Declaration or covenant related to future fees, commissions or payments to declarant
- • recording
- • exceptions
(1) An instrument that conveys, or contracts to convey, a fee simple interest in real property may not cause, or purport to cause, a declaration or covenant to be filed or recorded against the title to the real property if the declaration or covenant requires, or purports to require, the payment of a fee, commission or other payment to the declarant or to another person specified in the declaration or covenant, or to the declarants or other persons successors or assigns, upon a transfer of a fee simple interest in the property.
(2) A declaration or covenant that requires, or purports to require, the payment of a fee, commission or other payment upon the transfer of a fee simple interest in real property to the declarant or other person specified in the declaration or covenant, or to the declarants or other persons successors or assigns, upon a transfer of a fee simple interest in the property or that otherwise violates subsection (1) of this section, is void.
(3) Subsections (1) and (2) of this section do not apply to the following:
(a) An instrument that conveys or contracts to convey a fee simple interest in real property that provides for a grantee to pay consideration to a grantor for the interest in real property being transferred, including but not limited to any subsequent additional consideration for the property the grantee must pay based upon any subsequent appreciation, development or sale of the property.
(b) A requirement in a mortgage loan agreement for paying mortgage principal, interest and fees upon sale of the property by the mortgagee.
(c) A limited liability company, limited liability partnership, corporation, joint venture or partnership agreement in which a member, shareholder, joint venturer or partner contributes real property to the limited liability company, limited liability partnership, corporation, joint venture or partnership.
(d) An agreement that provides for a series of related transfers of the fee simple interest in a real property, if the agreement identifies with specificity the price of the transferred interest, all consideration given, party names and other essential terms for each transfer of interest that is part of the series.
(e) An affordable housing covenant, servitude, easement, condition or restriction in a deed, declaration, land sale contract, loan agreement, promissory note, trust deed, mortgage, security agreement or other instrument, including but not limited to instruments created as provided under ORS 456.270 (Definitions for ORS 456.270 to 456.295) to 456.295 (Action affecting covenant) if:
(A) The proceeds of any fee, commission or other payment to a declarant or to another person specified in the instrument, or to the declarants or other persons successors or assigns, are used exclusively to benefit the property, or to support activities that directly benefit the residents of the property, that is subject to the instrument; and
(B) The instrument is executed by:
(i) A public body as defined in ORS 174.109 (Public body defined);
(ii) An agency of the United States;
(iii) A public benefit corporation, religious corporation or foreign corporation, all as defined in ORS 65.001 (Definitions), if the purposes of the corporation include providing affordable housing for low income households and moderate income households as those terms are defined in ORS 456.270 (Definitions for ORS 456.270 to 456.295);
(iv) A limited liability company, as defined in ORS 63.001 (Definitions), that has a membership composed of one or more corporations described in sub-subparagraph (iii) of this subparagraph;
(v) A consumer housing cooperative as defined in ORS 456.548 (Definitions for ORS 456.548 to 456.725);
(vi) A manufactured dwelling park nonprofit cooperative, as defined in ORS 62.803 (Definitions for ORS 62.800 to 62.815); or
(vii) A federally recognized Indian tribe.
(f) A requirement for the payment of a fee to:
(A) A homeowners association as defined in ORS 94.550 (Definitions for ORS 94.550 to 94.783);
(B) An association of unit owners as defined in ORS 100.005 (Definitions);
(C) A managing entity of a timeshare plan, as those terms are defined in ORS 94.803 (Definitions for ORS 94.803 and 94.807 to 94.945);
(D) Any other owners association that is governed by recorded covenants, conditions and restrictions; or
(E) An agent for an association or managing entity described in subparagraphs (A) to (D) of this paragraph.
(g) An agreement between a real estate licensee and a grantor or grantee that provides for any commission payable to the real estate licensee for the transfer of the real property. [2009 c.298 §1; 2015 c.436 §1]
Note: 93.269 (Declaration or covenant related to future fees, commissions or payments to declarant) was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 93 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.
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