Escrow of unit sales agreement
(1) Unless the developer of a condominium has complied with subsection (2) 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 purchasers funds, the unit sales agreement, any notes or security documents and any loan commitments must 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 purchasers 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 must 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 purchasers funds held in escrow and all income earned from investment of the funds held in escrow must be returned.
(3) In lieu of the requirements of subsection (2) of this section, the commissioner may approve any alternative requirement or method that the commissioner finds will ensure the same protection to the purchaser as the protection provided by the escrow. [Formerly 94.358; 2019 c.69 §27]
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. Currency Information