Oregon Real Estate Practices

Attorney Involvement

Please describe any requirements under applicable state law for attorney, abstractor or other special professional involvement, for example, in the search, examination, opinion of title, signing, closing, disbursement, recording, preparation of documents, and/or policy-issuance.

No attorney or abstractor involvement is required by state law for any of the listed functions related to the real estate transaction. 

Under ORS 731.438 in order to operate a title plant, it must be owned and maintained for each county that an insurer operates in

Cancellation/Commitment Fee

Does your state permit or require a cancellation fee or commitment fee upon cancellation?

Yes, the OTIRO Manual permits a fee for the cancellation of an order for title insurance for a one-to-four family residential dwelling.  Under certain circumstances outlined in Section 2.009 the fee can be waived.

Certificate of Release (of Mortgage)

If anyone other than the lender (such as a title agent, settlement agent, underwriter or attorney) has the authority to release the security instrument, please describe.

A title insurance company can prepare, execute and record a release of a Deed of Trust that they have paid through escrow pursuant to ORS 86.720.

Deeds

Please describe the kinds of deeds that are customary for commercial and residential transactions.  Please describe the kinds of deeds that are generally not insurable.

Warranty Deed
Special Warranty Deed
Bargain and Sale Deed
Quitclaim Deed

These forms are permissive and not mandatory.  Other forms of deeds may be used for the conveyance of real property.  All deeds should contain the statement required by ORS 93.040(1).  Additionally, a statement of consideration is required by ORS 93.030.

The language required under ORS 93.040(1):

“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, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010. THIS INSTRUMENT DOES NOT ALLOW USE OF THE PROPERTY DESCRIBED IN THIS INSTRUMENT IN VIOLATION OF APPLICABLE LAND USE LAWS AND REGULATIONS. 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 DETERMINE ANY LIMITS ON LAWSUITS AGAINST FARMING OR FOREST PRACTICES, AS DEFINED IN ORS 30.930, 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, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010.”

Grant Deeds that do not contain conveyance language are not insurable.

Joinder of Spouses

If a non-title holding spouse is required to join in the execution of a deed or a security instrument, please describe.  Any analogous rights, such as those in a civil union or equivalent, should also be addressed. 

Execution of non-title holding spouse is not required.

Domestic Partnerships are recognized under Chapter 106 of the ORS.  However, there are no analogous rights through civil unions or equivalents.  Joinder by those related parties are not required unless they are in title. 

Mortgage Tax

Is there a mortgage tax in your state?  If yes, is it uniform across the state or does it vary?  If it is uniform, please describe.                      

No.

Payment Customs

Who customarily pays for:

(a) Owner’s Policy?
(b) Transfer Tax & Recording Fee?
(c) Survey Charges?
(d) Closing/Settlement Fees?

(a) Owner’s policy: Seller.
(b) Transfer tax and recording fee: There is only one county in Oregon that has a transfer tax (Washington County).  It is paid by the seller.  The seller pays for the recording of the conveyance deed and the buyer pays for the Deed of Trust.
(c) Survey charges: Paid for by buyer if one is required.
(d) Closing/settlement charges: Split between the seller and the buyer.

Policy Countersignatures

Please describe any statutory or regulatory requirements for countersignatures in order to issue the policy (for example, residency requirements).

There is no requirement for countersignatures in Oregon.

Real Estate Taxes

Please describe the general tax year, due dates, and delinquency dates, including lien dates and payment cycle.

Tax year is June to the following July.  Taxes are certified in October.

First 1/3 are due November 15.

Second 1/3 are due February 15.

Third 1/3 are due May 15.

They are not due and payable until November 15 and become delinquent on May 16.

Please consult with a local underwriter for information relating to real estate taxes on the subject property.

Search and Examination Fees

Is it permissible and/or customary to charge a separate search and/or examination fee, and under what circumstances?  If your jurisdiction is all-inclusive, please state that.

An additional chain charge of $100 may be added to the applicable insurance rate when the examination of title covers two different series of successive transfers (chains) of the parcels comprising the subject property.  When the examination covers more than two different chains, a charge of $50.00 shall be added for each additional chain exceeding the two chains up to a maximum of $500.00 for all additional chains.

Search Requirements

Is there a minimum period of time for a title search required: (a) by state law, (b) pursuant to marketable record title acts, or (c) by any other applicable title examination standards (e.g., state bar association)?  Please respond to each category.  If a minimum search period exists for any category, please state it.

(A)  State Law: No
(B)  Marketable Record Title Acts: No
(C)  Other applicable title examination standards: No

The only requirement is that the title insurance companies have a 50 year plant

Security Instruments (Deed of Trust vs. Mortgage)

Please describe the customary and permissible form(s) of security instruments used in your state. 

Who can be listed as the trustee on the Deed of Trust (e.g., residency and/or natural person requirements, etc.)? Can an underwriter or title agent be designated as the trustee, and, if so, is it customary?

The customary security instrument is a Trust Deed.  A Trust Deed is deemed a mortgage by statute except to the extent statutes affecting Trust Deeds provide otherwise (ORS 86.715).  Mortgages are also permissible security instruments.

An attorney who is an active member of the Oregon State Bar; 

A financial institution or trust company that is authorized to do business under the laws of Oregon or the United States;

A title insurance company authorized to insure title to real property in this state, its subsidiaries, affiliates, insurance producers or branches;

The United States or any agency thereof, and/or

Licensed escrow agents.

Yes and it is customary.

Standard Exceptions and Requirements

Please identify the standard exceptions and requirements that are customarily used in your state.

Oregon utilizes the following standard exceptions:

1.         Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records; proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records.
2.         Facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or by making inquiry of persons in possession thereof.
3.         Easements, or claims of easement, not shown by the public records; reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights, claims or title to water.
4.         Any encroachment (of existing improvements located on the subject land onto adjoining land or of existing improvements located on adjoining land onto the subject land), encumbrance, violation, variation, or adverse circumstance affecting the title that would be disclosed by an accurate and complete land survey of the subject land.
5.         Any lien, or right to a lien, for services, labor, material, equipment, rental or workers compensation heretofore or hereafter furnished, imposed by law and not shown by the public records.

State-specific Policy Variations

If there are state-specific changes to the provisions in the ALTA policies (e.g., Arbitration, Minerals), please describe.

None.

Title Insurance Form and Filing Regulations

Please describe the form and/or rate filing requirements, if any, related to policies and endorsements.  Please describe any applicable rating bureau. 

The rates and forms utilized in Oregon are governed by the Oregon Title Insurance Rating Organization (OTIRO) Rating Manual.  There can be no deviation from this manual unless a special deviated filing is approved by the state.  This is rare.  The OTIRO Manual is posted on the Oregon Land Title Association Website.  The web address is:

http://www.oregonlandtitle.com/OR_Title_Insurance_Rating_Org.php

Transfer Taxes

Is there a transfer tax in your state? If yes, is it uniform across the state or does it vary?  If it is uniform, please describe.

Only in Washington County. No other counties in the state impose a transfer tax.

Usury

Is usury coverage available?

No.

Withholding Taxes

What are your state’s requirements, if any, with regard to withholding proceeds from a sale, similar to but not including FIRPTA?

None.

Witness Requirements

Are witnesses required on a deed or security instrument?  If so, please describe.

No.