Chapter 289
AN ACT
HB 2490
Relating to escrow agents; creating new provisions; and amending ORS
696.581.
Be It Enacted by the People of
the State of
SECTION 1. ORS 696.581 is amended to read:
696.581. (1) An escrow agent may not accept funds, property or documents
in any escrow transaction without dated, written escrow instructions from the
principals to the transaction or a dated executed agreement in writing between
the principals to the transaction.
(2) An escrow agent may
not close an escrow or disburse any funds or property in an escrow without
obtaining dated, separate escrow instructions in writing from the principals to
the transaction adequate to administer and close the transaction or, in the
case of disbursement, to disburse the funds and property.
(3) The following
statement or its substantial equivalent shall appear on or be attached to all
written escrow instructions prepared by an escrow agent for signature of the
principals to a transaction. The statement shall be in at least 10-point bold
type. The statement shall either appear immediately above the signatures of the
principals or be separately initialed by the principals:
______________________________________________________________________________
It is understood by the
parties signing the above or attached instructions that the instructions are
the complete instructions between this firm as an escrow agent and you as a principal to the escrow transaction. These instructions may
not include all the terms of the agreement which is the subject of this escrow.
Read these instructions carefully, and do not sign them unless they are
acceptable to you.
______________________________________________________________________________
(4) An escrow agent may
not solicit or accept any original, amended or supplemental escrow instructions
containing any blank to be filled in after signing. An escrow agent shall not
allow any alteration of original, amended or supplemental escrow instructions,
unless the alteration is signed or initialed by all principals who signed or
initialed the instructions before the alteration.
(5) An escrow agent may
accept client funds, in excess of earnest money required in transaction
documents to be held, as individual funds of the principal who has paid them
into escrow. Such individual funds may be disbursed with only the separate
written instructions of the principal who deposited the funds into escrow.
(6) An escrow agent may
open a one-sided escrow, as defined by rule by the Real Estate Commissioner.
Such escrow funds may be disbursed with only the separate written instructions
of the principal who deposited the funds into escrow.
(7) Except as
authorized in ORS 105.475, notwithstanding the requirement for dated, separate
escrow instructions to close an escrow or disburse funds or property in an
escrow, an escrow agent:
(a) May disburse earnest
money deposited based on an agreement of the parties executed after the initial
sales agreement; and
(b) May not impose
additional requirements on the principals to the transaction, including a
requirement that the principals sign a release of liability in favor of the
escrow agent.
SECTION 2. The amendments to ORS 696.581 by section 1
of this 2007 Act apply to escrow transactions entered into on or after the
effective date of this 2007 Act.
Approved by the Governor June 1, 2007
Filed in the office of Secretary of State June 1, 2007
Effective date January 1, 2008
__________