2017 ORS 646A.735¹
Written contract
  • requirements
  • void provisions
  • power of attorney prohibited

(1) A written contract is required for every equity conveyance. An equity purchaser shall provide an equity seller with a copy of the equity conveyance contract at least 24 hours before the equity seller signs the contract. The equity conveyance contract must:

(a) Be written in a language that is spoken by the equity seller and that was used in discussions between the equity seller and equity purchaser to describe the equity purchaser’s services or to negotiate the terms of the contract and, except as provided in paragraph (f) of this subsection, be printed in at least 12-point type;

(b) Contain the entire agreement of the parties;

(c) Be dated and personally signed by the equity seller and the equity purchaser and witnessed by a notary public;

(d) Contain on the first page the name and address, facsimile number and electronic mail address of the settlement agent to which a notice of cancellation may be delivered;

(e) Describe in detail the terms of the equity conveyance including:

(A) The name and business address, and any telephone number, facsimile number and electronic mail address, of the person to whom the equity seller will transfer an interest in the residence in foreclosure;

(B) The address of the residence in foreclosure;

(C) The total consideration the equity purchaser and any other party are to give as a result of the transfer of interest;

(D) The time at which the interest is to be transferred to the equity purchaser or other person and the terms of the transfer;

(E) Any financial or legal obligations that the equity seller may remain subject to, including a description of any mortgages, liens or other obligations that will remain in place;

(F) Any services the equity purchaser will perform for the equity seller before or after the transfer of interest;

(G)(i) The terms of any post-transfer conveyance or agreement for a conveyance to the equity seller to allow the equity seller to remain in the home, including but not limited to the terms of any rental agreement, repurchase agreement, contract for deed, land installment contract or option to buy; and

(ii) Any provisions for eviction or removal of the equity seller in the case of late payment;

(H) An explanation of how any repurchase price or fee associated with any conveyance of title or deed back to the equity seller will be calculated; and

(I) An explanation of the percentage of any equity recapture payment the equity seller is to receive if the equity seller does not exercise a right to receive back a conveyance of title or deed; and

(f) Contain, in immediate proximity to the space reserved for the equity seller’s signature, a notice in substantially the following form and printed in at least 14-point boldfaced type:




If you cancel, you must pay for services that were provided under this contract before cancellation and repay any money spent on your behalf under this contract. You have 60 days after cancellation to pay for the services and repay any money spent on your behalf. You must also pay any interest allowed by this contract, which may not exceed nine percent per year.

The law requires that this contract contain the entire agreement. You should not rely on any other written or oral agreement or promise.


(2) An equity conveyance contract provision is void if the provision provides for an equity seller to:

(a) Waive any rights of the equity seller under ORS 646A.725 (Definitions for ORS 646A.725 to 646A.750) to 646A.750 (Rebuttable presumptions);

(b) Consent to jurisdiction for litigation or dispute resolution in a state other than Oregon;

(c) Consent to a choice of laws provision that applies the laws of a state other than Oregon;

(d) Consent to venue in a county other than the county in which the residential real property is located; or

(e) Pay any costs or fees that the equity purchaser or a person acting in association with the equity purchaser incurred to enforce the contract, other than court costs and filing fees incurred in a successful circuit court action.

(3) An equity conveyance may not be carried out using a power of attorney from the equity seller to the equity purchaser or a person acting in association with the equity purchaser. [2008 c.19 §11]

Law Review Cita­tions

52 WLR 451 (2016)

(formerly 646.315 to 646.375)

Notes of Decisions

Where purchaser fails to provide notice of condi­tion requiring repair, presump­tion does not arise that repair time exceeding 30 business days demonstrates inability of manufacturer to conform vehicle. Pavel v. Winnebago Industries, Inc., 127 Or App 16, 870 P2d 856 (1994)

Repair time exceeding 30 business days as evidence of inability to conform vehicle applies only to presently existing defect. Pavel v. Winnebago Industries, Inc., 127 Or App 16, 870 P2d 856 (1994)

Law Review Cita­tions

19 WLR 329 (1983)

1 Legislative Counsel Committee, CHAPTER 646A—Trade Regulation, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors646A.­html (2017) (last ac­cessed Mar. 30, 2018).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 646A, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano646A.­html (2017) (last ac­cessed Mar. 30, 2018).
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.