Bulletin: OR000012

Date:
August 08, 1990
To:
All Oregon Agents
RE:
Forfeitures

Dear Associates:

The Oregon Supreme Court has upheld a decision of the Court of Appeals that Linn County did not have authority to enact its own drug forfeiture act. Linn County v. 22.16 Acres of Real Property, 309 Or. 279, 786 P.2d 726 (1990).

In this case the county sought title to real property used to grow marijuana. At that time there was no state statute giving the county this authority.

Now there is. Effective July 24, 1989 cities and counties may enact ordinances for the forfeiture of property based upon certain types of drug activity.

The 1989 legislation also established a state stature for forfeiture of "all real property... which is used, or intended to be used, in any manner or part, to commit or facilitate in any manner the commission of prohibited conduct." Real property, including land sale contracts, may be seized only by "recording notice of seizure containing a legal description" of the property. The seizure is not effective as to bona fide purchaser until the notice is recorded.

A forfeiture proceeding against the property is filed within 30 days of seizure. Forfeiture does not affect liens and other interests held by financial institutions and persons who had no knowledge of the illegal activity. After forfeiture the court orders sale of the property.

Please be careful of forfeitures. The law in Oregon is complicated and untested. There are also difficult federal forfeiture statutes.

Please refer any orders when title is derived through a criminal forfeiture to me for approval.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
6.34 Forfeitures
Exceptions Manual:
OR Forfeitures
Forms:
None