not degrade or break-down, lead stays
in the environment and unless it is handled properly, it has the potential
to cause an ongoing cycle of health problems.
Oregon Department of Human Services (ODHS) - Environmental
Health
ODHS has a
wealth of information about lead-based paint including a list of firms
certified and licensed to provide professional lead-based paint services
in Oregon. You may also request a copy by phoning Health Services' Lead
Line at (503) 731-4500 or by visiting their
Web site - you can download a copy of the firms. Their
Lead Paint Q&A pages are also worthy of reading.
To view a copy of the U.S. Department of Environmental
Protection Agency's Lead-Based Paint Pamphlet click
here (PDF format).
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Mold
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The
Environmental Protection
Agency's (EPA) Web site has pages contains an introduction to molds;
basic mold cleanup; ten things you should know about mold; asthma and
mold; floods/flooding; health and mold; homes and mold; indoor air regulations
and mold; large buildings and mold; schools and mold and indoor air
quality; and other mold-related resources and links. Go
to their
Mold
Resource
page for all the information on mold. The EPA also has numerous
publications (PDF format) which you can download.
George Tsongas is a private consulting engineer and
a Professor Emeritus of Mechanical Engineering at Portland State University.
He is a building scientist with specialization in moisture and mold
problems in residences. Dr. Tsongas has written extensively on
mold problems.
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Radon
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Oregon Department of Human Services Radon Information This
site will display a table of Portland-area zip codes with the total
number of reported tests; highest, lowest, and average radon levels
within that sample; and the total number of tests out of that sample
that had levels above 4pC/l, the level deemed unsafe by EPA.
EcoTech
EcoTech is a Portland company that provides testing and solutions to
environmental concerns effecting homes, buildings and property.
They have a wealth of information about radon as well as other environment
problems. On their Web site, they have a link to a regional map
that color-codes risk by zip code. This is the link:
http://www.ecotechllc.com/assets/risk_map.pdf.
Below are links to national certification radon testing
and mitigation companies:
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Real Estate Lawyers
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We do not endorse any of the below law firms but they
are listed here as a service.
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Callahan & Shears, P.C. 4215 Southeast
King Road, Portland, Oregon 97269. Telephone: (503) 513-5130.
They have experience in real estate law.
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Kohlhoff & Welch A "Mother Daughter Partnership" located
at 5828 North Lombard, Portland, Oregon 97203. Telephone:
503-286-7178. Their practice includes real estate law.
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