Oregon Statutes 456.290 – Validity of covenant
(1) An affordable housing covenant is valid and enforceable even though the covenant is not of a character traditionally recognized at common law or is inconsistent with a common law doctrine of real property law that might invalidate, impair enforcement of or cause the termination of the covenant, including but not limited to common law doctrine that holds that:
Terms Used In Oregon Statutes 456.290
- Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
- Contract: A legal written agreement that becomes binding when signed.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(a) The covenant is not appurtenant to an interest in the real property.
(b) The covenant imposes a negative burden.
(c) The covenant imposes affirmative obligations upon the owner of an interest in the burdened real property or the eligible covenant holder.
(d) The covenant is held by an eligible covenant holder that does not have an interest in the real property that is benefited by enforcement of the covenant against the burdened property.
(e) The benefit of the covenant does not touch or concern real property in any other way.
(f) There is no privity of estate or privity of contract.
(g) The covenant can be or has been conveyed or assigned to a covenant holder.
(h) The covenant is an unreasonable restraint on alienability.
(i) The covenant is a clog on the equity of redemption.
(j) The covenant lacks adequate consideration.
(2) An affordable housing covenant is valid and enforceable even if the covenant violates the rule against perpetuities set forth in ORS § 105.950 to 105.975.
(3) If a court denies equitable enforcement of an affordable housing covenant because of a change of circumstances that renders the covenant not in the public interest, the court may award damages as the only remedy in an action to enforce the affordable housing covenant.
(4) The court may not use a comparative economic test as a basis for a determination that an affordable housing covenant is not in the public interest. [2007 c.691 § 6]
See note under 456.270.