74th OREGON LEGISLATIVE ASSEMBLY--2007 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 162
 
                           A-Engrossed
 
                         House Bill 2490
                  Ordered by the House April 6
            Including House Amendments dated April 6
 
Sponsored by Representative ESQUIVEL; Representatives BOONE,
  BUCKLEY, GARRARD, KOMP, LIM, OLSON, READ, RILEY, THATCHER
 
 
                             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.
 
    { - Prohibits escrow agents from imposing requirements that
delay disbursement of funds and property. - }
   { +  Allows escrow agents to disburse deposited earnest money
based on agreement of parties that is executed after initial
sales agreement. Prohibits escrow agents from imposing additional
requirements on principals to transaction. + }
 
                        A BILL FOR AN ACT
Relating to escrow agents; creating new provisions; and amending
  ORS 696.581.
Be It Enacted by the People of the State of Oregon:
  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. + }
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