Cancellation of sale of unit
- • notice to seller
- • return of payments and reconveyance
- • extinguishment of encumbrances
- • waiver prohibited
- • disclaimer of notice
- • applicability
(1) A purchaser of a condominium unit may cancel for any reason the sale of a condominium unit from a developer or any contract, agreement or evidence of indebtedness associated with the sale of the condominium unit, within five business days (excluding Saturdays and holidays) after the date on which the latest of the following events occurs:
(a) The signing by the purchaser of the unit sales agreement;
(b) The signing by the purchaser of the receipt required under ORS 100.705 (Sale prohibited prior to issuance of disclosure statement) (2) upon the delivery of the disclosure statement, if any; or
(c) The signing by the purchaser of the receipt required under ORS 100.725 (Documents prerequisite to execution of sale agreement and conveyance of unit) (4) upon delivery of a copy of the documents specified in ORS 100.725 (Documents prerequisite to execution of sale agreement and conveyance of unit) (1).
(2) Cancellation, under subsection (1) of this section, occurs when the purchaser of an interest gives written notice to the developer at the developers address stated in the notice to purchaser required under ORS 100.740 (Notice to purchaser of cancellation rights) (1).
(3) A notice of cancellation given by a purchaser of a condominium unit need not take a particular form and is sufficient if it indicates by any form of written expression the intention of the purchaser not to be bound by the contract or evidence of indebtedness.
(4) Notice of cancellation, if given by mail, shall be given by certified mail, return receipt requested, and is effective on the date that such notice is deposited with the United States Postal Service, properly addressed and postage prepaid.
(5) Upon receipt of a timely notice of cancellation, the developer shall immediately return to the purchaser all payments received from the purchaser. In case of payments made by check, the developer shall not be required to return the payment to a purchaser until the check is finally paid as provided in ORS 74.2130 (Medium and time of settlement by bank). Upon return of all such payments the purchaser shall immediately transfer rights in the interest to the developer, not subject to any encumbrance created or suffered by the purchaser. In the case of cancellation by a purchaser of any evidence of indebtedness, the purchaser shall return the purchasers copy of the executed evidence of indebtedness to the developer, and the developer shall cancel the evidence of indebtedness. Any encumbrances against the purchasers interest in the unit arising by operation of law from an obligation of the purchaser existing prior to transfer of the interest to the purchaser shall be extinguished by the reconveyance.
(6) Except as otherwise provided in ORS 100.735 (Waiver of right to cancel), no act of a purchaser shall be effective to waive the right of cancellation granted by subsection (1) of this section. A developer may require that a purchaser of a condominium unit execute and deliver to the developer, after the expiration of the cancellation period, a signed statement disclaiming any notice of cancellation that may have been made by the purchaser prior to expiration of the cancellation period granted under subsection (1) of this section and that may have been timely and properly done under this section whether or not the statement has been received by the developer. In case of execution of any such statement by the purchaser, the statement shall be sufficient to rescind the notice of cancellation.
(7) A purchasers right to cancel under subsection (1) of this section terminates at the time of the closing of the unit purchase transaction.
(8) This section shall not apply to:
(a) The sale of a unit in a condominium used or intended to be used solely for commercial or industrial purposes;
(b) The sale of a condominium unit conducted by public auction; or
(c) A sale described in ORS 100.665 (Exemption to certain disclosure and notice requirements). [Formerly 94.412]
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