2015 ORS 100.103¹
Effect of submission of leasehold condominium to unit ownership

(1) After an amendment submitting the fee title interest underlying a leasehold condominium has been recorded as provided in ORS 100.102 (Leasehold condominium submitted to unit ownership):

(a) The leasehold or leaseholds affecting the fee title interest of the land underlying the condominium property must be converted to individual leaseholds of the units;

(b) The former owner of the underlying fee title interest of the condominium property shall become the holder of the fee title interest to all individual units and the lessor of the individual units. The individual unit owners of the leasehold condominium units shall become lessees of the fee title condominium units;

(c) Unless otherwise provided by the lease or agreed by the lessor and lessee of the fee title condominium units, the obligations to pay rent under the former lease must be allocated among all former leasehold units on the basis of the percentage ownership in the common elements of the condominium allocated to each unit;

(d) Liens against leasehold condominium units become liens on the lessees interest in the leased unit and have the same priority and rights against the leasehold of the individual unit in the fee title condominium formerly held against the leasehold condominium unit;

(e) The holder of the fee title to the unit in the fee condominium shall have the same priority and rights in the individual leasehold of the fee title condominium unit as was held under the leases prior to submission of the fee title interest; and

(f) The fee title interest is not subject to the liens suffered or incurred by the unit lessee, except for property taxes and condominium association assessment liens.

(2) The assessor shall assign all value of the fee simple interest to the fee title condominium units and allocate any additional value in accordance with the allocation of interest of each unit in the common elements.

(3) All easements, covenants, conditions and restrictions or other interests encumbering the fee title and the leasehold at the time of submission of the fee title to the provisions of this chapter continue and remain in full force, unaffected by the submission.

(4)(a) Options to purchase that were granted to unit owners or to the association prior to submission of the fee title interest to the provisions of this chapter pursuant to ORS 100.102 (Leasehold condominium submitted to unit ownership) continue according to their terms, except that purchaser options must be segregated so that each option pertains to an individual unit only.

(b) Unless the purchase options provide otherwise, the purchase price must be allocated among the individual units on the basis of the percentage ownership interest in the common elements pertaining to individual units.

(c) Except for segregating the former leasehold into individual leaseholds in each of the units and reallocating lease payments among the units as provided in this section, the terms and provisions of the former lease are unaffected by submission of the fee title to the provisions of this chapter.

(d) Except for segregating the purchase options and allocating the purchase price, if not otherwise allocated by the terms of the purchase option, the terms and provisions of the purchase option are unaffected by submission of the fee title to the provisions of this chapter. [2003 c.569 §44]

Note: See note under 100.102 (Leasehold condominium submitted to unit ownership).

(formerly 94.004 to 94.480)

See also annota­tions under ORS 91.505 to 91.675 in permanent edi­tion.

Notes of Decisions

Even if declara­tions filed for purpose of bringing develop­ment within condominium law were defective for failure to conform to statutory require­ments, develop­ment was not vitiated but deficiencies would constitute mis­take in transac­tion thus making instru­ment eligible for reforma­tion in equity. Dickey v. Barnes, Mossberg, 268 Or 226, 519 P2d 1252 (1974)

Developers of planned unit develop­ments which are not organized as condominiums cannot claim the tax advantages of the Unit Ownership Law. Brooks Resources v. Dept. of Rev., 276 Or 1177, 558 P2d 312 (1976)

Purchasers of condominium units are automatically members of the unit owners associa­tion and subject to its declara­tion and bylaws; where those declara­tions and bylaws provide discre­tion to the Board of Directors to assess for fees necessary to create a unified plan for the develop­ment and opera­tion of the condominium, and the purchaser has alleged no abuse of discre­tion, the judg­ment of the Board of Directors is upheld. Assn. of Unit Owners of the Inn of the Seventh Mountain v. Gruenfeld, 277 Or 259, 560 P2d 641 (1977)

Acquisi­tion of prop­erty by condominium associa­tion is not limited to prop­erty subject to annexa­tion require­ments. Giers Liquor v. Associa­tion of Unit Owners, 124 Or App 365, 862 P2d 560 (1993)

Law Review Cita­tions

16 WLR 253 (1979)

Chapter 100

Notes of Decisions

This chapter does not authorize regula­tion by the Real Estate Division of sales of right to use time share interests in condominiums. Royal Aloha Partners v. Real Estate Division, 59 Or App 564, 651 P2d 1350 (1982)

Law Review Cita­tions

18 WLR 95 (1982)


1 Legislative Counsel Committee, CHAPTER 100—Condominiums, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors100.­html (2015) (last ac­cessed Jul. 16, 2016).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2015, Chapter 100, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano100.­html (2015) (last ac­cessed Jul. 16, 2016).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.