71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 2125
 
                         House Bill 2847
 
Sponsored by Representative MERKLEY; Representatives BACKLUND,
  BARNHART, BATES, BOWMAN, BROWN, CARLSON, DOYLE, GARDNER,
  GARRARD, HANSEN, HASS, HILL, HOPSON, JENSON, KAFOURY, KNOPP,
  KRIEGER, KROPF, KRUMMEL, KRUSE, LEE, LOWE, MARCH, MONNES
  ANDERSON, MORGAN, MORRISETTE, NOLAN, RINGO, ROSENBAUM,
  SCHRADER, SHETTERLY, G SMITH, T SMITH, TOMEI, VERGER, C WALKER,
  V WALKER, WILLIAMS, WILSON, WINTERS, WIRTH, WITT, ZAUNER,
  Senators FERRIOLI, METSGER, SHIELDS
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Allows purchaser of certain manufactured dwellings to rescind
purchase within three days. Prohibits financial institution from
closing loan for purchase of manufactured dwelling while
purchaser has power to rescind purchase.
  Allows renter of space in manufactured dwelling park to rescind
rental agreement within three days after signing agreement.
  Requires Housing and Community Services Department to develop
and offer class concerning manufactured dwellings and parks.
Allows purchaser of manufactured dwelling or renter of space to
waive or reduce three-day rescission period after attending
class.
 
                        A BILL FOR AN ACT
Relating to housing.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + (1) Except as provided in subsection (2) of
this section, in addition to any other right to revoke or rescind
a transaction:
  (a) The purchaser of a new or used manufactured dwelling for
placement on rented space in a manufactured dwelling park that is
owned by the dwelling seller or by a related party may rescind
the purchase on or before 12 midnight of the third day after the
purchaser signs the purchase agreement. The purchase agreement
must disclose this rescission right. A transaction closed prior
to the expiration of the rescission right is voidable by the
purchaser. As used in this paragraph, 'related party' means an
individual or business entity that directly or indirectly
operates, advertises or otherwise solicits business for the
manufactured dwelling park in conjunction with the dwelling
seller, or that permits the dwelling seller to directly or
indirectly operate, advertise or otherwise solicit business in
conjunction with the manufactured dwelling park.
  (b) The purchaser of a manufactured dwelling that is already
established in a manufactured dwelling park may rescind the
purchase on or before 12 midnight of the third day after the
purchaser signs the purchase agreement. The purchase agreement
must disclose this rescission right. A transaction closed prior
to the expiration of the rescission right is voidable by the
purchaser.
  (c) A person renting space in a manufactured dwelling park may
rescind the rental agreement on or before 12 midnight of the
third day after the person signs the rental agreement. The rental
agreement must disclose this rescission right. If the landlord
permits the person to occupy the rented space as the owner of a
manufactured dwelling prior to expiration of the rescission
right, the person may void any lease period specified in the
rental agreement and occupy the space as a month-to-month tenant.
This paragraph does not apply to the extension, renewal or
replacement of an existing rental agreement between the person
and the landlord.
  (2) A person who purchases a manufactured dwelling or signs a
rental agreement for space in a manufactured dwelling park may
waive or reduce any rescission period provided under subsection
(1) of this section if the person has attended the Housing and
Community Services Department class described in section 3 of
this 2001 Act. The person waiving or reducing the rescission
period must provide written proof that the person has attended
the class within the prior 12 months and state in writing that
the person wishes to proceed with the transaction. When more than
one person is purchasing the manufactured dwelling or renting the
space in a manufactured dwelling park, a waiver or reduction
under this subsection is specific to the person making the waiver
or reduction and does not affect the rights of any other
purchaser or renter involved in the transaction. + }
  SECTION 2.  { + A financial institution doing business in this
state may not close a loan for the purchase of a manufactured
dwelling while the purchaser has a right to rescind the purchase
under section 1 (1)(a) or (b) of this 2001 Act. Any loan made
while the purchaser has the right under section 1 (1)(a) or (b)
of this 2001 Act to rescind the purchase is voidable by the
purchaser. + }
  SECTION 3.  { + (1) The Housing and Community Services
Department shall develop and offer a one-hour class for persons
considering purchasing a manufactured dwelling or renting space
in a manufactured dwelling park. The class shall include, but not
be limited to, information about the costs of moving and removing
manufactured dwellings, typical park rules, regional vacancy
rates and historical data concerning space rents. Classes shall
be offered in each area of the state on a recurring basis.
  (2) The department may charge a reasonable fee for attendance
at the class. The department shall provide each person attending
the class with written and dated documentation of attendance. + }
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