Oregon Statutes 646A.740 – Cancellation; effective date; rebuttable presumption of delivery; payment for services; form; sufficiency of notice; return of documents
(1) In addition to any other cancellation or rescission right, an equity seller may cancel an equity conveyance contract as provided under this section before the earlier of:
Terms Used In Oregon Statutes 646A.740
- Contract: A legal written agreement that becomes binding when signed.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
(a) Midnight of the third business day after the equity seller signs a document purporting to transfer an interest in the residence in foreclosure; or
(b) A foreclosure sale of the residence in foreclosure.
(2) If the equity seller gives a written notice of cancellation under this section by mail, the notice is effective upon the earlier of:
(a) Delivery to the physical address of the equity purchaser or settlement agent; or
(b) Actual receipt by the equity purchaser or settlement agent.
(3) If the equity seller gives a written notice of cancellation under this section by facsimile number or electronic mail, the notice is effective upon the earlier of:
(a) Delivery to the facsimile or electronic mail address of the equity purchaser or the settlement agent; or
(b) Actual receipt by the equity purchaser or settlement agent.
(4) Proof of a transmission by the equity seller to the facsimile number or electronic mail address of the equity purchaser or of the settlement agent creates a rebuttable presumption that the notice of cancellation was delivered to the facsimile number or electronic mail address of the equity purchaser or settlement agent at the time of transmission.
(5) An equity seller who cancels or breaches an equity conveyance contract under this section shall, no later than 60 days after the cancellation or breach, pay for any services provided in good faith under the contact prior to the cancellation or breach and repay any moneys paid or advanced under the contract by or on behalf of the equity purchaser. The equity seller shall also pay any interest stated in the equity conveyance contract, not to exceed nine percent per year.
(6) Failure of the equity seller to repay moneys as provided in subsection (5) of this section does not invalidate the cancellation of the equity conveyance contract.
(7) When both parties have signed the equity conveyance contract, the equity purchaser shall immediately provide the equity seller with a signed and dated copy of the contract and a cancellation form. The cancellation form must:
(a) Be in duplicate;
(b) Be on a separate sheet of paper attached to the contract;
(c) Be easily detachable; and
(d) Contain a statement in substantially the following form and be printed in at least 14-point boldfaced type:
______________________________________________________________________________
HOW TO CANCEL
IF YOU DECIDE NOT TO TRANSFER YOUR DEED OR TITLE, YOU MAY CANCEL THIS CONTRACT.
THE NOTICE OF CANCELLATION MUST BE RECEIVED WITHIN THREE (3) BUSINESS DAYS AFTER YOU SIGNED THE CONTRACT.
Date of Contract: _____
Your notice of cancellation must be received before midnight on: _____ (date).
To cancel the contract, deliver a signed and dated copy of this Notice of Cancellation, or write something saying you want to cancel, and deliver it to _________ (name of settlement agent) at _________ (address of settlement agent). You can cancel by fax or e-mail. Deliver any cancellation by fax to _________ or any cancellation by e-mail to _________.
If you cancel, you must pay for any services that were provided under the contract before you canceled and repay any money spent on your behalf under the 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 under the contract, which may not exceed nine percent per year.
NOTICE OF CANCELLATION
TO: _________ (name of settlement agent)
_________ (address, fax and e-mail of settlement agent)
I cancel the contract. Please return all signed documents to me.
Date: _____
Your (homeowner’s) printed name and address:
_______________
Your (homeowner’s) signature:
_______________
______________________________________________________________________________
(8) Notwithstanding subsection (1)(a) of this section, the period during which the equity seller may cancel the equity conveyance contract does not commence until the equity purchaser has complied with subsection (7) of this section.
(9) A notice of cancellation under this section is sufficient, however expressed, if the notice indicates the intent of the equity seller to cancel the equity conveyance contract. The equity conveyance contract may not require the equity seller to use the notice of cancellation form described in subsection (7) of this section.
(10) No later than 10 days after receipt of a notice of cancellation given in accordance with this section, the equity purchaser shall return, without condition, any original deed, title and contract, and any other document of transfer signed by the equity seller. [2008 c.19 § 12]