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 2681
 
                         Senate Bill 557
 
Sponsored by Senator WALKER; Senators DEVLIN, RINGO
 
 
                             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.
 
  Modifies seller's obligation to disclose information about real
property to prospective buyer to include disclosures related to
mold and health-related problems potentially related to mold.
 
                        A BILL FOR AN ACT
Relating to seller's property disclosure; amending ORS 105.465.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 105.465 is amended to read:
  105.465. (1) The provisions of ORS 105.465 to 105.490, 696.301
and 696.870:
  (a) Apply to the real property described in subparagraphs (A)
to (D) of this paragraph unless the buyer indicates to the
seller, which indication shall be conclusive, that the buyer will
use the real property for purposes other than a residence for the
buyer or the buyer's spouse, parent or child:
  (A) Real property consisting of or improved by one to four
dwelling units;
  (B) A condominium unit as defined in ORS 100.005 and not
subject to disclosure under ORS 100.705;
  (C) A timeshare property as defined in ORS 94.803 and not
subject to disclosure under ORS 94.829; and
  (D) A manufactured dwelling, as defined in ORS 446.003, that is
owned by the same person who owns the land upon which the
manufactured dwelling is situated.
  (b) Do not apply to a leasehold in real property.
  (2) A seller shall deliver one of the following to each buyer
who makes a written offer to purchase real property in this
state:
  (a) A written disclaimer that the seller makes no
representations or warranties as to the condition of the real
property or any improvement thereon and that the buyer will be
purchasing the property 'as is,' that is, with all defects, if
any; or
  (b) A seller's property disclosure statement in substantially
the following form:
_________________________________________________________________
 
                  SELLER'S PROPERTY DISCLOSURE
                            STATEMENT
                        (NOT A WARRANTY)
                            (105.465)
INSTRUCTIONS TO THE SELLER
 
Please complete the following form. Do not leave any spaces blank
unless the question clearly does not apply to the property.
Please refer to the line number(s) of the question(s) when you
provide your explanation(s). For your protection you must date
and sign each page of this disclosure statement and each
attachment.
 
                       NOTICE TO THE BUYER
 
THE FOLLOWING REPRESENTATIONS ARE MADE BY THE SELLER(S),
CONCERNING THE CONDITION OF THE PROPERTY LOCATED AT ______ ('THE
PROPERTY').
 
DISCLOSURES CONTAINED IN THIS FORM ARE PROVIDED BY THE SELLER ON
THE BASIS OF SELLER'S ACTUAL KNOWLEDGE OF THE PROPERTY AT THE
TIME OF DISCLOSURE. YOU HAVE FIVE BUSINESS DAYS FROM THE SELLER'S
DELIVERY OF THIS SELLER'S DISCLOSURE STATEMENT TO REVOKE YOUR
OFFER BY DELIVERING YOUR SEPARATE SIGNED WRITTEN STATEMENT OF
REVOCATION TO THE SELLER, UNLESS YOU WAIVE THIS RIGHT AT OR PRIOR
TO ENTERING INTO A SALE AGREEMENT.
 
FOR A MORE COMPREHENSIVE EXAMINATION OF THE SPECIFIC CONDITION OF
THIS PROPERTY YOU ARE ADVISED TO OBTAIN AND PAY FOR THE SERVICES
OF A QUALIFIED SPECIALIST TO INSPECT THE PROPERTY ON YOUR BEHALF,
FOR EXAMPLE, ARCHITECTS, ENGINEERS, PLUMBERS, ELECTRICIANS,
ROOFERS, BUILDING INSPECTORS, OR PEST AND DRY ROT INSPECTORS.
 
Seller___ is/___ is not occupying the property.
 
 
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
 
   I. SELLER'S REPRESENTATIONS:
      The following are representations
      made by the seller and are not the
      representations of any financial
      institution that may have made or
      may make a loan pertaining to
      the property, or that may have or
      take a security interest in the
      property.
 
 
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
 
           1.TITLE
µ  ºYesµ  ºNoA. Do you have legal
                authority to sell the
                property?
µ  ºYesµ  ºN*B. To your knowledge, is
                title to the property
                subject to any of the
                following:
                (First right of refusal
                (Option
                (Lease or rental
                 agreement
                (Other listing
                (Life estate?
µ  ºYesµ  ºN*C. Are you aware of any
                encroachments, bound-
                ary agreements, bound-
                ary disputes or recent
                boundary changes?
µ  ºYesµ  ºN*D. Are you aware of any
                rights of way, ease-
                ments or licenses
                (access limitations)
                that may affect your
                interest in the
                property?
µ  ºYesµ  ºN*E. Are you aware of any
                written agreements for
                joint maintenance of
                an easement or right
                of way?
µ  ºYesµ  ºNoF. Are you aware of any
                governmental study,
                survey or notices that
                would affect the
                property?
µ  ºYesµ  ºNoG. Are you aware of any
                pending or existing
                assessments against the
                property?
µ  ºYesµ  ºNoH. Are you aware of any
                zoning violations or
                nonconforming uses?
µ  ºYesµ  ºN*I. Are you aware of a
                boundary survey for the
                property?
µ  ºYesµ  ºN*J. Are you aware of any
                covenants, conditions
                or restrictions which
                affect the property?
 
           2.WATER
             A. Household Water
 
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
 
                (The source of the
                 water is:
                µ  ºPublicµ  ºCommunity
                µ  ºPrivateµ  ºShared
                (Water source infor-
                 mation:
µ  ºYesµ  ºNo    *a. Are you aware
                  of any written
                  agreements for
                  shared water
                  source?
µ  ºYesµ  ºNo    *b. To your knowl-
                  edge, is there
                  an easement
                  (recorded or
                  unrecorded)
                  for access to
                  and/or main-
                  tenance of the
 
                  water source?
µ  ºYesµ  ºNo     c. Are any known
                  problems or
                  repairs needed?
µ  ºYesµ  ºNo   (Are you aware of
                 any water treat-
                 ment systems for
                 the property?
                 µ  ºLeasedµ  ºOwned
 
 
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
 
             B. Irrigation
µ  ºYesµ  ºNo   (1) Are you aware of
                 any water rights
                 for the property?
µ  ºYesµ  ºNo  *(If there exist any,
                 to your knowledge,
                 have the
                 water rights been
                 used during the last
                 five-year period?
µ  ºYesµ  ºNo  *(If so, is the certi-
                 ficate available?
 
             C. Outdoor Sprinkler
                system
µ  ºYesµ  ºNo   (To your knowledge,
                 is there an outdoor
                 sprinkler system for
                 the property?
µ  ºYesµ  ºNo   (To your knowledge,
                 has a back flow
                 valve been
                 installed?
µ  ºYesµ  ºNo   (To your knowledge,
                 is the outdoor
                 sprinkler system
                 operable?
 
           3.SEWAGE
µ  ºYesµ  ºNoA. To your knowledge, is
                the property connected
                to a sanitary sewer?
µ  ºYesµ  ºNoB. Are you aware of any
                sanitary sewer
                proposed for the
                property?
µ  ºYesµ  ºNoC. To your knowledge, is
                the property connected
                to a septic system or
                cesspool?
µ  ºYesµ  ºNoD. Are you aware of any
                problems or repairs
                needed?
µ  ºYesµ  ºNoE. To your knowledge,
                does your sewage
                system require on-site
                pumping to another
                level?
 
           4.INSULATION
 
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
 
             A. To your knowledge, is
                there insulation in the:
µ  ºYesµ  ºNo   (Ceiling?
µ  ºYesµ  ºNo   (Exterior walls?
µ  ºYesµ  ºNo   (Floors?
µ  ºYesµ  ºNoB. To your knowledge,
                are there any
                defective insulated
                windows?
 
           5.STRUCTURAL
 
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
 
µ  ºYesµ  ºN*A. To your knowledge,
                has the roof leaked?
µ  ºYesµ  ºNo   If yes, has it been
                repaired?
µ  ºYesµ  ºNoB. Additions/conversions/
                remodeling?
µ  ºYesµ  ºNo  *If yes, are you aware
                of whether a building
                permit was obtained?
µ  ºYesµ  ºNo   Was final inspection
                obtained?
µ  ºYesµ  ºNoC. To your knowledge,
                are there smoke
                alarms?
µ  ºYesµ  ºNo   If there are, which are
                electrical (hard-wired)?
                __________
µ  ºYesµ  ºNoD. To your knowledge, is
                there a woodstove?
                Make______
µ  ºYesµ  ºNo   Was it installed with a
                permit?
µ  ºYesµ  ºN*E. Are you aware of
                whether a pest or
                dry rot, structural
                or '
whole house
'
                inspection has
                been done?
µ  ºYesµ  ºN*F. Are you aware of any
                moisture problems in the
                structure (especially
                in the basement)? If
                yes, explain frequency
                and extent of prob-
                lem on attached sheet { +
. + }
µ  ºYesµ  ºNoG. Are you aware of a
                sump pump on the
                property?
 
           6.SYSTEMS AND FIXTURES
 
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
 
             If the following systems or
             fixtures are included in the
             purchase price, are they, to
             your knowledge, in good
             working order on the date
             this form is signed?
µ  ºYesµ  ºNoA. Electrical system,
                including wiring,
                switches, outlets
                and service
µ  ºYesµ  ºNoB. Plumbing system,
                including pipes,
                faucets, fixtures
                and toilets
µ  ºYesµ  ºNoC. Hot water tank
µ  ºYesµ  ºNoD. Garbage disposal
µ  ºYesµ  ºNoE. Built-in range and oven
µ  ºYesµ  ºNoF. Built-in dishwasher
µ  ºYesµ  ºNoG. Sump pump
µ  ºYesµ  ºNoH. Heating and cooling
                systems
µ  ºYesµ  ºNoI. Security system
                µ  ºOwnedµ  ºLeased
 
           7.COMMON INTEREST
µ  ºYesµ  ºNoA. Home Owners'
                Association?
                Name of Association
                ________
                Contact Person
                ________
                Address
                ________
                Phone Number
                ________
µ  ºYesµ  ºNoB. Regular periodic
                assessments: $___
                perµ  º Month µ  º Year
                µ  º Other_____
µ  ºYesµ  ºNoC. Are you aware of any
                pending special
                assessments?
µ  ºYesµ  ºNoD. Are you aware of any
                shared '
common
                areas'
 or any joint
                maintenance agree-
                ments (facilities such
                as walls, fences, pools,
                tennis courts, walk-
                ways or other areas
                co-owned in undivided
                interest with others)?
 
           8.GENERAL
µ  ºYesµ  ºNoA. Are you aware of any
                settling, soil, standing
                water or drainage
                problems on the
                property or in the
                immediate area?
µ  ºYesµ  ºNoB. To your knowledge,
                does the property
                contain fill?
µ  ºYesµ  ºNoC. Are you aware of any
                material damage to the
                property or any of the
                structure from fire,
                wind, floods, beach
                movements, earthquake,
                expansive soils
                or landslides?
µ  ºYesµ  ºNoD. To your knowledge, is
                the property in a
                designated flood plain?
µ  ºYesµ  ºNoE. To your knowledge, is
                the property in a
                designated slide zone?
µ  ºYesµ  ºNoF. Are you aware of any
                substances, materials
                or products that may
                be an environmental
                hazard such as, but
                not limited to,
                asbestos, formaldehyde,
                radon gas,   { -
lead based - }
 
                 { +
lead-based + }
 paint,  { +
mold, + }
                fuel or chemical storage
                tanks, and contaminated
                soil or water on the
                subject property?
 { +
µ  ºYesµ  ºNoG. Has any portion of
                the subject property been
                tested or treated for
                asbestos, formaldehyde,
                radon gas, lead-based
                paint, mold, fuel or
                chemical storage tanks,
                or contaminated soil
                or water? + }
µ  ºYesµ  ºNo     { -
G. - }
              { +
H. + }
            Are you aware of any
                tanks or underground
                storage tanks (e.g.,
                septic, chemical, fuel,
                etc.) on the property?
µ  ºYesµ  ºNo     { -
H. - }
              { +
I. + }
            To your knowledge,
                has the property ever
                been used as an
                illegal drug manu-
 
 
                facturing site?
 { +
µ  ºYesµ  ºNoJ. Has anyone experienced
                long-term respiratory
                problems, headaches,
                fatigue, weakness, memory
                problems, unusual bleeding
                or other symptoms while
                residing on the property? + }
 
           9.FULL DISCLOSURE BY
             SELLERS
             A. Other conditions or
                defects
µ  ºYesµ  ºNo   Are you aware of any
                other material defects
                affecting this prop-
                erty or its value that
                a prospective buyer
                should know about?
             B. Verification
                The foregoing answers
                and attached explan-
                ations (if any) are
                complete and correct
                to the best of my/our
                knowledge and I/we
                have received a copy
                hereof. I/we authorize
                all of my/our agents
                to deliver a copy of
                this disclosure state-
                ment to other real
                estate licensees and
                all prospective buyers
                of the property.
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
DATE ___ SELLER ________
SELLER ______________
 
 
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
 
       II.  BUYER'S
            ACKNOWLEDGMENT
            A.As buyer(s), I/we
              acknowledge the duty
              to pay diligent
              attention to any
              material defects which
              are known to me/us or
              can be known by me/us
              by utilizing diligent
              attention and observation.
            B.Each buyer acknowledges
              and understands that the
              disclosures set forth in
              this statement and in any
              amendments to this
              statement are made only
              by the seller and are not
              the representations of any
              financial institution that
              may have made or may
              make a loan pertaining to
              the property, or that may
              have or take a security
              interest in the property
              and no such financial
              institution shall be
              bound by or have any
              liability with respect to
              any representation, mis-
              representation, omission,
              error or inaccuracy
              contained in another
              party's disclosure state-
              ment required by this
              section or any amendment
              to the disclosure
              statement.
            C.Buyer (which term includes
              all persons signing the
              '
buyer's acceptance
'
              portion of this disclosure
              statement below) hereby
              acknowledges receipt of
              a copy of this disclosure
              statement (including
              attachments, if any)
              bearing seller's signature.
 
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
DISCLOSURES CONTAINED IN THIS FORM ARE PROVIDED BY THE SELLER ON
THE BASIS OF SELLER'S ACTUAL KNOWLEDGE OF THE PROPERTY AT THE
TIME OF DISCLOSURE. YOU, THE BUYER, HAVE FIVE BUSINESS DAYS FROM
THE SELLER'S DELIVERY OF THIS SELLER'S DISCLOSURE STATEMENT TO
REVOKE YOUR OFFER BY DELIVERING YOUR SEPARATE SIGNED WRITTEN
STATEMENT OF REVOCATION TO THE SELLER UNLESS YOU WAIVE THIS RIGHT
AT OR PRIOR TO ENTERING INTO A SALE AGREEMENT.
BUYER HEREBY ACKNOWLEDGES RECEIPT OF A COPY OF THIS SELLER'S
DISCLOSURE STATEMENT.
DATE ____
BUYER __________
BUYER __________
 
Agent to sign and date:
 
_________ Real Estate Licensee
 
_________ Real Estate Business
 
*If yes, attach a copy or explain on attached sheet
_________________________________________________________________
 
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
                         ----------