72nd OREGON LEGISLATIVE ASSEMBLY--2003 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 900
House Bill 2109
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Attorney General Hardy
Myers for the Department of Justice)
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 person entering into rental agreement for space in
manufactured dwelling park to rescind agreement within specified
period. Requires disclosure of right.
Allows purchaser of manufactured dwelling to rescind purchase
agreement within specified period. Requires disclosure of right.
Makes purchase agreement for manufactured dwelling contingent
and subject to termination under certain conditions. Requires
disclosure of rights and conditions.
Makes loan for financing purchase of manufactured dwelling
voidable if loan closes prior to expiration of purchase
rescission right.
A BILL FOR AN ACT
Relating to housing; creating new provisions; and amending ORS
446.543.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2003 Act is added to and made
a part of ORS 90.505 to 90.840. + }
SECTION 2. { + (1) A transaction for renting space in a
manufactured dwelling park must occur in the following sequence:
(a) The prospective tenant must deliver a completed application
to the landlord;
(b) The landlord must review all necessary issues related to
acceptance of the application;
(c) The landlord may accept the application by signing and
dating the rental agreement; and
(d) The prospective tenant may complete the transaction by
signing and dating the rental agreement.
(2) A person who becomes a tenant by signing a rental agreement
for space in a manufactured dwelling park may rescind the
agreement on or before 12 midnight of the third business day
after the tenant signs the agreement.
(3) At the time a tenant signs the rental agreement, the
landlord shall deliver two copies of a notice of the right to
rescind the rental agreement to each tenant entitled to rescind.
The notice must be on a separate document that complies with the
rules adopted by the Manufactured Dwelling Park Ombudsman under
ORS 446.543 (2)(e). The notice must identify the transaction and
clearly and conspicuously disclose:
(a) That the tenant has the right to rescind the agreement on
or before 12 midnight of the third business day after the tenant
signs the agreement;
(b) The date and day of the week that the rescission right
expires;
(c) That the tenant may obtain additional information regarding
the right to rescind a rental agreement and other consumer
information related to manufactured dwelling parks from the
Manufactured Dwelling Park Ombudsman. The notice must include the
telephone number and electronic mail address, if any, for the
ombudsman; and
(d) Specific instructions on how the tenant can exercise the
tenant's right to rescind the rental agreement, including, at a
minimum:
(A) An address for mailing a rescission form;
(B) An address for hand delivering a rescission form; and
(C) A telephone number for faxing a rescission form.
(4) At the time that the landlord delivers the notice of the
right to rescind described in subsection (3) of this section, the
landlord shall also deliver a rescission form that the tenant can
use to exercise that right. The form must have the landlord's
name, manufactured dwelling park name, manufactured dwelling park
address and rental space number filled in such that the tenant
need only sign, date and send the form to exercise the tenant's
right to rescind.
(5) A tenant may exercise a right of rescission under
subsection (2) of this section by mail, telegraphic transmission,
fax or other written means of communication. A rescission is
effective upon mailing, filing for telegraphic transmission or
faxing. A rescission is effective when delivered to the
landlord's place of business if sent by means other than mailing,
telegraphic transmission or fax.
(6) If more than one tenant under a rental agreement has the
right to rescind the rental agreement, a rescission by one of the
tenants is effective as a rescission by all the tenants who are
parties to the agreement.
(7) Notwithstanding ORS 90.295, 90.297, 90.300 and 90.302, on
or before 15 days after receiving a written rescission under this
section, the landlord shall return any deposit, rent or other
fees paid by the tenants except any application fee of $100 or
less that at the time of its collection was clearly disclosed in
writing to be nonrefundable. + }
SECTION 3. { + As used in sections 4 to 6 of this 2003 Act, '
manufactured dwelling' has the meaning given that term in ORS
446.003. + }
SECTION 4. { + (1) The purchaser of a manufactured dwelling
may rescind the purchase agreement on or before 12 midnight of
the third business day after the purchaser signs the agreement.
(2) At the time a purchaser signs the purchase agreement, the
seller shall deliver two copies of a notice of the right to
rescind the purchase agreement to each purchaser entitled to
rescind. The notice must be on a separate document that complies
with the rules adopted by the Manufactured Dwelling Park
Ombudsman under ORS 446.543 (2)(f). The notice must identify the
transaction and clearly and conspicuously disclose:
(a) That the purchaser has the right to rescind the agreement
on or before 12 midnight of the third business day after the
purchaser signs the agreement;
(b) The date and day of the week that the rescission right
expires;
(c) That the purchaser may obtain additional information
regarding the right to rescind a purchase agreement and other
consumer information related to manufactured dwelling purchases
from the Manufactured Dwelling Park Ombudsman. The notice must
include the telephone number and electronic mail address, if any,
for the ombudsman; and
(d) Specific instructions on how the purchaser can exercise the
purchaser's right to rescind the purchase agreement including, at
a minimum:
(A) An address for mailing a rescission form;
(B) An address for hand delivering a rescission form; and
(C) A telephone number for faxing a rescission form.
(3) At the time that the seller delivers the notice of the
right to rescind described in subsection (2) of this section, the
seller shall also deliver a rescission form that the purchaser of
the manufactured dwelling can use to exercise that right. The
form must have the seller's name and address filled in such that
the purchaser need only sign, date and send the form to exercise
the purchaser's right to rescind.
(4) A purchaser may exercise a right of rescission under
subsection (1) of this section by mail, telegraphic transmission,
fax or other written means of communication. A rescission is
effective upon mailing, filing for telegraphic transmission or
faxing. A rescission is effective when delivered to the seller's
place of business if sent by means other than mailing,
telegraphic transmission or fax. A rescission sent or delivered
to a licensed real estate agent representing a seller is notice
to the seller.
(5) If more than one purchaser of a manufactured dwelling has
the right to rescind the purchase agreement, a rescission by one
of the purchasers is effective as a rescission by all the
purchasers who are parties to the agreement.
(6) On or before 15 days after receiving a written rescission
under this section, the seller shall return any deposit, retained
fees, trade-in or other consideration paid to the seller by the
purchasers. + }
SECTION 5. { + (1) A purchase agreement for a new or used
manufactured dwelling must:
(a) Inform the purchaser that the purchaser has a legal right
to rescind the purchase agreement within three business days
after the purchaser has signed the purchase agreement.
(b) Inform the purchaser that the purchaser may obtain
additional information regarding the right to rescind a
manufactured dwelling park space rental or manufactured dwelling
purchase agreement from the Manufactured Dwelling Park Ombudsman
and include the telephone number and electronic mail address, if
any, for the ombudsman.
(c) Provide that the purchase is contingent upon the purchaser
securing:
(A) Acceptable financing, if necessary; and
(B) A rental agreement approved at a manufactured dwelling
park, if applicable.
(d) Specify the time available for the purchaser to secure
acceptable financing, if necessary, and provide that the purchase
agreement terminates if the purchaser fails to secure financing
within the specified time.
(e) Include a place for the purchaser to indicate whether the
purchaser is purchasing the dwelling with the intention that it
be sited or remain sited in a manufactured dwelling park. If the
purchaser is purchasing the dwelling with the intention that it
be sited or remain sited in a manufactured dwelling park, the
purchase agreement must:
(A) Inform the purchaser that the purchaser has a legal right
to rescind a rental agreement for space in a manufactured
dwelling park within three business days after the purchaser has
signed the rental agreement.
(B) Specify the time available for the purchaser to secure and
sign a rental agreement. The time available must be at least 30
calendar days but not more than 60 calendar days.
(C) Provide that failure of the purchaser to sign and secure a
rental agreement within the specified time terminates the
purchase agreement. A rescinded rental agreement does not satisfy
the requirement to sign and secure a rental agreement.
(2) The purchase agreement must set forth the information
required by subsection (1) of this section in at least 14-point
bold type.
(3) On or before 15 days after a purchase agreement terminates
as described in this section, the seller shall return an amount
equivalent to any deposit, retained fees, trade-in, or other
consideration paid to the seller by the purchasers. + }
SECTION 6. { + 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
agreement under section 4 of this 2003 Act. A purchaser may void
a loan that closes while the purchaser has a right to rescind the
purchase agreement under section 4 of this 2003 Act. + }
SECTION 7. ORS 446.543 is amended to read:
446.543. (1) A Manufactured Dwelling Park Ombudsman is
established in the Housing and Community Services Department.
(2) The ombudsman shall:
(a) Undertake, participate in or cooperate with persons and
agencies in such conferences, inquiries, meetings or studies as
might lead to improvements in manufactured dwelling park landlord
and tenant relationships;
(b) Develop and implement a centralized resource referral
program for tenants and landlords to encourage the voluntary
resolution of disputes;
(c) Maintain a current list of manufactured dwelling parks in
the state, indicating the total number of spaces;
(d) Not be directly affiliated, currently or previously, in any
way with a manufactured dwelling park within the preceding two
years;
{ + (e) Adopt rules for the contents of the notice of the
right to rescind a rental agreement for space in a manufactured
dwelling park that a landlord is required to provide under
section 2 (3) of this 2003 Act;
(f) Adopt rules for the contents of the notice of the right to
rescind a manufactured dwelling purchase agreement that a seller
is required to provide under section 4 (2) of this 2003 Act; + }
and
{ - (e) - } { + (g) + } Take other actions or perform such
other duties as the Director of the Housing and Community
Services Department deems necessary or appropriate.
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