2015 ORS 100.730¹
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 developer’s 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 purchaser’s copy of the executed evidence of indebtedness to the developer, and the developer shall cancel the evidence of indebtedness. Any encumbrances against the purchaser’s 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 purchaser’s 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]

(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.