Oregon's Mandatory Contract Language
Posted on Aug. 16, 2012

There are a number of instances where state laws or regulations, particularly environmental regulations, require special language in recorded deeds.  The State of Oregon goes one step further in dictating mandatory language to be included in a purchase contract.  The language is cautionary, advising a purchaser to investigate such matters as whether the land is a lawfully subdivided lot, what uses are permitted, or whether there is fire protection available, so that it makes sense that it is required in the purchase agreement and not in the instrument of transfer (there are other mandatory statements for deeds and instruments of transfer in Oregon).

Oregon law (ORS 93.040) requires that the following statement be included “in all owner’s sale agreements and earnest money receipts:”

THE PROPERTY DESCRIBED IN THIS INSTRUMENT MAY NOT BE WITHIN A FIRE PROTECTION DISTRICT PROTECTING STRUCTURES.  THE PROPERTY IS SUBJECT TO LAND USE LAWS AND REGULATIONS THAT, IN FARM OR FOREST ZONES, MAY NOT AUTHORIZE CONSTRUCTION OR SITING OF A RESIDENCE AND THAT LIMIT LAWSUITS AGAINST FARMING OR FOREST PRACTICES, AS DEFINED IN ORS 30.930, IN ALL ZONES.  BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON’S RIGHTS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007.  BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY THAT THE UNIT OF LAND BEING TRANSFERRED IS A LAWFULLY ESTABLISHED LOT OR PARCEL, AS DEFINED IN ORS 92.010 OR 215.010, TO VERIFY THE APPROVED USES OF THE LOT OR PARCEL, TO VERIFY THE EXISTENCE OF FIRE POTECTION FOR STRUCTURES AND TO INQUIRE ABOUT THE RIGHTS OF NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007 AND SECTIONS 2 TO9 AND 17 CHAPTER 855, OREGON LAWS 2009.

There may be additional language if the property is subject to special assessments. (ORS 93.040(3)).

By way of remedy, the statute only permits the purchaser or transferee to bring an action against the seller or transferor for failing to include this statement if “the person acquiring or agreeing to acquire fee title to the real property would not have executed or accepted the instrument but for the absence in the instrument of the statement[s] required” by these provisions of the Oregon statute.

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jimAttorney James W. Peters

Jim has handled retail, distribution center, warehouse, storage facility and fuel center transactions from the eastern seaboard to the Pacific Coast and beyond.

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