76th OREGON LEGISLATIVE ASSEMBLY--2011 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 1829
House Bill 2219
Sponsored by Representative BUCKLEY; Representatives BARKER,
DOHERTY, GELSER (Presession filed.)
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.
Requires beneficiary under trust deed to offer grantor under
trust deed opportunity to remain in possession of residential
unit during period in which trustee's sale for residential unit
is pending if sale does not occur on date scheduled for trustee's
sale or if trustee postpones trustee's sale. Requires grantor to
pay rent to beneficiary at market rate for residential unit and
agree to vacate residential unit not later than 10 days after
receiving notice that residential unit has sold.
Provides that agreement to permit grantor to remain in
possession does not create tenancy or require beneficiary to
assume duties of landlord. Provides that grantor must maintain
residential unit in habitable condition and pay for utilities and
services supplied to residential unit.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to occupancy of residential premises subject to
foreclosure; creating new provisions; amending ORS 90.110 and
105.115; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2011 Act is added to and made
a part of ORS 86.705 to 86.795. + }
SECTION 2. { + (1) If a trustee does not sell a residential
unit that is subject to foreclosure under ORS 86.735 at the time
specified for the trustee's sale or if the trustee postpones
selling the residential unit in accordance with ORS 86.755 (2),
the beneficiary under the trust deed shall offer the grantor in
writing the opportunity to remain in possession of the
residential unit while the sale is pending and until the sale
occurs. During any period in which the grantor retains possession
of the residential unit in accordance with this subsection, the
grantor must pay rent to the beneficiary or an agent of the
beneficiary at the market rate for the residential unit. The
grantor must also agree to vacate the residential unit not more
than 10 calendar days after the beneficiary or the trustee
notifies the grantor that the residential unit has sold.
(2) An agreement between the beneficiary and the grantor under
subsection (1) of this section does not create a tenancy, and the
beneficiary does not have the duties of a landlord under ORS
chapter 90. The grantor is responsible for maintaining the
residential unit in a habitable condition, as described in ORS
90.320, and for paying for utilities and services supplied to the
residential unit during the time in which the grantor remains in
possession.
(3) The beneficiary or the purchaser at a trustee's sale may
recover possession of the residential unit under ORS 105.105 to
105.168 if the grantor fails or refuses to deliver possession of
the residential unit after the beneficiary notifies the grantor
that the residential unit has sold. + }
SECTION 3. ORS 90.110 is amended to read:
90.110. Unless created to avoid the application of this
chapter, the following arrangements are not governed by this
chapter:
(1) Residence at an institution, public or private, if
incidental to detention or the provision of medical, geriatric,
educational, counseling, religious or similar service, but not
including residence in off-campus nondormitory housing.
(2) Occupancy of a dwelling unit for no more than 90 days by a
purchaser prior to the scheduled closing of a real estate sale or
by a seller following the closing of a sale, in either case as
permitted under the terms of an agreement for sale of a dwelling
unit or the property of which it is a part. The occupancy by a
purchaser or seller described in this subsection may be
terminated only pursuant to ORS 91.130. A tenant who holds but
has not exercised an option to purchase the dwelling unit is not
a purchaser for purposes of this subsection.
(3) Occupancy by a member of a fraternal or social organization
in the portion of a structure operated for the benefit of the
organization.
(4) Transient occupancy in a hotel or motel.
(5) Occupancy by a squatter.
(6) Vacation occupancy.
(7) Occupancy by an employee of a landlord whose right to
occupancy is conditional upon employment in and about the
premises. However, the occupancy by an employee as described in
this subsection may be terminated only pursuant to ORS 91.120.
(8) Occupancy by an owner of a condominium unit or a holder of
a proprietary lease in a cooperative.
(9) Occupancy under a rental agreement covering premises used
by the occupant primarily for agricultural purposes.
{ + (10) Except as provided in section 2 of this 2011 Act,
occupancy in accordance with section 2 of this 2011 Act by a
grantor under a trust deed during a period in which a trustee's
sale of a residential unit that is subject to foreclosure under
ORS 86.735 is pending. + }
SECTION 4. ORS 105.115 is amended to read:
105.115. (1) Except as provided by subsections (2) and (3) of
this section, the following are causes of unlawful holding by
force within the meaning of ORS 105.110, 105.123 and 105.126:
(a) When the tenant or person in possession of any premises
fails or refuses to pay rent within 10 days after the rent is due
under the lease or agreement under which the tenant or person in
possession holds, or to deliver possession of the premises after
being in default on payment of rent for 10 days.
(b) When the lease by its terms has expired and has not been
renewed, or when the tenant or person in possession is holding
from month to month, or year to year, and remains in possession
after notice to quit as provided in ORS 105.120, or is holding
contrary to any condition or covenant of the lease or is holding
possession without any written lease or agreement.
(c) When the owner or possessor of a recreational vehicle that
was placed or driven onto property without the prior consent of
the property owner, operator or tenant fails to remove the
recreational vehicle. The property owner or operator is not
required to serve a notice to quit the property before commencing
an action under ORS 105.126 against a recreational vehicle owner
or possessor holding property by force as described in this
paragraph.
(d) When the person in possession of a premises remains in
possession after the time when a purchaser of the premises is
entitled to possession in accordance with the provisions of ORS
18.946 or 86.755 { + or section 2 of this 2011 Act + }.
(e) When the person in possession of a premises remains in
possession after the time when a deed given in lieu of
foreclosure entitles the transferee named in the deed to
possession of the premises.
(f) When the person in possession of a premises remains in
possession after the time when a seller is entitled to possession
in accordance with the provisions of ORS 93.930 (2)(c) or
pursuant to a judgment of strict foreclosure of a recorded
contract for transfer or conveyance of an interest in real
property.
(g) When the person in possession of a premises remains in
possession after the expiration of a valid notice terminating the
person's right to occupy the premises pursuant to ORS 91.120,
91.130 or 105.117.
(2) In the case of a dwelling unit to which ORS chapter 90
applies:
(a) The following are causes of unlawful holding by force
within the meaning of ORS 105.110 and 105.123:
(A) When the tenant or person in possession of any premises
fails or refuses to pay rent within 72 hours or 144 hours, as the
case may be, of the notice required by ORS 90.394.
(B) When a rental agreement by its terms has expired and has
not been renewed, or when the tenant or person in possession
remains in possession after a valid notice terminating the
tenancy pursuant to ORS chapter 90, or is holding contrary to any
valid condition or covenant of the rental agreement or ORS
chapter 90.
(b) A landlord may not file an action for the return of
possession of a dwelling unit based upon a cause of unlawful
holding by force as described in paragraph (a) of this subsection
until after the expiration of a rental agreement for a fixed term
tenancy or after the expiration of the time period provided in a
notice terminating the tenancy.
(3) In an action under subsection (2) of this section, ORS
chapter 90 shall be applied to determine the rights of the
parties, including:
(a) Whether and in what amount rent is due;
(b) Whether a tenancy or rental agreement has been validly
terminated; and
(c) Whether the tenant is entitled to remedies for retaliatory
conduct by the landlord as provided by ORS 90.385 and 90.765.
SECTION 5. { + (1) Section 2 of this 2011 Act applies to a
beneficiary and a trustee that have scheduled a trustee's sale to
occur on or after the effective date of this 2011 Act and to a
grantor that remains in possession of a residential unit while a
trustee's sale is pending on or after the effective date of this
2011 Act.
(2) The amendments to ORS 90.110 and 105.115 by sections 3 and
4 of this 2011 Act apply to an agreement made on or after the
effective date of this 2011 Act that permits a grantor to remain
in possession of a residential unit while a trustee's sale of the
residential unit is pending. + }
SECTION 6. { + This 2011 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2011 Act takes effect on its
passage. + }
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