75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
Enrolled
House Bill 2481
Sponsored by Representative HOLVEY; Representative WINGARD (at
the request of Oregon Association of Realtors)
CHAPTER ................
AN ACT
Relating to transfers of real property interests; and declaring
an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) An instrument conveying, or contracting to
convey, a fee simple interest in real property may not cause, or
purport to cause, a declaration or covenant to be filed or
recorded against the title to the real property if the
declaration or covenant requires, or purports to require, the
payment of a fee, commission or other payment to the declarant or
to another person specified in the declaration or covenant, or to
the declarant's or other person's successors or assigns, upon a
transfer of a fee simple interest in the property.
(2) A declaration or covenant that requires, or purports to
require, the payment of a fee, commission or other payment upon
the transfer of a fee simple interest in real property to the
declarant or other person specified in the declaration or
covenant, or to the declarant's or other person's successors or
assigns, upon a transfer of a fee simple interest in the property
or that otherwise violates subsection (1) of this section, is
void.
(3) Subsections (1) and (2) of this section do not apply to the
following:
(a) An instrument conveying or contracting to convey a fee
simple interest in real property that provides for any
consideration payable by a grantee to a grantor for the interest
in real property being transferred, including but not limited to
any subsequent additional consideration for the property payable
by the grantee based upon any subsequent appreciation,
development or sale of the property.
(b) A requirement in a mortgage loan agreement for the payment
of mortgage principal, interest and fees upon sale of the
property by the mortgagee.
(c) A limited liability company, limited liability partnership,
corporation, joint venture or partnership agreement in which a
member, shareholder, joint venturer or partner contributes real
property to the limited liability company, limited liability
partnership, corporation, joint venture or partnership.
(d) An agreement providing for a series of related transfers of
the fee simple interest in a real property, if the agreement
identifies with specificity the price of the transferred
interest, all consideration given, party names and other
Enrolled House Bill 2481 (HB 2481-B) Page 1
essential terms for each transfer of interest that is part of the
series.
(e) An affordable housing covenant, servitude, easement,
condition or restriction in a deed, declaration, land sale
contract, loan agreement, promissory note, trust deed, mortgage,
security agreement or other instrument, including but not limited
to instruments created as provided under ORS 456.270 to 456.295,
that are executed by:
(A) A public body as defined in ORS 174.109;
(B) An agency of the United States;
(C) A public benefit corporation, religious corporation or
foreign corporation, all as defined in ORS 65.001, if the
purposes of the corporation include providing affordable housing
for low income households and moderate income households as those
terms are defined in ORS 456.270;
(D) A limited liability company, as defined in ORS 63.001,
having a membership composed of one or more corporations
described in subparagraph (C) of this paragraph;
(E) A consumer housing cooperative as defined in ORS 456.548;
(F) A manufactured dwelling park nonprofit cooperative as
defined in ORS 62.803; or
(G) A federally recognized Indian tribe.
(f) A requirement for the payment of a fee to:
(A) A homeowners association as defined in ORS 94.550;
(B) An association of unit owners as defined in ORS 100.005;
(C) A managing entity of a timeshare plan, as those terms are
defined in ORS 94.803;
(D) Any other owners' association that is governed by recorded
covenants, conditions and restrictions; or
(E) An agent for an association or managing entity described in
subparagraphs (A) to (D) of this paragraph.
(g) An agreement between a real estate licensee and a grantor
or grantee providing for any commission payable to the real
estate licensee for the transfer of the real property. + }
SECTION 2. { + Section 1 of this 2009 Act applies to an
instrument conveying, or contracting to convey, an interest in
real property that is signed by the transferee of the interest on
or after the effective date of this 2009 Act. Section 1 of this
2009 Act applies to a declaration or covenant that is filed on or
after the effective date of this 2009 Act. + }
SECTION 3. { + This 2009 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2009 Act takes effect on its
passage. + }
----------
Enrolled House Bill 2481 (HB 2481-B) Page 2
Passed by House March 25, 2009
Repassed by House June 1, 2009
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate May 29, 2009
...........................................................
President of Senate
Enrolled House Bill 2481 (HB 2481-B) Page 3
Received by Governor:
......M.,............., 2009
Approved:
......M.,............., 2009
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2009
...........................................................
Secretary of State
Enrolled House Bill 2481 (HB 2481-B) Page 4