2015 ORS 100.680¹
Escrow
  • sales agreement
  • requirements

(1) Unless the developer of a condominium has complied with subsections (2) and (3) of this section, the developer and a purchaser may not enter into a unit sales agreement before the recording of the declaration or supplemental declaration and plat under ORS 100.115 (Recording declaration and plat) or, if the condominium is located outside of this state, before the condominium has been created under the laws of the jurisdiction within which the condominium is located.

(2) Any purchaser’s funds, the unit sales agreement, any notes or security documents and any loan commitments shall be placed in an escrow located within this state with a person or firm authorized under ORS 696.505 (Definitions for ORS 696.505 to 696.590) to 696.582 (Escrow agent to hold certain compensation). The escrow instructions may not allow distribution of the purchaser’s funds until the declaration or any applicable supplemental declaration is recorded and the legal title or other interest bargained for has been transferred to the purchaser as provided in the unit sales agreement. If any funds of the purchaser are invested, the funds shall be invested in federally insured accounts or other investments approved by the Real Estate Commissioner. If the developer defaults under the unit sales agreement, the purchaser’s funds held in escrow and all income earned from investment of the funds held in escrow shall be returned.

(3) A unit sales agreement shall contain:

(a) The unit designation;

(b) The full amount of the purchase price, including the amount and form of earnest money paid by the purchaser;

(c) The name and address of the escrow agent to hold the purchaser’s funds and a reference to the escrow instructions controlling the escrow;

(d) If the purchaser’s funds are to be invested, the name of the financial institution where the funds will be deposited and to whom any interest earnings will accrue under all possible circumstances;

(e) The date of closing with any conditions and requirements of closing;

(f) The closing procedure;

(g) Any authority of the developer to terminate the sale and, in the case of termination, any forfeiture provisions;

(h) If the developer specifies any contingency, the date other than closing when all purchaser’s funds and interest earnings will be returned to the purchaser if the contingency is not met;

(i) Provision that the purchaser will recover any funds paid to the developer and any interest earnings upon default by the developer;

(j) Any rights reserved by the developer to modify the declaration, any supplemental declaration, bylaws, plat or other documents by which the purchaser is or will be bound;

(k) Notice to the purchaser of cancellation rights under ORS 100.730 (Cancellation of sale of unit) and 100.740 (Notice to purchaser of cancellation rights);

(L) For the sale of newly constructed units, any express warranty required under ORS 100.185 (Express warranties); and

(m) Any other provisions deemed necessary by the developer and purchaser.

(4) In lieu of the requirements of subsection (2) of this section, the commissioner may approve any alternative requirement or method which the commissioner finds will assure the same protection to the purchaser as the protection provided by the escrow. [Formerly 94.358]

INSPECTION OF CONDOMINIUM; DISCLOSURE STATEMENT

(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. Gier's 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.