Acceptance of third party offer to purchase participating property
- • rules
(1)(a) Within the first 180 days following the expiration of the offer to purchase period described in ORS 456.262 (Required notice of opportunity to purchase participating property) (6), a property owner may accept a third party’s offer to purchase the participating property. This acceptance shall be made subject to the property owner providing each qualified purchaser the right of first refusal to purchase the property on the same terms and conditions as the third party’s offer to purchase, subject to subsection (2) of this section, unless those terms and conditions are modified by mutual consent between the qualified purchaser and the property owner.
(b) The property owner shall provide notice, by registered or certified mail, return receipt requested, to each qualified purchaser of the terms and conditions of the third party’s offer to purchase. A qualified purchaser shall have 30 days from the date the notice is mailed to exercise its right of first refusal by submitting a matching offer to purchase the property. The property owner shall accept the first matching offer the property owner receives from a qualified purchaser under this section.
(c) A qualified purchaser’s offer is a matching offer if it is on the same terms and conditions as the third party’s offer to purchase but for modifications to ensure compliance with subsection (2) of this section, unless those terms and conditions are modified by mutual consent among the qualified purchaser and the property owner.
(2) If a qualified purchaser exercises its right of first refusal, the qualified purchaser and property owner shall execute a purchase agreement on the same terms and conditions as the third party’s offer, except that:
(a) The earnest money deposit may not exceed the lesser of two percent of the sales price or $250,000;
(b) The earnest money deposit must be refundable for at least 90 days; and
(c) Closing shall be scheduled at least 240 days after execution of the purchase agreement.
(3) Subsection (1) of this section does not apply when:
(a) A local government or the state takes the participating property by eminent domain or a negotiated purchase in lieu of eminent domain;
(b) There is a forced sale of the participating property under a foreclosure;
(c) The participating property is subject to a deed in lieu of foreclosure or a negotiated purchase to avoid foreclosure;
(d) There are more than 30 years remaining before the first scheduled termination of an affordability restriction on the property;
(e) The property owner accepted a third party’s offer to purchase the participating property before October 6, 2017, and has provided documentation of the purchase agreement to the Housing and Community Services Department;
(f) The third party offeror agrees to maintain the affordability restrictions on the participating property, as determined by the department by rule, to ensure that the participating property remains publicly supported housing; or
(g) Any additional situations as determined by the department by rule.
(4) A property owner that sells participating property to a third party shall certify that the owner has complied with all provisions of this section and ORS 456.260 (Requirement of property withdrawal notice) and 456.262 (Required notice of opportunity to purchase participating property). A certification of compliance under this section shall:
(a) Be recorded in the real property records of the county in which the property is located;
(b) Contain a legal description of the property;
(c) Identify the property owner as the grantor; and
(d) Be acknowledged by the property owner in the manner required for acknowledgment of a deed.
(5) The department shall adopt rules to implement the provisions of this section. [2017 c.608 §7]
Note: See note under 456.250 (Definitions for ORS 456.250 to 456.265).
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