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Chapter 100 2011 EDITION Condominiums GENERAL PROVISIONS 100.005 Definitions 100.010 Short title 100.015 Rules 100.020 Condominium provisions; restrictions 100.022 Application of zoning, subdivision, build- ing code or real property law to condo- minium 100.025 Rule against perpetuities; inapplicable CREATION OF UNIT OWNERSHIP 100.100 Property submitted to unit ownership by declaration; executors of declaration; conflict between this chapter and ORS chapter 65 100.102 Leasehold condominium submitted to unit ownership 100.103 Effect of submission of leasehold condo- minium to unit ownership 100.105 Contents of declaration; property name; variable property description 100.110 Approval of declaration, supplemental declaration or amendment required; pre- requisites; fee 100.115 Recording declaration and plat; plat con- tents; supplemental declaration and plat; fees 100.116 Plat amendment; fees 100.117 Correction amendment to declaration or bylaws 100.118 Correction amendment to condominium plat; fees 100.120 Supplemental declaration and plat re- quired to annex additional property or reclassify variable property; termination date 100.122 Declaration prevails over inconsistent provisions of bylaws or articles of incor- poration 100.123 Authority to amend declaration or bylaws to comply with federal or state law 100.125 Annexation of additional property; re- quirements 100.130 Relocation of unit boundaries and com- mon elements by amendment to declara- tion 100.135 Amendments to declaration; require- ments; procedure 100.140 Temporary relocation of floating struc- ture; security interests upon termination of condominium FLEXIBLE CONDOMINIUMS 100.150 Declarant’s options until termination date 100.155 Variable property; uses and restrictions RIGHTS AND DUTIES OF DECLARANT 100.170 Easement held by declarant 100.175 Reserve account for maintaining, repair- ing and replacing common elements; re- serve study; maintenance plan WARRANTIES ON NEW UNITS 100.185 Express warranties; form; exclusion of implied warranties; exemption for con- sumer products; claims DECLARANT CONTROL; TURNOVER 100.200 Declarant control of association 100.205 Transitional committee; notice of meeting for formation 100.210 Turnover meeting; notice; transfer of control SPECIAL DECLARANT RIGHTS 100.220 Liabilities and obligations arising from transfer of special declarant right; ex- emptions 100.225 Acquisition of special declarant rights by successor declarant; exceptions DOCUMENT FILING 100.250 Documents required to be filed with Real Estate Agency; fees 100.255 Processing of documents filed with Real Estate Agency; procedures 100.260 Condominium Information and Annual Reports; contents; fees 100.265 Annual Report; notification; filing 100.275 Application of ORS 100.250 to 100.280 100.280 Termination of filing Condominium Infor- mation Report 100.285 Resignation of designated agent; proce- dures; effective date 100.290 Rules CONVERSION CONDOMINIUMS 100.300 Inapplicability of ORS 100.301 to 100.320 to transient lodgings 100.301 Definitions for ORS 100.301 to 100.320 100.305 Conversion condominium; notice 100.310 Rights of tenants in conversion 100.315 Improvements in conversion condomin- ium during notice period 100.320 Authority of city or county to require de- veloper to pay tenant moving expenses ASSOCIATION OF UNIT OWNERS; MANAGEMENT OF PROPERTY; ENCUMBRANCES; CONVEYANCES 100.405 Association of unit owners; powers; granting of interest in common elements; dispute resolution 100.407 Annual and special meetings of associ- ation 100.408 Quorum for meeting of association 100.409 Rules of order Title 10 Page 1 (2011 Edition)

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Page 1: 100...tion and the percentage of voting rights re-quired to approve an amendment of the declaration in accordance with ORS 100.135. (n) A statement as to whether or not the association

Chapter 1002011 EDITION

Condominiums

GENERAL PROVISIONS100.005 Definitions100.010 Short title100.015 Rules100.020 Condominium provisions; restrictions100.022 Application of zoning, subdivision, build-

ing code or real property law to condo-minium

100.025 Rule against perpetuities; inapplicable

CREATION OF UNIT OWNERSHIP100.100 Property submitted to unit ownership by

declaration; executors of declaration;conflict between this chapter and ORSchapter 65

100.102 Leasehold condominium submitted to unitownership

100.103 Effect of submission of leasehold condo-minium to unit ownership

100.105 Contents of declaration; property name;variable property description

100.110 Approval of declaration, supplementaldeclaration or amendment required; pre-requisites; fee

100.115 Recording declaration and plat; plat con-tents; supplemental declaration and plat;fees

100.116 Plat amendment; fees100.117 Correction amendment to declaration or

bylaws100.118 Correction amendment to condominium

plat; fees100.120 Supplemental declaration and plat re-

quired to annex additional property orreclassify variable property; terminationdate

100.122 Declaration prevails over inconsistentprovisions of bylaws or articles of incor-poration

100.123 Authority to amend declaration or bylawsto comply with federal or state law

100.125 Annexation of additional property; re-quirements

100.130 Relocation of unit boundaries and com-mon elements by amendment to declara-tion

100.135 Amendments to declaration; require-ments; procedure

100.140 Temporary relocation of floating struc-ture; security interests upon terminationof condominium

FLEXIBLE CONDOMINIUMS100.150 Declarant’s options until termination date100.155 Variable property; uses and restrictions

RIGHTS AND DUTIES OF DECLARANT100.170 Easement held by declarant

100.175 Reserve account for maintaining, repair-ing and replacing common elements; re-serve study; maintenance plan

WARRANTIES ON NEW UNITS100.185 Express warranties; form; exclusion of

implied warranties; exemption for con-sumer products; claims

DECLARANT CONTROL; TURNOVER100.200 Declarant control of association100.205 Transitional committee; notice of meeting

for formation100.210 Turnover meeting; notice; transfer of

control

SPECIAL DECLARANT RIGHTS100.220 Liabilities and obligations arising from

transfer of special declarant right; ex-emptions

100.225 Acquisition of special declarant rights bysuccessor declarant; exceptions

DOCUMENT FILING100.250 Documents required to be filed with Real

Estate Agency; fees100.255 Processing of documents filed with Real

Estate Agency; procedures100.260 Condominium Information and Annual

Reports; contents; fees100.265 Annual Report; notification; filing100.275 Application of ORS 100.250 to 100.280100.280 Termination of filing Condominium Infor-

mation Report100.285 Resignation of designated agent; proce-

dures; effective date100.290 Rules

CONVERSION CONDOMINIUMS100.300 Inapplicability of ORS 100.301 to 100.320 to

transient lodgings100.301 Definitions for ORS 100.301 to 100.320100.305 Conversion condominium; notice100.310 Rights of tenants in conversion100.315 Improvements in conversion condomin-

ium during notice period100.320 Authority of city or county to require de-

veloper to pay tenant moving expenses

ASSOCIATION OF UNIT OWNERS;MANAGEMENT OF PROPERTY;

ENCUMBRANCES; CONVEYANCES100.405 Association of unit owners; powers;

granting of interest in common elements;dispute resolution

100.407 Annual and special meetings of associ-ation

100.408 Quorum for meeting of association100.409 Rules of order

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PROPERTY RIGHTS AND TRANSACTIONS

100.410 Adoption of bylaws; recording; amend-ment; approval by commissioner; fee

100.412 Annual budget; distribution of budgetsummary to owners

100.415 Contents of bylaws100.416 Criteria for board of directors membership100.417 Board of directors of association; powers

and duties100.418 Receivership for failure of association to

fill vacancies on board of directors100.419 Assent of director to board action100.420 Board meetings; executive sessions100.423 Electronic notice to owner or director100.425 Use of written ballot for approving or re-

jecting matters subject to meeting of unitowners; procedures; exceptions

100.427 Methods of voting100.428 Electronic ballot100.430 Unit deeds; contents100.435 Insurance for individual units and com-

mon elements100.440 Liens against property; removal from lien;

effect of part payment100.445 Independent default clauses; option to

purchase fee simple interest100.450 Association lien against individual unit;

recording notice of claim; foreclosure;priority of lien

100.460 Foreclosure against unit; receiver forunit; power of board of directors to bid atforeclosure sale

100.465 Circumstances in which deed in lieu offoreclosure extinguishes lien

100.470 Lien foreclosure; other legal action bydeclarant, association or owner; attorneyfees

100.475 Personal liability for assessment; joint li-ability of grantor and grantee followingconveyance; limitation

100.480 Maintaining documents and records; an-nual financial statement; review of finan-cial statement by certified publicaccountant; availability of documents andrecords for examination

100.485 Duration and termination of initial man-agement agreements and service and em-ployment contracts; applicability offederal condominium law

100.490 Notice to unit owners of intent of associ-ation to commence judicial or adminis-trative proceedings; contents of notice;right of unit owner to opt out

ATTRIBUTES AND DUTIES OF OWNERSHIP

100.505 Status and ownership of units100.510 Units and common elements distinguished100.515 Interest of units in common elements100.520 Easement held by units and common ele-

ments100.525 Voting or consenting100.530 Allocation of common profits and ex-

penses; liability of unit owner; limitationon assessments against declarant; deferralof assessments by declarant

100.535 Maintenance and improvement of units

100.540 Use and maintenance of common ele-ments; access for maintenance

100.545 Compliance with bylaws and other re-strictions

100.550 Service of process100.555 Taxation of units; exemptions; uniform

appraisal and assessment; rules

REMOVAL OF PROPERTY FROM UNITOWNERSHIP

100.600 Termination of association or removal ofreal property by unit owners; consent oflienholders; recordation; amended plat re-quirements

100.605 Removal of property from association; re-pair or removal of property that is dam-aged or destroyed

100.610 Common ownership of property removedfrom unit ownership; valuation; liens

100.615 Action for partition; division of sale pro-ceeds

100.620 Termination or removal no bar toresubmission

DIVIDING OR CONVERTING UNITS100.625 Procedure for dividing or converting units

REGULATION OF SALES; FILINGREQUIREMENTS

100.635 Filing with commissioner; fee100.640 Filing; required documents and informa-

tion100.645 Filing information to be kept current100.650 Service of process on nonresident devel-

oper; consent for service on commis-sioner; contents of consent; records ofservice on commissioner

100.655 Disclosure statement; contents; disclosurestatement from other state; declarant li-ability limited

100.660 Nonresidential condominium or securityfiling; contents

100.665 Exemption to certain disclosure and no-tice requirements

100.670 Fees; hourly rate; deposit100.675 Inventory; review; approval; timelines100.680 Escrow; sales agreement; requirements

INSPECTION OF CONDOMINIUM;DISCLOSURE STATEMENT

100.700 Inspection of condominium; report in dis-closure statement

100.705 Sale prohibited prior to issuance of dis-closure statement; exception; distribution;use of disclosure statement

100.710 Inspection deposit

REQUIREMENTS FOR SALE100.720 Conditions prerequisite to sale100.725 Documents prerequisite to execution of

sale agreement and conveyance of unit100.730 Cancellation of sale of unit; notice to

seller; return of payments and reconvey-ance; extinguishment of encumbrances;waiver prohibited; disclaimer of notice;applicability

100.735 Waiver of right to cancel

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CONDOMINIUMS

100.740 Notice to purchaser of cancellation rights;form

100.745 Escrow documents required of successorto vendor’s interest

100.750 Inspection of records

PROHIBITED ACTS100.770 Fraud and deceit prohibited100.775 False or misleading advertising prohibited;

liability100.780 Waiver of legal rights void100.785 Blanket encumbrance prohibited

ENFORCEMENT100.900 Civil penalty100.905 Cease and desist order; injunction100.910 Use of fees

MISCELLANEOUS100.920 Changes or actions that require approval

or consent of mortgagee

CRIMINAL PENALTIES100.990 Criminal penalties

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PROPERTY RIGHTS AND TRANSACTIONS

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CONDOMINIUMS 100.005

GENERAL PROVISIONS100.005 Definitions. As used in this

chapter, unless the context requires other-wise:

(1) “Assessment” means any charge im-posed or levied by the association of unitowners on or against a unit owner or unitpursuant to provisions of the declaration orthe bylaws of the condominium or provisionsof ORS 100.005 to 100.910.

(2) “Association of unit owners” meansthe association provided for under ORS100.405.

(3) “Association property” means anyreal property or interest in real property ac-quired, held or possessed by the associationunder ORS 100.405.

(4) “Blanket encumbrance” means a trustdeed or mortgage or any other lien or en-cumbrance, mechanic’s lien or otherwise, se-curing or evidencing the payment of moneyand affecting more than one unit in a con-dominium, or an agreement affecting morethan one such unit by which the developerholds such condominium under an option,contract to sell or trust agreement.

(5) “Building” means a multiple-unitbuilding or single-unit buildings, or anycombination thereof, comprising a part of theproperty. “Building” also includes a floatingstructure described in ORS 100.020 (3)(b)(D).

(6) “Commissioner” means the Real Es-tate Commissioner.

(7) “Common elements” means the gen-eral common elements and the limited com-mon elements.

(8) “Common expenses” means:(a) Expenses of administration, mainte-

nance, repair or replacement of the commonelements;

(b) Expenses agreed upon as common byall the unit owners; and

(c) Expenses declared common by ORS100.005 to 100.625 or by the declaration orthe bylaws of the particular condominium.

(9) “Condominium” means:(a) With respect to property located

within this state:(A) The land, if any, whether fee simple,

leasehold, easement or other interest orcombination thereof, and whether contiguousor noncontiguous;

(B) Any buildings, improvements andstructures on the property; and

(C) Any easements, rights and appurte-nances belonging to the property submittedto the provisions of ORS 100.005 to 100.625;and

(b) With respect to property located out-side this state, the property that has beencommitted to the condominium form of own-ership in accordance with the jurisdictionwithin which the property is located.

(10) “Conversion condominium” means acondominium in which there is a building,improvement or structure that was occupiedprior to any negotiation and that is:

(a) Residential in nature, at least in part;and

(b) Not wholly commercial or industrial,or commercial and industrial, in nature.

(11) “Declarant” means a person who re-cords a declaration under ORS 100.100 or asupplemental declaration under ORS 100.110.

(12) “Declaration” means the instrumentdescribed in ORS 100.100 by which the con-dominium is created and as modified by anyamendment recorded in accordance with ORS100.135 or supplemental declaration recordedin accordance with ORS 100.120.

(13) “Developer” means a declarant orany person who purchases an interest in acondominium from declarant, successordeclarant or subsequent developer for theprimary purpose of resale.

(14) “Flexible condominium” means acondominium containing property that maybe reclassified or withdrawn from the condo-minium pursuant to ORS 100.150 (1).

(15) “General common elements,” unlessotherwise provided in a declaration, meansall portions of the condominium that are notpart of a unit or a limited common element,including but not limited to the following:

(a) The land, whether fee simple,leasehold, easement, other interest or combi-nation thereof, together with any rights andappurtenances;

(b) The foundations, columns, girders,beams, supports, bearing and shear walls,windows, except glazing and screening, unitaccess doors, except glazing and screening,roofs, halls, corridors, lobbies, stairs, fire es-capes, entrances and exits of a building;

(c) The basements, yards, gardens, park-ing areas and outside storage spaces;

(d) Installations of central services suchas power, light, gas, hot and cold water,heating, refrigeration, air conditioning, wastedisposal and incinerating;

(e) The elevators, tanks, pumps, motors,fans, compressors, ducts and in general allapparatus and installations existing for com-mon use;

(f) The premises for the lodging ofjanitors or caretakers of the property; and

(g) All other elements of a building andthe condominium necessary or convenient to

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100.005 PROPERTY RIGHTS AND TRANSACTIONS

their existence, maintenance and safety, ornormally in common use.

(16) “Leasehold” means the interest of aperson, firm or corporation who is the lesseeunder a lease from the owner in fee and whofiles a declaration creating a condominiumunder ORS 100.100.

(17) “Limited common elements” meansthose common elements designated in thedeclaration, as reserved for the use of a cer-tain unit or number of units, to the exclusionof the other units.

(18) “Majority” or “majority of unit own-ers” means more than 50 percent of the vot-ing rights allocated to the units by thedeclaration.

(19) “Mortgagee” means any person whois:

(a) A mortgagee under a mortgage;(b) A beneficiary under a trust deed; or(c) The vendor under a land sale con-

tract.(20) “Negotiation” means any activity

preliminary to the execution by either devel-oper or purchaser of a unit sales agreement,including but not limited to advertising, so-licitation and promotion of the sale of a unit.

(21) “Nonwithdrawable property” meansproperty which pursuant to ORS 100.150(1)(b):

(a) Is designated nonwithdrawable in thedeclaration and on the plat; and

(b) Which may not be withdrawn fromthe condominium without the consent of allof the unit owners.

(22) “Percent of owners” or “percentageof owners” means the percent of the votingrights determined under ORS 100.525.

(23) “Purchaser” means an actual or pro-spective purchaser of a condominium unitpursuant to a sale.

(24) “Recording officer” means thecounty officer charged with the duty of filingand recording deeds and mortgages or anyother instruments or documents affecting thetitle to real property.

(25) “Reservation agreement” means anagreement relating to the future sale of aunit which is not binding on the purchaserand which grants purchaser the right tocancel the agreement without penalty andobtain a refund of any funds deposited at anytime until purchaser executes a unit salesagreement.

(26) “Sale” includes every disposition ortransfer of a condominium unit, or an inter-est or estate therein, by a developer, includ-ing the offering of the property as a prize orgift when a monetary charge or consider-

ation for whatever purpose is required by thedeveloper. “Interest or estate” includes alessee’s interest in a unit for more thanthree years or less than three years if theinterest may be renewed under the terms ofthe lease for a total period of more thanthree years. “Interest or estate” does not in-clude any interest held for security purposesor a timeshare regulated or otherwise exemptunder ORS 94.803 and 94.807 to 94.945.

(27) “Special declarant right” means anyright, in addition to the regular rights of thedeclarant as a unit owner, reserved for thebenefit of or created by the declarant underthe declaration, bylaws or the provisions ofthis chapter.

(28) “Staged condominium” means a con-dominium which provides for annexation ofadditional property pursuant to ORS 100.115and 100.120.

(29) “Successor declarant” means thetransferee of any special declarant right.

(30) “Termination date” means that datedescribed in ORS 100.105 (2)(b) or (7)(d).

(31) “Transitional committee” means thecommittee provided for under ORS 100.205.

(32) “Turnover meeting” means themeeting provided for under ORS 100.210.

(33) “Unit” or “condominium unit” meansa part of the property which:

(a) Is described in ORS 100.020 (3);(b) Is intended for any type of independ-

ent ownership; and(c) The boundaries of which are described

pursuant to ORS 100.105 (1)(d).(34) “Unit designation” means the num-

ber, letter or combination thereof designatinga unit in the declaration and on the plat.

(35) “Unit owner” means, except to theextent the declaration or bylaws provideotherwise, the person owning fee simple in-terest in a unit, the holder of a vendee’s in-terest in a unit under a recorded installmentcontract of sale and, in the case of aleasehold condominium, the holder of theleasehold estate in a unit.

(36) “Unit sales agreement” means awritten offer or agreement for the sale of acondominium unit which when fully executedwill be binding on all parties. “Unit salesagreement” includes but is not limited to anearnest money receipt and agreement to pur-chase and other such agreements whichserve as an agreement of sale for a cashtransaction or which are preliminary to theexecution of an installment contract of sale,but does not include a reservation agree-ment.

(37) “Variable property” means propertydescribed in ORS 100.150 (2) and designated

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CONDOMINIUMS 100.022

as variable property in the declaration andon the plat.

(38) “Voting rights” means the portion ofthe votes allocated to a unit by the declara-tion in accordance with ORS 100.105 (1)(j).[Formerly 94.004; 1997 c.816 §1; 1999 c.677 §38; 2001 c.756§24; 2007 c.410 §5]

100.010 Short title. This chapter may becited as the Oregon Condominium Act.[Formerly 94.011]

100.015 Rules. The Real Estate Commis-sioner may adopt such rules as are necessaryfor the administration of this chapter.[Formerly 94.333]

Note: 100.015 was added to and made a part of100.635 to 100.910 by legislative action but was notadded to any other series. See Preface to Oregon Re-vised Statutes for further explanation.

100.020 Condominium provisions; re-strictions. (1) Except as otherwise providedin subsections (2) and (3) of this section, ORS100.100 to 100.625 apply only to property lo-cated within this state which a person electsto submit to the condominium form of own-ership as provided in ORS 100.005 to 100.625.

(2) Unless the declarant elects otherwise,ORS 100.175, 100.185, 100.200 (2), 100.205,100.210, 100.300, 100.305, 100.310, 100.315 and100.320 apply only to condominiums that in-clude units to be used for residential pur-poses.

(3) Property may not be submitted to thecondominium form of ownership under ORS100.005 to 100.625 unless:

(a) Each unit has legal access to a publicstreet or highway or, if the unit has suchaccess only by virtue of common ownershipwith other units, the declaration executedunder ORS 100.110 prohibits conveyance ofthe unit unless after conveyance the unitwill continue to have legal access to a publicstreet or highway;

(b) Subject to paragraph (c) of this sub-section, each unit consists of:

(A) A building or part of a building;(B) A space used for the parking or stor-

age of automobiles, trucks, boats, campers orother vehicles or equipment;

(C) A space for the moorage of a water-craft, floating home or other structure; or

(D) A floating structure, including astructure formerly used as a ship or othervessel that:

(i) Is permanently moored to structuresin a river, lake or other waterway pursuantto a long-term lease with a remaining termat the time the declaration and plat are re-corded of not less than 15 years;

(ii) Contains two or more residentialunits with a combined floor space of not lessthan 2,000 square feet; and

(iii) Has upland common elements ownedin fee or by leasehold having a remainingterm of not less than the remaining term ofthe leasehold on the submerged or submers-ible land. The units in a condominium de-scribed in this subparagraph shall beconsidered real property for purposes of theOregon Condominium Act; and

(c) Each unit has an interest in the com-mon elements in accordance with ORS100.515. However, a unit may not include anyportion of the land. A declaration may notprovide that there are no common elements.

(4)(a) Except as otherwise provided insubsection (5) of this section, ORS 100.015and 100.635 to 100.910 apply to condominiumshaving units to be used for residential pur-poses which are not offered for sale as a se-curity pursuant to ORS 59.005 to 59.451.

(b) ORS 100.635 (2), 100.640 (8) to (12),100.655, 100.705, 100.720, 100.725, 100.730,100.735, 100.740 and 100.745 do not apply tothe sale of units to be used for nonresidentialpurposes as provided in subsection (5) of thissection unless the units, including units usedfor parking or storage, are ancillary to thesale of units to be used for residential pur-poses.

(5)(a) ORS 100.650, 100.660, 100.670,100.675, 100.750, 100.770, 100.775, 100.780,100.900, 100.905 and 100.990 apply to a con-dominium located in this state that consistsexclusively of units to be used for nonresi-dential purposes or that consists of units tobe offered for sale as a security under ORS59.005 to 59.451.

(b) As used in this subsection, “nonresi-dential purposes” includes apartments withina condominium in which the apartments arenot separate units or units that are re-stricted in use by the unit owner to less thanfull-time residential purposes.

(6) The units in a condominium describedin subsection (3)(b)(C) and (D) of this sectionshall be considered real property for pur-poses of this chapter.

(7) Unless the declaration or bylaws pro-vide otherwise, a condominium unit may besubmitted to the condominium form of own-ership under ORS 100.005 to 100.625.

(8) If an association creates not morethan two additional units from common ele-ments by an amendment to the declarationunder ORS 100.135, then ORS 100.635 (2),100.640 (8) to (12), 100.655, 100.705, 100.720,100.725, 100.730, 100.735 and 100.745 do notapply to the sale of the units by the associ-ation. [Formerly 94.013; 1997 c.816 §2; 1999 c.677 §39;2001 c.756 §25; 2007 c.410 §6; 2009 c.641 §20]

100.022 Application of zoning, subdivi-sion, building code or real property lawto condominium. (1) A zoning, subdivision,

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100.025 PROPERTY RIGHTS AND TRANSACTIONS

building code or other real property law, or-dinance or regulation may not prohibit thecondominium form of ownership or imposeany requirement upon a structure or devel-opment proposed to be submitted to the con-dominium form of ownership under thischapter that it would not impose upon astructure or development under a differentform of ownership.

(2) Except as set forth in this section, noprovision of this chapter invalidates or mod-ifies any provision of any zoning, subdivision,building code or other real property use law,ordinance or regulation.

(3) Subsection (1) of this section does notprohibit any governmental approval requiredunder this chapter. [2009 c.641 §19]

Note: 100.022 was added to and made a part ofORS chapter 100 by legislative action but was not addedto any smaller series therein. See Preface to OregonRevised Statutes for further explanation.

100.025 Rule against perpetuities; in-applicable. The rule against perpetuitiesmay not be applied to defeat any provisionsof a declaration, supplemental declaration,bylaw or rule for a condominium adoptedunder ORS 100.005 to 100.625. [Formerly 94.016]

CREATION OF UNIT OWNERSHIP100.100 Property submitted to unit

ownership by declaration; executors ofdeclaration; conflict between this chapterand ORS chapter 65. (1) In order to submitany property to the provisions of this chap-ter, the declarant shall record a declarationin the office of the recording officer of everycounty in which such property is located.The declaration shall comply with ORS100.105 and shall be executed in accordancewith subsection (2) of this section and ac-knowledged in the manner provided for ac-knowledgment of deeds.

(2) If the declarant is not the fee ownerof the property, the fee owner and the vendorunder any instrument of sale shall also exe-cute the declaration for the purpose of con-senting to the property being submitted tothe provisions of this chapter.

(3) If the condominium contains any var-iable property, the holder of any mortgage ortrust deed shall also execute the declarationfor the purpose of consenting to the propertybeing submitted to the provisions of ORS100.005 to 100.625 and the terms and condi-tions of the declaration and bylaws.

(4) A flexible or staged condominium maybe created only as provided in ORS 100.005to 100.625.

(5) The provisions of and rights conferredby ORS 100.005 to 100.910 shall not be variedor waived except as expressly provided in

those statutes. A declarant shall not act un-der a power of attorney or use any other de-vice to evade the limitations or prohibitionsin the declaration, bylaws or ORS 100.005 to100.910.

(6) If the provisions of this chapter andthe provisions of ORS chapter 65 apply to anassociation and the provisions conflict, theprovisions of this chapter control. [Formerly94.023; 2003 c.569 §22]

100.102 Leasehold condominium sub-mitted to unit ownership. (1) The ownerof fee title interest in the real propertyunderlying a leasehold condominium maysubmit the fee title to the provisions of thischapter by the procedures set forth in thissection. Submission has the effect set forthin ORS 100.103.

(2) The fee title interest of a leaseholdcondominium may be submitted to the pro-visions of this chapter by an amendment tothe declaration. The amendment must:

(a) Include a reference to the recordingindex numbers and date of recording of theinitial declaration, supplemental declarationsrecorded pursuant to ORS 100.120 and thelease;

(b) State that the fee title interest in thereal property subject to the leasehold is sub-mitted to the provisions of this chapter pur-suant to this section;

(c) State that the submission of the feetitle interest in the real property subject tothe leasehold to the provisions of this chap-ter has the effect set forth in ORS 100.103;

(d) State that there are no encumbrancesagainst the fee title interest securing pay-ment of moneys except for the assessmentsof the owners association that are not yetdue;

(e) Be approved by at least 75 percent ofthe unit owners, notwithstanding that thedeclaration may require approval by a largerpercentage of owners or the consent of an-other person to amend the declaration;

(f) Be executed by the fee title holder andthe chairperson and secretary of the associ-ation and acknowledged in the manner pro-vided for acknowledgment of instruments;

(g) Be certified by the chairperson andsecretary as being adopted in accordancewith this section;

(h) Be approved as required by ORS100.110; and

(i) Be recorded in the office of the re-cording officer of each county in which thecondominium is located.

(3) At the time of submission, the fee ti-tle interest being submitted may not be sub-ject to an encumbrance securing payment of

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money except for the assessments of an as-sociation that are not yet due.

(4) Nothing in this section precludes thedeclarant of a leasehold condominium, theunit owners and the association from agree-ing to other procedures for submitting thefee title interest to the provisions of thischapter, provided the procedures are setforth in:

(a) The declaration; or(b) An amendment to the declaration ap-

proved by at least 75 percent of the unitowners or, if a larger percentage is specifiedin the declaration to effect amendments tothe declaration, the larger percentage, and75 percent of the lenders holding a first-priority security position in any unit in thecondominium. [2003 c.569 §43; 2007 c.410 §7]

Note: 100.102 and 100.103 were added to and madea part of ORS chapter 100 by legislative action but werenot added to any smaller series therein. See Preface toOregon Revised Statutes for further explanation.

100.103 Effect of submission ofleasehold condominium to unit owner-ship. (1) After an amendment submitting thefee title interest underlying a leasehold con-dominium has been recorded as provided inORS 100.102:

(a) The leasehold or leaseholds affectingthe fee title interest of the land underlyingthe condominium property must be convertedto individual leaseholds of the units;

(b) The former owner of the underlyingfee title interest of the condominium prop-erty shall become the holder of the fee titleinterest to all individual units and the lessorof the individual units. The individual unitowners of the leasehold condominium unitsshall become lessees of the fee title condo-minium units;

(c) Unless otherwise provided by thelease or agreed by the lessor and lessee ofthe fee title condominium units, the obli-gations to pay rent under the former leasemust be allocated among all former leaseholdunits on the basis of the percentage owner-ship in the common elements of the condo-minium allocated to each unit;

(d) Liens against leasehold condominiumunits become liens on the lessee’s interest inthe leased unit and have the same priorityand rights against the leasehold of the indi-vidual unit in the fee title condominium for-merly held against the leaseholdcondominium unit;

(e) The holder of the fee title to the unitin the fee condominium shall have the samepriority and rights in the individualleasehold of the fee title condominium unitas was held under the leases prior to sub-mission of the fee title interest; and

(f) The fee title interest is not subject tothe liens suffered or incurred by the unitlessee, except for property taxes and condo-minium association assessment liens.

(2) The assessor shall assign all value ofthe fee simple interest to the fee title condo-minium units and allocate any additionalvalue in accordance with the allocation ofinterest of each unit in the common ele-ments.

(3) All easements, covenants, conditionsand restrictions or other interests encumber-ing the fee title and the leasehold at the timeof submission of the fee title to the pro-visions of this chapter continue and remainin full force, unaffected by the submission.

(4)(a) Options to purchase that weregranted to unit owners or to the associationprior to submission of the fee title interestto the provisions of this chapter pursuant toORS 100.102 continue according to theirterms, except that purchaser options must besegregated so that each option pertains to anindividual unit only.

(b) Unless the purchase options provideotherwise, the purchase price must be allo-cated among the individual units on the basisof the percentage ownership interest in thecommon elements pertaining to individualunits.

(c) Except for segregating the formerleasehold into individual leaseholds in eachof the units and reallocating lease paymentsamong the units as provided in this section,the terms and provisions of the former leaseare unaffected by submission of the fee titleto the provisions of this chapter.

(d) Except for segregating the purchaseoptions and allocating the purchase price, ifnot otherwise allocated by the terms of thepurchase option, the terms and provisions ofthe purchase option are unaffected by sub-mission of the fee title to the provisions ofthis chapter. [2003 c.569 §44]

Note: See note under 100.102.

100.105 Contents of declaration; prop-erty name; variable property description.(1) A declaration shall contain:

(a) A description of the property, includ-ing property on which a unit or a limitedcommon element is located, whether held infee simple, leasehold, easement or other in-terest or combination thereof, that is beingsubmitted to the condominium form of own-ership and that conforms to the descriptionin the surveyor’s certificate provided underORS 100.115 (1).

(b) Subject to subsection (11) of this sec-tion, a statement of the interest in the prop-erty being submitted to the condominiumform of ownership, whether fee simple,

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leasehold, easement or other interest orcombination thereof.

(c) Subject to subsection (5) of this sec-tion, the name by which the property shallbe known and a general description of eachunit and the building or buildings, includingthe number of stories and basements of eachbuilding, the total number of units and theprincipal materials of which they are con-structed.

(d) The unit designation, a statement thatthe location of each unit is shown on theplat, a description of the boundaries and areain square feet of each unit and any otherdata necessary for proper identification. Thearea of a unit shall be the same as shown forthat unit on the plat described in ORS100.115 (1).

(e) A notice in substantially the followingform in at least 12-point type that is eitherall capitals or boldface:__________________________________________

NOTICE

THE SQUARE FOOTAGE AREASSTATED IN THIS DECLARATION ANDTHE PLAT ARE BASED ON THE BOUND-ARIES OF THE UNITS AS DESCRIBED INTHIS DECLARATION AND MAY VARYFROM THE AREA OF UNITS CALCU-LATED FOR OTHER PURPOSES.__________________________________________

(f) A description of the general commonelements.

(g) An allocation to each unit of an un-divided interest in the common elements inaccordance with ORS 100.515 and the methodused to establish the allocation.

(h) The designation of any limited com-mon elements including:

(A) A general statement of the nature ofthe limited common element;

(B) A statement of the unit to which theuse of each limited common element is re-served, provided the statement is not a ref-erence to an assignment of use specified onthe plat; and

(C) The allocation of use of any limitedcommon element appertaining to more thanone unit.

(i) The method of determining liabilityfor common expenses and right to commonprofits in accordance with ORS 100.530.

(j) The voting rights allocated to eachunit in accordance with ORS 100.525 or inthe case of condominium units committed asproperty in a timeshare plan defined in ORS

94.803, the voting rights allocated in thetimeshare instrument.

(k) A statement of the use, residential orotherwise, for which the building or build-ings and each of the units is intended.

(L) A statement that the designatedagent to receive service of process in casesprovided in ORS 100.550 (1) is named in theCondominium Information Report which willbe filed with the Real Estate Agency in ac-cordance with ORS 100.250 (1)(a).

(m) The method of amending the declara-tion and the percentage of voting rights re-quired to approve an amendment of thedeclaration in accordance with ORS 100.135.

(n) A statement as to whether or not theassociation of unit owners pursuant to ORS100.405 (5) and (8) has authority to grantleases, easements, rights of way, licenses andother similar interests affecting the generaland limited common elements of the condo-minium and consent to vacation of roadwayswithin and adjacent to the condominium.

(o) If the condominium contains a float-ing structure described in ORS 100.020 (3), astatement regarding the authority of theboard of directors of the association, subjectto ORS 100.410, to temporarily relocate thefloating structure without a majority vote ofaffected unit owners.

(p) Any restrictions on alienation ofunits. Any such restrictions created by doc-uments other than the declaration may beincorporated by reference in the declarationto the official records of the county in whichthe property is located.

(q) Any other details regarding the prop-erty that the person executing the declara-tion considers desirable. However, if aprovision required to be in the bylaws underORS 100.415 is included in the declaration,the voting requirements for amending thebylaws shall also govern the amendment ofthe provision in the declaration.

(2) In the event the declarant proposes toannex additional property to the condomin-ium under ORS 100.125, the declaration shallalso contain a general description of the planof development, including:

(a) The maximum number of units to beincluded in the condominium.

(b) The date after which any right to an-nex additional property will terminate.

(c) A general description of the natureand proposed use of any additional commonelements which declarant proposes to annexto the condominium, if such common ele-ments might substantially increase the pro-portionate amount of the common expensespayable by existing unit owners.

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(d) A statement that the method used toestablish the allocation of undivided interestin the common elements, the method used todetermine liability for common expenses andright to common profits and the method usedto allocate voting rights for each unit an-nexed shall be as stated in the declaration inaccordance with subsection (1)(g), (i) and (j)of this section.

(e) Such other information as the RealEstate Commissioner shall require in orderto carry out the purposes of ORS 100.015,100.116, 100.635 to 100.730 and 100.740 to100.910.

(3) Except where expressly prohibited bythe declaration and subject to the require-ments of ORS 100.135 (2) and subsections (9)and (10) of this section:

(a) Not later than two years followingthe termination dates specified in subsections(2)(b) and (7)(d) of this section, such termi-nation dates may be extended for a periodnot exceeding two years; and

(b) The general description under subsec-tion (2)(c) of this section and the informationincluded in the declaration in accordancewith subsection (7)(c), (g) and (h) of this sec-tion may be changed by an amendment to thedeclaration.

(4) The information included in the dec-laration in accordance with subsection (2)(a)and (d) of this section and subsection (7)(a),(b), (e), (f) and (k) of this section may not bechanged unless all owners agree to thechange and record an amendment to thedeclaration in accordance with this chapter.

(5) The name of the property shall in-clude the word “condominium” or “condo-miniums” or the words “a condominium.”

(6) A condominium may not bear a namewhich is the same as or deceptively similarto the name of any other condominium lo-cated in the same county.

(7) If the condominium is a flexible con-dominium containing variable property, thedeclaration shall also contain a general de-scription of the plan of development, includ-ing:

(a) A statement that the rights providedfor under ORS 100.150 (1) are being reserved.

(b) A statement:(A) Of any limitations on rights reserved

under ORS 100.150 (1), including whether theconsent of any unit owner shall be required,and if so, a statement of the method bywhich the consent shall be ascertained; or

(B) That there are no limitations onrights reserved under ORS 100.150 (1).

(c) A statement of the total number oftracts of variable property within the condo-minium, including:

(A) A designation of each tract as with-drawable or nonwithdrawable variable prop-erty;

(B) Identification of each variable tractby a label in accordance with ORS 100.115(1)(i);

(C) A statement of the method of labelingeach tract depicted on the plat in accordancewith ORS 100.115 (1)(i); and

(D) A statement of the total number oftracts of each type of variable property.

(d) The termination date, which is thedate or time period after which any right re-served under ORS 100.150 (1) will terminate,and a statement of the circumstances, if any,that will terminate any right on or beforethe date or time period specified. The dateor time period may not exceed seven yearsfrom the recording of the conveyance of thefirst unit in the condominium to a personother than the declarant. Recording shall bein the county in which the property is lo-cated.

(e) The maximum number of units thatmay be created.

(f) A statement that the method used toestablish the allocations of undivided interestin the common elements, the method used todetermine liability for common expenses andright to common profits and the method usedto allocate voting rights as additional unitsare created shall be the same as stated in thedeclaration in accordance with subsection(1)(g), (i) and (j) of this section.

(g) A general description of all existingimprovements and the nature and proposeduse of any improvements that may be madeon variable property if the improvementsmight substantially increase the proportion-ate amount of the common expenses payableby existing unit owners.

(h) A statement of whether or not thedeclarant reserves the right to create limitedcommon elements within any variable prop-erty, and if so, a general description of thetypes that may be created.

(i) A statement that the plat shows thelocation and dimensions of all withdrawablevariable property that is labeled “WITH-DRAWABLE VARIABLE PROPERTY.”

(j) A statement that if by the terminationdate all or a portion of the withdrawablevariable property has not been withdrawn orreclassified, the withdrawable property shallautomatically be withdrawn from the condo-minium as of the termination date.

(k) A statement of the rights of the asso-ciation under ORS 100.155 (2).

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100.110 PROPERTY RIGHTS AND TRANSACTIONS

(L) A statement of whether or not all orany portion of the variable property may notbe withdrawn from the condominium and, ifso, with respect to the nonwithdrawable var-iable property:

(A) A statement that the plat shows thelocation and dimensions of all nonwithdraw-able property that is labeled “NONWITH-DRAWABLE VARIABLE PROPERTY.”

(B) A description of all improvementsthat may be made and a statement of the in-tended use of each improvement.

(C) A statement that, if by the termi-nation date all or a portion of the variableproperty designated as “nonwithdrawablevariable property” has not been reclassified,the property shall automatically be reclassi-fied as of the termination date as a generalcommon element of the condominium andany interest in such property held for secu-rity purposes shall be automatically extin-guished by such classification.

(D) A statement of the rights of the as-sociation under ORS 100.155 (3).

(m) A statement by the local governingbody or appropriate department thereof thatthe withdrawal of any variable property des-ignated as “withdrawable variable property”in the declaration in accordance with para-graph (L) of this subsection, will not violateany applicable planning or zoning regulationor ordinance. The statement may be attachedas an exhibit to the declaration.

(8) The plan of development for any vari-able property included in the declaration orany supplemental declaration of any stage inaccordance with subsection (7) of this sectionshall be subject to any plan of developmentincluded in the declaration in accordancewith subsection (2) of this section, exceptthat the time limitation specified in subsec-tion (7)(d) of this section shall govern anyright reserved under ORS 100.150 (1) withrespect to any variable property.

(9) The information included in the dec-laration in accordance with subsection (7)(j),(k) and (m) of this section may not be deletedby amendment.

(10) Approval by the unit owners shallnot be required to redesignate variable prop-erty as “nonwithdrawable variable property”by supplemental declaration or amendment ifsuch redesignation is required by the localgoverning body or appropriate departmentthereof to comply with any planning or zon-ing regulation or ordinance. If as a result ofsuch redesignation the information requiredto be included in the supplemental declara-tion or an amendment under subsection(7)(L)(B) of this section is inconsistent withthe information included in the declarationor supplemental declaration in accordance

with subsection (7)(g) of this section, anamendment to the declaration approved byat least 75 percent of owners shall be re-quired.

(11) The statement of an interest inproperty other than fee simple submitted tothe condominium form of ownership and anyeasements, rights or appurtenances belongingto property submitted to the condominiumform of ownership, whether leasehold or feesimple, shall include:

(a) A reference to the recording indexnumbers and date of recording of the instru-ment creating the interest; or

(b) A reference to the law, administrativerule, ordinance or regulation that creates theinterest if the interest is created under law,administrative rule, ordinance or regulationand not recorded in the office of the record-ing officer of the county in which the prop-erty is located. [Formerly 94.029; 1995 c.31 §1; 1997c.816 §3; 1999 c.677 §40; 2001 c.756 §26; 2003 c.569 §23;2007 c.410 §8; 2009 c.641 §36]

100.110 Approval of declaration, sup-plemental declaration or amendment re-quired; prerequisites; fee. (1)(a) Before adeclaration, supplemental declaration or anamendment thereto may be recorded, it mustbe approved as provided in this section bythe county assessor of the county in whichthe property is located and the Real EstateCommissioner.

(b) Before a declaration, supplementaldeclaration or, if required under subsection(3) of this section, an amendment theretomay be recorded, it must be approved by thetax collector of the county in which theproperty is located.

(c) A declaration, supplemental declara-tion or amendment thereto may not be ap-proved unless the requirements ofsubsections (2) to (7) of this section are met.Approval shall be evidenced by execution ofthe declaration or amendment or by a writ-ten approval attached thereto.

(2) The county assessor of the county inwhich the property is located shall approvea declaration, supplemental declaration oramendment thereto if:

(a) The name complies with ORS 100.105(5) and (6); and

(b) The plat complies with the require-ments of ORS 100.115 or the plat amendmentcomplies with ORS 100.116.

(3) The tax collector of the county inwhich the property is located shall approvethe declaration or supplemental declaration,or an amendment that adds property to thecondominium, changes the boundary of aunit or creates an additional unit from com-mon elements for which a plat amendment isrequired under ORS 100.116, if:

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(a) All ad valorem taxes, special assess-ments, fees, or other charges required by lawto be placed upon the tax roll which have orwill become a lien upon the property duringthe tax year have been paid;

(b) Advance payment of ad valorem taxes,special assessments, fees or other chargeswhich are not on the tax roll and for whichpayment is required under paragraph (a) ofthis subsection has been made to the taxcollector utilizing the procedures containedin ORS 92.095 and 311.370; and

(c) The additional taxes, penalty, and anyinterest attributable thereto, required be-cause of disqualification of the property fromany special assessment have been paid.

(4) Subject to subsection (6) of this sec-tion, the commissioner shall approve thedeclaration or amendment thereto if:

(a) The declaration or the amendmentthereto complies with the requirements ofORS 100.105 and 100.135;

(b) The bylaws adopted under ORS100.410 comply with the requirements of ORS100.410 and 100.415;

(c) The plat complies with the require-ments of ORS 100.115 or the plat amendmentcomplies with ORS 100.116;

(d) The declaration is for a conversioncondominium and the declarant has submit-ted:

(A) An affidavit that the notice of con-version was given in accordance with ORS100.305 and that the notice period has ex-pired;

(B) An affidavit that the notice of con-version was given in accordance with ORS100.305 and copies of the written consent ofany tenants as provided in ORS 100.305 (6)or a signed statement that no tenants wereentitled to notice under ORS 100.305; or

(C) Any applicable combination of therequirements of subparagraphs (A) and (B)of this paragraph; and

(e) A paper copy of the plat executed bythe declarant and prepared in conformancewith ORS 100.115 or plat amendment pre-pared in conformance with ORS 100.116 anda certification of plat execution, on a formprescribed and furnished by the commis-sioner, have been submitted stating that thepaper copy is a true copy of the plat signedby the declarant. The certification may beexecuted by the declarant, the professionalland surveyor who signed the surveyor’s cer-tificate on the plat, the attorney for thedeclarant, a representative of the title insur-ance company that issued the informationrequired under ORS 100.640 (5) or 100.660(2)(d) or another person authorized by the

declarant in writing to execute the certifica-tion.

(5) The commissioner shall approve asupplemental declaration if:

(a) The supplemental declaration com-plies with the requirements of ORS 100.120;

(b) The supplemental plat complies withthe requirements of ORS 100.115;

(c) The supplemental declaration is for aconversion condominium and the declaranthas complied with the requirements of sub-section (4)(d) of this section; and

(d) A paper copy of the supplemental platand a certification of plat execution de-scribed in subsection (4)(e) of this sectionhave been submitted.

(6) Approval by the commissioner is notrequired for an amendment to a declarationtransferring the right of use of a limitedcommon element pursuant to ORS 100.515(5).

(7) Before the commissioner approves thedeclaration, supplemental declaration oramendment thereto under this section:

(a) The declarant or other person re-questing approval shall pay to the commis-sioner a fee determined by the commissionerunder ORS 100.670; and

(b) For an amendment or supplementaldeclaration, the Condominium InformationReport and the Annual Report described inORS 100.260 shall be designated current bythe Real Estate Agency as provided in ORS100.255 and the fee required under ORS100.670 shall be paid.

(8) If the declaration, supplemental dec-laration or amendment thereto approved bythe commissioner under subsection (4) or (5)of this section is not recorded in accordancewith ORS 100.115 within one year from thedate of approval by the commissioner, theapproval automatically expires and the dec-laration, supplemental declaration or amend-ment thereto must be resubmitted forapproval in accordance with this section. Thecommissioner’s approval shall set forth thedate on which the approval expires. [Formerly94.036; 1991 c.459 §339; 1993 c.270 §1; 1997 c.816 §4; 1999c.677 §41; 2001 c.756 §27; 2009 c.641 §40]

100.115 Recording declaration andplat; plat contents; supplemental decla-ration and plat; fees. (1) A plat of the landdescribed in the declaration or a supple-mental plat described in a supplemental dec-laration, complying with ORS 92.050, 92.060(1) and (2), 92.080 and 92.120, shall be re-corded simultaneously with the declarationor supplemental declaration. The plat orsupplemental plat shall be titled in accor-dance with subsection (3) of this section andshall:

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(a) Show the location of:(A) All buildings and public roads. The

location shall be referenced to a point on theboundary of the property; and

(B) For a condominium containing unitsdescribed in ORS 100.020 (3)(b)(C) or (D), themoorage space or floating structure. The lo-cation shall be referenced to a point on theboundary of the upland property regardlessof a change in the location resulting from afluctuation in the water level or flow.

(b) Show the designation, location, di-mensions and area in square feet of eachunit including:

(A) For units in a building described inORS 100.020 (3)(b)(A), the horizontal andvertical boundaries of each unit and thecommon elements to which each unit hasaccess. The vertical boundaries shall be ref-erenced to a known benchmark elevation orother reference point as approved by the cityor county surveyor;

(B) For a space described in ORS 100.020(3)(b)(B), the horizontal boundaries of eachunit and the common elements to which eachunit has access. If the space is located withina structure, the vertical boundaries alsoshall be shown and referenced to a knownbenchmark elevation or other reference pointas approved by the city or county surveyor;

(C) For a moorage space described inORS 100.020 (3)(b)(C), the horizontal bound-aries of each unit and the common elementsto which each unit has access; and

(D) For a floating structure described inORS 100.020 (3)(b)(D), the horizontal andvertical boundaries of each unit and thecommon elements to which each unit hasaccess. The vertical boundaries shall be ref-erenced to an assumed elevation of an iden-tified point on the floating structure eventhough the assumed elevation may changewith the fluctuation of the water level wherethe floating structure is moored.

(c) Identify and show, to the extent fea-sible, the location and dimensions of all lim-ited common elements described in thedeclaration. The plat may not include anystatement indicating to which unit the useof any noncontiguous limited common ele-ment is reserved.

(d) Include a statement, including signa-ture and official seal, of a registered archi-tect, registered professional land surveyor orregistered professional engineer certifyingthat the plat fully and accurately depicts theboundaries of the units of the building andthat construction of the units and buildingsas depicted on the plat has been completed,except that the professional land surveyorwho prepared the plat need not affix a sealto the statement.

(e) Include a surveyor’s certificate, com-plying with ORS 92.070, that includes infor-mation in the declaration in accordance withORS 100.105 (1)(a) and a metes and boundsdescription or other description approved bythe city or county surveyor.

(f) Include a statement by the declarantthat the property and improvements de-scribed and depicted on the plat are subjectto the provisions of ORS 100.005 to 100.625.

(g) Include such signatures of approvalas may be required by local ordinance orregulation.

(h) Include any other information or datanot inconsistent with the declaration thatthe declarant desires to include.

(i) If the condominium is a flexible con-dominium, show the location and dimensionsof all variable property identified in the dec-laration and label the variable property as“WITHDRAWABLE VARIABLE PROP-ERTY” or “NONWITHDRAWABLE VARI-ABLE PROPERTY,” with a letter differentfrom those designating a unit, building orother tract of variable property. If there ismore than one tract, each tract shall be la-beled in the same manner.

(2) The supplemental plat required underORS 100.150 (1) shall be recorded simultane-ously with the supplemental declaration. Thesupplemental plat shall be titled in accor-dance with subsection (3) of this section andshall:

(a) Comply with ORS 92.050, 92.060 (1),(2) and (4), 92.080, 92.120 and subsection (3)of this section.

(b) If any property is withdrawn:(A) Show the resulting perimeter bound-

aries of the condominium after the with-drawal; and

(B) Show the information required undersubsection (1)(i) of this section as it relatesto any remaining variable property.

(c) If any property is reclassified, showthe information required under subsection(1)(a) to (d) of this section.

(d) Include a “Declarant’s Statement”that the property described on the supple-mental plat is reclassified or withdrawn fromthe condominium and that the condominiumexists as described and depicted on the plat.

(e) Include a surveyor’s certificate com-plying with ORS 92.070.

(3) The title of each supplemental platdescribed in ORS 100.120 shall include thecomplete name of the condominium, followedby the additional language specified in thissubsection and the appropriate reference tothe stage being annexed or tract of variableproperty being reclassified. Each supple-

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mental plat for a condominium recorded onor after January 1, 2002, shall be numberedsequentially and shall:

(a) If property is annexed under ORS100.125, include the words “SupplementalPlat No. : Annexation of Stage

”; or(b) If property is reclassified under ORS

100.150, include the words “SupplementalPlat No. : Reclassification of VariableProperty, Tract .”

(4) Upon request of the county surveyoror assessor, the person offering a plat orsupplemental plat for recording shall also filean exact copy, certified by the surveyor whomade the plat to be an exact copy of the plat,with the county assessor and the countysurveyor. The exact copy shall be made onsuitable drafting material having the charac-teristics of strength, stability and transpar-ency required by the county surveyor.

(5) Before a plat or a supplemental platmay be recorded, it must be approved by thecity or county surveyor as provided in ORS92.100. Before approving the plat as requiredby this section, the city or county surveyorshall:

(a) Check the boundaries of the plat andunits and take measurements and makecomputations necessary to determine thatthe plat complies with this section.

(b) Determine that the name complieswith ORS 100.105 (5) and (6).

(c) Determine that the following are con-sistent:

(A) The designation and area in squarefeet of each unit shown on the plat and theunit designations and areas contained in thedeclaration in accordance with ORS 100.105(1)(d);

(B) Limited common elements identifiedon the plat and the information contained inthe declaration in accordance with ORS100.105 (1)(h);

(C) The description of the property in thesurveyor’s certificate included on the platand the description contained in the declara-tion in accordance with ORS 100.105 (1)(a);and

(D) For a flexible condominium, the vari-able property depicted on the plat and theidentification of the property contained inthe declaration in accordance with ORS100.105 (7)(c).

(6) The person offering the plat or sup-plemental plat for approval shall:

(a) Submit a copy of the proposed decla-ration and bylaws or applicable supplementaldeclaration at the time the plat is submitted;and

(b) Submit the original or a copy of theexecuted declaration and bylaws or the ap-plicable supplemental declaration approvedby the commissioner if required by law priorto approval.

(7) For performing the services describedin subsection (5)(a) to (c) of this section, thecity surveyor or county surveyor shall col-lect from the person offering the plat for ap-proval a fee of $150 plus $25 per building.The governing body of a city or county mayestablish a higher fee by resolution or order.[Formerly 94.042; 1991 c.763 §28; 1997 c.489 §8; 1997 c.816§5; 1999 c.677 §42; 1999 c.710 §7; 2001 c.104 §30; 2001 c.173§3; 2001 c.756 §28; 2003 c.569 §24; 2005 c.22 §75; 2007 c.410§17; 2009 c.641 §41]

100.116 Plat amendment; fees. (1) Aplat, including any floor plans that are a partof a plat, recorded before October 15, 1983,may be amended as provided in this section.

(2)(a) Except as otherwise provided inORS 100.600, the following must be made bya plat entitled “Plat Amendment”:

(A) A change to the boundary of theproperty, a unit or a limited common ele-ment;

(B) The creation of an additional unitfrom common elements; or

(C) A change to the configuration ofother information required to be graphicallydepicted on the plat.

(b) The plat amendment shall referencein the title of the amendment the recordinginformation of the original plat and any pre-vious plat amendments.

(3) The plat amendment shall complywith ORS 92.050, 92.060 (1), (2) and (4), 92.080and 92.120 and shall include:

(a) A graphic depiction of the change;(b) For a change to the boundary of the

property, a surveyor’s certificate that com-plies with ORS 92.070;

(c) If the plat amendment is an amend-ment by correction under ORS 100.118, astatement that the plat amendment is anamendment by correction under ORS 100.118;

(d) A certification, including signatureand official seal, of a registered professionalland surveyor that:

(A) The plat amendment accurately de-picts the amendments to the plat describedin the declaration amendment recorded un-der subsection (5) of this section; and

(B) Any construction that changes theboundaries of a unit or limited common ele-ment or the construction of any additionalunit or limited common element has beencompleted; and

(e) A declaration by the chairperson andsecretary on behalf of the association of unit

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100.116 PROPERTY RIGHTS AND TRANSACTIONS

owners that the plat is being amended pur-suant to this section. If the amendment tothe declaration required under subsection (5)of this section is a correction amendmentunder ORS 100.117, the declaration shall beby the declarant if the declarant adopts thecorrection amendment under ORS 100.117.

(4) The declaration required under sub-section (3)(e) of this section shall be executedand acknowledged in the manner providedfor acknowledgment of deeds.

(5) The plat amendment shall be accom-panied by an amendment to the declarationauthorizing the plat amendment. The decla-ration amendment shall be executed, ap-proved and recorded in accordance with ORS100.110 and 100.135 or ORS 100.117, if thedeclaration amendment is a correctionamendment under ORS 100.117.

(6) Before a plat amendment may be re-corded, it must be approved by the city orcounty surveyor as provided in ORS 92.100.The surveyor shall approve the plat amend-ment if it complies with the requirements ofthis subsection. The person offering the platamendment shall:

(a) Submit a copy of the proposedamendment to the declaration required undersubsections (3) to (5) of this section when theplat amendment is submitted.

(b) Submit the original or a copy of theexecuted amendment to the declaration ap-proved by the Real Estate Commissioner ifrequired by law prior to approval of the platamendment.

(c) Upon request of the county assessoror county surveyor, file an exact copy, certi-fied by the surveyor who made the plat to bean exact copy of the plat amendment, withthe county assessor and the county surveyor.The exact copy shall be made on suitabledrafting material having the strength, stabil-ity and transparency required by the countysurveyor.

(7) A change to a restriction or other in-formation not required to be graphically de-picted on the plat may be made byamendment of the declaration without a platamendment described in subsections (3) to (5)of this section. A declaration amendmentunder this subsection shall include:

(a) References to recording index num-bers and date of recording of the declarationor plat and any applicable supplemental dec-larations, amendments, supplemental plats orplat amendments.

(b) A description of the change to theplat.

(c) A statement that the amendment wasapproved in accordance with the declarationand ORS 100.135.

(8) The declaration amendment describedin subsection (7) of this section shall be exe-cuted, approved and recorded in accordancewith ORS 100.110 and 100.135.

(9) Before the declaration amendment de-scribed in subsection (7) of this section maybe recorded, it must be approved by the cityor county surveyor as provided in ORS92.100. The surveyor shall approve the decla-ration amendment if it complies with subsec-tion (7) of this section. Such approval shallbe evidenced by execution of the amendmentor by written approval attached thereto.

(10) Floor plans of a condominium forwhich a plat was not required at the time ofcreation may be amended by amendment ofthe declaration. An amendment under thissubsection shall include:

(a) References to recording index num-bers and date of recording of the declarationand any applicable supplemental declarationsor amendments.

(b) A description of the change to thefloor plans.

(c) A graphic depiction of any change tothe boundaries of a unit or common elementand a statement by a registered architect,registered professional land surveyor or reg-istered professional engineer certifying thatsuch graphic depiction fully and accuratelydepicts the boundaries of the unit or commonelement as it currently exists.

(11) The declaration amendment de-scribed in subsection (10) of this section shallbe approved and recorded in accordance withORS 100.110 and 100.135 except that anychange to the floor plans need only complywith the requirements of the unit ownershiplaws in effect at the time the floor planswere initially recorded.

(12) After recording of any declarationamendment or plat amendment pursuant tothis section, the county surveyor shall, uponthe surveyor’s copy of all previously recordedplats relating to the condominium and anycopies filed under ORS 92.120 (3), make suchappropriate marks or notations, including thedate and the surveyor’s name or initials,with archival quality black ink in such man-ner as to denote the changes. The recordingindex numbers and date of recording of thedeclaration amendment and any plat amend-ment shall also be referenced on the copy ofeach plat. The original plat may not bechanged or corrected after the plat is re-corded.

(13) For performing the services de-scribed in subsections (6), (9) and (12) of thissection, the county surveyor shall collectfrom the person offering the plat amendmentor declaration amendment for approval a fee

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CONDOMINIUMS 100.117

established by the county governing body.[2009 c.641 §43]

Note: 100.116 was added to and made a part ofORS chapter 100 by legislative action but was not addedto any smaller series therein. See Preface to OregonRevised Statutes for further explanation.

100.117 Correction amendment to dec-laration or bylaws. (1) As used in this sec-tion and ORS 100.118, “document” means thedeclaration, supplemental declaration or by-laws of a condominium.

(2) Notwithstanding a provision in a doc-ument or this chapter, a document or anamendment to a document may be correctedby a correction amendment under this sec-tion to:

(a) Correct the omission of an exhibit toa document.

(b) Correct a mathematical mistake, in-cluding, but not limited to:

(A) The calculation of the stated interestof affected units in the common elements;

(B) The area in square feet of a unitspecified in the declaration or supplementdeclaration; and

(C) Liability of a unit for common ex-penses or right to common profits.

(c) Correct an inconsistency within adocument or between or among the docu-ments or a plat, supplemental plat or platamendment.

(d) Correct an ambiguity, inconsistencyor error with respect to an objectively veri-fiable fact.

(e) Authorize a plat amendment by cor-rection under ORS 100.118 or an affidavit ofcorrection under ORS 100.118.

(f) Correct a provision that was incon-sistent with this chapter at the time thedocument was recorded.

(g) Correct the omission of a provisionrequired under this chapter.

(3) A correction amendment adopted un-der subsection (4) of this section shall in-clude:

(a) The words “Correction Amendment”in or after the title;

(b) A reference to the recording indexnumbers and date of recording of the decla-ration, bylaws, plat, the document being cor-rected and any other applicable supplementaldeclarations, supplemental plats or amend-ments to the documents;

(c) A statement of the purpose of thecorrection; and

(d) A reference to this section.(4) The board of directors may adopt a

correction amendment under this section af-ter giving notice as provided in subsection

(8) of this section. No action by the unitowners is required.

(5) The declarant of the condominiummay unilaterally adopt a correction amend-ment under this section to:

(a) A document or an amendment to adocument, before the conveyance of the firstunit in the condominium.

(b) A supplemental declaration or anamendment to the supplemental declaration,before conveyance of the first unit createdby the supplemental declaration.

(6) A correction amendment under thissection is not effective unless:

(a) The amendment is approved by theReal Estate Commissioner under ORS100.110 and, to the extent required, ORS100.410, the county assessor in accordancewith ORS 100.110 and, if required, the countytax collector;

(b) The amendment is certified by thechairperson and secretary of the associationof unit owners as being adopted in accor-dance with subsection (4) of this section oris certified by the declarant under subsection(5) of this section and acknowledged in themanner provided for acknowledgement ofdeeds; and

(c) Is recorded.(7) A correction amendment that corrects

the boundary of a unit, common element,variable property or other property interestconstitutes a conveyance to the extent nec-essary to effectuate the correction.

(8)(a) Except for a correction amendmentadopted by a declarant under subsection (5)of this section, the notice of any meeting ofthe board of directors at which the board in-tends to consider adoption of a correctionamendment under this section must:

(A) State that the board intends to con-sider the adoption of a correction amend-ment.

(B) Specify the document to be corrected.(C) Include a description of the nature of

the correction.(b) At least three days before the meeting

of the board of directors, a notice of themeeting must be given to all owners in themanner described in ORS 100.420 (4).

(9) The owner of a unit materially af-fected by the correction must be given noticeof the meeting of the board of directors un-der subsection (8) of this section in the man-ner required under ORS 100.407 (4).

(10) The board of directors shall providea copy of the recorded correction amendmentand any plat amendment by correction or byaffidavit of correction under ORS 100.118 re-corded concurrently with the correction

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100.118 PROPERTY RIGHTS AND TRANSACTIONS

amendment to any owner described undersubsection (9) of this section and to anyowner if the correction changes that owner’s:

(a) Allocation of voting rights;(b) Liability for common expenses that

changes the amount of any assessment; or(c) Allocation of interest in the common

elements. [2009 c.641 §43a; 2011 c.532 §19]Note: 100.117 and 100.118 were enacted into law by

the Legislative Assembly but were not added to or madea part of ORS chapter 100 or any series therein by leg-islative action. See Preface to Oregon Revised Statutesfor further explanation.

100.118 Correction amendment to con-dominium plat; fees. (1) Unless the contextrequires otherwise, as used in this section“plat” means:

(a) A plat recorded under ORS 100.115.(b) Floor plans made part of a plat that

was recorded before October 15, 1983.(c) A supplemental plat recorded under

ORS 100.115.(d) A plat amendment recorded under

ORS 100.116.(2) Notwithstanding a provision in a doc-

ument of a condominium or this chapter, aplat may be corrected by a plat amendmentunder ORS 100.116 as provided in subsection(3) of this section or by an affidavit of cor-rection as provided in subsection (4) of thissubsection.

(3) Except as provided in subsection (4)of this section, a correction to a plat mustbe made by a plat amendment in accordancewith ORS 100.116. The plat amendment bycorrection may:

(a) Conform the designation, depiction orboundaries of a unit, common elements orvariable property on the plat to the physicallocation or actual dimensions of the unit,common elements or variable property.

(b) Correct a mathematical mistake.(c) Correct the designation of a unit or

limited common element.(d) Make any other correction permitted

under ORS 100.117.(4) An affidavit of correction may correct

a plat to:(a) Show any courses or distances omit-

ted from the plat.(b) Correct an error in any courses or

distances shown on the plat.(c) Correct an error in the description of

the real property shown on the plat.(d) Correct any other errors or omissions

when the error or omission is ascertainablefrom the data shown on the plat.

(e) Correct any other errors or omissionson the plat determined by the county sur-veyor.

(5) Nothing in subsection (4) of this sec-tion may be construed to permit changes incourses or distances for the purpose of rede-signing unit, common element or variableproperty configurations by affidavit of cor-rection under this section.

(6) The affidavit of correction shall beprepared by the registered professional landsurveyor whose signature and seal are on theplat. In the event of the death, disability orretirement from practice of the surveyor, thecounty surveyor may prepare and record theaffidavit of correction.

(7) The affidavit of correction preparedunder subsection (6) of this section shall:

(a) Set forth in detail the correctionsmade; and

(b) Contain the seal and signature of theregistered professional land surveyor makingthe correction which shall be affixed to theaffidavit of correction.

(8) The affidavit of correction shall besubmitted to the county surveyor for exam-ination and a determination that:

(a) The changes shown on the affidavitof correction are permitted under subsection(4) of this section; and

(b) The affidavit of correction complieswith subsection (7) of this section.

(9) If the county surveyor determinesthat the affidavit of correction complies withsubsection (7) of this section, the countysurveyor shall sign a certification that theaffidavit of correction has been examined andcomplies with this section. The certificationshall be a part of or an attachment to theaffidavit of correction.

(10)(a) Before an affidavit of correction isrecorded, it must be approved by the RealEstate Commissioner. The affidavit of cor-rection shall be filed with the commissionerunder ORS 100.670.

(b) The commissioner shall approve theaffidavit of correction if it complies with thissection. The approval shall be evidenced byexecution of the affidavit of correction.

(11)(a) The surveyor who prepared theaffidavit of correction shall cause the affida-vit of correction to be recorded by the re-cording officer of the county where the plator supplemental plat is recorded.

(b) If a correction by an affidavit of cor-rection requires a correction amendment toa document under ORS 100.117, the affidavitof correction must be recorded concurrentlywith the correction amendment.

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CONDOMINIUMS 100.120

(12) The surveyor who prepared the affi-davit of correction shall cause a copy of therecorded affidavit of correction to be pro-vided to:

(a) The association of unit owners of thecondominium, at the address shown in theCondominium Information Report filed in ac-cordance with ORS 100.250 or such otheraddress of which the surveyor has know-ledge.

(b) The county surveyor, unless otherwisedirected by the county surveyor.

(c) The commissioner.(13)(a) Unless otherwise specified in the

affidavit of correction, after recording theaffidavit of correction, the county clerk shallreturn the affidavit of correction to thecounty surveyor.

(b) Upon receipt of the original recordedaffidavit of correction or a copy, the countysurveyor shall note the correction and therecorder’s filing information, with permanentink, upon any true and exact copies filed inaccordance with ORS 92.120 (3). The correc-tions and filing information shall be markedin such a manner so as not to obliterate anyportion of the plat.

(14) For recording the affidavit of cor-rection under subsection (11) of this section,the county clerk shall collect a fee as pro-vided in ORS 205.320. Corrections or changesare not allowed on the original plat once itis recorded.

(15) For performing the services de-scribed in this section, the county surveyorshall collect from the person submitting theaffidavit of correction a fee established bythe county governing body. [2009 c.641 §43b]

Note: See note under 100.117.

100.120 Supplemental declaration andplat required to annex additional prop-erty or reclassify variable property; ter-mination date. (1) To annex additionalproperty to the condominium or to reclassifyvariable property under ORS 100.125 or100.150, a supplemental declaration and asupplemental plat shall be executed, ap-proved and recorded by declarant at the timeof each annexation or reclassification. Thesupplemental plat shall comply with ORS100.115 and the supplemental declarationsshall:

(a) Include a reference to recording indexnumbers and date of recording of the initialdeclaration and bylaws.

(b) Be consistent with the provisions ofthe original declaration prepared pursuant toORS 100.105 and any prior recorded supple-mental declarations.

(c) Contain the information required byORS 100.105 (1) insofar as that information

relates to the property being annexed or re-classified.

(d) State the allocation of undivided in-terest in the common elements of each unitpreviously submitted to the provisions of thischapter upon the creation or annexation ofthe additional property.

(e) If the stage being annexed containsany variable property, include the informa-tion required under ORS 100.105 (7) insofaras that information relates to the propertybeing annexed. The termination date shallbe consistent with the information includedin the declaration in accordance with ORS100.105 (2)(b) but may not exceed seven yearsfrom the recording of the conveyance of thefirst unit in the stage to a person other thanthe declarant. Recording shall be in thecounty in which the property is located.

(2) If the Condominium Information Re-port and the Annual Report described inORS 100.250 are designated current as pro-vided in ORS 100.255, all such supplementaldeclarations and plats shall be approved, ex-ecuted and recorded as provided in ORS100.100, 100.110 and 100.115. No unit beingannexed or created by a supplemental decla-ration shall be conveyed until after such re-cording.

(3) To withdraw all or a portion of vari-able property from a flexible condominiumpursuant to ORS 100.150 (1)(b), a supple-mental declaration and plat shall be recordedin accordance with subsection (2) of thissection. The supplemental plat shall complywith ORS 100.115 (2) and the supplementaldeclaration shall:

(a) Be consistent with the provisions ofthe declaration or supplemental declarationdrawn pursuant to ORS 100.105 (7).

(b) Include a metes and bounds legal de-scription of the variable property beingwithdrawn.

(c) Include a metes and bounds legal de-scription of the resulting boundaries of thecondominium after the withdrawal.

(d) State whether or not any variableproperty remains which may be reclassifiedor withdrawn from the condominium and, ifproperty may be withdrawn, include thestatement required under ORS 100.105 (7)(m).

(e) If any variable property is being re-designated as “nonwithdrawable variableproperty,” include the information requiredunder ORS 100.105 (7)(L).

(4) Except as provided in subsection (5)of this section, as to property submitted tounit ownership after October 4, 1977, addi-tional units may not be added within prop-erty previously submitted to unit ownershipunless all unit owners consent to an amend-

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100.122 PROPERTY RIGHTS AND TRANSACTIONS

ment to the declaration, plat and any floorplans recorded pursuant to ORS 100.116 inorder to provide for such additional units.

(5) As to property submitted to unitownership before September 27, 1987, if thedeclaration provides that additional propertymay be annexed to the condominium, anysubsequent stage may contain variable prop-erty. The termination date may not be laterthan the earlier of:

(a) The date specified in the declarationunder ORS 100.105 (2)(b); or

(b) Seven years from the recording of theconveyance of the first unit in the condo-minium to a person other than the declarant.Recording shall be in the county in whichthe property is located. [Formerly 94.047; 1995 c.31§2; 1999 c.677 §43; 2001 c.756 §29; 2009 c.641 §44]

100.122 Declaration prevails over in-consistent provisions of bylaws or arti-cles of incorporation. In the event of aconflict between the declaration and the by-laws or between the declaration and any ar-ticles of incorporation, the declaration shallprevail except to the extent the declarationis inconsistent with ORS 100.005 to 100.910.[1999 c.677 §62]

Note: 100.122 was added to and made a part ofORS chapter 100 by legislative action but was not addedto any smaller series therein. See Preface to OregonRevised Statutes for further explanation.

100.123 Authority to amend declara-tion or bylaws to comply with federal orstate law. (1) A declarant may amend thedeclaration or bylaws in order to complywith requirements of the Federal HousingAdministration, the United States Depart-ment of Veterans Affairs, Rural Developmentor the Farm Service Agency of the UnitedStates Department of Agriculture, the Fed-eral National Mortgage Association, theGovernment National Mortgage Association,the Federal Home Loan Mortgage Corpo-ration, any department, bureau, board, com-mission or agency of the United States or theState of Oregon or any corporation whollyowned, directly or indirectly, by the UnitedStates or the State of Oregon that insures,guarantees or provides financing for a con-dominium or units in a condominium.

(2) If the need to amend the declarationor the bylaws occurs after turnover to theassociation of unit owners has occurred, theamendment must be approved by the associ-ation in accordance with the approval pro-visions of the declaration or bylaws and thischapter. [2007 c.410 §4]

Note: 100.123 was added to and made a part ofORS chapter 100 by legislative action but was not addedto any smaller series therein. See Preface to OregonRevised Statutes for further explanation.

100.125 Annexation of additional prop-erty; requirements. Subject to ORS 100.120(4), if the declaration complies with ORS100.105 (2), until the termination date, addi-tional property may be annexed to the con-dominium by the recording of a supplementaldeclaration and supplemental plat in accor-dance with ORS 100.115. [Formerly 94.048; 2001c.756 §30; 2009 c.641 §45]

100.130 Relocation of unit boundariesand common elements by amendment todeclaration. (1) Subject to any limitationscontained in the declaration, the boundariesbetween adjoining units, including any inter-vening common elements, may be relocatedor eliminated by an amendment to the decla-ration. The owners of the affected units shallsubmit to the board of directors of the asso-ciation a proposed amendment which shallidentify the units involved, state any reallo-cations of common element interest, votingrights, common expense liability and right tocommon profits and contain words of con-veyance. The board of directors shall approvethe amendment unless it determines within45 days that the reallocations are unreason-able or the relocation or elimination willimpair the structural integrity or mechanicalsystems of the condominium or lessen thesupport of any portion of the condominium.

(2) The board of directors of the associ-ation of unit owners may require the ownersof the affected units to submit an opinion ofa registered architect or registered profes-sional engineer that the proposed relocationor elimination will not impair the structuralintegrity or mechanical systems of the con-dominium or lessen the support of any por-tion of the condominium.

(3) The board of directors of the associ-ation or any agent appointed by the board ofdirectors may supervise the work necessaryto effect the boundary relocation or elimi-nation.

(4) Any expenses incurred under subsec-tions (2) and (3) of this section shall becharged to the owners of the units request-ing the boundary relocation or elimination.

(5) The amendment shall be executed bythe owners and mortgagees or trust deedbeneficiaries of the affected units, certifiedby the chairperson and secretary of the as-sociation and approved and recorded in ac-cordance with ORS 100.135 (2)(b).

(6) An amendment to the plat and anyfloor plans necessary to show the alteredboundaries between the adjoining units shallbe recorded in accordance with ORS 100.116.[Formerly 94.053; 2003 c.569 §25; 2009 c.641 §46]

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CONDOMINIUMS 100.135

100.135 Amendments to declaration;requirements; procedure. (1) Unless other-wise provided in the declaration, an amend-ment to the declaration may be proposed bya majority of the board of directors of theassociation of unit owners or by at least 30percent of the unit owners.

(2) Except as otherwise provided in ORS100.005 to 100.625, an amendment of the dec-laration is not effective unless:

(a) The amendment is approved by theunit owners as provided in this section andthe Real Estate Commissioner and countyassessor according to ORS 100.110; and

(b) The amendment, certified by thechairperson and secretary of the associationof unit owners as being adopted in accor-dance with the declaration and the pro-visions of this section and acknowledged inthe manner provided for acknowledgment ofdeeds, is recorded notwithstanding a pro-vision in a declaration, including a declara-tion recorded before January 1, 2002, thatrequires amendments to be executed and ac-knowledged by all owners approving theamendment.

(3) Except as otherwise provided in ORS100.105 or 100.130 or this section, the decla-ration may be amended only with the ap-proval of at least 75 percent of owners, orsuch greater percentage as may be requiredby the declaration.

(4) Unless the declaration requires agreater percentage:

(a) The declaration and plat may beamended to change a general common ele-ment to a limited common element or changethe boundary of a limited common elementwith the approval of at least 75 percent ofowners and approval of the owners of allunits to which the limited common elementappertains.

(b) The declaration may be amended tochange a limited common element, or portionthereof, to a general common element withthe approval of the owners of all units towhich the limited common elementappertains and the board of directors.

(5)(a)(A) Except as otherwise provided inORS 100.120, 100.130, 100.515, 100.600,100.605 and 100.625 and paragraph (b) of thissubsection or other provisions of the OregonCondominium Act, an amendment thatchanges the boundary of the property or aunit or creates an additional unit from com-mon elements shall be approved by all unitowners.

(B) The amendment constitutes a con-veyance and shall include words of convey-ance and, if an additional unit is createdfrom common elements, shall state the name

of the grantee and unit designation. If anadditional unit is created from common ele-ments, the association shall be named as theinitial grantee of the additional unit.

(C) In addition to the certification re-quired under subsection (2)(b) of this section,an amendment to the boundary of a unitshall also be executed by the owners of allaffected units.

(b) An amendment that adds propertyowned by the association to the condomin-ium as a common element constitutes a con-veyance and shall:

(A) Be approved by at least 75 percent ofowners;

(B) Contain words of conveyance;(C) Be executed by the chairperson and

secretary of the association on behalf of theunit owners and be certified in accordancewith subsection (2)(b) of this section; and

(D) Be accompanied by a plat amendmentin accordance with ORS 100.116.

(c) Nothing in paragraph (b) of this sub-section is intended to require property ac-quired or held by the association pursuant toORS 100.405 (4)(i) to be added to the condo-minium.

(6) Except as otherwise provided in ORS100.005 to 100.625, an amendment may notchange the allocation of undivided interest inthe common elements, the method of deter-mining liability for common expenses, themethod of determining the right to commonprofits or the method of determining votingrights of any unit unless such amendmenthas been approved by the owners of the af-fected units.

(7) The declaration may not be amendedto limit or diminish any right of a declarantreserved under ORS 100.105 (2) or (7) or anyother special declarant right without theconsent of the declarant. However, thedeclarant may waive the declarant’s right ofconsent.

(8) Nothing in this section shall affectany other approval that may be required bythe declaration, bylaws or other instrument.

(9) During a period of declarant controlreserved under ORS 100.200, voting on anamendment under this section must be with-out regard to any weighted vote or otherspecial voting allocation reserved by thedeclarant unless the declaration providesthat the declarant has the right to exercisethe voting rights with respect to specificallydescribed amendments. Nothing in this sub-section prohibits a declarant from reservingthe right that declarant’s consent is requiredfor an amendment during a period ofdeclarant control reserved in the declaration.

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100.140 PROPERTY RIGHTS AND TRANSACTIONS

(10) An amendment to a declaration or asupplemental declaration shall be conclu-sively presumed to have been regularlyadopted in compliance with all applicableprocedures relating to such amendment un-less an action is brought within one year af-ter the date such amendment was recordedor the face of the recorded amendment indi-cates that the amendment received the ap-proval of fewer votes than are required forsuch approval. However, nothing in this sub-section shall prevent the further amendmentof an amended declaration or plat in accor-dance with ORS 100.005 to 100.625.

(11)(a) The board of directors, by resolu-tion and without the further approval of theunit owners, may cause a restated declara-tion to be prepared and recorded to codifyindividual amendments that have beenadopted in accordance with this section.

(b) A declaration restated under thissubsection must:

(A) Include all previously adoptedamendments that are in effect and may notinclude any other changes except to correctscriveners’ errors or to conform format andstyle;

(B) Include a statement that the board ofdirectors has adopted a resolution in accor-dance with paragraph (a) of this subsectionand is causing the declaration to be restatedand recorded under this subsection;

(C) Include a reference to the recordingindex numbers and date of recording of theinitial declaration and all previously re-corded amendments that are in effect and arebeing codified;

(D) Include a certification by the chair-person and secretary of the association thatthe restated declaration includes all previ-ously adopted amendments that are in effect,that amendments were approved by thecounty assessor and tax collector if requiredunder ORS 100.110 and that no otherchanges were made except, if applicable, tocorrect scriveners’ errors or to conform for-mat and style;

(E) Be executed and acknowledged by thechairperson and secretary of the associationand recorded in the deed records of eachcounty in which the condominium is located;and

(F) Be approved by the commissioner,and by the county assessor and the tax col-lector under ORS 100.110 if the restated dec-laration includes any amendments requiredto be approved by the county assessor andthe tax collector under ORS 100.110 but notpreviously approved.

(c) The board of directors shall cause acopy of the recorded restated declaration, in-cluding the recording information, to be filed

with the commissioner. [Formerly 94.059; 1995 c.31§3; 1997 c.816 §6; 1999 c.677 §70; 2001 c.756 §31; 2003 c.569§26; 2009 c.641 §21]

100.140 Temporary relocation of float-ing structure; security interests upontermination of condominium. (1) A float-ing structure described in ORS 100.020(3)(b)(D) that constitutes part of a condomin-ium may be temporarily relocated for pur-poses of safety, renovation, repair orremodeling without affecting its status as acondominium or real property. However, ifthe floating structure is not returned to itsoriginal location within 18 months after therelocation, the condominium shall be termi-nated or, if there are remaining units, par-tially terminated pursuant to ORS 100.600and subsection (2) of this section.

(2) If the condominium is terminated, allsecurity interests affecting any interest inthe condominium shall continue to be con-sidered a security in real property after thetermination, notwithstanding that the float-ing structure portion of the condominiummay be physically moved from its permanentmoorage.

(3) When a floating structure has beenrelocated under subsection (1) of this section,the board of directors of the association shallgive written notice of the temporary locationof the structure to the county assessorwithin 10 days of the relocation. [1997 c.816 §18]

Note: 100.140 was added to and made a part ofORS chapter 100 by legislative action but was not addedto any smaller series therein. See Preface to OregonRevised Statutes for further explanation.

FLEXIBLE CONDOMINIUMS100.150 Declarant’s options until ter-

mination date. (1) With regard to a flexiblecondominium, before the termination date,and by recording a supplemental declarationand a supplemental plat in accordance withORS 100.115 and 100.120, the declarant may:

(a) Reclassify all or a portion of theproperty designated as variable in the decla-ration and on the plat, as one or more gen-eral common elements, limited commonelements, units or a combination of the ele-ments and units.

(b) Unless designated in the declarationor on the plat as nonwithdrawable property,withdraw all or a portion of the variableproperty from the condominium.

(2) Until variable property is withdrawnor reclassified as provided in subsection (1)of this section or under ORS 100.155 (1):

(a) The property shall be a distinct clas-sification of property and may not be a com-mon element or unit of the condominium.

(b) The property shall be considered aparcel of real property and shall be subject

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CONDOMINIUMS 100.155

to separate assessment and taxation by anytaxing unit in like manner as other parcelsof real property.

(c) Unless otherwise specifically providedin the declaration or supplemental declara-tion:

(A) The declarant shall be responsible forthe payment of all assessments, taxes andother expenses of the variable property. Ifthe declarant fails to pay any expenses ofany variable property designated as nonwith-drawable variable property, the board of di-rectors may elect to pay the expenses andassess the unit owners as a common expense.All costs incurred may be charged to thedeclarant.

(B) Ownership or occupancy of variableproperty shall not confer any right to use thecommon elements of the condominium.

(C) Ownership or occupancy of unitsshall not confer any right to use variableproperty.

(D) Variable property shall not be subjectto assessments for expenses of the condo-minium. [Formerly 94.021; 2001 c.756 §32]

100.155 Variable property; uses andrestrictions. (1) If by the termination datespecified in the declaration there is any re-maining variable property:

(a) Any property designated nonwith-drawable variable property becomes part ofthe common elements and any interest in theproperty held for security purposes is auto-matically extinguished by reclassification.

(b) Any property designated withdrawablevariable property shall be automaticallywithdrawn from the condominium as of thetermination date.

(c) Subject to paragraph (d) of this sub-section, the association may record in theoffice of the recording officer in the countyin which the condominium is located:

(A) For property reclassified under para-graph (a) of this subsection, a “Statement ofReclassification of Variable Property” statingthat the remaining nonwithdrawable variableproperty has been reclassified to common el-ements pursuant to paragraph (a) of thissubsection.

(B) For property withdrawn under para-graph (b) of this subsection, a “Statement ofWithdrawal of Variable Property from Con-dominium” stating that remaining withdraw-able variable property has been withdrawnfrom the condominium pursuant to paragraph(b) of this subsection.

(d) A statement described in paragraph(c) of this subsection shall:

(A) Include the name of the condomin-ium, a reference to the recording index

numbers and date of recording of the decla-ration, the plat creating the affected variableproperty and any applicable supplementaldeclaration.

(B) Include a description of the reclassi-fied or withdrawn variable property comply-ing with ORS 93.600.

(C) Be executed by the chairperson andsecretary of the association and acknowl-edged in the manner provided for acknowl-edgment of deeds.

(e) After recording a statement underparagraph (c) of this subsection, the associ-ation shall provide a copy of the recordedstatement to the county surveyor. The ori-ginal plat may not be changed or correctedafter it is recorded with the county clerk.

(2)(a) Unless expressly prohibited by thedeclaration, any variable property automat-ically withdrawn from the condominium un-der subsection (1)(b) of this section orvoluntarily withdrawn under ORS 100.150(1)(b) may be later annexed to the condomin-ium by the recording of a supplemental dec-laration and plat in accordance with ORS100.120 (2) if such action is first approved byat least 75 percent of all voting rights in themanner required for an amendment to thedeclaration.

(b) The supplemental declaration and platshall be executed by the chairperson andsecretary on behalf of the association andacknowledged in the manner provided foracknowledgment of deeds by such officers.Except for the termination date, the supple-mental declaration shall comply with ORS100.120 (1) and shall state that the annex-ation was approved by at least 75 percent ofall voting rights.

(3)(a) Unless expressly prohibited by thedeclaration and notwithstanding the termi-nation date, the association may, with re-spect to any variable property automaticallyreclassified, exercise any rights previouslyheld by the declarant. The exercise of anyright shall first be approved by at least amajority of all voting rights. All other ac-tions relating to such reclassified generalcommon elements shall be regulated andgoverned in like manner as other generalcommon elements of the condominium.

(b) If a supplemental declaration and platis required for any action, the plat shall beexecuted by the chairperson and secretary ofthe association and shall comply with therequirements of this chapter as to a supple-mental declaration and the recording ofplats.

(4) Title to any additional units createdunder subsection (3) of this section automat-ically vests in the association upon the re-cording of a supplemental declaration and

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100.170 PROPERTY RIGHTS AND TRANSACTIONS

plat. The board of directors acting on behalfof the association has the power to hold,convey, lease, encumber or otherwise dealwith a unit or any interest therein in likemanner as other property owned by the as-sociation.

(5) The county clerk may charge a fee forrecording a statement under this section ac-cording to provisions of ORS 205.320 (4).

(6) The county assessor shall cause theassessment and tax rolls to reflect the statusof any variable property affected by auto-matic property reclassification under subsec-tion (1)(a) of this section or automaticallywithdrawn under subsection (1)(b) of thissection. [Formerly 94.022; 2001 c.756 §33; 2009 c.641§22]

RIGHTS AND DUTIES OF DECLARANT100.170 Easement held by declarant.

Subject to the provisions of the declaration,a declarant has an easement through thecommon elements as may be reasonably nec-essary for the purpose of discharging anyobligation of the declarant or exercising anyspecial declarant right, whether arising un-der the provisions of this chapter or reservedin the declaration or bylaws. [Formerly 94.066]

100.175 Reserve account for maintain-ing, repairing and replacing common ele-ments; reserve study; maintenance plan.(1) The declarant, on behalf of the associ-ation of unit owners, shall:

(a) Conduct an initial reserve study asdescribed in subsection (3) of this section;

(b) Prepare an initial maintenance planas described in subsection (4) of this section;and

(c) Establish a reserve account as pro-vided in subsection (2) of this section.

(2)(a) A reserve account shall be estab-lished to fund major maintenance, repair orreplacement of those common elements allor part of which will normally require majormaintenance, repair or replacement in morethan one and less than 30 years, for exteriorpainting if the common elements include ex-terior painted surfaces, and for such otheritems as may be required by the declarationor bylaws. The reserve account need not in-clude:

(A) Items that can reasonably be fundedfrom the general budget or other funds oraccounts of the association; or

(B) A reserve for limited common ele-ments for which maintenance and replace-ment are the responsibility of one or more,but less than all, unit owners under the pro-visions of the declaration or bylaws.

(b) The reserve account shall be estab-lished in the name of the association of unit

owners. The association is responsible foradministering the account and for makingperiodic payments into the account.

(c) The reserve portion of the initial as-sessment determined by the declarant shallbe based on:

(A) The reserve study described in sub-section (3) of this section;

(B) In the case of a conversion condo-minium, the statement described in ORS100.655 (1)(g); or

(C) Other reliable information.(d) The reserve account must be funded

by assessments against the individual unitsfor the purposes for which the reserve ac-count is established.

(e) The assessment under this subsectionaccrues from the time of the conveyance ofthe first individual unit assessed as providedin ORS 100.530.

(3)(a) The board of directors of the asso-ciation annually shall conduct a reservestudy or review and update an existing studyto determine the reserve account require-ments. Subject to subsection (10) of this sec-tion, after a review of the reserve study orthe reserve study update, the board may,without any action by the unit owners:

(A) Adjust the amount of payments inaccordance with the study or review; and

(B) Provide for other reserve items thatthe board of directors, in its discretion, maydeem appropriate.

(b) The reserve study shall:(A) Identify all items for which reserves

are or will be established;(B) Include the estimated remaining use-

ful life of each item as of the date of the re-serve study; and

(C) Include for each item, as applicable,an estimated cost of maintenance and repairand replacement at the end of the item’suseful life.

(4)(a) The board of directors shall preparea maintenance plan for the maintenance, re-pair and replacement of all property forwhich the association has maintenance, re-pair or replacement responsibility under thedeclaration or bylaws or this chapter. Themaintenance plan shall:

(A) Describe the maintenance, repair andreplacement to be conducted;

(B) Include a schedule for the mainte-nance, repair and replacement;

(C) Be appropriate for the size and com-plexity of the maintenance, repair and re-placement responsibility of the association;and

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CONDOMINIUMS 100.185

(D) Address issues that include but arenot limited to warranties and the useful lifeof the items for which the association hasmaintenance, repair or replacement responsi-bility.

(b) The board of directors shall reviewand update the maintenance plan describedunder this subsection as necessary.

(5)(a) Except as provided in paragraph (b)of this subsection, the reserve study require-ments under subsection (3) of this sectionand the maintenance plan requirements un-der subsection (4) of this section do not applyto a condominium consisting of one or twounits, excluding units used for parking, stor-age or other uses ancillary to a unit:

(A) After the sale of the first unit to aperson other than a successor declarant, ifthe condominium is created on or after Sep-tember 27, 2007; or

(B) If the condominium was created be-fore September 27, 2007, notwithstanding anyrequirement in the declaration or bylaws.

(b) The reserve study requirements undersubsection (3) of this section and the main-tenance plan requirements under subsection(4) of this section apply to a flexible condo-minium or a staged condominium created onor after September 27, 2007, if the condomin-ium might in the future consist of more thantwo units.

(6)(a) If the declaration or bylaws requirea reserve account, the reserve study require-ments of subsection (3) of this section andthe maintenance plan requirements of sub-section (4) of this section first apply to theassociation of a condominium recorded priorto October 23, 1999:

(A) Upon adoption of a resolution by theboard of directors in accordance with thebylaws providing that the requirements ofsubsections (3) and (4) of this section applyto the association; or

(B) Upon submission to the board of di-rectors of a petition signed by a majority ofunit owners mandating that the requirementsof subsections (3) and (4) of this section applyto the association.

(b) The reserve study and the mainte-nance plan shall be completed within oneyear of the date of adoption of the resolutionor submission of the petition to the board ofdirectors.

(7)(a) Except as provided in paragraph (b)of this subsection, the reserve account is tobe used only for the purposes for which re-serves have been established and is to bekept separate from other funds.

(b) After the individual unit owners haveassumed administrative responsibility for theassociation under ORS 100.210, if the board

of directors has adopted a resolution, whichmay be an annual continuing resolution, au-thorizing the borrowing of funds:

(A) The board of directors may borrowfunds from the reserve account to meet highseasonal demands on the regular operatingfunds or to meet unexpected increases in ex-penses.

(B) Not later than the adoption of thebudget for the following year, the board ofdirectors shall adopt by resolution a writtenpayment plan providing for repayment of theborrowed funds within a reasonable period.

(8) The reserve account is subject to therequirements and restrictions of ORS 100.480and any additional requirements or re-strictions imposed by the declaration, bylawsor rules of the association of unit owners.

(9) Assessments paid into the reserve ac-count are the property of the association ofunit owners and are not refundable to sellersof units.

(10)(a) Except as provided under para-graph (b) of this subsection, unless the boardof directors under subsection (3) of this sec-tion determines that the reserve account willbe adequately funded for the following year,the board of directors or the owners may notvote to eliminate funding a reserve accountrequired under this section or under thedeclaration or bylaws.

(b) Following the turnover meeting de-scribed in ORS 100.210, on an annual basis,the board of directors, with the approval ofall owners, may elect not to fund the reserveaccount for the following year. [Formerly 94.072;1997 c.816 §7; 1999 c.677 §44; 2001 c.756 §34; 2003 c.569§27; 2005 c.543 §2; 2007 c.409 §23; 2009 c.641 §23; 2011c.532 §7]

WARRANTIES ON NEW UNITS100.185 Express warranties; form; ex-

clusion of implied warranties; exemptionfor consumer products; claims. (1) Thedeclarant shall expressly warrant against de-fects in the plumbing, electrical, mechanical,structural, and all other components of thenewly constructed units and common ele-ments. Such warranty:

(a) Shall exist on a unit and the relatedlimited common elements for not less thanone year from the date of delivery of pos-session of that unit by the declarant to thefirst unit owner other than the declarant;

(b) Shall exist on the general commonelements for not less than one year from theinitial conveyance of title to a unit by thedeclarant to a unit owner other than thedeclarant, or, in the case of a staged or aflexible condominium, for not less than oneyear from such initial conveyance of title or

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100.200 PROPERTY RIGHTS AND TRANSACTIONS

completion of the construction of the specificgeneral common element, whichever is later;

(c) Shall be contained in the contract orother agreement to purchase;

(d) Shall be separate from, and in addi-tion to, any warranties provided by any otherperson;

(e) Shall be in lieu of any implied war-ranties by the declarant against defects inthe plumbing, electrical, mechanical, struc-tural or other components of any newly con-structed unit or common elements; and

(f) Shall name the association of unitowners as an express beneficiary with regardto general common elements.

(2) A written claim reasonably specifyinga breach of the warranty on the unit and therelated limited common elements must bedelivered to the declarant before the expira-tion of such warranty. A written claim rea-sonably specifying a breach of the warrantyon the general common elements must bedelivered to the declarant within two yearsof expiration of such warranty, but the claimmust be for a defect existing prior to the ex-piration of such warranty under this section.An action to enforce such warranty shall notbe commenced later than four years afterexpiration of such warranty.

(3) For the purposes of this section,“newly constructed units and common ele-ments” means:

(a) Units and related limited common el-ements:

(A) That have been substantially com-pleted for less than three years; and

(B) That have been occupied for less than12 months.

(b) General common elements:(A) That have been substantially com-

pleted for less than three years; and(B) That were constructed contempo-

raneously with units that have been occupiedfor less than 12 months.

(4) The warranty required under subsec-tion (1) of this section is not required forconsumer products as defined in 15 UnitedStates Code 2301 (1). [Formerly 94.017; 1999 c.677§45; 2001 c.756 §35]

DECLARANT CONTROL; TURNOVER100.200 Declarant control of associ-

ation. (1) Subject to subsection (2) of thissection, the declaration or bylaws may spe-cifically provide for a period of declarantcontrol of the association of unit owners,during which period a declarant or persondesignated by the declarant may appoint andremove officers and members of the board ofdirectors and exercise powers and responsi-

bilities otherwise assigned by the declara-tion, bylaws or the provisions of this chapterto the association, the officers or the boardof directors. No formal or written proxy orpower of attorney need be required of theunit owners to vest the declarant with suchauthority. Declarant control may be achievedby allocating in the declaration greater vot-ing rights to a unit owned by the declarant.

(2) The declaration or bylaws may notprovide for a period of administrative controlof the association of unit owners by thedeclarant for a period exceeding:

(a) In a single stage condominium theearlier of:

(A) Three years from the date the firstunit is conveyed; or

(B) The date of conveyance to personsother than the declarant of 75 percent of theunits.

(b) In a staged or flexible condominiumthe earlier of:

(A) Seven years from the date the firstunit is conveyed; or

(B) The date of conveyance to personsother than the declarant of 75 percent of theunits which may be created or annexed un-der ORS 100.125 or 100.150, whichever is ap-plicable.

(3) A declarant may voluntarily relin-quish any rights reserved in the declarationor bylaws under subsection (1) of this sec-tion.

(4) Upon the expiration of any period ofdeclarant control reserved in the declarationor bylaws under subsection (1) of this sec-tion, such right shall automatically pass tothe unit owners, including the declarant ifthe declarant then owns one or more unitsin the condominium.

(5) A declaration or bylaws may not beamended to increase the scope of any rightsreserved in the declaration or bylaws undersubsection (1) of this section without theconsent of all unit owners.

(6) The limitations specified in subsection(2) of this section shall not limit any rightreserved by the declarant under ORS 100.105(2) or (7), 100.125 or 100.150 or any otherspecial declarant right which does not relateto administrative control of the associationby the declarant including, but not limitedto, the right to require that the declarationor bylaws may not be amended without thedeclarant’s consent until a stated date, theexpiration of a stated number of years or theoccurrence of a stipulated event.

(7) The limitations of subsection (2) ofthis section do not apply to a condominiumor condominium units committed to a

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CONDOMINIUMS 100.210

timeshare plan as defined in ORS 94.803.[Formerly 94.078]

100.205 Transitional committee; noticeof meeting for formation. A transitionalcommittee shall be established as provided inthis section in a single stage condominiumconsisting of at least 20 units and in a stagedor flexible condominium if the number ofunits which the declarant may submit to theprovisions of this chapter under ORS 100.125or 100.150 totals at least 20.

(1) Unless the turnover meeting has beenheld, the declarant shall call a meeting ofthe unit owners for the purpose of forming atransitional committee in accordance withthe bylaws of the condominium. Thedeclarant shall call such meeting:

(a) In a single stage condominium, within60 days of conveyance to persons other thanthe declarant of 50 percent of the units.

(b) In a staged or flexible condominium,within 60 days of conveyance to personsother than the declarant of 50 percent of thetotal number of units which the declarantmay submit to the provisions of this chapterunder ORS 100.125 or 100.150.

(2) The transitional committee shall beadvisory only and shall consist of two ormore members selected by unit owners otherthan the declarant and may include not morethan one representative of the declarant. Themembers shall serve until the turnovermeeting. The function of the committee shallbe that of enabling ease of transition fromcontrol of the administration of the associ-ation of unit owners by the declarant tocontrol by the unit owners. The committeeshall have access to the information, docu-ments and records which the declarant mustturn over to the unit owners under ORS100.210 (5).

(3) The declarant shall give notice of themeeting required under subsection (1) of thissection in accordance with the bylaws of thecondominium to each unit owner at leastseven but not more than 50 days prior to themeeting. The notice shall state the purposeof the meeting and the time and place whereit is to be held.

(4) If the meeting required under subsec-tion (1) of this section is not called by thedeclarant within the time specified, themeeting may be called and notice given by aunit owner.

(5) If the owners other than the declarantdo not select members for the committee un-der subsection (2) of this section, thedeclarant shall have no further responsibilityto form the committee. [Formerly 94.084]

100.210 Turnover meeting; notice;transfer of control. (1) A turnover meetingshall be called by the declarant within 90days of the expiration of any period ofdeclarant control reserved in the declarationor bylaws under ORS 100.200. If no controlhas been reserved, the declarant shall callthe turnover meeting within 90 days of theearlier of:

(a) In a single stage condominium, threeyears from the date of conveyance of the firstunit to a person other than a successordeclarant or conveyance of 50 percent of theunits.

(b) In a staged or flexible condominium,seven years from the date of conveyance ofthe first unit to a person other than thedeclarant or conveyance to persons otherthan a successor declarant of 50 percent ofthe total number of units which thedeclarant may submit to the provisions ofthis chapter under ORS 100.125 or 100.150.

(2) The declarant shall give notice of theturnover meeting in accordance with the by-laws of the condominium to each unit ownerat least 10 but not more than 50 days priorto the meeting. The notice shall state thepurpose of the meeting and the time andplace where it is to be held.

(3) If the meeting required under subsec-tion (1) of this section is not called by thedeclarant within the time specified, themeeting may be called and notice given by aunit owner or any first mortgagee of a unit.

(4) At the turnover meeting:(a) The declarant shall relinquish control

of the administration of the association ofunit owners and the unit owners shall as-sume the control;

(b) If a quorum of the unit owners ispresent, the unit owners shall elect not fewerthan the number of directors sufficient toconstitute a quorum of the board of directorsin accordance with the declaration or bylawsof the condominium; and

(c) The declarant shall deliver to the as-sociation the items specified in subsection (5)of this section.

(5) At the turnover meeting the declarantshall deliver to the association all propertyof the unit owners and the association ofunit owners held or controlled by thedeclarant including, but not limited to, thefollowing items, if applicable:

(a) The original or a photocopy of therecorded declaration and bylaws of the con-dominium and any supplements and amend-ments thereto.

(b) A copy of the articles of incorpo-ration.

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100.210 PROPERTY RIGHTS AND TRANSACTIONS

(c) The minute books, including all min-utes, and other books and records of the as-sociation.

(d) The reserve study, the maintenanceplan and all updates described in ORS100.175 and other sources of information thatserve as a basis for calculating reserves inaccordance with ORS 100.175.

(e) Any rules and regulations which havebeen promulgated.

(f) Resignations of officers and membersof the board of directors who are required toresign because of the expiration of any pe-riod of declarant control reserved under ORS100.200.

(g) A financial statement. The financialstatement:

(A) Must consist of a balance sheet andan income and expense statement for thepreceding 12-month period or the period fol-lowing the recording of the declaration,whichever period is shorter.

(B) Must be reviewed, in accordance withthe Statements on Standards for Accountingand Review Services issued by the AmericanInstitute of Certified Public Accountants, byan independent certified public accountantlicensed in the State of Oregon if the annualassessments of an association of unit ownersexceed $75,000.

(h) Association funds or control thereof,including, but not limited to, funds for re-serve required under ORS 100.530 (3)(b) andany bank signature cards.

(i) All tangible personal property that isproperty of the association and an inventoryof such property.

(j) A copy of the following, if available:(A) The as-built architectural, structural,

engineering, mechanical, electrical andplumbing plans.

(B) The original specifications indicatingthereon all material changes.

(C) The plans for underground site ser-vice, site grading, drainage and landscapingtogether with cable television drawings.

(D) Any other plans and information rel-evant to future repair or maintenance of theproperty.

(k) Insurance policies.(L) Copies of any occupancy permits

which have been issued for the condominium.(m) Any other permits issued by govern-

mental bodies applicable to the condominiumin force or issued within one year prior tothe date the unit owners assume control ofthe administration of the association of unitowners.

(n) A list of the general contractor andthe subcontractors responsible for construc-tion or installation of the major plumbing,electrical, mechanical and structural compo-nents of the common elements.

(o) A roster of unit owners and their ad-dresses and telephone numbers, if known, asshown on the records of the declarant.

(p) Leases of the common elements andany other leases to which the association isa party.

(q) Employment or service contracts inwhich the association is one of the contract-ing parties or service contracts in which theassociation or the unit owners have an obli-gation or responsibility, directly or indi-rectly, to pay some or all of the fee or chargeof the person performing the service.

(r) Any other contracts to which the as-sociation of unit owners is a party.

(6) In order to facilitate an orderly tran-sition, during the three-month period follow-ing the turnover meeting, the declarant oran informed representative shall be availableto meet with the board of directors on atleast three mutually acceptable dates to re-view the documents delivered under subsec-tion (5) of this section.

(7) If the declarant has complied withthis section, unless the declarant otherwisehas sufficient voting rights as a unit ownerto control the association, the declarant isnot responsible for the failure of the unitowners to elect the number of directors suf-ficient to constitute a quorum of the boardof directors and assume control of the asso-ciation in accordance with subsection (4) ofthis section. The declarant shall be relievedof any further responsibility for the adminis-tration of the association except as a unitowner of any unsold unit.

(8) If the unit owners present do notconstitute a quorum or the unit owners failto elect the number of directors sufficient toconstitute a quorum of the board of directorsat the turnover meeting held in accordancewith subsection (1) of this section:

(a) At any time before the election of thenumber of directors sufficient to constitutea quorum, a unit owner or first mortgageeof a unit may call a special meeting for thepurpose of election of directors and shallgive notice of the meeting in accordancewith the notice requirements in the bylawsfor special meetings. The unit owners andfirst mortgagees present at the special meet-ing shall select a person to preside over themeeting.

(b) A unit owner or first mortgagee of aunit may request a court to appoint a re-ceiver as provided in ORS 100.418. [Formerly

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CONDOMINIUMS 100.225

94.091; 1999 c.677 §46; 2001 c.756 §36; 2003 c.803 §21; 2007c.409 §24]

SPECIAL DECLARANT RIGHTS100.220 Liabilities and obligations

arising from transfer of special declarantright; exemptions. (1) As used in this sec-tion, “affiliate” means any person who con-trols a transferor or successor declarant, iscontrolled by a transferor or successordeclarant or is under common control witha transferor or successor declarant. A person“controls” or “is controlled by” a transferoror successor declarant if the person:

(a) Is a general partner, officer, directoror employee;

(b) Directly or indirectly or acting inconcert with one or more other persons, orthrough one or more subsidiaries, owns, con-trols, holds with power to vote, or holdsproxies representing more than 20 percent ofthe voting interests of the transferor or suc-cessor declarant;

(c) Controls in any manner the electionof a majority of the directors; or

(d) Has contributed more than 20 percentof the capital of the transferor or successordeclarant.

(2) Upon the transfer of any specialdeclarant right, the liabilities and obligationsof a transferor are as follows:

(a) A transferor is not relieved of anyobligation or liability arising before thetransfer and remains liable for warranty ob-ligations imposed under ORS 100.185. Lackof privity does not deprive any unit ownerof standing to bring an action to enforce anyobligation of the transferor.

(b) If a transferor retains any specialdeclarant right, or if a successor declarant isan affiliate of the transferor, the transferoris subject to liability for all obligations andliabilities imposed on a declarant by the pro-visions of this chapter or by the declarationor bylaws arising after the transfer and isjointly and severally liable with the succes-sor declarant for the liabilities and obli-gations of the successor declarant that relateto the special declarant rights.

(c) A transferor who does not retain spe-cial declarant rights does not have an obli-gation or liability for an act or omission orfor a breach of a contractual or warrantyobligation arising from the exercise of a spe-cial declarant right by a successor declarantwho is not an affiliate of the transferor.

(3) Upon transfer of any special declarantright, the liabilities and obligations of a suc-cessor declarant are as follows:

(a) A successor declarant who is an affil-iate of the transferor is subject to all obli-

gations and liabilities imposed on a declarantby the provisions of this chapter or by thedeclaration or bylaws.

(b) A successor declarant who is not anaffiliate of the transferor is not liable for anymisrepresentations or warranties made orrequired to be made, including without limi-tation warranties required under ORS100.185, by the declarant or previous succes-sor declarant or for any breach of fiduciaryobligation by such person. Such a successordeclarant, however, shall:

(A) Comply with any provisions of thedeclaration and bylaws which pertain to suchsuccessor declarant’s ownership of the unitor units and the exercise of any specialdeclarant right;

(B) Comply with the provisions of ORS100.015 and 100.635 to 100.910 in connectionwith the sale of any unit or units, except asprovided in ORS 100.665; and

(C) Give the warranties described in ORS100.185 only with respect to common ele-ments or units constructed by the successordeclarant. [Formerly 94.097; 2011 c.532 §8]

100.225 Acquisition of specialdeclarant rights by successor declarant;exceptions. (1) Except as otherwise providedin subsections (2) and (3) of this section, adeveloper, vendor under a land sale contract,mortgagee of a mortgage or beneficiary of atrust deed affecting the declarant’s interestin the property shall acquire all specialdeclarant rights of the transferor upontransfer by the declarant or prior successordeclarant of all of such transferor’s interestin the condominium, unless:

(a) The conveyance evidences an intentnot to transfer any special declarant rights;

(b) An instrument executed by the trans-feror and the transferee evidences an intentnot to transfer any special declarant rightsand is recorded in the office of the recordingofficer of every county in which the propertyis located; or

(c) The transferee executes an instrumentdisclaiming any right to exercise any specialdeclarant rights and such instrument is re-corded in the office of the recording officerof every county in which the property is lo-cated.

(2) A transferee under subsection (1) ofthis section shall acquire less than all spe-cial declarant rights if:

(a) The conveyance from the transferoror an instrument executed by the transferorand the transferee evidences an intent totransfer less than all special declarant rightsand states the specific right being trans-ferred, and such instrument is recorded in

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the office of the recording officer of everycounty in which the property is located; or

(b) The transferee executes an instru-ment disclaiming specific special declarantrights and the instrument is recorded in theoffice of the recording officer of every countyin which the property is located.

(3) When a transferee acquires all of thedeclarant’s interest in a condominium inwhich the declarant has reserved the rightto add additional stages under ORS 100.125,the transferee shall not acquire the right toannex additional stages to the condominiumunless the transferee simultaneously acquiresfrom the declarant property adjacent to thecondominium which is entitled to be annexedto the condominium, or unless the convey-ance evidences an intent to transfer suchright to the transferee.

(4) A declarant or a successor declarantmay transfer all or less than all of thetransferor’s special declarant rights to atransferee, whether or not any interest inreal property is conveyed, by an instrumentexecuted by the declarant or successordeclarant and the transferee evidencing anintent to transfer all or specific specialdeclarant rights, which instrument shall berecorded in the office of the recording officerof every county in which the property is lo-cated. If the transfer is not subject to sub-section (1) of this section, it shall also bearthe written consent of any holder of a blan-ket encumbrance on the condominium.[Formerly 94.103]

DOCUMENT FILING100.250 Documents required to be filed

with Real Estate Agency; fees. (1) Thefollowing shall be delivered to the Real Es-tate Agency for filing on behalf of the asso-ciation in accordance with ORS 100.260 (5):

(a) A Condominium Information Reportdescribed in ORS 100.260 (1) by the declarantnot later than 90 days after the declarationis recorded under ORS 100.100 or by theboard of directors if required under ORS100.275.

(b) The Annual Report described in ORS100.260 (2) by the declarant until the turn-over meeting and the board of directorsthereafter every year not later than the re-port date which shall be the anniversary dateof filing the Condominium Information Re-port.

(c) An amendment to the reports requiredunder this subsection by the declarant untilthe turnover meeting and the board of direc-tors thereafter, within 30 days after there isa change in the information contained in areport.

(2) The Real Estate Agency shall collectthe following fees for the documents deliv-ered for filing:__________________________________________

Document Fee(a) Condominium Information

Report $100(b) Annual Report $ 25(c) Amendment $ 75(d) Application for

Termination Statement $ 75(e) Statement of Resignation $ 75

__________________________________________

(3) Any fee paid under subsection (2) ofthis section or ORS 100.275 may be a com-mon expense of the condominium. [1989 c.595§38; 1991 c.132 §13; 1995 c.31 §4; 2001 c.756 §37]

Note: 100.250 to 100.290 were added to and made apart of ORS 100.005 to 100.910 by legislative action butwere not added to any smaller series therein. See Pre-face to Oregon Revised Statutes for further explanation.

100.255 Processing of documents filedwith Real Estate Agency; procedures. (1)If after review the Real Estate Agency de-termines that a report or amendment sub-mitted for filing under ORS 100.250 (1)satisfies the requirements of ORS 100.260,and all fees have been paid, the Real EstateAgency shall file the document and designatethe filing “current.”

(2) The Real Estate Agency files a docu-ment by indicating thereon that it has beenfiled by the Real Estate Agency and the dateof filing. The time of filing shall be consid-ered to be 12:01 a.m. on that date. After fil-ing a document, the Real Estate Agencyshall return a copy to the association.

(3) If the Real Estate Agency refuses tofile a document, the Real Estate Agencyshall return it to the association within 10business days after the document was re-ceived by the Real Estate Agency, togetherwith a brief written explanation of the rea-son or reasons for the refusal.

(4) The Real Estate Agency’s duty to filedocuments under this section and ORS100.250 is ministerial. The Real EstateAgency is not required to verify or inquireinto the legality or truth of any matter in-cluded in any document delivered to the RealEstate Agency for filing. The Real EstateAgency’s filing or refusing to file a documentdoes not:

(a) Affect the validity or invalidity of thedocument in whole or in part; or

(b) Relate to the correctness or incor-rectness of information contained in the doc-ument.

(5) The Real Estate Agency’s refusal tofile a document does not create a presump-tion that the document is invalid or that in-

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formation contained in the document isincorrect.

(6) If the Real Estate Agency refuses tofile a document delivered to the Real EstateAgency for filing, the association, in additionto any other legal remedy which may beavailable, shall have the right to appeal fromsuch final order pursuant to the provisionsof ORS 183.484. [1989 c.595 §39; 1995 c.31 §5]

Note: See note under 100.250.

100.260 Condominium Information andAnnual Reports; contents; fees. (1) TheCondominium Information Report requiredunder ORS 100.250 (1)(a) shall set forth:

(a) The name of the association;(b) The name of the condominium and the

county in which the condominium is located;(c) The mailing address, including the

street and number, if any, and county of theassociation;

(d) The date the condominium declarationwas recorded and the recording index num-bers;

(e) The name and residence or businessaddress, including the street and number, ofthe person designated as agent to receiveservice of process in cases provided in ORS100.550 (1) and any other legal proceedingrelating to the condominium or association;and

(f) The number and type of units as fol-lows:

No. Living UnitsNo. Commercial/Office UnitsNo. Other (describe)

(2) The Annual Report required underORS 100.250 (1)(b) shall set forth:

(a) The information required under sub-section (1)(a), (b), (c) and (e) of this section;

(b) The names and addresses of thechairperson and secretary of the association;and

(c) If the designated agent is changed, astatement that the new agent has consentedto the appointment.

(3) The amendment required under ORS100.250 (1)(c) shall set forth:

(a) The name of the association as shownon the current records of the Real EstateAgency;

(b) The name of the condominium andcounty in which the condominium is located;

(c) A statement of the information aschanged; and

(d) If the current designated agent is tobe changed, the name of the new designatedagent and residence or business address, in-cluding the street and number, and a state-

ment that the new agent has consented tothe appointment.

(4) The filing by the Real Estate Agencyof an amendment which changes the desig-nated agent shall terminate the existing des-ignated agent on the effective date of thefiling and establish the newly appointed des-ignated agent as that of the association.

(5) The reports and amendment describedin this section and an application for termi-nation described in ORS 100.280 shall bemade on forms prescribed and furnished bythe Real Estate Agency and must be accom-panied by the correct filing fee and shall:

(a) Contain information current as of 30days before delivery for filing;

(b) Be executed by the designated agentand until the turnover meeting by thedeclarant and thereafter by the chairpersonor secretary of the association;

(c) State beneath or opposite the signa-ture the name of the person and the capacityin which the person signs; and

(d) Contain any additional identifying in-formation that the Real Estate Agency mayrequire by rule. [1989 c.595 §40; 1995 c.31 §6; 2001c.756 §38]

Note: See note under 100.250.

100.265 Annual Report; notification;filing. (1) Not less than 30 days before thereport date, the Real Estate Agency shallmail the Annual Report form described inORS 100.260 (2) to the association at themailing address shown for the association inthe current records of the office and shallindicate the date by which the report is due.Failure of the association to receive the An-nual Report form from the Real EstateAgency shall not relieve the association ofits duty to deliver for filing to the office asrequired under ORS 100.250 (1)(c).

(2) After the report date, if no AnnualReport has been delivered for filing, the RealEstate Agency shall send to the designatedagent a notice of delinquency notifying theassociation that the filing shall be designated“delinquent” unless a report is filed within45 days after the mailing of such notice.

(3) When an association has been givena notice of delinquency in accordance withsubsection (2) of this section and failed tocorrect the delinquency within 45 days:

(a) The Real Estate Agency shall desig-nate the filing “delinquent.”

(b) If within 30 days after written noticehas been given to the association by the op-posing party in any suit or action to whichthe association is a party, the association hasnot complied with the filing requirements ofORS 100.250 (1), the association may notcontinue to prosecute or defend such suit or

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action until the filing is designated“current” as provided in ORS 100.255. A copyof such notice shall be delivered to the RealEstate Agency. The Real Estate Agencyshall retain such copy with the filing for theassociation for a period of not less than 12months. [1989 c.595 §41; 1995 c.31 §7]

Note: See note under 100.250.

100.275 Application of ORS 100.250 to100.280. (1) Subject to ORS 100.550 (3), ORS100.250 to 100.280, including the filing of aCondominium Information Report describedin ORS 100.260 (1), apply to property submit-ted to the provisions of this chapter beforeOctober 3, 1989, if:

(a) The board of directors of the associ-ation receives a written request to complywith such sections from at least one unitowner or holder of a first mortgage or deedof trust on a unit;

(b) The board of directors of the associ-ation adopts a resolution to comply withsuch sections in accordance with the bylaws;

(c) The association is a party to a suit oraction, the person designated in the declara-tion under ORS 100.105 (1)(L), the chairper-son or secretary receives written notice tocomply with such sections from any otherparty to such suit or action. A copy of thenotice shall be delivered to the Real EstateAgency. The Real Estate Agency shall pro-vide a copy of the filed report to the re-questing party and may charge theassociation a fee for cost of such action. Ifthe association fails to deliver for filing suchreport, the provisions of ORS 100.265 (3)shall apply; or

(d) A filing is required to comply withthe requirements of ORS 100.120, 100.135 or100.450.

(2) The Condominium Information Reportrequired under subsection (1) of this sectionshall be executed by the chairperson or sec-retary of the association and the designatedagent. [1989 c.595 §42; 1995 c.31 §8; 2001 c.756 §60; 2007c.410 §18]

Note: See note under 100.250.

100.280 Termination of filing Condo-minium Information Report. (1) An asso-ciation may apply to the Real Estate Agencyto terminate a filing under ORS 100.250 (1).The application shall satisfy the require-ments of ORS 100.260 (5) and set forth:

(a) The name of the association as shownon the current records of the Real EstateAgency;

(b) The name of the condominium andcounty in which the condominium is located;

(c) The name and residence or businessaddress, including the street and number, ofa designated agent to whom a person initiat-

ing any proceeding may direct service for aperiod of two years; and

(d) A commitment to notify the Real Es-tate Agency for a period of two years fromthe date of termination of any change of theperson or address stated in paragraph (c) ofthis subsection.

(2) A copy of the instrument of termi-nation, evidencing the recording index num-bers, recorded under ORS 100.600, shall bedelivered with the application.

(3) Upon filing by the Real EstateAgency of the application to terminate thefiling, the duty of the association to complywith ORS 100.250 (1) shall cease. [1989 c.595§43; 1995 c.31 §9]

Note: See note under 100.250.

100.285 Resignation of designatedagent; procedures; effective date. (1) Thedesignated agent of the association may re-sign as agent by delivering a signed state-ment of resignation to the Real EstateAgency together with the filing fee pre-scribed in ORS 100.250 and giving notice inthe form of a copy of the statement to theassociation. The statement shall include thename of the association and the name of thecondominium and the county in which thecondominium is located.

(2) Upon receipt of the statement of res-ignation in proper form and the correct fee,the Real Estate Agency shall file the resig-nation statement. The copy of the statementgiven under subsection (1) of this sectionshall be mailed to the association at themailing address shown for the association inthe current records of the office. For pur-poses of this subsection, written notice is ef-fective at the earliest of the following:

(a) When received;(b) Five days after its deposit in the

United States mail, as evidenced by thepostmark, if mailed postpaid and correctlyaddressed; or

(c) On the date shown on the return re-ceipt, if sent by registered or certified mail,return receipt requested and the receipt issigned by or on behalf of the addressee.

(3) The agency appointment is terminatedon the 31st day after the date on which thestatement of resignation was filed by theReal Estate Agency unless the associationsooner appoints a successor designated agentas provided in ORS 100.260 (4), thereby ter-minating the capacity of the prior agent.

(4) If by the 31st day after the date onwhich the statement of resignation was filedby the Real Estate Agency, the associationhas failed to submit for filing an amendmentappointing a designated agent, the Real Es-tate Agency shall designate the filing “delin-

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quent” and the provisions of ORS 100.265 (3)shall apply. [1989 c.595 §43a; 1993 c.190 §16; 1995 c.31§10]

Note: See note under 100.250.

100.290 Rules. The Real Estate Agencymay adopt rules as are necessary or properfor the administration of ORS 100.250 to100.280. [1989 c.595 §44; 1995 c.31 §11]

Note: See note under 100.250.

CONVERSION CONDOMINIUMS100.300 Inapplicability of ORS 100.301

to 100.320 to transient lodgings. ORS100.301 to 100.320 do not apply to unitsrented as transient lodgings at a hotel, motelor inn and do not apply to negotiations, ar-rangements or agreements for such transientoccupancy of the units. [Formerly 94.109]

100.301 Definitions for ORS 100.301 to100.320. As used in ORS 100.301 to 100.320,“dwelling unit” and “tenant” have the mean-ings given those terms in ORS 90.100. [2007c.410 §10]

100.305 Conversion condominium; no-tice. (1) A declarant of a conversion condo-minium shall give each of the existingtenants of any building which the declarantintends to submit to the provisions of thischapter notice of the conversion at least 120days before the conversion condominium issubmitted to the provisions of this chapter.Thereafter, until the property is submitted tothe provisions of this chapter, the declarantshall provide a copy of such notice to anynew tenant before the commencement of thetenancy. The notice of conversion shall:

(a) State that the declarant intends tocreate a conversion condominium and in-clude general information relating to the na-ture of condominium ownership.

(b) State that the notice does not consti-tute a notice to terminate the tenancy.

(c) State whether there will be a sub-stantial alteration of the physical layout ofthe unit.

(d) State whether the declarant intendsto offer the unit for sale and, if so:

(A) Set forth the rights of the tenant un-der ORS 100.310 (1) to (3), including the timeavailable for the declarant to make an offerto sell and for the tenant to respond;

(B) Set forth a good faith estimate of theapproximate price range for which the unitwill be offered for sale to the tenant underORS 100.310 (1) and (2);

(C) Set forth a good faith estimate of themonthly operational, maintenance and anyother common expenses or assessmentsappertaining to the unit;

(D) State that financial assistance forpurchasing the unit may be available from alocal governing body, the Housing and Com-munity Services Department or a regionalhousing center;

(E) Give contact information for the localregional housing center or, if no regionalhousing center exists, for the Housing andCommunity Services Department; and

(F) State that the landlord may not ter-minate the tenancy without cause if the ter-mination would take effect before the end ofthe 120-day period described in this subsec-tion or the 60-day period described in ORS100.310.

(e) Include information in substantiallythe following form:__________________________________________

NOTICE OF RENT INCREASE RESTRICTIONS

During the 120 days following the receiptof this notice, your landlord may increaseyour rent only as follows:

If your rental agreement says that yourrent will increase on a particular date andby a definite amount, the landlord may in-crease the rent as provided in your rentalagreement.

If your rental agreement allows rent in-creases but does not say that your rent willincrease on a particular date and by a defi-nite amount, the landlord may not increaseyour rent by a percentage that is more thanthe percentage increase in the general costof living. An increase in the general cost ofliving is measured by the percentage in-crease in the Portland-Salem Consumer PriceIndex for All Urban Consumers for All Itemsas reported by the United States Bureau ofLabor Statistics.__________________________________________

(f) Be hand delivered to the dwelling unitof the tenant or sent to the tenant at theaddress of the dwelling unit by certified mail,return receipt requested.

(2) A notice of conversion given undersubsection (1) of this section:

(a) Shall be for the sole purpose of pro-viding the tenant with general informationregarding the anticipated cost of acquisitionof the unit and estimated monthly expenses.

(b) Does not obligate the declarant tosubmit the property to the provisions of thischapter.

(c) Does not constitute an offer to sellthe unit to the tenant or an offer to sell ata particular price.

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100.310 PROPERTY RIGHTS AND TRANSACTIONS

(d) Is not a limitation on monthly com-mon expenses or assessments.

(3) The notice of conversion given undersubsection (1) of this section must be deliv-ered to the tenant at least 30 days prior tothe presentation of an offer to sell underORS 100.310 (1) and (2).

(4) The declarant shall send a copy of thenotice of conversion to the mayor of the cityin which the conversion condominium is lo-cated or, if the conversion condominium isnot located in a city, to the county commis-sion or county court.

(5) A notice of conversion that does notcontain the information required by subsec-tion (1)(a) to (e) of this section, or that is notsent to the mayor, county commission orcounty court as required by subsection (4) ofthis section, does not begin the 120-day pe-riod required by subsection (1) of this sec-tion. Notwithstanding any prior delivery ofa deficient notice of conversion, the 120-dayperiod required by subsection (1) of this sec-tion does not begin until the date a validnotice is delivered. A tenant, mayor, countycommission or county court entitled to no-tice may bring an action for injunctive reliefto prevent the conversion until the declaranthas complied with the notice requirement.

(6) The declaration may be recorded priorto the end of the 120-day period required un-der subsection (1) of this section with thewritten consent of all tenants who receivedthe notice of conversion less than 120 daysbefore the date of such consent.

(7) The requirement under subsection (1)of this section to provide a copy of the noticeof conversion to new tenants shall not ex-tend the 120-day period nor shall suchtenant’s consent be required to record thedeclaration prior to the end of the 120-dayperiod as provided for under subsection (6)of this section.

(8) A notice of conversion does not con-stitute a notice to terminate the tenancy.[Formerly 94.116; 2007 c.705 §1]

100.310 Rights of tenants in conver-sion. (1) Prior to the sale of any dwellingunit which is to be retained as a unit in theconversion condominium without substantialalteration in its physical layout, thedeclarant shall first offer to sell the respec-tive unit to the tenant who occupies theunit. The offer shall:

(a) Terminate 60 days after its receipt orupon written rejection of the offer by thetenant, whichever occurs earlier.

(b) Be accompanied by a copy of all ap-plicable disclosure statements issued by the

Real Estate Commissioner pursuant to ORS100.700.

(c) Not constitute a notice to terminatethe tenancy.

(2) The tenant’s dwelling unit may not beshown to any prospective purchasers of aconversion condominium unit without thetenant’s permission before the termination ofthe tenancy.

(3) The declarant shall not sell the unitto a person other than the tenant during the60 days following the termination of an offerto the tenant under subsections (1) and (2)of this section at a price or on terms morefavorable to the purchaser than the price orterms offered to the tenant.

(4) After the property has been submittedto the provisions of the Oregon Condomin-ium Act, the declarant, until a unit is offeredfor sale in accordance with subsections (1)and (2) of this section, shall notify in writingany prospective tenant, prior to the com-mencement of the tenancy, that the propertyhas been submitted to the provisions of theOregon Condominium Act and the rights ofa tenant under subsections (1) to (3) of thissection. [Formerly 94.122; 1997 c.816 §8]

100.315 Improvements in conversioncondominium during notice period. (1)The declarant may not begin improvementsor rehabilitation or cause improvements orrehabilitation to be undertaken in a conver-sion condominium unit without the tenant’spermission during the 120-day notice periodprescribed by ORS 100.305 (1).

(2) The declarant may begin improve-ments or rehabilitation or cause improve-ments or rehabilitation to be undertaken inthe general common elements during the120-day notice period. Improvements to orrehabilitation of general common elementsmay be conducted only between the hours of8 a.m. and 7 p.m. Unless the declarant andtenant agree otherwise, the declarant mustallow each tenant safe and ready ingress toand egress from the tenant’s dwelling unitduring the improvement or rehabilitationwork.

(3) A tenant may bring an action againsta declarant that violates subsection (2) ofthis section to recover the greater of actualdamages or the equivalent of one month’sdwelling unit rent. [Formerly 94.128; 2007 c.705 §2]

100.320 Authority of city or county torequire developer to pay tenant movingexpenses. A city or county may adopt anordinance that requires a declarant to paythe moving expense of a tenant vacating aconversion condominium unit. [Formerly 94.134]

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CONDOMINIUMS 100.405

ASSOCIATION OF UNIT OWNERS;MANAGEMENT OF PROPERTY;

ENCUMBRANCES; CONVEYANCES100.405 Association of unit owners;

powers; granting of interest in commonelements; dispute resolution. (1)(a) An as-sociation of unit owners shall be organizedto serve as a means through which the unitowners may take action with regard to theadministration, management and operationof the condominium.

(b) The association of a condominiumcreated on or after September 27, 2007, shallbe organized:

(A) As a corporation for profit or a non-profit corporation; or

(B) If the condominium consists of fouror fewer units, excluding units used forparking, storage or other use ancillary to aunit, as an unincorporated association, cor-poration for profit or a nonprofit corporation.

(c) If the association is incorporated, thename of the association shall include thecomplete name of the condominium.

(d) Notwithstanding a provision in thedeclaration or bylaws of a condominium cre-ated before September 27, 2007, that statesthat the association shall be unincorporatedor that requires approval of owners to incor-porate as a nonprofit corporation under ORSchapter 65, an unincorporated associationmay be incorporated as a nonprofit corpo-ration under ORS chapter 65 if the board ofdirectors adopts a resolution that states theassociation will be incorporated.

(e) A separate association is not createdwhen an unincorporated association formedunder this section is incorporated, reinstatedafter administrative dissolution under ORS60.654 or 65.654 or again incorporated fol-lowing dissolution. The association auto-matically continues and, without any furtheraction by incorporators, directors or officersthat may otherwise be required under Ore-gon corporation laws:

(A) The incorporated association has allof the property, powers and obligations of theassociation that existed immediately prior toincorporation in addition to the powers andobligations under Oregon corporation laws.

(B) The bylaws in effect immediatelyprior to incorporation or reinstatement con-stitute the bylaws of the incorporated asso-ciation.

(C) The members of the board of direc-tors and the officers continue to serve as di-rectors and officers.

(f) If an incorporated association is atany time dissolved, whether inadvertently ordeliberately:

(A) The association continues as an un-incorporated association under the samename.

(B) The unincorporated association hasall of the property, powers and obligationsof the incorporated association existing im-mediately prior to dissolution.

(C) The unincorporated association shallbe governed by the bylaws, and to the extentapplicable, the articles of incorporation ofthe incorporated association.

(D) The board of directors and the offi-cers serving immediately prior to the dissol-ution continue to serve as the directors andofficers of the unincorporated association.

(2) Membership in the association of unitowners shall be limited to unit owners.

(3) The affairs of the association shall begoverned by a board of directors as providedfor in the bylaws adopted under ORS 100.410.

(4) Subject to the provisions of thecondominium’s declaration and bylaws, andwhether or not the association is unincor-porated, the association may:

(a) Adopt and amend bylaws and rulesand regulations;

(b) Adopt and amend budgets for reven-ues, expenditures and reserves and levy andcollect assessments for common expensesfrom unit owners;

(c) Hire and terminate managing agentsand other employees, agents and independentcontractors;

(d) Defend against any claims, pro-ceedings or actions brought against it;

(e) Subject to subsection (11) of this sec-tion, initiate or intervene in litigation or ad-ministrative proceedings in its own name,and without joining the individual unit own-ers, in the following:

(A) Matters relating to the collection ofassessments and the enforcement of declara-tions and bylaws;

(B) Matters arising out of contracts towhich the association is a party;

(C) Actions seeking equitable or othernonmonetary relief regarding matters thataffect the common interests of the unit own-ers, including but not limited to the abate-ment of nuisance;

(D) Matters relating to or affecting com-mon elements, including but not limited toactions for damage, destruction, impairmentor loss of use of any common element;

(E) Matters relating to or affecting theunits or interests of unit owners includingbut not limited to damage, destruction, im-pairment or loss of use of a unit or portionthereof, if:

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(i) Resulting from a nuisance or a defectin or damage to a common element; or

(ii) Required to facilitate repair to anycommon element; and

(F) Any other matter to which the asso-ciation has standing under law or pursuantto the declaration, bylaws or any articles ofincorporation;

(f) Make contracts and incur liabilities;(g) Regulate the use, maintenance, repair,

replacement and modification of common el-ements;

(h) Cause additional improvement to bemade as a part of the common elements;

(i) Acquire by purchase, lease, devise, giftor voluntary grant real or personal propertyor any interest therein and take, hold, pos-sess and convey real or personal property orany interest therein;

(j) Impose and receive any payments, feesor charges for the use, rental or operationof the common elements;

(k) Impose charges for late payments ofassessments, attorney fees for collection ofassessments and, after giving written noticeand an opportunity to be heard, levy reason-able fines for violations of the declaration,bylaws and rules and regulations of the as-sociation, provided that the charge imposedor fine levied by the association is based:

(A) On a schedule contained in the dec-laration or bylaws, or an amendment to ei-ther that is delivered to each unit, mailed tothe mailing address of each unit or mailed tothe mailing addresses designated in writingby the owners; or

(B) On a resolution adopted by the boardof directors or the association that is deliv-ered to each unit, mailed to the mailing ad-dress of each unit or mailed to the mailingaddresses designated by the owners in writ-ing;

(L) Adopt rules regarding the terminationof utility services paid for out of assessmentsof the association and access to and use ofrecreational and service facilities availableto unit owners that must provide for writtennotice and an opportunity to be heard beforethe association may terminate the rights ofany owners to receive such benefits or ser-vices until the correction of any violationcovered by the rule has occurred;

(m) Impose reasonable charges for thepreparation and recordation of amendmentsto the declaration or statements of assess-ments;

(n) Assign its right to future income, in-cluding the right to receive common expenseassessments;

(o) Provide for the indemnification of itsofficers and executive board, as may be lim-ited by ORS 61.218 (3)(d) (1987 ReplacementPart), and maintain directors’ and officers’liability insurance;

(p) Exercise any other powers conferredby the declaration or bylaws;

(q) Exercise all other powers that may beexercised in this state by any such associ-ation; and

(r) Exercise any other powers determinedby the association to be necessary and properfor the governance and operation of the as-sociation.

(5) Subject to subsection (6) of this sec-tion, unless expressly limited or prohibitedby the declaration, the association has theauthority to grant, execute, acknowledge anddeliver on behalf of the unit owners leases,easements, rights of way, licenses and othersimilar interests affecting the general com-mon elements and consent to vacation ofroadways within and adjacent to the condo-minium.

(6)(a)(A) Except as provided in subpara-graph (B) of this paragraph, the granting ofa lease, easement, right of way, license orother similar interest pursuant to subsection(5) of this section shall be first approved byat least 75 percent of owners present at ameeting of the association or with the con-sent of at least 75 percent of all owners so-licited by any means the board of directorsdetermines is reasonable. If a meeting is heldto conduct the vote, the meeting notice mustinclude a statement that the approval of thegrant will be an item of business on theagenda of the meeting.

(B) Unless the declaration otherwise pro-vides:

(i) The granting of a lease, easement,right of way, license or other similar interestaffecting the general common elements for aterm of two years or less shall require theapproval of a majority of the board of direc-tors.

(ii) The granting of a lease, easement,right of way, license or other similar interestaffecting the general common elements for aterm of more than two years to a publicbody, as defined in ORS 174.109, or to a util-ity or a communications company for instal-lation and maintenance of power, gas,electric, water or other utility and commu-nication lines and services requires the ap-proval of a majority of the board of directors.

(iii) The granting of a lease, easement,license or other similar interest to an ownerfor the exclusive use of a part of the generalcommon elements to which the owner’s unitprovides primary access requires the ap-proval of a majority of the board of directors.

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CONDOMINIUMS 100.405

If the approval by the board of directors in-cludes the right of the owner to make im-provements to the general common elementsto which the owner is being granted exclu-sive use, ORS 100.535 applies to the generalcommon elements to the same extent thatORS 100.535 applies to a unit, including theright of the board under ORS 100.535 to re-quire an owner, at owner’s expense, to sub-mit an opinion of a registered architect orregistered professional engineer that theproposed improvement will not impair thestructural integrity or mechanical systemsof the condominium.

(b) Unless the declaration otherwise pro-vides, the consent to vacation of roadwayswithin and adjacent to the condominiummust be approved first by at least a majorityof unit owners present and voting at a meet-ing of the association or with consent of atleast a majority of all owners solicited byany means the board of directors determinesis reasonable. If a meeting is held to conductthe vote, the meeting notice must include astatement that the roadway vacation will bean item of business on the agenda of themeeting.

(7) The instrument granting an interestor consent pursuant to subsection (5) of thissection shall be executed by the chairpersonand secretary of the association and ac-knowledged in the manner provided for ac-knowledgment of such instruments by suchofficers and shall state that such grant orconsent was approved, if appropriate, by atleast the percent of owners required undersubsection (6) of this section.

(8)(a) Unless expressly prohibited by thedeclaration, any action permitted under sub-sections (5) and (6) of this section regardinga general common element may be takenwith respect to any limited common elementas provided in this subsection.

(b) Except as provided in paragraph (c)of this subsection, the easement, lease orother action under this section requires theapproval or consent of the owner of the unitto which the use of the limited common ele-ment is reserved and the holder of a firstmortgage or first trust deed affecting theunit. However, if the use of the limited com-mon element is reserved for five or moreunits:

(A) When the action is for more than twoyears, the owners of 75 percent of the unitsto which the use of the limited common ele-ment is reserved must approve or consent.

(B) When the action is for two years orless, the owners of a majority of the units towhich the use of the limited common elementis reserved must approve or consent.

(c) The instrument granting an interestor consent under this section must:

(A) Be executed by the chairperson andsecretary of the association and acknowl-edged in the manner provided for acknowl-edgment of the instruments by the officers.

(B) State that the grant or consent isgiven pursuant to this subsection.

(C) Include a certification by the chair-person and secretary that the action was ap-proved by the owners in accordance with thissubsection.

(9) Except as otherwise provided in theassociation’s declaration or bylaws, the boardof directors of the association may modify,close, remove, eliminate or discontinue theuse of a general common element facility orimprovement or portion of the common ele-ment landscaping, regardless of whether suchfacility, improvement or landscaping is men-tioned in the declaration or shown on theplat provided that:

(a) Nothing in this subsection shall beconstrued as limiting the authority of theboard of directors, in its discretion, to seekapproval of such modification, closure, re-moval, elimination or discontinuance by theunit owners; and

(b) Modification, closure, removal, elimi-nation or discontinuance other than on atemporary basis of any swimming pool, spaor recreation or community building must beapproved by at least a majority of the unitowners voting on such matter at a meetingor by written ballot held in accordance withthe declaration, bylaws or ORS 100.425.

(10)(a) A permit or authorization issuedby the board of directors pursuant to au-thority granted to the board under law, thedeclaration or the bylaws, may be recordedin the deed records of the county where thecondominium is located. An instrument re-corded under this subsection shall:

(A) Include the name of the condominiumand a reference to where the declaration andany applicable supplemental declarations arerecorded;

(B) Identify, by the designations stated inthe declaration or applicable supplementaldeclaration, all affected units and commonelements;

(C) Include such other information andsignatures as may be required by law, underthe declaration or bylaws or as the board ofdirectors may desire; and

(D) Be executed by the chairperson andsecretary of the association and acknowl-edged in the manner provided for acknowl-edgment of such instruments by the officers.

(b) The board of directors may record anamendment, modification, termination or

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100.407 PROPERTY RIGHTS AND TRANSACTIONS

other instrument relating to the permit orauthorization described in this subsection.Any such instrument shall include a refer-ence to the location of the recorded instru-ment and be executed by the chairperson andsecretary of the association and acknowl-edged in the manner provided for acknowl-edgment of such instruments.

(11)(a) Subject to paragraph (f) of thissubsection, before initiating litigation or anadministrative proceeding in which the asso-ciation and an owner have an adversarialrelationship, the party that intends to initi-ate litigation or an administrative proceedingshall offer to use any dispute resolution pro-gram available within the county in whichthe condominium is located that is in sub-stantial compliance with the standards andguidelines adopted under ORS 36.175. Thewritten offer must be hand-delivered ormailed by certified mail, return receipt re-quested, to the address, contained in the re-cords of the association, for the other party.

(b) If the party receiving the offer doesnot accept the offer within 10 days after re-ceipt by written notice hand-delivered ormailed by certified mail, return receipt re-quested, to the address, contained in the re-cords of the association, for the other party,the initiating party may commence the liti-gation or the administrative proceeding. Thenotice of acceptance of the offer to partic-ipate in the program must contain the name,address and telephone number of the bodyadministering the dispute resolution pro-gram.

(c) If a qualified dispute resolution pro-gram exists within the county in which thecondominium is located and an offer to usethe program is not made as required underparagraph (a) of this subsection, litigation oran administrative proceeding may be stayedfor 30 days upon a motion of the noninitiat-ing party. If the litigation or administrativeaction is stayed under this paragraph, bothparties shall participate in the dispute reso-lution process.

(d) Unless a stay has been granted underparagraph (c) of this subsection, if the dis-pute resolution process is not completedwithin 30 days after receipt of the initial of-fer, the initiating party may commence liti-gation or an administrative proceedingwithout regard to whether the dispute reso-lution is completed.

(e) Once made, the decision of the courtor administrative body arising from litigationor an administrative proceeding may not beset aside on the grounds that an offer to usea dispute resolution program was not made.

(f) The requirements of this subsectiondo not apply to circumstances in whichirreparable harm to a party will occur due to

delay or to litigation or an administrativeproceeding initiated to collect assessments,other than assessments attributable to fines.[Formerly 94.146; 1997 c.816 §9; 1999 c.677 §47; 2001 c.756§39; 2003 c.569 §28; 2007 c.410 §11; 2009 c.641 §24; 2011c.532 §9]

Note: Section 29, chapter 569, Oregon Laws 2003,provides:

Sec. 29. Unless the declaration of a condominiumrecorded before July 14, 2003, expressly limits or pro-hibits the authority of the association of unit owners togrant, execute, acknowledge and deliver on behalf of theunit owners leases, easements, rights of way, licensesand other similar interests affecting the general com-mon elements and consent to vacation of roadwayswithin and adjacent to the condominium pursuant toORS 100.405 (6) in effect at the time the declaration wasrecorded, the amendments to ORS 100.405 (6) by section28, chapter 569, Oregon Laws 2003, apply to the author-ity of the association of unit owners of a condominiumrecorded before July 14, 2003, except for the limitationor prohibition on the authority of the association underthis section. [2003 c.569 §29; 2007 c.410 §12]

100.407 Annual and special meetingsof association. (1) The association of unitowners shall hold at least one meeting of theowners each calendar year.

(2)(a) Special meetings of the associationmay be called by the chairperson of theboard of directors, by a majority of the boardof directors or by the chairperson or secre-tary upon receipt of a written request of apercentage of unit owners specified in thebylaws. However, the bylaws may not requirea percentage greater than 50 percent or lessthan 10 percent of the unit owners for thepurpose of calling a meeting.

(b) If the bylaws do not specify a per-centage of unit owners that may request thecalling of a special meeting, a special meet-ing shall be called if 30 percent or more ofthe unit owners make the request in writing.Notice of the special meeting shall be givenas specified in this section.

(3) If the unit owners request a specialmeeting under subsection (2) of this sectionand the notice is not given within 30 daysafter the date the written request is deliv-ered to the chairperson or the secretary, aunit owner who signed the request may setthe time and place of the meeting and givenotice as provided in subsection (4) of thissection.

(4)(a) Not less than 10 nor more than 50days before any meeting called under thissection, the secretary or other officer of theassociation specified in the bylaws shallcause the notice to be hand delivered ormailed to the mailing address of each unitowner or to the mailing address designatedin writing by the unit owner, and to allmortgagees that have requested the notice.

(b) The notice shall state the time andplace of the meeting and the items on theagenda, including the general nature of any

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CONDOMINIUMS 100.410

proposed amendment to the declaration orbylaws, any budget changes or any proposalto remove a director or officer of the associ-ation.

(c) Mortgagees may designate a repre-sentative to attend a meeting called underthis section. [1999 c.677 §59; 2003 c.569 §30; 2007 c.409§25]

Note: 100.407 and 100.408 were added to and madea part of ORS chapter 100 by legislative action but werenot added to any smaller series therein. See Preface toOregon Revised Statutes for further explanation.

100.408 Quorum for meeting of asso-ciation. (1) Unless the bylaws specify agreater percentage, a quorum for any meet-ing of the association of unit owners consistsof the number of persons who are entitled tocast 20 percent of the voting rights.

(2) If any meeting of the association ofunit owners cannot be organized because ofa lack of a quorum, the unit owners who arepresent, either in person or by proxy, mayadjourn the meeting from time to time untila quorum is present.

(3) Subject to subsection (4) of this sec-tion, the quorum for a meeting following ameeting adjourned for lack of a quorum isthe greater of:

(a) One-half of the quorum required inthe bylaws; or

(b) The number of persons who are enti-tled to cast 20 percent of the votes in theassociation of unit owners.

(4) The quorum is not reduced undersubsection (3) of this section unless:

(a) The meeting is adjourned to a datethat is at least 48 hours from the date theoriginal meeting was called; or

(b) The meeting notice specifies:(A) The quorum requirement will be re-

duced if the meeting cannot be organized be-cause of a lack of a quorum; and

(B) The reduced quorum requirement.(5) For the purpose of establishing a

quorum under this section, an individual whoholds a proxy and an absentee ballot, if ab-sentee ballots are permitted, counts as apresent owner. [1999 c.677 §60; 2007 c.409 §26; 2009c.641 §25; 2011 c.532 §10]

Note: See note under 100.407.

100.409 Rules of order. (1) Unless otherrules of order are required by the declarationor bylaws or by a resolution of the associ-ation or its board of directors, meetings ofthe association and the board of directorsshall be conducted according to the latestedition of Robert’s Rules of Order publishedby the Robert’s Rules Association.

(2) A decision of the association or theboard of directors may not be challenged be-cause the appropriate rules of order were not

used unless a person entitled to be heard wasdenied the right to be heard and raised anobjection at the meeting in which the rightto be heard was denied.

(3) A decision of the association and theboard of directors is deemed valid withoutregard to procedural errors related to therules of order one year after the decision ismade unless the error appears on the face ofa written instrument memorializing the deci-sion. [2001 c.756 §58; 2009 c.641 §26]

Note: 100.409 was added to and made a part ofORS chapter 100 by legislative action but was not addedto any smaller series therein. See Preface to OregonRevised Statutes for further explanation.

100.410 Adoption of bylaws; recording;amendment; approval by commissioner;fee. (1) The declarant shall adopt on behalfof the association of unit owners the initialbylaws that govern the administration of thecondominium. The bylaws shall be recordedsimultaneously with the declaration as anexhibit or as a separate instrument.

(2) Unless otherwise provided in the dec-laration or bylaws, amendments to the by-laws may be proposed by a majority of theboard of directors or by at least 30 percentof the owners.

(3) Subject to subsections (4) and (5) ofthis section and ORS 100.415 (1)(t), anamendment of the bylaws is not effective un-less the amendment is:

(a) Approved by at least a majority of theunit owners; and

(b) Certified by the chairperson and sec-retary of the association of unit owners asbeing adopted in accordance with the bylawsand the provisions of this section, acknowl-edged in the manner provided for acknowl-edgment of instruments and recorded.

(4) In condominiums that are exclusivelyresidential:

(a) The bylaws may not provide thatgreater than a majority of the unit owners isrequired to amend the bylaws except foramendments relating to age restrictions, petrestrictions, limitations on the number ofpersons who may occupy units and limita-tions on the rental or leasing of units.

(b) An amendment relating to a matterspecified in paragraph (a) of this subsectionis not effective unless approved by at least75 percent of the owners or a greater per-centage specified in the bylaws.

(5) The bylaws may not be amended tolimit or diminish any special declarant rightwithout the consent of the declarant. How-ever, the declarant may waive the declarant’sright of consent.

(6)(a) For five years after the recordingof the initial bylaws, before any amended by-

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100.412 PROPERTY RIGHTS AND TRANSACTIONS

law may be recorded, the amended bylawmust be approved by the Real Estate Com-missioner. The commissioner shall approvesuch amendment if the requirements of ORS100.415 and this section have been satisfied.

(b) The approval by the commissionerunder paragraph (a) of this subsection is notrequired for bylaws restated under subsec-tion (10) of this section unless the bylaws arerestated during the five-year period after therecording of the initial bylaws.

(c) If the amended bylaw approved by thecommissioner under this subsection is notrecorded as required in subsection (3) of thissection within one year from the date of ap-proval by the commissioner, the approvalautomatically expires and the amended bylawmust be resubmitted for approval as providedin this section. The commissioner’s approvalshall set forth the date on which the ap-proval expires.

(7) Before the commissioner approvesamended bylaws or restated bylaws underthis section, the person submitting theamended bylaws or restated bylaws shall payto the commissioner the fee provided by ORS100.670.

(8) Notwithstanding a provision in thebylaws, including bylaws adopted prior toJuly 14, 2003, that requires an amendment tobe executed, or executed and acknowledged,by all owners approving the amendment,amendments to the bylaws under this sectionbecome effective after approval by the own-ers if executed and certified on behalf of theassociation by the chairperson and secretaryin accordance with subsection (3)(b) of thissection.

(9) An amendment to the bylaws must beconclusively presumed to have been regularlyadopted in compliance with all applicableprocedures relating to the amendment unlessan action is brought within one year afterthe effective date of the amendment or theface of the amendment indicates that theamendment received the approval of fewervotes than required for the approval. Nothingin this subsection prevents the furtheramendment of an amended bylaw.

(10)(a) The board of directors, by resolu-tion and without the further approval of unitowners, may cause restated bylaws to beprepared and recorded to codify individualamendments that have been adopted in ac-cordance with this section.

(b) Bylaws restated under this subsectionmust:

(A) Include all previously adoptedamendments that are in effect, state that theamendments were approved by the commis-sioner as required under this section and

state that no other changes were made ex-cept, if applicable, to correct scriveners’ er-rors or to conform format and style;

(B) Include a statement that the board ofdirectors has adopted a resolution in accor-dance with paragraph (a) of this subsectionand is causing the bylaws to be restated andrecorded under this subsection;

(C) Include a reference to the recordingindex numbers and date of recording of theinitial bylaws and all previously recordedamendments that are in effect and are beingcodified;

(D) Include a certification by the chair-person and secretary of the association thatthe restated bylaws include all previouslyadopted amendments that are in effect, thatamendments were approved by the commis-sioner if required under this section and thatno other changes were made except, if appli-cable, to correct scriveners’ errors or toconform format and style;

(E) Be executed and acknowledged by thechairperson and secretary of the associationand recorded in the deed records of eachcounty in which the condominium is located;and

(F) If required under subsection (6) ofthis section, be approved by the commis-sioner.

(c) The board of directors shall cause acopy of the recorded restated bylaws, includ-ing the recording information, to be filedwith the commissioner. [Formerly 94.152; 2001c.756 §40; 2003 c.569 §31; 2005 c.22 §76; 2007 c.409 §34;2007 c.410 §13; 2009 c.641 §26a]

100.412 Annual budget; distribution ofbudget summary to owners. (1) The boardof directors at least annually shall adopt abudget for the association of unit owners.

(2) The budget shall include moneys re-quired to be allocated to the reserve accountunder ORS 100.175.

(3) Within 30 days after adopting the an-nual budget for the association, the board ofdirectors shall provide a summary of thebudget to all owners.

(4) If the board of directors fails to adoptan annual budget, the last adopted budgetshall continue in effect. [1999 c.677 §58; 2007 c.409§26a]

Note: 100.412 was added to and made a part ofORS chapter 100 by legislative action but was not addedto any smaller series therein. See Preface to OregonRevised Statutes for further explanation.

100.415 Contents of bylaws. (1) The by-laws shall include a reference to the decla-ration to which the bylaws relate and shallprovide for:

(a) The organization of the association ofunit owners in accordance with ORS 100.405,

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CONDOMINIUMS 100.416

when the initial meeting shall be held andthe method of calling that meeting.

(b) If required under ORS 100.205, theformation of a transitional committee in ac-cordance with such section.

(c) The turnover meeting required underORS 100.210, including when the meetingshall be called, the method of calling themeeting, the right of a unit owner underORS 100.210 (3) to call the meeting and astatement of the purpose of the meeting.

(d)(A) The method of calling the annualmeeting and all other meetings of the unitowners in accordance with ORS 100.407; and

(B) The percentage of owners that con-stitutes a quorum under ORS 100.408.

(e)(A) The election of a board of directorsand the number of persons constituting theboard;

(B) The terms of office of directors;(C) The powers and duties of the board;(D) The compensation, if any, of the di-

rectors;(E) The method of removal from office of

directors; and(F) The method of filling vacancies on

the board.(f) The method of calling meetings of the

board of directors in accordance with ORS100.420 and a statement that all meetings ofthe board of directors of the association ofunit owners shall be open to unit owners.

(g) The election of a chairperson, a sec-retary, a treasurer and any other officers ofthe association.

(h) The preparation and adoption of abudget in accordance with ORS 100.412.

(i)(A) The maintenance, repair and re-placement of the common elements and asso-ciation property;

(B) Payment for the expense of mainte-nance, repair and replacement of commonelements and association property and otherexpenses of the condominium in accordancewith ORS 100.530; and

(C) The method of approving paymentvouchers.

(j) The employment of personnel neces-sary for the maintenance and repair of thecommon elements.

(k) The manner of collecting assessmentsfrom the unit owners.

(L) Insurance coverage in accordancewith ORS 100.435 and the responsibility forpayment of the amount of the deductible inan association insurance policy.

(m) The preparation and distribution ofthe annual financial statement in accordancewith ORS 100.480.

(n) The reserve account and the prepara-tion, review and update of the reserve studyand the maintenance plan required underORS 100.175.

(o) The filing of an Annual Report andany amendment with the Real Estate Agencyin accordance with ORS 100.250.

(p) The method of adopting and ofamending administrative rules and regu-lations governing the details of the operationof the condominium and use of the commonelements.

(q) Restrictions on and requirements re-specting the enjoyment and maintenance ofthe units and the common elements as aredesigned to prevent unreasonable interfer-ence with the use of their respective unitsand of the common elements by the severalunit owners.

(r) Any restrictions on use or occupancyof units. Any such restrictions created bydocuments other than the bylaws may be in-corporated by reference in the bylaws to theofficial records of the county in which theproperty is located.

(s) The method of amending the bylawsin accordance with ORS 100.410.

(t) Any other details regarding the prop-erty that the declarant considers desirable.However, if a provision required to be in thedeclaration under ORS 100.105 is included inthe bylaws, the voting requirements foramending the declaration shall also governthe amendment of the provision in the by-laws.

(u) In the event additional units are pro-posed to be annexed or created pursuant toORS 100.125 or 100.150, the method of ap-portioning common expenses in the eventnew units are added during the course of thefiscal year.

(2) The bylaws may provide that the re-sponsibility for payment of the amount of thedeductible may be prescribed by resolutionadopted by the board of directors. [Formerly94.158; 1995 c.31 §12; 1999 c.677 §48; 2001 c.756 §41; 2007c.409 §30; 2009 c.641 §27]

100.416 Criteria for board of directorsmembership. (1) Each member of the boardof directors of the association of unit ownersmust be an individual and, except as providedin subsections (2) and (3) of this section, anowner or co-owner of a unit in the condo-minium.

(2) A director appointed by a declarantunder ORS 100.200 need not be an owner orco-owner of a unit in the condominium.

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100.417 PROPERTY RIGHTS AND TRANSACTIONS

(3)(a) Except as otherwise provided in thebylaws, prior to election to the board of di-rectors, an individual described in this sub-section, upon request of the board, shallprovide the board with documentation satis-factory to the board that the individual isqualified to represent the entity or is a trus-tee or is serving in a fiduciary capacity forthe owner of a unit.

(b) If a corporation, limited liability com-pany or partnership owns a unit in the con-dominium or owns an interest in an entitythat owns a unit in the condominium, an of-ficer, employee or agent of a corporation, amember, manager, employee or agent of alimited liability company, or a partner, em-ployee or agent of a partnership may serveon the board of directors.

(c) A trustee may serve on the board ofdirectors if the trustee holds legal title to aunit in the condominium in trust for thebenefit of the owner of the beneficial interestin the unit.

(d) An executor, administrator, guardian,conservator, or other individual appointed bya court to serve in a fiduciary capacity foran owner of a unit, or an officer or employeeof an entity if the person appointed is anentity, may serve on the board of directors.

(4) The position of an individual servingon the board of directors under subsection (3)of this section automatically becomes vacantif the individual no longer meets the re-quirements of subsection (3) of this section.[2009 c.641 §18]

Note: 100.416 was added to and made a part ofORS chapter 100 by legislative action but was not addedto any smaller series therein. See Preface to OregonRevised Statutes for further explanation.

100.417 Board of directors of associ-ation; powers and duties. (1) The board ofdirectors of an association of unit ownersmay act on behalf of the association exceptas limited by the declaration or bylaws. Inthe performance of their duties, officers andmembers of the board of directors shall begoverned by this section and the applicableprovisions of ORS 65.357, 65.361, 65.367,65.369 and 65.377 whether or not the associ-ation is incorporated under ORS chapter 65.

(2) Subject to subsection (8) of this sec-tion, unless otherwise provided in the by-laws, the board of directors of an associationmay fill vacancies in its membership for theunexpired portion of any term.

(3) At least annually, the board of direc-tors of an association shall review the insur-ance coverage of the association.

(4) The board of directors of the associ-ation annually shall cause to be filed thenecessary income tax returns for the associ-ation.

(5) The board of directors of the associ-ation may record a statement of associationinformation as provided in ORS 94.667.

(6) The board of directors, in the nameof the association, shall maintain a currentmailing address.

(7) The board of directors shall cause tobe maintained and kept current the informa-tion required to enable the association tocomply with ORS 100.480 (11).

(8)(a) Unless otherwise provided in thedeclaration or bylaws, at a meeting of theunit owners at which a quorum is present,the unit owners may remove a director fromthe board of directors, other than directorsappointed by the declarant or individualswho are ex officio directors, with or withoutcause, by a majority vote of unit owners whoare present and entitled to vote.

(b) Notwithstanding contrary provisionsin the declaration or bylaws:

(A) Before a vote to remove a director,unit owners must give the director whoseremoval has been proposed an opportunity tobe heard at the meeting.

(B) The unit owners must vote on theremoval of each director whose removal isproposed as a separate question.

(C) Removal of a director by unit ownersis effective only if the matter of removal wasan item on the agenda and was stated in thenotice of the meeting required under ORS100.407.

(c) A director who is removed by the unitowners remains a director until a successoris elected by the unit owners or the vacancyis filled as provided in subsection (9) of thissection.

(9) Unless the declaration or bylaws spe-cifically prescribe a different procedure forfilling a vacancy created by the removal ofa director by unit owners, the unit ownersshall fill a vacancy created by the removalof a director by the unit owners at a meetingof unit owners. The notice of the meetingmust state that filling a vacancy is an itemon the agenda. [1999 c.677 §63; 2001 c.756 §42; 2003c.569 §32; 2009 c.641 §37; 2011 c.532 §11]

Note: 100.417 was added to and made a part ofORS chapter 100 by legislative action but was not addedto any smaller series therein. See Preface to OregonRevised Statutes for further explanation.

100.418 Receivership for failure of as-sociation to fill vacancies on board of di-rectors. (1) Subject to subsection (2) of thissection, if an association of unit owners failsto fill vacancies on the board of directorssufficient to constitute a quorum in accor-dance with the bylaws, a unit owner or afirst mortgagee of a unit may request thecircuit court of the county in which thecondominium is located to appoint a receiver

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CONDOMINIUMS 100.420

under ORCP 80 to manage the affairs of theassociation.

(2) At least 45 days before a unit owneror first mortgagee of a unit requests the cir-cuit court to appoint a receiver under sub-section (1) of this section, the unit owner orfirst mortgagee shall mail, by certified orregistered mail, a notice to the associationand shall post a copy of the notice at a con-spicuous place or places on the property orprovide notice by a method otherwise rea-sonably calculated to inform unit owners ofthe proposed action.

(3) The notice shall be signed by the unitowner or first mortgagee of the unit and in-clude:

(a) A description of the intended action.(b) A statement that the intended action

is pursuant to this section.(c) The date, not less than 30 days after

mailing of the notice, by which the associ-ation must fill vacancies on the board suffi-cient to constitute a quorum.

(d) A statement that if the associationfails to fill vacancies on the board by thespecified date, the unit owner or firstmortgagee may file a petition with the courtunder subsection (1) of this section.

(e) A statement that if a receiver is ap-pointed, all expenses of the receivership willbe common expenses of the association asprovided in subsection (4) of this section.

(4) If a receiver is appointed, the salaryof the receiver, court costs, attorney fees andall other expenses of the receivership shallbe common expenses of the association.

(5) A receiver appointed under this sec-tion has all of the powers and duties of aduly constituted board of directors and shallserve until a sufficient number of vacancieson the board are filled to constitute a quo-rum.

(6) If at a turnover meeting held in ac-cordance with ORS 100.210 the unit ownersfail to elect the number of directors suffi-cient to constitute a quorum of the board ofdirectors, in addition to the notice require-ments specified in subsections (2) and (3) ofthis section, a unit owner shall give the no-tice to all other unit owners as provided inthe bylaws.

(7) Notwithstanding subsections (2) and(3) of this section, in the case of an emer-gency, the court may waive the notice re-quirements of subsections (2) and (3) of thissection. [2007 c.409 §19]

Note: 100.418, 100.419 and 100.423 were added toand made a part of ORS chapter 100 by legislative ac-tion but were not added to any smaller series therein.See Preface to Oregon Revised Statutes for further ex-planation.

100.419 Assent of director to boardaction. (1) A director of an association ofunit owners who is present at a meeting ofthe board of directors at which action istaken on any association matter is presumedto have assented to the action unless the di-rector votes against the action or abstainsfrom voting on the action because the direc-tor claims a conflict of interest.

(2) When action is taken on any matterat a meeting of the board of directors, thevote or abstention of each director presentmust be recorded in the minutes of themeeting.

(3) Directors may not vote by proxy orby secret ballot at meetings of the board ofdirectors.

(4) Notwithstanding subsection (3) of thissection, officers may be elected by secretballot. [2007 c.409 §22]

Note: See note under 100.418.

100.420 Board meetings; executivesessions. (1)(a) All meetings of the board ofdirectors of the association of unit ownersshall be open to unit owners except that, inthe discretion of the board, the board mayclose the meeting to unit owners and meetin executive session to:

(A) Consult with legal counsel.(B) Consider the following:(i) Personnel matters, including salary

negotiations and employee discipline;(ii) Negotiation of contracts with third

parties; or(iii) Collection of unpaid assessments.(b) Except in the case of an emergency,

the board of directors of an association shallvote in an open meeting whether to meet inexecutive session. If the board of directorsvotes to meet in executive session, the pre-siding officer of the board of directors shallstate the general nature of the action to beconsidered, as precisely as possible, whenand under what circumstances the deliber-ations can be disclosed to owners. The state-ment, motion or decision to meet inexecutive session must be included in theminutes of the meeting.

(c) A contract or an action considered inexecutive session does not become effectiveunless the board of directors, following theexecutive session, reconvenes in open meet-ing and votes on the contract or action,which must be reasonably identified in theopen meeting and included in the minutes.

(2) The meeting and notice requirementsin this section may not be circumvented bychance or social meetings or by any othermeans.

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(3) Except as provided in subsection (4)of this section, board of directors’ meetingsmay be conducted by telephonic communica-tion or by the use of a means of communica-tion that allows all members of the board ofdirectors participating to hear each other si-multaneously or otherwise to be able tocommunicate during the meeting. A memberof the board of directors participating in ameeting by this means is deemed to be pres-ent in person at the meeting.

(4) In condominiums where the majorityof the units are the principal residences ofthe occupants, meetings of the board of di-rectors shall comply with the following:

(a) For other than emergency meetings,notice of board of directors’ meetings shallbe posted at a place or places on the prop-erty at least three days prior to the meetingor notice shall be provided by a method oth-erwise reasonably calculated to inform unitowners of such meetings.

(b) Only emergency meetings of the boardof directors may be conducted by telephoniccommunication or in a manner described insubsection (3) of this section.

(5) Subsection (4)(a) of this section firstapplies to property submitted to the pro-visions of this chapter prior to October 3,1979, upon receipt by the board of directorsof the association of unit owners of a writtenrequest from at least one unit owner thatnotice of board of directors meetings begiven in accordance with subsection (4)(a) ofthis section.

(6) As used in this section, “meeting”means a convening of a quorum of membersof the board of directors at which associationbusiness is discussed, except a convening ofa quorum of members of the board of direc-tors for the purpose of participating in liti-gation, mediation or arbitration proceedings.[Formerly 94.164; 1999 c.677 §49; 2001 c.756 §43; 2003 c.569§33; 2009 c.641 §28; 2011 c.532 §12]

100.423 Electronic notice to owner ordirector. (1) Subject to subsection (2) of thissection and notwithstanding any requirementunder the declaration or bylaws or thischapter, in the discretion of the board of di-rectors of the association of unit owners, anynotice, information or other written materialrequired to be given to a unit owner or di-rector under the declaration or bylaws orthis chapter, may be given by electronicmail, facsimile or other form of electroniccommunication acceptable to the board ofdirectors.

(2) Notwithstanding subsection (1) of thissection, electronic mail, facsimile or otherform of electronic communication may notbe used to give notice of:

(a) Failure to pay an assessment;

(b) Foreclosure of an association lien un-der ORS 100.450;

(c) An action the association may takeagainst a unit owner; or

(d) An offer to use the dispute resolutionprogram under ORS 100.405.

(3) A unit owner or director may declineto receive notice by electronic mail, facsimileor other form of electronic communicationand may direct the board of directors to pro-vide notice in the manner required under thedeclaration or bylaws or this chapter. [2007c.409 §20]

Note: See note under 100.418.

100.425 Use of written ballot for ap-proving or rejecting matters subject tomeeting of unit owners; procedures; ex-ceptions. (1) Unless prohibited or limited bythe declaration, articles of incorporation orbylaws, any action that may be taken at anyannual, regular or special meeting of the as-sociation of unit owners may be taken with-out a meeting if the association delivers awritten ballot to every association memberthat is entitled to vote on the matter. Actionby written ballot may not substitute for thefollowing meetings:

(a) The turnover meeting required underORS 100.210.

(b) The annual meeting of an associationif more than a majority of the units are theprincipal residences of the occupants.

(c) A meeting of the association if theagenda includes a proposal to remove a di-rector from the board of directors.

(d) A special meeting of the associationcalled at the request of unit owners underORS 100.407 (2).

(2)(a) A written ballot shall set fortheach proposed action and provide an oppor-tunity to vote for or against each proposedaction.

(b) The board of directors must provideowners with at least 10 days’ notice beforewritten ballots are mailed or otherwise de-livered. If, at least three days before writtenballots are scheduled to be mailed or other-wise distributed, at least 10 percent of theowners petition the board of directors re-questing secrecy procedures, subject to para-graph (d) of this subsection, a written ballotmust be accompanied by:

(A) A secrecy envelope;(B) A return identification envelope to be

signed by the owner; and(C) Instructions for marking and return-

ing the ballot.(c) The notice required under paragraph

(b) of this subsection shall state:

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(A) The general subject matter of thevote by written ballot;

(B) The right of owners to request se-crecy procedures specified in paragraph (b)of this subsection;

(C) The date after which ballots may bedistributed;

(D) The date and time by which any pe-tition requesting secrecy procedures must bereceived by the board; and

(E) The address where any petition mustbe delivered.

(d) The requirements of paragraph (b)(A)and (B) of this subsection do not apply to awritten ballot of a unit owner if the consentor approval of that unit owner is required bythe declaration or bylaws or this chapter.

(3) Matters that may be voted on bywritten ballot shall be deemed approved orrejected as follows:

(a) If approval of a proposed action oth-erwise would require a meeting at which acertain quorum must be present and atwhich a certain percentage of total votescast is required to authorize the action, theproposal shall be deemed to be approvedwhen the date for return of ballots haspassed, a quorum of unit owners has votedand the required percentage of approvingvotes has been received. Otherwise, the pro-posal shall be deemed to be rejected; and

(b) If approval of a proposed action oth-erwise would require a meeting at which aspecified percentage of unit owners must au-thorize the action, the proposal shall bedeemed to be approved when the percentageof total votes cast in favor of the proposalequals or exceeds the required percentage.The proposal shall be deemed to be rejectedwhen the number of votes cast in oppositionrenders approval impossible or when both thedate for return of ballots has passed and therequired percentage has not been met.

(4) All solicitations for votes by writtenballot shall state the following:

(a) If approval of a proposal by writtenballot requires that the total number of votescast equal or exceed a certain quorum re-quirement, the number of responses neededto meet the quorum requirement;

(b) If approval of a proposal by writtenballot requires that a certain percentage oftotal votes cast approve the proposal, the re-quired percentage of total votes needed forapproval; and

(c) The period during which the associ-ation will accept written ballots for countingin accordance with subsection (5) of thissection.

(5)(a) The association shall accept writ-ten ballots for counting during the periodspecified in the solicitation under subsection(4) of this section. Except as provided inparagraph (b) of this subsection, the periodshall end on the earliest of the followingdates:

(A) If approval of a proposed action bywritten ballot requires that a certain per-centage of the unit owners approve the pro-posal, the date on which the association hasreceived a sufficient number of approvingballots;

(B) If approval of a proposed action bywritten ballot requires that a certain per-centage of the unit owners approve the pro-posal, the date on which the association hasreceived a sufficient number of disapprovingballots to render approval impossible; or

(C) In all cases, a specified date certainon which all ballots must be returned to becounted.

(b) If the vote is by secrecy procedureunder subsection (2)(b) of this section, theperiod shall end on the date specified in thesolicitation or any extension under para-graph (c) of this subsection.

(c) Except as otherwise provided in thedeclaration, articles of incorporation or by-laws, in the discretion of the board of direc-tors, if a date certain is specified in thesolicitation under subsection (4) of this sec-tion, the period may be extended by writtennotice of the extension given to all unitowners before the end of the specified datecertain.

(6) Except as otherwise provided in thedeclaration, articles of incorporation or by-laws, unless the vote is by secrecy procedureunder subsection (2)(b) of this section, awritten ballot may be revoked before thefinal return date of the ballots.

(7) Unless otherwise prohibited by thedeclaration, articles of incorporation or by-laws, the votes may be counted from time totime before the final return date of the bal-lots to determine whether the proposal haspassed or failed by the votes already cast onthe date the ballots are counted.

(8) Notwithstanding subsection (7) of thissection, ballots that are returned in secrecyenvelopes may not be examined or countedbefore the date certain specified in the solic-itation or any extension under subsection(5)(c) of this section. [1997 c.816 §17; 2001 c.756 §44;2003 c.569 §34; 2007 c.409 §27]

Note: 100.425 was added to and made a part ofORS chapter 100 by legislative action but was not addedto any smaller series therein. See Preface to OregonRevised Statutes for further explanation.

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100.427 PROPERTY RIGHTS AND TRANSACTIONS

100.427 Methods of voting. (1) The vot-ing rights or consent of a unit owner may becast or given:

(a) In person at a meeting of the associ-ation of unit owners.

(b) In the discretion of the board of di-rectors, by absentee ballot in accordancewith subsection (3) of this section.

(c) Unless the declaration or bylaws orthis chapter provide otherwise, pursuant toa proxy in accordance with subsection (2) ofthis section.

(d) By written ballot in lieu of a meetingunder ORS 100.425.

(e) By any other method specified by thedeclaration or bylaws or this chapter.

(2)(a) A proxy:(A) Must be dated and signed by the unit

owner;(B) Is not valid if it is undated or pur-

ports to be revocable without notice; and(C) Terminates one year after its date

unless the proxy specifies a shorter term.(b) The board of directors may not re-

quire that a proxy be on a form prescribedby the board.

(c) A unit owner may not revoke a proxygiven pursuant to this section except by ac-tual notice of revocation to the person pre-siding over a meeting of the association ofunit owners or to the board of directors if avote is being conducted by written ballot inlieu of a meeting pursuant to ORS 100.425.

(d) A copy of a proxy in compliance withparagraph (a) of this subsection provided tothe association by facsimile, electronic mailor other means of electronic communicationutilized by the board of directors is valid.

(3)(a) An absentee ballot shall set fortheach proposed action and provide an oppor-tunity to vote for or against each proposedaction.

(b) All solicitations for votes by absenteeballot shall include:

(A) Instructions for delivery of the com-pleted absentee ballot, including the deliverylocation; and

(B) Instructions about whether the ballotmay be canceled if the ballot has been deliv-ered according to the instructions.

(c) An absentee ballot shall be countedas a unit owner present for the purpose ofestablishing a quorum.

(d) Even if an absentee ballot has beendelivered to a unit owner, the unit ownermay vote in person at a meeting if the unitowner has:

(A) Returned the absentee ballot; and

(B) Canceled the absentee ballot, if can-cellation is permitted in the instructionsgiven under paragraph (b) of this subsection.[1999 c.677 §61; 2003 c.569 §35; 2007 c.409 §28]

Note: 100.427 was added to and made a part ofORS chapter 100 by legislative action but was not addedto any smaller series therein. See Preface to OregonRevised Statutes for further explanation.

100.428 Electronic ballot. (1) As used inthis section, “electronic ballot” means a bal-lot given by:

(a) Electronic mail;(b) Facsimile transmission;(c) Posting on a website; or(d) Other means of electronic commu-

nication acceptable to the board of directors.(2) Unless the declaration or bylaws pro-

hibit or provide for other methods of elec-tronic ballots, the board of directors of anassociation of unit owners, in the board’sdiscretion, may provide that a vote, approvalor consent of a unit owner may be given byelectronic ballot.

(3) An electronic ballot shall comply withthe requirements of this section and the dec-laration or bylaws or this chapter.

(4) An electronic ballot may be accompa-nied by or contained in an electronic noticein accordance with ORS 100.423.

(5) If an electronic ballot is posted on awebsite, a notice of the posting shall be sentto each unit owner and shall contain in-structions on obtaining access to the postingon the website.

(6) A vote made by electronic ballot iseffective when it is electronically transmittedto an address, location or system designatedby the board of directors for that purpose.

(7) Unless otherwise provided in the dec-laration or bylaws or rules adopted by theboard of directors, a vote by electronic ballotmay not be revoked.

(8) The board of directors may not electto use electronic ballots unless there areprocedures to ensure:

(a) Compliance with ORS 100.425 if thevote conducted by written ballot under ORS100.425 uses the procedures specified in ORS100.425 (2)(b); and

(b) That the electronic ballot is secret, ifthe declaration or bylaws or rules adoptedby the board require that electronic ballotsbe secret. [2007 c.409 §21]

Note: 100.428 was added to and made a part ofORS chapter 100 by legislative action but was not addedto any smaller series therein. See Preface to OregonRevised Statutes for further explanation.

100.430 Unit deeds; contents. The deedof a unit shall contain:

(1) The name of the property, and the re-

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CONDOMINIUMS 100.435

cording index numbers and date of recordingof the declaration and in the case of a stagedor flexible condominium, the applicable sup-plemental declaration or declaration amend-ment.

(2) The unit designation of the unit.(3) Any further details the grantor and

grantee may consider desirable. [Formerly94.171]

100.435 Insurance for individual unitsand common elements. (1) If the bylawsprovide that the association of unit ownershas the sole authority to decide whether torepair or reconstruct a unit that has suffereddamage or that a unit must be repaired orreconstructed, the board of directors shallobtain and maintain at all times and shallpay for out of the common expense funds, thefollowing insurance covering both the com-mon elements and individual units:

(a) Property insurance including, but notlimited to, fire, extended coverage, vandalismand malicious mischief; and

(b) Insurance covering the legal liabilityof the association of unit owners, the unitowners individually and the manager includ-ing, but not limited to, the board of directors,the public and the unit owners and theirinvitees or tenants, incident to ownership,supervision, control or use of the property.There may be excluded from the policy re-quired under this paragraph, coverage of aunit owner, other than coverage as a memberof the association of unit owners or board ofdirectors, for liability arising out of acts oromissions of that unit owner and liability in-cident to the ownership or use of the part ofthe property as to which that unit owner hasthe exclusive use or occupancy. Liabilityinsurance required under this paragraphshall be issued on a comprehensive liabilitybasis and shall provide a cross liability in-dorsement providing that the rights of anamed insured under the policy do not prej-udice any action against another named in-sured.

(2) If the bylaws require the individualunit owners to obtain insurance for theirunits, the bylaws also shall contain a pro-vision requiring the board of directors to ob-tain the following insurance covering thecommon elements:

(a) Property insurance including, but notlimited to, fire, extended coverage, vandalismand malicious mischief; and

(b) Insurance covering the legal liabilityof the association of unit owners and themanager including, but not limited to, theboard of directors, to the public or the unitowners and their invitees or tenants, inci-dent to supervision, control or use of theproperty.

(3) The board of directors shall obtain, ifreasonably available, terms in insurance pol-icies under this section that provide a waiverof subrogation by the insurer as to anyclaims against the board of directors of theassociation.

(4) Notwithstanding a provision in thedeclaration or bylaws of a condominium, in-cluding a condominium created before Sep-tember 27, 2007, that imposes a maximumdeductible amount of $10,000 or less in anassociation insurance policy, if the board ofdirectors determines that it is in the best in-terest of the association of unit owners andof the unit owners, as provided in subsection(5) of this section, the board may adopt aresolution authorizing the association to ob-tain and maintain an insurance policy witha deductible amount exceeding the specifiedmaximum, but not in excess of the greaterof:

(a) The maximum deductible acceptableto the Federal National Mortgage Associ-ation; or

(b) $10,000.(5) In making the determination under

subsection (4) of this section, the board ofdirectors shall consider such factors as theavailability and cost of insurance and theloss experience of the association.

(6) If the declaration or bylaws of a con-dominium created before September 27, 2007,do not assign the responsibility for paymentof the amount of the deductible in an associ-ation insurance policy, the board of directorsmay adopt a resolution that assigns the re-sponsibility for payment of the amount of thedeductible. The resolution must include, butneed not be limited to:

(a) The circumstances under which thedeductible will be charged against:

(A) A unit owner or the unit owners af-fected by a loss; or

(B) All unit owners;(b) The allocation of the deductible

charged under paragraph (a) of this subsec-tion; and

(c) If a unit owner and the associationhave duplicate insurance coverage, the in-surance policy that is primary, unless other-wise provided in the declaration or bylaws.

(7) If the board of directors adopts a res-olution described in subsection (6) of thissection, the resolution may require that aunit owner, in addition to any other insur-ance required by the declaration or bylaws,obtain and maintain:

(a) An insurance policy that insures theunit owner’s unit and appurtenant limitedcommon elements for not less than theamount of the deductible in the association’s

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insurance policy for which the unit ownermay be responsible and that insures the unitowner’s personal property for any loss ordamage; and

(b) Comprehensive liability insurancethat includes, but is not limited to, coveragefor negligent acts of unit owners and ten-ants, guests of unit owners and tenants andoccupants of other units for damage to thegeneral and limited common elements, toother units and to the personal property ofother persons that is located in other unitsor the common elements.

(8) Unless otherwise provided in the dec-laration or bylaws, the board of directorsmay adopt a resolution that:

(a) Prescribes a procedure for processinginsurance claims. The procedure may re-quire that all claims against the association’sinsurance policy be processed through andcoordinated by the board of directors or themanaging agent, if authorized by the board.

(b) Assigns the responsibility for paymentof charges for handling claims, including anycharges by a managing agent.

(9) Not later than 10 days after adoptionof a resolution under subsection (4), (6) or (8)of this section, the board of directors shallensure that a copy of the resolution and anotice described in subsection (10) of thissection are:

(a) Delivered to each unit owner; or(b) Mailed to the mailing address of each

unit owner or to the mailing address desig-nated in writing by the unit owner.

(10) The notice required under subsection(9) of this section shall:

(a) Advise the unit owner to contact theunit owner’s insurance agent to determinethe effect of the resolution on the unitowner’s individual insurance coverage; and

(b) Be in a form and style reasonablycalculated to inform the unit owner of theimportance of the notice.

(11) Failure to provide a copy of a reso-lution or a notice required under this sectiondoes not affect the responsibility of a unitowner to comply with a resolution adoptedunder this section. [Formerly 94.177; 1999 c.677 §50;2007 c.409 §31]

100.440 Liens against property; re-moval from lien; effect of part payment.(1) Subsequent to recording a declaration andwhile the property remains subject to thischapter, no lien shall arise or be effectiveagainst the property. During such periodliens or encumbrances shall arise or be cre-ated only against each unit and the undi-vided interest in the common elementsappertaining thereto, in the same mannerand under the same conditions as liens or

encumbrances may arise or be created uponor against any other separate parcel of realproperty subject to individual ownership.

(2) No labor performed or materials fur-nished with the consent or at the request ofa unit owner, the agent, contractor or sub-contractor of the unit owner, shall be thebasis for the filing of a mechanic’s ormaterialman’s lien against the unit of anyother unit owner not consenting to or re-questing the labor to be performed or thematerials to be furnished, except that con-sent shall be considered given by the ownerof any unit in the case of emergency repairsthereto performed or furnished with the con-sent or at the request of the board of direc-tors.

(3) If a lien becomes effective against twoor more units, the owner of each unit subjectto such a lien shall have the right to havethe unit of the owner released from the lienby payment of the amount of the lien attrib-utable to the unit. The amount of the lienattributable to a unit and the payment re-quired to satisfy such a lien, in the absenceof agreement, shall be determined by appli-cation of the allocation established in thedeclaration. Such partial payment, satisfac-tion or discharge shall not prevent the lienorfrom proceeding to enforce the rights of thelienor against any unit and the undivided in-terest in the common elements appertainingthereto not so released by payment, satisfac-tion or discharge. [Formerly 94.185]

100.445 Independent default clauses;option to purchase fee simple interest.Where a leasehold interest is submitted tothe provisions of this chapter, the masterlease shall:

(1) Contain independent default clauses,the effect of which shall be that a unit ownercannot be evicted because the board of di-rectors of the association of unit owners hasdefaulted so long as the unit owner has paidthe pro rata share of the unit owner of thefunds necessary to correct the default or be-cause another unit owner has defaulted.

(2) Contain the procedure for the sub-mission of the fee simple interest in theproperty to the condominium if the lease in-cludes an option for the unit owners to pur-chase the fee simple interest.

(3) Be recorded in the office of the re-cording officer before the declaration for theproperty is recorded in accordance with ORS100.100. [Formerly 94.190; 2001 c.756 §45]

100.450 Association lien against indi-vidual unit; recording notice of claim;foreclosure; priority of lien. (1) Wheneveran association of unit owners levies any as-sessment against a unit, the association ofunit owners shall have a lien upon the indi-

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vidual unit and the undivided interest in thecommon elements appertaining to such unitfor any unpaid assessments. The lien in-cludes interest, late charges, attorney fees,costs or other amounts levied under the dec-laration or bylaws. The lien is prior to ahomestead exemption and all other liens orencumbrances upon the unit except:

(a) Tax and assessment liens; and(b) A first mortgage or trust deed of re-

cord unless:(A) The condominium consists of fewer

than seven units, all of which are to be usedfor nonresidential purposes;

(B) The declaration provides that the lienof any mortgage or trust deed of record af-fecting the property shall be subordinate tothe lien of the association provided undersubsection (1) of this section; and

(C) The holder of any mortgage or trustdeed of record affecting the property whenthe declaration is recorded executes a sepa-rate subordination of the holder’s interest tothe declaration which is attached as an ex-hibit and which states that the holderunderstands that the declaration subordi-nates the holder’s lien to the assessment lienof the association provided under subsection(1) of this section.

(2) Recording of the declaration consti-tutes record notice and perfection of the lienfor assessments. No further recording of aclaim of lien for assessments or notice of aclaim of lien under this section is requiredto perfect the association’s lien. The associ-ation shall record a notice of claim of lienfor assessments under this section in thedeed records of the county in which the unitis located before any suit to foreclose mayproceed under subsection (4) of this section.The notice shall contain:

(a) A true statement of the amount duefor the unpaid assessments after deductingall just credits and offsets;

(b) The name of the owner of the unit,or reputed owner, if known;

(c) The name of the condominium and thedesignation of the unit as stated in the dec-laration or applicable supplemental declara-tion; and

(d) A statement that if the owner of theunit thereafter fails to pay any assessmentswhen due, as long as the original or anysubsequent unpaid assessment remains un-paid, the unpaid amount of assessments au-tomatically continue to accumulate withinterest without the necessity of further re-cording.

(3) The notice shall be verified by theoath of some person having knowledge of thefacts and shall be recorded by the county re-

cording officer. The record shall be indexedas other liens are required by law to be in-dexed.

(4)(a) The proceedings to foreclose lienscreated by this section shall conform asnearly as possible to the proceedings to fore-close liens created by ORS 87.010 except,notwithstanding ORS 87.055, a lien may becontinued in force for a period of time not toexceed six years from the date the assess-ment is due. For the purpose of determiningthe date the assessment is due in those caseswhen subsequent unpaid assessments haveaccumulated under a notice recorded as pro-vided in subsection (2) of this section, theassessment and claim regarding each unpaidassessment shall be deemed to have beenlevied at the time the unpaid assessment be-came due.

(b) The lien may be enforced by the boardof directors acting on behalf of the associ-ation of unit owners.

(c) An action to recover a money judg-ment for unpaid assessments may be main-tained without foreclosing or waiving thelien securing the claim for unpaid assess-ments.

(d) An action to foreclose a lien underthis section or recover a money judgment forunpaid assessments may not be maintainedunless the Condominium Information Reportand the Annual Report described in ORS100.250 are designated current as provided inORS 100.255.

(5) Unless the declaration or bylaws pro-vides otherwise, fees, late charges, fines andinterest imposed pursuant to ORS 100.405(4)(j), (k), (L) and (m) are enforceable as as-sessments under this section.

(6) With respect to condominium unitsalso constituting timeshare property as de-fined by ORS 94.803, liens created by thissection shall be assessed to the timeshareowners in the timeshare property accordingto the method for determining each owner’sliability for common expenses under thetimeshare instrument and shall be enforcedindividually against each timeshare owner inthe condominium unit.

(7) Notwithstanding the priority estab-lished for a lien for unpaid assessments andinterest under subsection (1) of this section,the lien shall also be prior to the lien of afirst mortgage or trust deed of record for theunit and the undivided interest in the com-mon elements, if:

(a) The association of unit owners for thecondominium in which the unit is locatedhas given the lender under the mortgage ortrust deed 90 days prior written notice thatthe owner of the unit is in default in pay-

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100.460 PROPERTY RIGHTS AND TRANSACTIONS

ment of an assessment. The notice shall con-tain:

(A) Name of borrower;(B) Recording date of trust deed or mort-

gage;(C) Recording information;(D) Name of condominium, unit owner

and unit designation stated in the declara-tion or applicable supplemental declaration;and

(E) Amount of unpaid assessment.(b) The notice under paragraph (a) of this

subsection shall set forth the following in10-point type:__________________________________________

NOTICE: The lien of the association maybecome prior to that of the lender pursuantto ORS 100.450.__________________________________________

(c) The lender has not initiated judicialaction to foreclose the mortgage or requestedissuance of a trustee’s notice of sale underthe trust deed or accepted a deed in lieu offoreclosure in the circumstances described inORS 100.465 prior to the expiration of 90days following the notice by the unit owners’association.

(d) The unit owners’ association has pro-vided the lender, upon request, with copiesof any liens filed on the unit, a statement ofthe assessments and interest remaining un-paid on the unit and other documents whichthe lender may reasonably request.

(e) The borrower is in default under theterms of the mortgage or trust deed as toprincipal and interest.

(f) A copy of the notice described in par-agraph (a) of this subsection, together withan affidavit of notice by a person havingknowledge of the facts, has been recorded inthe manner prescribed in subsection (3) ofthis section. The affidavit shall recite thedate and the person to whom the notice wasgiven. [Formerly 94.195; 1995 c.31 §13; 1997 c.816 §10;1999 c.59 §18; 1999 c.677 §71; 2001 c.104 §31; 2003 c.569§36]

100.460 Foreclosure against unit; re-ceiver for unit; power of board of direc-tors to bid at foreclosure sale. In anyforeclosure suit against a unit, the unitowner shall be required to pay a reasonablerental for the unit, if so provided in the by-laws, and the plaintiff in such foreclosureshall be entitled to the appointment of a re-ceiver to collect the rent. The board of di-rectors, acting on behalf of the unit owners,shall have power, unless prohibited by thedeclaration, to bid in the unit at the foreclo-sure sale, and to acquire and hold, lease,

mortgage and convey the same. [Formerly94.202]

100.465 Circumstances in which deedin lieu of foreclosure extinguishes lien.Unless the declarations or bylaws otherwiseprovide, a deed in lieu of foreclosure ac-cepted by the holder of a first mortgage orthe beneficiary of a first deed of trust in re-spect to a condominium unit shall have theeffect of extinguishing a lien of the associ-ation securing unpaid assessments throughthe date of recording of the deed in lieu offoreclosure in the following circumstances:

(1) Written notice has been given to theassociation, addressed to the individual au-thorized to accept service of process sent byfirst class mail, return receipt requested, no-tifying the association of the mortgagee orbeneficiary’s intent to accept a deed in lieuof foreclosure and stating that the lien of theassociation may be extinguished in the cir-cumstances specified in this section; and

(2) The deed in lieu of foreclosure is re-corded not later than 30 days after the datethe notice is mailed to the association. [1989c.595 §36; 2003 c.569 §36a]

Note: 100.465 and 100.470 were added to and madea part of ORS 100.005 to 100.910 by legislative action butwere not added to any smaller series therein. See Pre-face to Oregon Revised Statutes for further explanation.

100.470 Lien foreclosure; other legalaction by declarant, association orowner; attorney fees. In any suit or actionbrought by an association of unit owners toforeclose its lien or to collect delinquent as-sessments or in any suit or action broughtby declarant, the association or any owneror class of owners to enforce compliancewith the terms and provisions of the OregonCondominium Act, the condominium declara-tion or bylaws, including all amendments andsupplements thereto or any rules or regu-lations adopted by the association, the pre-vailing party shall be entitled to recoverreasonable attorney fees therein and in anyappeal therefrom. [1989 c.595 §37; 2001 c.756 §46;2007 c.409 §29]

Note: See note under 100.465.

100.475 Personal liability for assess-ment; joint liability of grantor andgrantee following conveyance; limitation.(1) A unit owner shall be personally liablefor all assessments imposed on the unitowner or assessed against the unit by theassociation of unit owners.

(2) Where the purchaser of a unit obtainstitle to the unit as a result of foreclosure ofthe first mortgage or trust deed, such pur-chaser, the successors and assigns of thepurchaser, shall not be liable for any of theassessments against such unit or its ownerwhich became due prior to the acquisition oftitle to such unit by such purchaser except

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CONDOMINIUMS 100.480

as specifically provided otherwise in ORS100.450. Such unpaid assessments shall be acommon expense of all the unit owners in-cluding such purchaser, the successors andassigns of the purchaser.

(3)(a) Subject to paragraph (b) of thissubsection, in a voluntary conveyance of aunit, the grantee shall be jointly and se-verally liable with the grantor for all unpaidassessments against the grantor of the unitto the time of the grant or conveyance,without prejudice to the grantee’s right torecover from the grantor the amounts paidby the grantee therefor.

(b) Upon request of an owner or owner’sagent, for the benefit of a prospective pur-chaser, the board of directors shall make anddeliver a written statement of the unpaid as-sessments against the prospective grantor orthe unit effective through a date specified inthe statement, and the grantee in that caseshall not be liable for any unpaid assess-ments against the grantor not included inthe written statement.

(4) An escrow agent or a title insurancecompany providing escrow services or issuingtitle insurance in conjunction with the con-veyance:

(a) May rely upon a written statement ofunpaid assessments delivered pursuant tothis section; and

(b) Is not liable for a failure to pay to theassociation at closing any amount in excessof the amount set forth in the written state-ment. [Formerly 94.208; 1997 c.816 §11; 2003 c.569 §37]

100.480 Maintaining documents andrecords; annual financial statement; re-view of financial statement by certifiedpublic accountant; availability of docu-ments and records for examination. (1)An association of unit owners shall retainwithin this state the documents, informationand records delivered to the association un-der ORS 100.210 and all other records of theassociation for not less than the period spec-ified for the record in ORS 65.771 or anyother applicable law, except that:

(a) The documents specified in ORS100.210 (5)(j), if received, must be retained aspermanent records of the association.

(b) Proxies and ballots must be retainedfor one year from the date of determinationof the vote, except proxies and ballots relat-ing to an amendment to the declaration,supplemental declaration plat, supplementalplat or bylaws must be retained for one yearfrom the date the amendment is recorded.

(2) The association of unit owners shallkeep financial records sufficient for properaccounting purposes.

(3)(a) All assessments and other associ-ation funds shall be deposited and main-tained in the name of the association in oneor more separate federally insured accounts,including certificates of deposit, at a finan-cial institution, as defined in ORS 706.008,other than an extranational institution. Ex-cept as provided in paragraph (b) of thissubsection, funds must be maintained in anassociation account until disbursed.

(b) Subject to any limitations imposed bythe declaration or bylaws, association fundsmaintained in accounts established underthis subsection may be used to purchase ob-ligations issued by the United States govern-ment.

(c) All expenses of the association shallbe paid from the association account.

(4) Within 90 days after the end of thefiscal year, the board of directors shall:

(a) Prepare or cause to be prepared anannual financial statement consisting of abalance sheet and income and expensesstatement for the preceding fiscal year; and

(b) Distribute to each unit owner a copyof the annual financial statement.

(5) Subject to section 26, chapter 803,Oregon Laws 2003, the association of unitowners of a condominium that has annualassessments exceeding $75,000 shall causethe financial statement required under sub-section (4) of this section to be reviewedwithin 180 days after the end of the fiscalyear by an independent certified public ac-countant licensed in the State of Oregon inaccordance with the Statements on Stan-dards for Accounting and Review Servicesissued by the American Institute of CertifiedPublic Accountants.

(6) The association of unit owners of acondominium that has annual assessments of$75,000 or less shall cause the most recentfinancial statement required by subsection(4) of this section to be reviewed in themanner described in subsection (5) of thissection within 180 days after the board ofdirectors receives the petition requesting re-view signed by at least a majority of theowners.

(7) An association of unit owners subjectto the requirements of subsection (5) of thissection may elect, on an annual basis, not tocomply with the requirements of subsection(5) of this section by an affirmative vote ofat least 60 percent of the owners, not in-cluding the votes of the declarant with re-spect to units owned by the declarant.

(8)(a) The association shall provide,within 10 business days of receipt of a writ-ten request from an owner, a written state-ment that provides:

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100.480 PROPERTY RIGHTS AND TRANSACTIONS

(A) The amount of assessments due fromthe owner and unpaid at the time the requestwas received, including:

(i) Regular and special assessments;(ii) Fines and other charges;(iii) Accrued interest; and(iv) Late payment charges.(B) The percentage rate at which interest

accrues on assessments that are not paidwhen due.

(C) The percentage rate used to calculatethe charges for late payment or the amountof a fixed charge for late payment.

(b) The association is not required tocomply with paragraph (a) of this subsectionif the association has commenced litigationby filing a complaint against the owner andthe litigation is pending when the statementwould otherwise be due.

(9)(a) Except as provided in paragraph (b)of this subsection, the documents, informa-tion and records described in subsections (1)to (4) of this section and all other records ofthe association of unit owners must be rea-sonably available for examination and, uponwritten request, available for duplication bya unit owner and any mortgagee of a unitthat makes the request in good faith for aproper purpose.

(b) Records kept by or on behalf of theassociation may be withheld from examina-tion and duplication to the extent the re-cords concern:

(A) Personnel matters relating to a spe-cific identified person or a person’s medicalrecords.

(B) Contracts, leases and other businesstransactions that are currently under negoti-ation to purchase or provide goods or ser-vices.

(C) Communications with legal counselthat relate to matters specified in subpara-graphs (A) and (B) of this paragraph and therights and duties of the association regardingexisting or potential litigation or criminalmatters.

(D) Disclosure of information in violationof law.

(E) Documents, correspondence or man-agement or board reports compiled for or be-half of the association or the board ofdirectors by its agents or committees forconsideration by the board of directors inexecutive session held in accordance withORS 100.420 (1) and (2).

(F) Documents, correspondence or othermatters considered by the board of directorsin executive session held in accordance withORS 100.420 (1) and (2).

(G) Files of individual owners, other thanthose of a requesting owner or requestingmortgagee of an individual owner, includingany individual owner’s file kept by or on be-half of the association.

(10) The association of unit owners shallmaintain a copy, suitable for the purpose ofduplication, of the following:

(a) The declaration and bylaws, includingamendments or supplements in effect, the re-corded plat, if feasible, and the associationrules and regulations currently in effect;

(b) The most recent annual financialstatement prepared in accordance with sub-section (4) of this section;

(c) The current operating budget of theassociation;

(d) The reserve study, if any, described inORS 100.175; and

(e) Architectural standards and guide-lines, if any.

(11) The association, within 10 businessdays after receipt of a written request by anowner, shall furnish the requested informa-tion required to be maintained under subsec-tion (10) of this section.

(12) The board of directors, by resolution,may adopt reasonable rules governing thefrequency, time, location, notice and mannerof examination and duplication of associationrecords and the imposition of a reasonablefee for furnishing copies of any documents,information or records described in this sec-tion. The fee may include reasonable per-sonnel costs incurred to furnish theinformation.

(13) Subsection (4) of this section firstapplies to property submitted to the pro-visions of this chapter before January 1,1982, when the board of directors of the as-sociation of unit owners receives a writtenrequest from at least one unit owner that acopy of the annual financial statement bedistributed in accordance with subsection (4)of this section. [Formerly 94.214; 1999 c.677 §51; 2001c.756 §47; 2003 c.569 §38; 2003 c.803 §22a; 2007 c.340 §2;2009 c.641 §29; 2011 c.532 §20]

Note: Section 26, chapter 803, Oregon Laws 2003,provides:

Sec. 26. The requirements of ORS 100.480 (5) firstapply:

(1) Commencing with the fiscal year following theturnover meeting for the association of unit owners ofa condominium created prior to January 1, 2004, if theturnover meeting has not yet occurred on January 1,2004.

(2) Commencing with the fiscal year beginning incalendar year 2004 for the association of unit ownersof a condominium created prior to January 1, 2004, ifthe turnover meeting has occurred on or before January1, 2004.

(3) Commencing with the fiscal year following theturnover meeting for the association of unit owners of

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CONDOMINIUMS 100.505

a condominium created on or after January 1, 2004.[2003 c.803 §26; 2009 c.641 §39]

100.485 Duration and termination ofinitial management agreements and ser-vice and employment contracts; applica-bility of federal condominium law. (1)Except as provided in subsection (2) of thissection, if entered into prior to the turnovermeeting of the condominium, no managementagreement, service contract or employmentcontract that is directly made by or on behalfof the association, the board of directors orthe unit owners as a group shall be in excessof three years.

(2)(a) Subject to paragraph (b) of thissubsection, the limitations under subsection(1) of this section do not apply to:

(A) Performance-based energy or waterefficiency contracts; or

(B) Contracts relating to renewable en-ergy facilities or output serving the condo-minium, including facilities leased to theassociation.

(b) A contract described in paragraph (a)of this subsection:

(A) May not have an initial term of morethan 20 years; and

(B) Must be recorded with the recordingofficer in each county in which the condo-minium is located.

(c) As used in this subsection,“renewable energy facilities” means facilitiesgenerating electricity, heat or cooling bymeans of:

(A) Solar, wind, ocean, hydropower,biomass or geothermal resources; or

(B) Biofuels or hydrogen derived fromrenewable resources.

(3) Any contract or agreement that issubject to subsection (1) of this section en-tered into after January 1, 1982, may be ter-minated without penalty by the associationor the board of directors upon not less than30 days’ written notice to the other partygiven not later than 60 days after the turn-over meeting.

(4) The provisions of the Condominiumand Cooperative Abuse Relief Act of 1980 (15U.S.C. 3601 to 3616), except for 15 U.S.C.3609 and 3610, shall not apply in the Stateof Oregon. [Formerly 94.221; 2005 c.22 §77; 2009 c.641§30]

100.490 Notice to unit owners of intentof association to commence judicial oradministrative proceedings; contents ofnotice; right of unit owner to opt out. (1)At least 10 days prior to instituting any liti-gation or administrative proceeding to re-cover damages under ORS 100.405 (4)(e)(E),the association of unit owners shall providewritten notice to each affected owner of the

association’s intent to seek damages on be-half of the owner. The notice shall, at aminimum:

(a) Be mailed to the mailing address ofeach unit or to the mailing addresses desig-nated by the owners in writing to the asso-ciation;

(b) Inform each owner of the general na-ture of the litigation or proceeding;

(c) Describe the specific nature of thedamages to be sought on the owner’s behalf;

(d) Set forth the terms under which theassociation is willing to seek damages on theowner’s behalf, including any mechanismproposed for the determination and distrib-ution of any damages recovered;

(e) Inform each owner of the owner’sright not to have the damages sought on theowner’s behalf and specify the procedure forexercising the right; and

(f) Inform the owner that exercising theowner’s right not to have damages sought onthe owner’s behalf:

(A) Relieves the association of its duty toreimburse or indemnify the owner for thedamages;

(B) Does not relieve the owner from theowner’s obligation to pay dues or assess-ments relating to the litigation or proceed-ing;

(C) Does not impair any easement ownedor possessed by the association; and

(D) Does not interfere with theassociation’s right to make repairs to com-mon elements.

(2) Within 10 days of mailing the noticedescribed in this section, any owner may re-quest in writing that the association not seekdamages on the owner’s behalf. If an ownermakes such a request, the association shallnot make or continue any claim or action fordamages with regard to the objecting owner’sunit or interest and shall be relieved of anyduty to reimburse or indemnify the owner fordamages under the litigation or proceeding.[1999 c.677 §57; 2001 c.756 §48]

Note: 100.490 was added to and made a part ofORS chapter 100 by legislative action but was not addedto any smaller series therein. See Preface to OregonRevised Statutes for further explanation.

ATTRIBUTES AND DUTIES OF OWNERSHIP

100.505 Status and ownership of units.(1) While the property is submitted to theprovisions of this chapter, a unit may be in-dividually conveyed and encumbered and maybe the subject of ownership, possession orsale and of all types of juridic acts intervivos or mortis causa, as if it were sole andentirely independent of the other units of

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which they form a part, and the correspond-ing individual titles and interests shall berecordable.

(2) Each unit owner shall be entitled tothe exclusive ownership and possession ofthe unit of the owner. [Formerly 94.231]

100.510 Units and common elementsdistinguished. Unless otherwise provided inthe declaration:

(1) The walls, floors and ceilings are theboundaries of a unit.

(2) All lath, furring, wallboard, plaster-board, plaster, paneling, tiles, wallpaper,paint, finished flooring and any other mate-rials constituting any part of the finishedsurfaces thereof are a part of the unit exceptthose portions of the walls, floors or ceilingsthat materially contribute to the structuralor shear capacity of the condominium. Allother portions of the walls, floors or ceilingsare a part of the common elements.

(3) The following are a part of the unit:(a) All spaces, nonbearing interior parti-

tions, interior doors and all other fixturesand improvements within the boundaries ofthe unit;

(b) The glazing and screening of windowsand unit access doors; and

(c) All outlets of utility service lines, in-cluding but not limited to power, light, gas,hot and cold water, heating, refrigeration, airconditioning and waste disposal within theboundaries of the unit. [Formerly 94.237; 1999c.677 §52; 2007 c.410 §14; 2009 c.641 §31]

100.515 Interest of units in commonelements. (1) Each unit shall be entitled toan undivided interest in the common ele-ments in the allocation expressed in the dec-laration. Such allocation shall be expressedas a fraction or percentage of undivided in-terest in the common elements. Except asotherwise provided in this chapter, the allo-cation of undivided interest of each unit inthe common elements as expressed in a dec-laration shall not be altered unless all unitowners having an interest in the particularcommon element agree thereto and record anamendment to the declaration setting forththe altered allocation of each unit having aninterest.

(2) The sums of the undivided interest inthe common elements shall equal one ifstated as fractions or 100 percent if statedas percentages.

(3) The undivided interest in the commonelements shall not be separated from the unitto which it appertains and shall be conveyedor encumbered with the unit even thoughsuch interest is not expressly mentioned ordescribed in the conveyance or other instru-ment.

(4) The common elements shall remainundivided and no unit owner shall bring anyaction for partition or division of any partthereof, except as provided in this chapter.Any covenant to the contrary is void.

(5) Notwithstanding subsections (1) and(3) of this section, except where expresslyprohibited by the declaration or bylaws, theright of use of any unit in a limited commonelement may be transferred to any otherunit. Such transfer shall occur only if theexisting unit owner and all mortgagees of theunit for which the right of use of the limitedcommon element is presently reserved andthe unit owner to whom the right of use isbeing transferred agree to and record anamendment to the declaration setting forththe transfer.

(6) Notwithstanding subsections (1) and(3) of this section, in the case where a singleunit is originally designed and constructed tobe two or more separate hotel, motel orother similar living accommodations withseparate bathrooms and separate entrancesfrom a hallway, balcony, staircase or othercommon element, the owner, or owners, withthe consent of the holder, or holders, of anyrecorded mortgage or lien on the unit, mayseparate such unit into two or more unitseach having such separate bathrooms andentrances from such common elements. Suchpersons may divide between such separateunits the allocation of the common elementsassigned to the original unit on substantiallythe basis that the square footage of suchseparated units bears to the total squarefootage of the original unit by recording anamendment to the declaration signed by suchowner, or owners, of original unit togetherwith an amendment to any plat and floorplan of such original unit recorded pursuantto ORS 100.116 showing the division thereofinto such two or more units. The amendmentshall comply with ORS 100.116. Such sepa-rated parts of the original unit shall not beused for any purpose other than the purposefor which such separable parts were ori-ginally designed and constructed and there-after have generally been used. [Formerly94.243; 2009 c.641 §47]

100.520 Easement held by units andcommon elements. (1) Except as otherwiseprovided in the declaration, each unit shallhave an easement through each other unitand through the common elements for utility,wiring, heat, plumbing and other service ele-ments, and for reasonable access required toeffectuate and continue proper operation ofthe condominium.

(2) Each unit and all common elementsshall have an easement over all adjoiningunits and common elements for the purposeof accommodating any present or future

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encroachment as a result of engineering er-rors, construction, reconstruction, repairs,settlement, shifting, or movement of anyportion of the property, or any other similarcause, and any encroachment due to buildingoverhang or projection. There shall be valideasements for the maintenance of theencroaching units and common elements solong as the encroachments shall exist, andexcept as otherwise provided in subsection(3) of this section, the rights and obligationsof owners shall not be altered in any way bythe encroachment.

(3) The easement described under subsec-tion (2) of this section does not relieve a unitowner of liability in case of willful miscon-duct of a unit owner or relieve a declarantor any contractor, subcontractor ormaterialman of liability for failure to adhereto the plat and any floor plans recorded pur-suant to ORS 100.115.

(4) The encroachments described in sub-section (2) of this section shall not be con-strued to be encumbrances affecting themarketability of title to any unit. [Formerly94.250; 2001 c.756 §49]

100.525 Voting or consenting. (1) Un-less otherwise provided in the declaration,each unit of a condominium is entitled to onevote.

(2) Unless otherwise provided in the dec-laration or bylaws:

(a) An attorney-in-fact, executor, admin-istrator, guardian, conservator or trusteemay vote or grant consent with respect to aunit owned or held in a fiduciary capacity,if the person satisfies the secretary that theperson is the attorney-in-fact, executor, ad-ministrator, guardian, conservator or trusteeholding the unit in a fiduciary capacity.

(b) Whenever a unit is owned by two ormore persons jointly, according to the re-cords of the association:

(A) Except as provided in this subsection,the vote of the unit may be exercised by anyone of the owners, in the absence of protestby a co-owner. In the event of a disagree-ment among the co-owners, the vote of theunit shall be disregarded completely in de-termining the proportion of votes given withrespect to the matter.

(B) A valid court order may establish theright of co-owners’ authority to vote.[Formerly 94.255; 2001 c.756 §50; 2007 c.409 §32; 2009 c.641§32]

100.530 Allocation of common profitsand expenses; liability of unit owner;limitation on assessments againstdeclarant; deferral of assessments bydeclarant. (1) Unless otherwise provided inthe declaration, the common profits of the

property shall be distributed among, and thecommon expenses shall be charged to, theunit owners according to the allocation ofundivided interest of each unit in the com-mon elements.

(2) No unit owner by the owner’s ownaction may claim exemption from liability forcontribution towards the common expensesby waiver by the owner of the use or enjoy-ment of any of the common elements or byabandonment by the owner of the owner’sunit. An owner may not claim an offsetagainst an assessment for failure of the as-sociation to perform its obligations.

(3) Subject to subsection (4) of this sec-tion:

(a) The declarant shall pay assessmentsdue for operating expenses on all unsoldunits:

(A) From the date of conveyance of thefirst unit in the condominium; and

(B) For a staged or flexible condominium,from the date of recording the applicablesupplemental declaration and supplementalplat recorded pursuant to ORS 100.120.

(b) From the date of conveyance of thefirst unit in the condominium, the declarantshall pay assessments due for reserves on allunsold units.

(c) The declarant may defer payment ofaccrued assessments for reserves requiredunder ORS 100.175 for a unit until the datethe unit is conveyed. However, the declarantmay not defer payment of accrued assess-ments for reserves:

(A) Beyond the date of the turnovermeeting provided for in the bylaws in accor-dance with ORS 100.210; or

(B) If a turnover meeting is not held, thedate the owners assume administrative con-trol of the association.

(d) Failure of the declarant to deposit thebalance due within 30 days after the due dateconstitutes a violation under ORS 100.545.

(e) The books and records of the associ-ation shall reflect the amount the declarantowes for all reserve account assessments.

(4)(a) The association may not assessunits owned by the declarant for additionalcapital improvements without the writtenconsent of the declarant as long as:

(A) In a single stage condominium, thedeclarant owns more than two units or fivepercent of the units, whichever is greater.

(B) In a staged or flexible condominium,the declarant owns more than two units orfive percent of the units submitted to theprovisions of this chapter, whichever isgreater, or the termination date has not ex-pired.

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(b) The declarant may waive thedeclarant’s right of consent provided in par-agraph (a) of this subsection.

(5)(a) Except with respect to assessmentsfor reserves required by ORS 100.175, a dec-laration or bylaws may provide that, untilthe turnover meeting, the declarant mayelect to defer commencement of all or partof common expense assessments as to allunits in a condominium or as to all units ina stage of a condominium or as to all unitscreated by a supplemental declaration andplat pursuant to ORS 100.150.

(b) If a declarant so elects to defer com-mencement of all or part of common expenseassessments, declarant shall pay as they ac-crue and be responsible for all or part of thecommon expenses attributable to the condo-minium or attributable to the stage of thecondominium or the units and common ele-ments created by such supplemental declara-tion and plat for which assessments havebeen deferred, until assessments commencefor all common expenses.

(c) The declarant shall give not less than10 days’ written notice to all affected unitowners prior to the commencement of com-mon expense assessments if such a deferraloccurs.

(6) If the board of directors determinesthat any loss or cost incurred by the associ-ation is the fault of one or more owners, theassociation may assess the amount of theloss or cost exclusively against the units ofthe responsible owners. [Formerly 94.260; 1999c.677 §53; 2001 c.756 §51; 2009 c.641 §33]

100.535 Maintenance and improvementof units. (1) Subject to subsections (5) and(6) of this section and any additional limita-tions contained in the declaration or bylaws,a unit owner:

(a) May make any improvements or al-terations to the unit of the unit owner thatdo not impair the structural integrity or me-chanical systems of the condominium orlessen the support of any portion of the con-dominium.

(b) After acquiring an adjoining unit oran adjoining part of an adjoining unit, maysubmit a written request to the board of di-rectors for permission to remove or alter anyintervening partition or to create aperturestherein, even if the partition in whole or inpart is a common element.

(2) The board of directors shall approvethe change unless it determines within 45days that the proposed change will impairthe structural integrity or mechanical sys-tems of the condominium or lessen the sup-port of any portion of the condominium.

(3) The board of directors may requirethe unit owner, at the expense of the unit

owner, to submit an opinion of a registeredarchitect or registered professional engineerthat the proposed change will not impair thestructural integrity or mechanical systemsof the condominium or lessen the support ofany portion of the condominium.

(4) Removal of partitions or creation ofapertures under subsection (1) of this sectionis not an alteration of boundaries.

(5) A unit owner shall make no repair oralteration or perform any other work on theunit which would jeopardize the soundnessor safety of the property, reduce the valuethereof, impair any easement orhereditament or increase the common ex-penses of the association unless the consentof all the other unit owners affected is firstobtained.

(6)(a) Unless otherwise provided in thedeclaration or bylaws, a unit owner may notchange the appearance of the common ele-ments or the exterior appearance of a unitwithout written approval of the board of di-rectors of the association.

(b) Notwithstanding a contrary provisionin the declaration or bylaws, the approval ofthe board of directors under paragraph (a) ofthis subsection may be conditioned upon re-quirements, including assignment of respon-sibility for maintenance or repair.

(7) Unless otherwise provided in the dec-laration or bylaws, a unit owner is responsi-ble for the maintenance, repair andreplacement of the unit. [Formerly 94.265; 2007c.410 §15; 2011 c.532 §13]

100.540 Use and maintenance of com-mon elements; access for maintenance.(1) Each unit owner may use the commonelements in accordance with the purposes forwhich they are intended, but may not hinderor encroach upon the lawful rights of theother unit owners.

(2) Unless otherwise provided in the dec-laration or bylaws:

(a) The responsibility for maintenance,repair and replacement of the common ele-ments is the responsibility of the associationof unit owners; and

(b) The cost of maintenance, repair andreplacement is a common expense of the as-sociation.

(3) The necessary work of maintenance,repair and replacement of the common ele-ments and additions or improvements to thecommon elements shall be carried out onlyas provided in the bylaws.

(4)(a) Upon request given to the ownerand any occupant, any person authorized bythe association may enter a unit and anylimited common element appertaining to aunit:

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(A) As may be necessary for the mainte-nance, repair or replacement of the commonelements or any unit for which the associ-ation has maintenance, repair or replacementresponsibility under the declaration or by-laws or this chapter; or

(B) To make emergency repairs to theunit or common elements necessary for thepublic safety or to prevent damage to thecommon elements or to another unit.

(b) Requests for entry under this subsec-tion must be made in advance and for a rea-sonable time, except in the case of anemergency, when the right of entry is imme-diate. An emergency entry does not consti-tute a trespass or otherwise create any rightof action in the owner of a unit. [Formerly94.270; 2007 c.410 §16; 2009 c.641 §34]

100.545 Compliance with bylaws andother restrictions. Each unit owner and thedeclarant shall comply with the bylaws andwith the administrative rules and regulationsadopted pursuant thereto, and with the cove-nants, conditions and restrictions in the dec-laration or in the deed to the unit. Failureto comply therewith shall be grounds for anaction maintainable by the association ofunit owners or by an aggrieved unit owner.[Formerly 94.275]

100.550 Service of process. (1) Serviceof process in any action relating to the con-dominium may be made on:

(a) If the condominium was submitted tothe provisions of this chapter before October3, 1989, the person designated in the decla-ration to receive service of process;

(b) The person named as designated agentin the Condominium Information Report filedwith the Real Estate Agency under ORS100.250;

(c) If the association is organized as acorporation under Oregon law, the registeredagent in accordance with ORS 60.111 or61.086 (1987 Replacement Part); or

(d) The chairperson or secretary of theassociation.

(2) Except as provided in subsection (4)of this section, if the association of unitowners of property submitted to the pro-visions of this chapter before October 15,1983, wishes to designate a person other thanthe one named in the declaration to receiveservice of process in the cases provided insubsection (1) of this section, it shall recordan amendment to the declaration. Theamendment shall be certified by the chair-person and the secretary of the associationof unit owners, and shall state the name ofthe successor with the successor’s residenceor place of business as required by ORS100.105 (1)(L), and that the person named inthe amendment was designated by resolution

duly adopted by the association of unit own-ers.

(3) Unless prohibited by the declarationor bylaws, the board of directors of the asso-ciation of unit owners of property submittedto the provisions of this chapter after Octo-ber 15, 1983, may elect to designate a personother than the one named in the declarationto receive service of the process in the casesprovided in subsection (1) of this section. Af-ter the adoption of a resolution by the boardof directors in accordance with the bylaws,the board of directors, without the need forfurther action by the association or approvalunder ORS 100.110 and 100.135, shall recordan amendment to the declaration. Theamendment shall be certified by the chair-person and the secretary of the associationof unit owners, and shall state the name ofthe successor with the successor’s residenceor place of business as required by ORS100.105 (1)(L), that the person named in theamendment has consented to the designationand that the resolution was duly adopted bythe association of unit owners.

(4) Subsection (3) of this section appliesto property submitted to the provisions ofthis chapter before October 15, 1983, if:

(a) The board of directors of the associ-ation of unit owners receives a written re-quest from at least one unit owner thatsubsection (3) of this section applies; or

(b) The board of directors of the associ-ation of unit owners adopts a resolution inaccordance with the bylaws of the associ-ation that subsection (3) of this section ap-plies. [Formerly 94.280; 1995 c.31 §14; 1999 c.677 §54;2001 c.756 §61; 2007 c.410 §19]

100.555 Taxation of units; exemptions;uniform appraisal and assessment; rules.(1)(a) Each unit with its allocation of undi-vided interest in the common elements shallbe considered a parcel of real property,whether fee simple, leasehold, easement orother interest or combination thereof, subjectto separate assessment and taxation by anytaxing unit in like manner as other parcelsof real property. A unit created by a decla-ration or supplemental declaration recordedwith the recording officer under ORS 100.100or 100.120 shall be assessed in the name ofthe unit owner.

(b) The common elements may not beconsidered a separate parcel for purposes oftaxation.

(2) In determining the real market valueof a unit with its undivided interest in thecommon elements, the county assessor mayuse the allocation of undivided interest inthe common elements appertaining to a unitas expressed in the declaration. Determi-nation of real market value of a unit based

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100.600 PROPERTY RIGHTS AND TRANSACTIONS

upon a leasehold estate shall be the same asa unit in fee simple. There shall be nodiminution of value by reason of the term ofsaid lease.

(3) Exemptions from executions and realproperty taxes apply to the owner of eachunit or to the individual units, as the casemay be.

(4) The Department of Revenue shallhave the authority to make rules and regu-lations prescribing methods best calculatedto secure uniformity according to law in theappraisal and assessment of units constitut-ing part of a property submitted to the pro-visions of this chapter. [Formerly 94.285; 1991c.459 §340; 2001 c.756 §52]

REMOVAL OF PROPERTY FROM UNIT OWNERSHIP

100.600 Termination of association orremoval of real property by unit owners;consent of lienholders; recordation;amended plat requirements. (1)(a) Subjectto ORS 100.605, the condominium may beterminated if all of the unit owners removethe property from the provisions of thischapter by executing and recording an in-strument to that effect and the holders of allliens affecting the units consent thereto oragree, in either case by instruments duly re-corded, that their liens be transferred to theundivided interest of the unit owner in theproperty after the termination. The instru-ment shall state the interest of each unitowner and lienholder as determined underORS 100.610.

(b) The recording of an instrument oftermination shall vacate the plat but shallnot vacate or terminate any recorded cove-nants, restrictions, easements or other inter-ests not imposed under the declaration orbylaws or any easement granted by the platunless the instrument of termination other-wise provides.

(c) Before the instrument of terminationmay be recorded, it must be signed by thecounty assessor for the purpose of acknowl-edging that the county assessor has been no-tified of the proposed termination.

(d) The person offering the instrument oftermination for recording shall cause a copyof the recorded instrument, including the re-cording information, to be filed with thecommissioner, the county assessor and thecounty surveyor. Upon receipt of the instru-ment of termination, the county surveyorshall make appropriate annotations, includ-ing the date and surveyor’s name or initials,with archival quality black ink on thesurveyor’s copy of the plat and any copiesfiled under ORS 92.120. Corrections or

changes are not allowed on the original platonce it is recorded with the county clerk.

(e) Failure to file the copies as requiredunder paragraph (d) of this subsection doesnot invalidate the termination.

(2) A portion of the property may be re-moved from the provisions of this chapter byrecording simultaneously with the recordingofficer an amendment to the declaration andan amended plat approved as required underORS 100.110, 100.116 and 100.135. Theamendment to the declaration shall:

(a) Include a metes and bounds legal de-scription of the property being removed;

(b) Include a metes and bounds legal de-scription of the resulting boundaries of thecondominium after the removal;

(c) State the interest of each owner inthe property being removed;

(d) State the allocation of interest ofeach unit in the common elements after theremoval;

(e) Be approved and executed by theowner of any unit being removed and theowner of any unit to which a limited com-mon element being removed pertains and ac-knowledged in the manner provided foracknowledgment of deeds;

(f) Be approved by the holder of any firstmortgage on a unit or limited common ele-ment being removed;

(g) Be approved by at least 90 percent ofowners, including any owner whose approvalis required under paragraph (e) of this sub-section;

(h) Be approved by any other mortgageeswhose approval is required under the decla-ration or bylaws;

(i) Include any other approvals requiredby the declaration or bylaws; and

(j) Include a statement by the local gov-erning body or appropriate departmentthereof that the removal will not violate anyapplicable planning or zoning regulation orordinance. The statement may be attached asan exhibit to the amendment.

(3) The amended plat required undersubsection (2) of this section shall:

(a) Comply with ORS 100.116;(b) Include a “Statement of Removal”

that the property described on the amendedplat is removed from the condominium andthat the condominium exists as described anddepicted on the amended plat. The statementshall be made by the chairperson and secre-tary of the association and acknowledged inthe manner provided for acknowledgment ofdeeds; and

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(c) Include such signatures of approvalas may be required by local ordinance orregulation.

(4) The tax collector for any taxing unithaving a lien for taxes or assessments shallhave authority to consent to such a transferof any tax or assessment lien under subsec-tion (1) of this section or the removal of aportion of the property under subsection (2)of this section. [Formerly 94.295; 1991 c.763 §29; 1997c.816 §12; 1999 c.710 §8; 2001 c.756 §62; 2005 c.22 §78; 2009c.641 §35]

100.605 Removal of property from as-sociation; repair or removal of propertythat is damaged or destroyed. (1) If 90percent of the unit owners agree that theproperty is obsolete and shall be sold, theproperty shall be considered removed fromthe provisions of this chapter.

(2) Except where the declaration or by-laws provide to the contrary, if all or partof the property is damaged or destroyed, thenthe association of unit owners shall repair,reconstruct or rebuild the property, unless60 percent of the unit owners agree that theproperty shall not be repaired, reconstructedor rebuilt. If 60 percent of the unit ownersagree that the property shall not be repaired,reconstructed or rebuilt, the property shallbe considered removed from the provisionsof this chapter.

(3) Removal of the condominium or aportion thereof from the provisions of thischapter under subsections (1) or (2) of thissection shall comply with all of the require-ments of ORS 100.600 except that the percentof the owners required to take action shallconform only to subsections (1) or (2) of thissection, as applicable. [Formerly 94.300]

100.610 Common ownership of prop-erty removed from unit ownership; valu-ation; liens. (1) If the property is removedfrom the provisions of this chapter, as pro-vided by ORS 100.600 (1) and 100.605, theproperty shall be considered owned in com-mon by all the unit owners. The respectiveinterest of a unit owner shall be the total ofthe fair market value of the unit of the unitowner and common element interestappertaining to such unit immediately beforetermination of the condominium. The pro-portion of any unit owner’s interest to thatof all unit owners is determined by dividingthe fair market value of that unit owner’sunit and common element interest by thetotal fair market values of all units andcommon element interests. The fair marketvalue of each unit and common element in-terest appertaining to such unit shall be de-termined by:

(a) Agreement of all of the unit owners;or

(b) An independent appraiser selected bythe board of directors of the association. Thedecision of the appraiser shall be distributedto the unit owners and shall become finalunless within 15 days after the distribution,the board of directors receives written ob-jection from at least 25 percent of the unitowners. In such event, a new appraiser shallbe selected by the presiding judge for the ju-dicial district in which the property is lo-cated. Such appraiser’s decision shall befinal.

(2) All costs and expenses incurred undersubsection (1) of this section shall be com-mon expenses.

(3) In the event any part of the propertyhas been damaged or destroyed, the appraisermay use any available data and informationpertaining to the condominium including, butnot limited to, building plans, prior ap-praisals and information on file with govern-mental authorities.

(4) Liens affecting any unit shall be liens,in accordance with the then existing priori-ties, against the undivided interest of theunit owner in the property owned in com-mon.

(5) If a portion of the property is removedfrom the provisions of this chapter, as pro-vided by ORS 100.600 (2), the respective in-terest of each unit owner and lienholder inthe property removed and the remainingcondominium shall be as stated in theamendment to the declaration in accordancewith ORS 100.600 (2)(c) and (d). [Formerly94.306; 1995 c.781 §37]

100.615 Action for partition; divisionof sale proceeds. If the property is removedfrom the provisions of this chapter, as pro-vided in ORS 100.600 and 100.605, it shall besubject to an action for partition at the suitof any unit owner. The net proceeds of sale,together with the net proceeds of the insur-ance on the property, if any, shall be consid-ered as one fund and shall be divided amongthe unit owners in proportion to their re-spective undivided interests as determinedunder ORS 100.600 and 100.610 after firstpaying out of the respective shares of theunit owners, to the extent sufficient for thepurpose, all liens on the undivided interestin the property owned by each unit owner.[Formerly 94.312]

100.620 Termination or removal nobar to resubmission. The termination ofthe condominium or the removal of a portionof the property from the condominium shallin no way bar its resubmission. [Formerly94.318]

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100.625 PROPERTY RIGHTS AND TRANSACTIONS

DIVIDING OR CONVERTING UNITS100.625 Procedure for dividing or con-

verting units. (1) Subject to the provisionsof the declaration and any applicable law,and upon compliance with this section:

(a) A unit designated in the declarationto be used for commercial, industrial orother nonresidential purpose may be dividedby an owner, including the declarant, intotwo or more units.

(b) A unit owned by the declarant andlocated in a condominium that consists ex-clusively of units designated in the declara-tion to be used for nonresidential purposes,may be divided or converted into two ormore units, common elements or a combina-tion of units and common elements.

(2) The owner of a unit to be divided orconverted shall submit to the board of direc-tors of the association of unit owners a pro-posed amendment which shall:

(a) State the purposes of the amendment;(b) Assign an identifying number to each

unit created;(c) Reallocate the interest in the common

elements and the use of any limited commonelements, voting rights, common expense li-ability and the right to common profits inthe manner prescribed in the declaration;

(d) Indicate the means of access for eachunit to common elements; and

(e) Include any additional provisions nec-essary to conform any other provisions of thedeclaration or bylaws.

(3) The board of directors shall approvethe proposed amendment unless the boarddetermines within 45 days that the amend-ment is inconsistent with the declaration orbylaws, or the division or conversion willimpair the structural integrity or mechanicalsystems of the condominium or lessen thesupport of any portion of the condominium.

(4) The board of directors may requirethe owner of the unit to be divided or con-verted to submit an opinion of a registeredprofessional engineer as to whether or notthe proposed division or conversion will im-pair the structural integrity or mechanicalsystems of the condominium or weaken thesupport of any portion of the condominium.The board of directors or any agent ap-pointed by the board of directors may super-vise the work necessary to effect the divisionor conversion. Any expenses incurred underthis section shall be charged to the owner ofthe unit requesting the division or conver-sion.

(5) The amendment shall be executed bythe owner and mortgagees or trust deed ben-eficiaries of the affected unit, certified by the

chairperson and secretary of the associationand approved and recorded in accordancewith ORS 100.135 (2)(b).

(6) A plat showing each unit created orthe conversion of a unit to common elementsor combination thereof shall be recorded inaccordance with ORS 100.115.

(7) This section applies only if the decla-ration expressly permits and contains:

(a) A statement of the maximum numberof units into which a unit may be dividedunder subsection (1) of this section;

(b) A general description of the natureand proposed use of any unit or portion ofany unit which the declarant may convert tocommon elements; and

(c) A statement of the method to be usedto reallocate interest in the common ele-ments, the use of any limited common ele-ments, voting rights, common expenseliability and right to common profits.[Formerly 94.322; 2003 c.569 §39]

REGULATION OF SALES; FILINGREQUIREMENTS

100.635 Filing with commissioner; fee.Except as provided by ORS 100.660 and100.665, prior to negotiating within this statefor the sale of a condominium unit located inanother state, or prior to the sale of anycondominium unit located within this state,the developer shall file the following infor-mation with the Real Estate Commissioner:

(1) General information on the condo-minium, including:

(a) The name and address of the condo-minium and the county in which the condo-minium is located; and

(b) The name, address and telephonenumber of the developer.

(2) Two copies of the disclosure state-ment for the condominium prepared in ac-cordance with ORS 100.655.

(3) The documents for and other infor-mation on the condominium as required byORS 100.640.

(4) The filing shall be accompanied by afee as provided in ORS 100.670. [Formerly94.331]

100.640 Filing; required documentsand information. The following documentsand information shall be submitted to theReal Estate Commissioner as part of the fil-ing required under ORS 100.635:

(1) A copy of the proposed or recordeddeclaration or supplemental declaration ofcondominium ownership drawn in conform-ance with ORS 100.105 or 100.120, or the lawapplicable in the state where the condomin-ium was created;

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(2) A copy of the proposed or recordedbylaws drawn in conformance with ORS100.415 or the law applicable in the statewhere the condominium was created;

(3) A copy of the full size plat preparedin conformance with ORS 100.115 (1) or thelaw applicable in the state where the condo-minium was created, or a copy of the siteplan;

(4) A statement from the county assessoror county surveyor that the name for thecondominium is acceptable under ORS100.105 (6);

(5) A copy of a preliminary title report,title insurance policy or condominium guar-antee that has been issued within the pre-ceding 30 days, including a map showing thelocation of property described in the report,policy or guarantee or other evidence of titlesatisfactory to the commissioner;

(6) A copy of all restrictive covenants,reservations or other documents that maycreate an encumbrance on or limit the useof the property other than those restrictionscontained in the declaration or bylaws;

(7) A copy of the reserve study requiredby ORS 100.175 and other sources of infor-mation that serve as a basis for calculatingreserves in accordance with ORS 100.175,unless the information is contained in thedisclosure statement;

(8) The following sample forms:(a) Unit sales agreement, including the

notice to purchaser of cancellation rights inaccordance with ORS 100.730 and 100.740,the statement required by ORS 93.040 (2) andany warranty required under ORS 100.185;and

(b) A receipt for documents required un-der ORS 100.725;

(9) If required by ORS 100.680:(a) A copy of the escrow agreement

drawn in conformance with ORS 100.680 andexecuted by both the declarant and theescrow agent. If individual escrow agree-ments or instructions are to be executed bythe purchaser, other than the standardescrow instruction required by the escrowagent, submit sample form and a letter fromthe escrow agent, agreeing to the establish-ment of the escrows and the procedure setforth in the sample form; and

(b) A unit sales agreement drawn in con-formance with ORS 100.680;

(10) If any of the sales will be by meansof an installment contract of sale:

(a) A copy of the escrow agreement orescrow instructions executed by the devel-oper and the escrow agent providing for theestablishment of collection escrows and the

deposit of documents in accordance withORS 100.720; and

(b) The proposed installment contract ofsale form, if available;

(11) Any other documents by which thepurchasers will be bound;

(12) Any report or disclosure statementissued for the condominium, by the federalgovernment and any other state; and

(13) A statement of any additional factsor information which the developer desiresto submit to the commissioner. [Formerly94.353; 1997 c.816 §13; 2001 c.756 §53; 2007 c.409 §35; 2007c.410 §20; 2009 c.641 §48]

100.645 Filing information to be keptcurrent. (1) The information required byORS 100.635 shall be kept current by the de-veloper. Any material change in the infor-mation furnished to the Real EstateCommissioner shall be reported by the de-veloper within 10 days after the change oc-curs. The report shall be accompanied by afiling fee as required by ORS 100.670.

(2) A developer shall be responsible forthe accuracy of and for providing all infor-mation required by ORS 100.635 and any in-formation required under this section for aslong as the developer retains any unsold in-terest in the condominium to which the in-formation pertains. [Formerly 94.342]

100.650 Service of process on nonresi-dent developer; consent for service oncommissioner; contents of consent; re-cords of service on commissioner. (1) Ev-ery nonresident developer, at the time offiling the information required by ORS100.635, shall also file with the Real EstateCommissioner an irrevocable consent that if,in any suit or action commenced against thenonresident developer in this state arisingout of a violation of any provision of thischapter, personal service of summons orprocess upon the nonresident developer can-not be made in this state after the exerciseof due diligence, a valid service may there-upon be made upon the nonresident devel-oper by service on the commissioner.

(2) The consent shall be in writing exe-cuted and verified by an officer of a corpo-ration or association, a general partner of apartnership or by an individual developer andshall set forth:

(a) The name of the developer.(b) The address to which documents

served upon the commissioner are to be for-warded.

(c) If the developer is a corporation orunincorporated association, that the consentsigned by such officer was authorized byresolution duly adopted by the board of di-rectors.

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(3) The address for forwarding documentsserved under this section may be changed byfiling a new consent in the form prescribedin subsection (2) of this section.

(4) Service on the commissioner of anysuch process shall be made by delivery to thecommissioner or a clerk on duty in any officeof the commissioner, duplicate copies of suchprocess, with duplicate copies of any papersrequired by law to be delivered in connectionwith such service.

(5) When the commissioner is served withany such process, the commissioner shallimmediately cause one of the copies thereof,with any accompanying papers, to be for-warded by registered mail or by certifiedmail with return receipt to the developer atthe address set forth in the consent.

(6) The commissioner shall keep a recordof all processes, notices and demands servedupon the commissioner under this section,and shall record therein the time of suchservice and the action with referencethereto. [Formerly 94.348; 1991 c.249 §12]

100.655 Disclosure statement; con-tents; disclosure statement from otherstate; declarant liability limited. (1) Thedisclosure statement submitted to the RealEstate Commissioner as part of a filing underORS 100.635 shall contain the following in-formation:

(a) The name and address of the condo-minium, and the name, address and telephonenumber of the developer;

(b) A general narrative description of thecondominium stating the total number ofunits, a description of the types of units, thetotal number of units that may be includedin the condominium pursuant to ORS 100.105(2), and a precise statement of the nature ofthe interest which is being offered;

(c) If at the time of filing:(A) The construction of the project is not

completed, general disclosure of the statusof construction and the actual or scheduleddates of completion of buildings, recreationalfacilities and other common elements, in-cluding a statement describing any recre-ational facilities or improvements to thecommon elements that the developer reservesthe right to develop or promises to develop,or a statement that there are no such facili-ties or improvements; or

(B) The construction of the project iscompleted, the actual dates of completion ofbuildings, recreational facilities and othercommon elements if known by the developer;

(d) The nature and significant terms ofany financing offered by the developer topurchasers of the condominium units;

(e) Copies of any warranties for struc-tural elements and mechanical and othersystems or a brief description of such war-ranties;

(f)(A) A current or projected budget ofthe association of unit owners for the opera-tion and maintenance and any other commonexpenses of the condominium, including anamount for a subsidy of the association bythe declarant, if any, by a contribution offunds, goods or services;

(B) A brief statement of the method ofdetermining liability for common expensesand the right to common profits; and

(C) The following notice in at least12-point type that is either all capitals orboldface:__________________________________________

NOTICE TO PROSPECTIVE PURCHASERSTHE PROJECTION OF THE BUDGET OFTHE ASSOCIATION OF UNIT OWNERSFOR THE OPERATION AND MAINTE-NANCE AND OTHER COMMON EX-PENSES OF THE CONDOMINIUM ISONLY AN ESTIMATE, PREPARED WITHDUE CARE.__________________________________________

(g) If a provision for reserves under ORS100.175 is included in the budget disclosedunder paragraph (f) of this subsection:

(A) A statement identifying the informa-tion constituting the basis for the reserveassessment under ORS 100.175; and

(B) A statement that the informationconstituting the basis for the reserve assess-ment identified under ORS 100.175 is avail-able for review upon written request to thedeclarant or the designated person, unlessincluded in the disclosure statement;

(h) In the case of a conversion condo-minium, a statement of:

(A) The present condition of all struc-tural components and major mechanical andutility installations in the condominium, in-cluding the approximate date of constructionand a reasonable estimate of the remaininguseful life of, at a minimum, the roof, siding,plumbing, electrical, HVAC system, asphalt,sidewalks and decks;

(B) Whether or not the assessment ofconditions under subparagraph (A) of thisparagraph, which shall be in at least 12-pointtype that is all capitals or boldface, was pre-pared by a registered engineer, registeredarchitect or certified home inspector; and

(C) The statutory procedure required tocreate a conversion condominium;

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(i) A cross-reference to the portions ofthe declaration, any supplemental declara-tion and bylaws containing the generalpower and authority of the board of direc-tors, the method of apportionment of votingrights among the members of the associationof unit owners and a statement of the natureand extent of control of the board of direc-tors retained by the developer by votingrights or otherwise;

(j) A list of the documents by which pur-chasers may be bound, including the decla-ration, bylaws, ground leases, managementagreement, easements, covenants, re-strictions and conditions;

(k) A statement of whether there are anyrestrictions on alienation of units or any useor occupancy restrictions, such as limitationson residential or commercial use, pets, ageof occupants or number of occupants, and across-reference to those portions of the dec-laration, any supplemental declaration, by-laws or any other document containing theprincipal provisions relating to those re-strictions; and

(L) If the condominium is a staged con-dominium:

(A) Whether the declarant reserves theright to annex additional property to thecondominium pursuant to ORS 100.125 and,if so:

(i) The maximum number of units;(ii) The date after which annexation right

terminates;(iii) The description of additional com-

mon elements declarant reserves right to an-nex to the property and whether suchcommon elements might substantially in-crease the proportionate amount of commonexpenses by current unit owners; and

(iv) The effect of annexation of additionalunits on allocation of interest in the commonelements and voting rights.

(B) If the condominium or any stage be-ing filed under ORS 100.635 contains or maycontain any variable property, a statementof the rights reserved by the declarant underORS 100.150 (1) and the results specified inORS 100.155 if such rights are not exercised.

(2) In lieu of the disclosure statement re-quired under subsection (1) of this section,the commissioner may accept a disclosurereport issued or approved by another stateor governmental agency.

(3) No disclosure statement is requiredfor condominiums described in ORS 100.660.

(4) The declarant is not liable to the as-sociation or the owners with respect to astatement of condition or estimate of usefullife contained in the disclosure statement if:

(a) The declarant did not have actualknowledge of any inaccuracies in the state-ment at the time of delivery of the disclosurestatement to the purchaser; and

(b) The declarant relied upon reportsprepared by registered engineers or regis-tered architects in making the statement or,if the condominium has four or fewer units,reports prepared by registered engineers,registered architects or certified home in-spectors. [Formerly 94.351; 1997 c.816 §14; 1999 c.677§55; 2001 c.756 §54; 2003 c.569 §40; 2007 c.409 §36; 2009c.259 §22]

100.660 Nonresidential condominiumor security filing; contents. A developer ofa condominium located in this state, thatconsists exclusively of units to be used fornonresidential purposes or that consists ofunits to be offered for sale as a security un-der ORS 59.005 to 59.451, 59.710 to 59.830,59.991 and 59.995, shall submit to the RealEstate Commissioner a filing that consists of:

(1) General information on the condo-minium including:

(a) The name and address of the condo-minium and the county in which the condo-minium is located; and

(b) The name, address and telephonenumber of the developer and any agent of thedeveloper; and

(2) The following documentation:(a) The original executed declaration or

supplemental declaration and a copy thereof,drawn in conformance with ORS 100.105 and100.120, if applicable;

(b) The original executed bylaws, and acopy thereof, drawn in conformance withORS 100.415;

(c) A copy of the full size plat preparedin conformance with ORS 100.115;

(d) A copy of a current preliminary titlereport or title insurance policy or condomin-ium guarantee that has been issued withinthe preceding 30 days, including a mapshowing the location of property describedtherein, or other evidence of title satisfac-tory to the commissioner;

(e) A copy of all restrictive covenants,reservations or other documents containingprovisions that may create an encumbranceon or limit the use of the property other thanthose restrictions contained in the declara-tion, supplemental declaration or bylaws; and

(f) A statement from the county assessorthat the name for the condominium is ac-ceptable under ORS 100.105 (5). [Formerly94.356]

100.665 Exemption to certain disclo-sure and notice requirements. A vendorunder a land sale contract, a mortgagee of amortgage or a beneficiary of a trust deed

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who becomes a developer by reason of ac-quiring a unit or units in a condominiumthrough foreclosure of its lien or acceptanceof a deed in lieu thereof, is not required tosubmit a filing to the Real Estate Commis-sioner under ORS 100.635, or to distribute adisclosure statement under ORS 100.705 orprovide the notice to purchaser required un-der ORS 100.740 if the vendor, mortgagee orbeneficiary sells, in a single sale, all of theunits so acquired to a developer who agreesto comply with the provisions of ORS 100.635and 100.705 before negotiating a sale of theunit or units to others. [1989 c.595 §46]

100.670 Fees; hourly rate; deposit. (1)A developer or other person required to filematerials or information with the Real Es-tate Commissioner under ORS 100.005 to100.910 shall pay to the commissioner a feeas required under subsections (2) and (3) ofthis section for the review, approval andhandling of the filings by the commissionerat the time of the initial filing with thecommissioner.

(2) A fee charged by the commissionerunder subsection (1) of this section shall bedetermined by the commissioner to cover thecosts of the commissioner’s review, approvalor revision activity. The fee shall be basedupon an hourly rate that is subject to priorapproval of the Oregon Department of Ad-ministrative Services and a report to theEmergency Board prior to adopting the feeand shall be within the budget authorized bythe Legislative Assembly as that budget maybe modified by the Emergency Board.

(3) The commissioner shall collect a de-posit of $100 from a developer at the time ofsubmitting a filing described in subsection (1)of this section. The amount of the depositshall be deducted from the final fee computedas provided in subsection (2) of this section.[Formerly 94.354; 1991 c.703 §3]

100.675 Inventory; review; approval;timelines. (1)(a) Upon receipt of an informa-tional filing, submitted as required underORS 100.005 to 100.910 and the prescribedfiling fee, within five working days after re-ceipt of the filing the Real Estate Commis-sioner shall inventory the filing andacknowledge whether the filing contains allrequired documents and information. If thefiling contains all required documents andinformation, the commissioner shall issue anotice acknowledging their receipt.

(b) If the filing under paragraph (a) ofthis subsection does not contain the requireddocuments and information, the commis-sioner shall issue a notice of receipt of apartial filing, a statement itemizing the re-quired documents and information that mustbe submitted, and a statement that the filingwill not be acknowledged as containing all

required documents and information untilthe itemized documents and information havebeen received and inventoried by the com-missioner.

(c) Within 45 days from the date that thefiling has been inventoried and acknowledgedas containing all the required documents andinformation, the commissioner shall reviewthe filing to determine whether the docu-ments and information submitted conform tothe statutory requirements of ORS 100.005 to100.910 and, upon determination of theirconformity shall adopt and issue the disclo-sure statement filed under ORS 100.655.

(2) For any document filed with the com-missioner that requires the commissioner’sapproval under ORS 100.005 to 100.910, thecommissioner shall issue a notice of receiptfor the filing within five days following re-ceipt by the commissioner of the document.The document shall be considered approvedby the commissioner on the expiration of 45days following issuance by the commissionerof the notice of receipt, unless within the45-day period:

(a) The commissioner notifies the personmaking the filing in writing of the portionsof the document that do not comply with theapplicable requirements of ORS 100.005 to100.910; or

(b) The commissioner notifies the personmaking the filing in writing that the docu-ment complies with the applicable require-ments of ORS 100.005 to 100.910 and isapproved. [Formerly 94.357]

100.680 Escrow; sales agreement; re-quirements. (1) Unless the developer of acondominium has complied with subsections(2) and (3) of this section, the developer anda purchaser may not enter into a unit salesagreement before the recording of the decla-ration or supplemental declaration and platunder ORS 100.115 or, if the condominium islocated outside of this state, before the con-dominium has been created under the lawsof the jurisdiction within which the condo-minium is located.

(2) Any purchaser’s funds, the unit salesagreement, any notes or security documentsand any loan commitments shall be placed inan escrow located within this state with aperson or firm authorized under ORS 696.505to 696.582. The escrow instructions may notallow distribution of the purchaser’s fundsuntil the declaration or any applicable sup-plemental declaration is recorded and the le-gal title or other interest bargained for hasbeen transferred to the purchaser as providedin the unit sales agreement. If any funds ofthe purchaser are invested, the funds shallbe invested in federally insured accounts orother investments approved by the Real Es-

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tate Commissioner. If the developer defaultsunder the unit sales agreement, thepurchaser’s funds held in escrow and all in-come earned from investment of the fundsheld in escrow shall be returned.

(3) A unit sales agreement shall contain:(a) The unit designation;(b) The full amount of the purchase price,

including the amount and form of earnestmoney paid by the purchaser;

(c) The name and address of the escrowagent to hold the purchaser’s funds and areference to the escrow instructions control-ling the escrow;

(d) If the purchaser’s funds are to be in-vested, the name of the financial institutionwhere the funds will be deposited and towhom any interest earnings will accrue un-der all possible circumstances;

(e) The date of closing with any condi-tions and requirements of closing;

(f) The closing procedure;(g) Any authority of the developer to

terminate the sale and, in the case of termi-nation, any forfeiture provisions;

(h) If the developer specifies any contin-gency, the date other than closing when allpurchaser’s funds and interest earnings willbe returned to the purchaser if the contin-gency is not met;

(i) Provision that the purchaser will re-cover any funds paid to the developer andany interest earnings upon default by thedeveloper;

(j) Any rights reserved by the developerto modify the declaration, any supplementaldeclaration, bylaws, plat or other documentsby which the purchaser is or will be bound;

(k) Notice to the purchaser of cancella-tion rights under ORS 100.730 and 100.740;

(L) For the sale of newly constructedunits, any express warranty required underORS 100.185; and

(m) Any other provisions deemed neces-sary by the developer and purchaser.

(4) In lieu of the requirements of subsec-tion (2) of this section, the commissioner mayapprove any alternative requirement ormethod which the commissioner finds willassure the same protection to the purchaseras the protection provided by the escrow.[Formerly 94.358]

INSPECTION OF CONDOMINIUM;DISCLOSURE STATEMENT

100.700 Inspection of condominium;report in disclosure statement. The RealEstate Commissioner may make an on-siteinspection of any condominium and require

a report of the commissioner’s findings fromsuch inspection to be included in the disclo-sure statement for use in the sale of thecondominium. [Formerly 94.359]

100.705 Sale prohibited prior to issu-ance of disclosure statement; exception;distribution; use of disclosure statement.(1) Except as provided in ORS 100.665, nodeveloper or agent of a developer shall enterinto a unit sales agreement prior to the is-suance of the disclosure statement for thecondominium.

(2) A copy of the disclosure statement fora condominium shall be given to the pro-spective purchaser of a unit in the condo-minium by the developer or an agent of thedeveloper, not later than the date the unitsales agreement is fully executed by all par-ties. The developer shall take a receipt fromthe prospective purchaser upon delivery of acopy of the disclosure statement, and suchreceipts shall be kept on file within thisstate in the possession of the developer orthe agent of the developer subject to inspec-tion by the Real Estate Commissioner for aperiod of three years from the date the re-ceipt is taken.

(3) The disclosure statement shall not beused for advertising purposes unless it isused in its entirety. No portion of the dis-closure statement shall be underscored,highlighted, italicized or printed in larger orheavier type than the balance of the state-ment unless the true copy of the statementso emphasizes such portion.

(4) The commissioner may furnish at costcopies of the disclosure statement for the useof developers.

(5) Violations of this section shall besubject to the provisions of ORS 646.605 to646.656, in addition to other sanctions pro-vided by law. [Formerly 94.384]

100.710 Inspection deposit. When anon-site inspection under ORS 100.700 is to bemade of a condominium situated in the Stateof Oregon, or situated outside the statewhich will be offered for sale within thisstate, the Real Estate Commissioner, in ad-dition to the fee provided in ORS 100.670,may require the developer to advance a de-posit. Such deposits shall not exceed $200 perday for making the on-site inspection. Anyunexpended portion of the deposit shall berefunded to the developer. [Formerly 94.391]

REQUIREMENTS FOR SALE100.720 Conditions prerequisite to sale.

(1) No condominium unit shall be sold by adeveloper by means of a land sale contractunless a collection escrow is establishedwithin this state with a person or firm au-thorized to receive escrows under the laws

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of this state and all of the following are de-posited in the escrow:

(a) A copy of the title report or abstract,as it relates to the property being sold.

(b) The original sales document or a truecopy thereof relating to the purchase of thecondominium unit.

(c) A commitment to give a partial re-lease for the condominium unit being soldfrom the terms and provisions of any blanketencumbrance. The commitment shall be in aform satisfactory to the Real Estate Com-missioner.

(d) A document in good and sufficientform transferring the interest purchased.

(2) The developer shall submit writtenauthorization allowing the commissioner toinspect all escrow deposits established pur-suant to subsection (1) of this section.

(3) In lieu of the procedures provided insubsection (1) of this section, the developershall conform to such alternative require-ment or method which the commissioner maydeem acceptable to carry into effect the in-tent and provisions of this section. [Formerly94.400]

100.725 Documents prerequisite to ex-ecution of sale agreement and convey-ance of unit. (1) Before the unit salesagreement is fully executed by all parties,the developer shall deliver to the purchasera copy of the declaration and bylaws of thecondominium and any supplements andamendments thereto affecting the unit.

(2) When the unit sales agreement isfully executed by all parties, the developershall deliver to the purchaser a copy of thefully executed agreement which contains the“Notice to Purchaser” required by ORS100.740.

(3) The developer shall deliver to thepurchaser prior to the conveyance of the unitby deed, lease or contract any ground leases,leases with the association for recreation orparking facilities and escrow instructionsapplying to the transaction.

(4) The developer shall take a receiptfrom the purchaser upon the delivery of thedocuments referred to in subsection (1) ofthis section, and such receipts shall be kepton file within this state by the developer orthe agent of the developer subject to inspec-tion by the Real Estate Commissioner for aperiod of three years from the date the re-ceipt is taken. [Formerly 94.406]

100.730 Cancellation of sale of unit;notice to seller; return of payments andreconveyance; extinguishment of encum-brances; waiver prohibited; disclaimer ofnotice; applicability. (1) A purchaser of acondominium unit may cancel for any reason

the sale of a condominium unit from a de-veloper or any contract, agreement or evi-dence of indebtedness associated with thesale of the condominium unit, within fivebusiness days (excluding Saturdays and holi-days) after the date on which the latest ofthe following events occurs:

(a) The signing by the purchaser of theunit sales agreement;

(b) The signing by the purchaser of thereceipt required under ORS 100.705 (2) uponthe delivery of the disclosure statement, ifany; or

(c) The signing by the purchaser of thereceipt required under ORS 100.725 (4) upondelivery of a copy of the documents specifiedin ORS 100.725 (1).

(2) Cancellation, under subsection (1) ofthis section, occurs when the purchaser ofan interest gives written notice to the devel-oper at the developer’s address stated in thenotice to purchaser required under ORS100.740 (1).

(3) A notice of cancellation given by apurchaser of a condominium unit need nottake a particular form and is sufficient if itindicates by any form of written expressionthe intention of the purchaser not to bebound by the contract or evidence of indebt-edness.

(4) Notice of cancellation, if given bymail, shall be given by certified mail, returnreceipt requested, and is effective on the datethat such notice is deposited with the UnitedStates Postal Service, properly addressed andpostage prepaid.

(5) Upon receipt of a timely notice ofcancellation, the developer shall immediatelyreturn to the purchaser all payments re-ceived from the purchaser. In case of pay-ments made by check, the developer shall notbe required to return the payment to a pur-chaser until the check is finally paid as pro-vided in ORS 74.2130. Upon return of allsuch payments the purchaser shall imme-diately transfer rights in the interest to thedeveloper, not subject to any encumbrancecreated or suffered by the purchaser. In thecase of cancellation by a purchaser of anyevidence of indebtedness, the purchaser shallreturn the purchaser’s copy of the executedevidence of indebtedness to the developer,and the developer shall cancel the evidenceof indebtedness. Any encumbrances againstthe purchaser’s interest in the unit arisingby operation of law from an obligation of thepurchaser existing prior to transfer of theinterest to the purchaser shall be extin-guished by the reconveyance.

(6) Except as otherwise provided in ORS100.735, no act of a purchaser shall be effec-tive to waive the right of cancellation

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granted by subsection (1) of this section. Adeveloper may require that a purchaser of acondominium unit execute and deliver to thedeveloper, after the expiration of the cancel-lation period, a signed statement disclaimingany notice of cancellation that may havebeen made by the purchaser prior to expira-tion of the cancellation period granted undersubsection (1) of this section and that mayhave been timely and properly done underthis section whether or not the statementhas been received by the developer. In caseof execution of any such statement by thepurchaser, the statement shall be sufficientto rescind the notice of cancellation.

(7) A purchaser’s right to cancel undersubsection (1) of this section terminates atthe time of the closing of the unit purchasetransaction.

(8) This section shall not apply to:(a) The sale of a unit in a condominium

used or intended to be used solely for com-mercial or industrial purposes;

(b) The sale of a condominium unit con-ducted by public auction; or

(c) A sale described in ORS 100.665.[Formerly 94.412]

100.735 Waiver of right to cancel. (1)A purchaser may waive the right to cancel-lation granted under ORS 100.730 (1) afterthe unit sales agreement is fully executed byall parties. The waiver shall be in writingand dated and shall include a notice that bysigning such statement the purchaser waivesonly the right of cancellation granted underORS 100.730 (1) and no other right.

(2) No provision which obligates a pur-chaser to waive or limit the right of cancel-lation granted under ORS 100.730 (1) shall beincluded in the unit sales agreement or anyother agreement associated with the sale.[Formerly 94.418]

100.740 Notice to purchaser of cancel-lation rights; form. (1) Subject to ORS100.730 (8), a unit sales agreement shall con-tain, either upon the first page or upon aseparate sheet attached to such first page,the following notice in at least 12-point typethat is all capitals or boldface:__________________________________________

NOTICE TO PURCHASER

(RIGHT OF CANCELLATION)

BY SIGNING A UNIT SALES AGREE-MENT YOU ARE INCURRING A CON-TRACTUAL OBLIGATION TO PURCHASEAN INTEREST IN A CONDOMINIUM.HOWEVER, YOU HAVE THE RIGHT TO

CANCEL THIS AGREEMENT FOR ANYREASON FOR FIVE BUSINESS DAYS (EX-CLUDING SATURDAYS AND HOLIDAYS)AFTER WHICHEVER OF THE FOLLOW-ING IS LAST TO OCCUR:

(1) SIGNING BY THE PURCHASER OFTHE UNIT SALES AGREEMENT;

(2) SIGNING BY THE PURCHASER OFTHE RECEIPT FOR THE DISCLOSURESTATEMENT, IF ANY; OR

(3) SIGNING BY THE PURCHASER OFTHE RECEIPT FOR A COPY OF THECONDOMINIUM DECLARATION AND BY-LAWS AND ANY AMENDMENTS ORSUPPLEMENTS THERETO AFFECTINGTHE UNIT.

TO CANCEL THIS AGREEMENT, YOUMUST GIVE WRITTEN NOTICE TO THEDEVELOPER OR THE AGENT OF THEDEVELOPER AT THE FOLLOWING AD-DRESS:

(SUGGESTED PROCEDURE)

BEFORE EXECUTING THIS AGREE-MENT, OR BEFORE THE CANCELLATIONPERIOD ENDS, YOU SHOULD DO THEFOLLOWING:

(1) CAREFULLY EXAMINE THE DIS-CLOSURE STATEMENT, IF ANY, ISSUEDBY THE REAL ESTATE COMMISSIONERON THE CONDOMINIUM AND ALL AC-COMPANYING INFORMATION DELIV-ERED BY THE DEVELOPER. OREGONLAW REQUIRES THE DEVELOPER TODELIVER TO YOU A COPY OF THE DEC-LARATION AND BYLAWS OF THE CON-DOMINIUM AND ANY SUPPLEMENTSAND AMENDMENTS THERETO AFFECT-ING THE UNIT PRIOR TO THE TIME THEUNIT SALES AGREEMENT IS FULLY EX-ECUTED BY ALL PARTIES. A COPY OFTHE DECLARATION AND BYLAWS, ANDANY SUPPLEMENTS AND AMEND-MENTS THERETO, ARE AVAILABLEFROM THE ASSOCIATION FOR EXAM-INATION AND DUPLICATION, AT AREASONABLE FEE, UPON YOUR WRIT-TEN REQUEST.

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(2) INQUIRE OF YOUR LENDERWHETHER YOU CAN GET ADEQUATEFINANCING ON AN ACCEPTABLE BASIS.

(3) INQUIRE OF THE DEVELOPERAND THE LENDER WHAT THE AMOUNTOF THE CLOSING COSTS WILL BE.

OREGON LAW REQUIRES THAT YOUIMMEDIATELY BE GIVEN A COPY OFTHIS NOTICE AND A COPY OF THEUNIT SALES AGREEMENT WHEN IT HASBEEN FULLY EXECUTED BY ALL PAR-TIES.

__________________________________________

(2) Except as provided in ORS 100.665, acopy of the notice set forth in subsection (1)of this section shall be given to each pur-chaser at the time of or immediately follow-ing the purchaser’s signing of the unit salesagreement, for the use of the purchaser.[Formerly 94.424; 2001 c.756 §55; 2003 c.569 §41]

100.745 Escrow documents required ofsuccessor to vendor’s interest. (1) A pur-chaser of a vendor’s interest or a holder ofan encumbrance secured by a vendor’s inter-est in an installment contract of sale forwhich an escrow has been established pursu-ant to ORS 100.720 shall deposit in theescrow any instruments necessary to assurethat the contract vendee can obtain the legaltitle bargained for upon compliance with theterms and conditions of the contract.

(2) A developer who has sold interests ina condominium under an installment con-tract of sale shall not dispose of or subse-quently encumber the vendor’s interesttherein unless the terms of the instrumentof disposition or the encumbrance providethe means by which the purchaser or holderof the encumbrance will comply with subsec-tion (1) of this section. [Formerly 94.431]

100.750 Inspection of records. Recordsof the sale of any condominium unit shall besubject to inspection by the Real EstateCommissioner and shall be made available tothe commissioner in Oregon at the requestof the commissioner. [Formerly 94.437]

PROHIBITED ACTS100.770 Fraud and deceit prohibited.

No developer or agent of a developer shall,in connection with the sale of a condomin-ium unit, directly or indirectly:

(1) Employ any device, scheme or artificeto defraud;

(2) Make any untrue statement of a ma-terial fact or fail to state a material factnecessary to make the statement made, in

the light of the circumstances under whichit is made, not misleading;

(3) Engage in any act, practice or courseof business which operates or would operateas a fraud or deception upon any person;

(4) Issue, circulate or publish anyprospectus, circular, advertisement, printedmatter, document, pamphlet, leaflet or otherliterature, including a public report issuedpursuant to ORS 100.700, which contains anuntrue statement of a material fact or failsto state a material fact necessary in order tomake the statements therein made, in thelight of the circumstances under which theyare made, not misleading;

(5) Issue, circulate or publish any adver-tising matter or make any written represen-tation, including a public report issuedpursuant to ORS 100.700, unless the name ofthe person issuing, circulating or publishingthe matter or making the representation isclearly indicated; or

(6) Make any statement or represen-tation, or issue, circulate or publish any ad-vertising matter containing any statement tothe effect that the condominium has been inany way approved or indorsed by the RealEstate Commissioner. [Formerly 94.448]

100.775 False or misleading advertis-ing prohibited; liability. It shall be unlaw-ful for any developer or agent of a developer,who with intent, directly or indirectly, to sella condominium unit, to authorize, use, director aid in the publication, distribution orcircularization of any advertisement, radiobroadcast or telecast concerning the condo-minium, which contains any statement, pic-torial representation or sketch which is falseor misleading. Nothing in this section shallbe construed to hold the publisher or em-ployee of any newspaper, any job printer,broadcaster or telecaster liable for any pub-lication referred to in this chapter unless thepublisher, employee, printer, broadcaster ortelecaster has actual knowledge of the falsitythereof or has an interest in the condomin-ium advertised or the sale thereof. [Formerly94.454]

100.780 Waiver of legal rights void.Any condition, stipulation or provision inany sales contract or lease, or in any otherlegal document, binding any purchaser orlessee to waive any legal rights under thischapter against the developer shall bedeemed to be contrary to public policy andvoid. [Formerly 94.460]

100.785 Blanket encumbrance prohib-ited. (1) Subject to the provisions of ORS100.720, a condominium unit may not beconveyed by a developer subject to a blanketencumbrance.

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CONDOMINIUMS 100.990

(2) Notwithstanding subsection (1) of thissection, the developer shall conform to analternative requirement or method which theReal Estate Commissioner may deem accept-able to afford a purchaser the protectionprovided by the prohibition in subsection (1)of this section. [Formerly 94.465; 2001 c.756 §56]

ENFORCEMENT100.900 Civil penalty. (1) In addition to

any other penalties provided by law, the RealEstate Commissioner may impose a civilpenalty for violation of the provisions of ORS100.015, 100.635 to 100.730 and 100.740 to100.780 or any of the rules adopted thereun-der. No civil penalty shall exceed $1,000 perviolation.

(2) Civil penalties under this sectionshall be imposed as provided in ORS 183.745.

(3) All penalties recovered shall be paidinto the State Treasury and credited to theGeneral Fund. [Formerly 94.470; 1991 c.734 §6]

100.905 Cease and desist order; in-junction. (1) Whenever the Real EstateCommissioner finds that any developer orother person is violating any of the pro-visions of ORS 100.015, 100.635 to 100.730 and100.740 to 100.780 or the rules adoptedthereunder or of the alternative require-ments of the commissioner prescribed pursu-ant to ORS 100.720 (3), the commissionermay order the persons to desist and refrainfrom violating such provisions or require-ments, or from the further sale of condomin-ium units.

(2) Whenever the commissioner finds thatany developer or other person is violating,or has violated or is about to violate, any ofthe provisions of ORS 100.015, 100.635 to100.730 and 100.740 to 100.780 or the rulesadopted thereunder or the alternative re-quirements of the commissioner prescribedpursuant to ORS 100.720 (3), the commis-sioner may bring proceedings in the circuitcourt within the county in which the vio-lation or threatened violation has occurredor is about to occur, or in the county wheresuch person, firm or corporation resides orcarries on business, in the name of and onbehalf of the people of the State of Oregonagainst such person, firm or corporation, andany other person or persons concerned in orin any way participating or about to partic-ipate in such violation, to enjoin such per-son, firm or corporation or any other personfrom continuing such violation or engagingtherein or doing any act or acts in further-ance thereof, and to apply for the appoint-ment of a receiver or conservator of theassets of the defendant where such appoint-ment is appropriate. [Formerly 94.475]

100.910 Use of fees. The moneys re-ceived under this chapter shall be paid intothe State Treasury and placed to the creditof the General Fund in the Oregon Real Es-tate Department Account. [Formerly 94.480]

MISCELLANEOUS100.920 Changes or actions that re-

quire approval or consent of mortgagee.(1) Subject to subsection (3) of this section,when a change to the declaration, bylaws orother governing document or another actionto be taken by the board of directors, associ-ation or unit owners requires approval orconsent of a mortgagee, if the mortgagee re-ceives a request to approve or consent to thechange or action, the mortgagee is deemedto have approved or consented to the requestunless the mortgagee delivers or posts anegative response to the requesting partywithin 60 days after receipt of the request.

(2) The request must:(a) Be in writing.(b) Name the mortgagor.(c) Identify the property securing the

mortgage by legal description as required forrecordation in ORS 93.600 or by address.

(d) Identify the mortgage by loan numberor reference to the county recording officeand date of recording and recording indexnumbers of the mortgage.

(e) Be delivered to the mortgagee by cer-tified or registered mail, return receipt re-quested.

(3) This section does not apply to:(a) The consent of a mortgagee required

under ORS 100.100 or 100.600.(b) The extent a provision in the decla-

ration or bylaws prescribes a different pro-cedure for approval or consent. [2011 c.532 §15]

CRIMINAL PENALTIES100.990 Criminal penalties. Subject to

ORS 153.022, any person who violates any ofthe provisions of ORS 100.015, 100.635 to100.730 and 100.740 to 100.780 or any rulesadopted thereunder or any alternative re-quirements of the Real Estate Commissionerprescribed pursuant to ORS 100.720 (3), com-mits a Class C felony. [Formerly 94.991; 1999c.1051 §300; 2011 c.597 §158]

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PROPERTY RIGHTS AND TRANSACTIONS

Title 10 Page 70 (2011 Edition)