Oregon Statutes 100.680 – Escrow of unit sales agreement
(1) Unless the developer of a condominium has complied with subsection (2) of this section, the developer and a purchaser may not enter into a unit sales agreement before the recording of the declaration or supplemental declaration and plat under ORS § 100.115 or, if the condominium is located outside of this state, before the condominium has been created under the laws of the jurisdiction within which the condominium is located.
Terms Used In Oregon Statutes 100.680
- Commissioner: means the Real Estate Commissioner. See Oregon Statutes 100.005
- Declaration: means the instrument described in ORS § 100. See Oregon Statutes 100.005
- Developer: means a declarant or any person that acquires an interest in a condominium from declarant, successor declarant or subsequent developer for the primary purpose of resale. See Oregon Statutes 100.005
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Person: includes individuals, corporations, associations, firms, partnerships, limited liability companies and joint stock companies. See Oregon Statutes 174.100
- Purchaser: means an actual or prospective purchaser of a condominium unit pursuant to a sale. See Oregon Statutes 100.005
- Recorded: means to cause to be recorded by the county officer in the real property records for each county in which the condominium is located. See Oregon Statutes 100.005
(2) Any purchaser’s funds, the unit sales agreement, any notes or security documents and any loan commitments must be placed in an escrow located within this state with a person or firm authorized under ORS § 696.505 to 696.582. The escrow instructions may not allow distribution of the purchaser’s funds until the declaration or any applicable supplemental declaration is recorded and the legal title or other interest bargained for has been transferred to the purchaser as provided in the unit sales agreement. If any funds of the purchaser are invested, the funds must be invested in federally insured accounts or other investments approved by the Real Estate Commissioner. If the developer defaults under the unit sales agreement, the purchaser’s funds held in escrow and all income earned from investment of the funds held in escrow must be returned.
(3) In lieu of the requirements of subsection (2) of this section, the commissioner may approve any alternative requirement or method that the commissioner finds will ensure the same protection to the purchaser as the protection provided by the escrow. [Formerly 94.358; 2019 c.69 § 27]