ORS 18.395¹
Homestead exemption

(1) A homestead shall be exempt from sale on execution, from the lien of every judgment and from liability in any form for the debts of the owner to the amount in value of $30,000, except as otherwise provided by law. The exemption shall be effective without the necessity of a claim thereof by the judgment debtor. When two or more members of a household are debtors whose interests in the homestead are subject to sale on execution, the lien of a judgment or liability in any form, their combined exemptions under this section shall not exceed $39,600. The homestead must be the actual abode of and occupied by the owner, or the owner’s spouse, parent or child, but the exemption shall not be impaired by:

(a) Temporary removal or temporary absence with the intention to reoccupy the same as a homestead;

(b) Removal or absence from the property; or

(c) The sale of the property.

(2) The exemption shall extend to the proceeds derived from such sale to an amount not exceeding $30,000 or $39,600, whichever amount is applicable under subsection (1) of this section, if the proceeds are held for a period not exceeding one year and held with the intention to procure another homestead therewith.

(3) The exemption period under subsection (1)(b) and (c) of this section shall be one year from the removal, absence or sale, whichever occurs first.

(4) When the owner of a homestead has been granted a discharge in bankruptcy or has conveyed the homestead property, the value thereof, for the purpose of determining a leviable interest in excess of the homestead exemption, shall be the value on the date of the petition in bankruptcy, whether the value is determined in the bankruptcy proceedings or not, or on the date the conveyance becomes effective, whichever shall first occur. However, with respect to judgments not discharged in the bankruptcy, or entered against the owner after discharge, the value on the effective date of conveyance shall be controlling.

(5) Except as provided in subsection (7) of this section, no homestead that is the actual abode of and occupied by the judgment debtor, or that is the actual abode of and occupied by a spouse, dependent parent or dependent child of the judgment debtor, shall be sold on execution to satisfy a judgment that at the time of entry does not exceed $3,000. However, such judgment shall remain a lien upon the real property, and the property may be sold on execution:

(a) At any time after the sale of the property by the judgment debtor; and

(b) At any time after the property is no longer the actual abode of and occupied by the judgment debtor or the spouse, dependent parent or dependent child of the judgment debtor.

(6) The limitation on execution sales imposed by subsection (5) of this section is not impaired by temporary removal or temporary absence with the intention to reoccupy the property as a homestead.

(7) The limitation on execution sales imposed by subsection (5) of this section does not apply if two or more judgments are owing to a single judgment creditor and the total amount owing to the judgment creditor, determined by adding the amount of each individual judgment as of the date the judgment was entered, is greater than $3,000.

(8) Upon the issuance of an order authorizing sale as required by ORS 18.904 (Order required for sale of residential property), and in conformance with subsection (5) of this section, the sheriff may proceed to sell the property. If the homestead exemption applies, the sheriff shall pay the homestead owner out of the proceeds the sum of $30,000 or $39,600, whichever is applicable, and apply the balance of the proceeds on the execution. However, no sale shall be made where the homestead exemption applies unless the sum bid for the homestead is in excess of the sum of the costs of sale and $30,000 or $39,600, whichever is applicable. If no such bid is received, the expense of the sale shall be borne by the petitioner.

(9) The homestead exemption provided by this section applies to a purchaser’s interest under a land sale contract, as defined by ORS 18.960 (Definitions). [Formerly 23.240; 2005 c.456 §2; 2005 c.542 §57]

Note: Section 3, chapter 135, Oregon Laws 1999, provides:

Sec. 3. The amendments to ORS 23.240 [renumbered 18.395 (Homestead exemption)] and 23.164 [renumbered 18.428 (Exemption for manufactured dwellings and floating homes)] by sections 1 and 2 of this 1999 Act apply only to judgments entered in the register of a court on or after the effective date of this 1999 Act [October 23, 1999]. [1999 c.135 §3]

Notes of Decisions

In General

Statutory homestead exemp­tion did not apply where execu­tion sale was on a judg­ment rendered in parti­tion pro­ceed­ings concerning land for which exemp­tion was sought. Dressler v. Dressler, 261 Or 265, 493 P2d 1053 (1972)

Judg­ment lien attaches to excess value of prop­erty over homestead exemp­tion granted in bankruptcy discharge. Mendenhall v. NW Credit Adjusters, Inc., 263 Or 104, 500 P2d 702 (1972)

Order of referee in bankruptcy of homestead exemp­tion is not res judicata with reference to existence of lienable value above the exempt homestead; overruling Boyd v. Oregon, 249 Or 513, 439 P2d 862 (1968). Mendenhall v. NW Credit Adjusters, Inc., 263 Or 104, 500 P2d 702 (1972)

In a suit brought by a trustee in bankruptcy to set aside a conveyance for being in fraud of creditors, the grantors may claim the prop­erty was exempt as a homestead even though the exemp­tion was not claimed in the bankruptcy peti­tion. Garrison v. Seiber, 266 Or 368, 513 P2d 1180 (1973)

Bankruptcy discharges per­sonal debts of bankrupt per­son and therefore does not remove lien on real prop­erty owned by bankrupt per­son. Everett v. Pape Bros., Inc., 269 Or 575, 525 P2d 996 (1974)

The value of the homestead exemp­tion should be measured as of the time of sale or execu­tion. Wilkinson v. Carpenter, 277 Or 557, 561 P2d 607 (1977)

This sec­tion applies to a levy of execu­tion by a creditor so as to limit the creditor's leviable interest following the transfer of the prop­erty and to a discharge of the debtor in bankruptcy, but not to discharge pro­ceed­ings commenced under ORS 23.280 (renumbered ORS 18.412 (Notice of intent to discharge judgment lien against homestead)). Credit Service Co. v. Cameron, 41 Or App 57, 597 P2d 363 (1979)

Bankruptcy estate may not deduct homestead exemp­tion paid to debtor when reporting taxable gain realized from sale of prop­erty. In re Sturgill, 217 B.R. 291 (Bkrtcy. D. Or. 1998)

Debtor's homestead exemp­tion may be applied to prop­erty located outside state. In re Stratton, 269 B.R. 716 (Bkrtcy. D. Or. 2001)

Lien created by prop­erty division judg­ment issued under ORS 107.105 (Provisions of judgment) is excep­tion to homestead exemp­tion from sale on execu­tion. Maresh and Maresh, 190 Or App 228, 78 P3d 157 (2003), Sup Ct review denied

Homestead exemp­tion claimed by per­son owning possessory interest in leased prop­erty where per­son resides applies to prepaid rents and security deposits held by landlord. In re Casserino, 290 B.R. 735 (9th Cir. BAP 2003)

Where debtor owns homestead on date bankruptcy peti­tion is filed, proceeds from sub­se­quent sale retain exemp­tion from applica­tion toward prepeti­tion debts regardless of whether debtor intends to reinvest proceeds in new homestead. In re Lane, 364 B.R. 760 (Bkrtcy. D. Or. 2007)

Persons Entitled to Claim

The grantee of the homestead owner is entitled to raise the homestead exemp­tion as a de­fense. Smith v. Popham, 266 Or 625, 513 P2d 1172 (1973)

Judg­ment lien against family residence awarded husband in divorce decree was not sufficient ownership to constitute homestead under this sec­tion. In re White, 727 F2d 884 (1984)

Where real prop­erty was not homestead at time of plaintiffs' peti­tion for sale at execu­tion or at time of defendants' notice of intent to discharge prop­erty from plaintiffs' judg­ment lien, defendants were not entitled to protec­tions provided for homestead. Bourgeois v. Grenfell, 72 Or App 415, 695 P2d 974 (1985), Sup Ct review denied

Person owning possessory interest in leased prop­erty where per­son resides may claim homestead exemp­tion to extent of interest. In re Casserino, 290 B.R. 735 (9th Cir. BAP 2003)

Amount of Exemp­tion

Value of the land claimed is determined at the time it is sold on execu­tion. Smith v. Popham, 266 Or 625, 513 P2d 1172 (1973)

Under former similar statute, in determining whether or not a purchaser from the judg­ment debtor has sufficient equity in the homestead prop­erty to allow the judg­ment creditor to levy against the homestead, court should not count increase in the purchaser's equity due solely to purchaser's discharge of a senior lien. W. J. Seufert Land Co. v. Greenfield, 273 Or 408, 541 P2d 814 (1975)

Where $12,000 exemp­tion, plus costs of sale, exceeded defendants' equity in prop­erty, all of sale proceeds were exempt from judg­ment lien. State ex rel Nilsen v. Jones, 33 Or App 581, 577 P2d 541 (1978)

Law Review Cita­tions

8 WLJ 327-340 (1972); 55 OLR 233-235 (1976); 65 OLR 481 (1986)

1 Legislative Counsel Committee, CHAPTER 18—Judgments, https://­www.­oregonlegislature.­gov/­bills_laws/­Archive/­2007ors18.­pdf (2007) (last ac­cessed Feb. 12, 2009).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2007, Chapter 18, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­018ano.­htm (2007) (last ac­cessed Feb. 12, 2009).
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