US Laws, Codes, Statutes & Cases

Chapter 100 — Condominiums

 

2007 EDITION

 

CONDOMINIUMS

 

PROPERTY RIGHTS AND TRANSACTIONS

 

GENERAL PROVISIONS

 

100.005     Definitions

 

100.010     Short title

 

100.015     Rules

 

100.020     Condominium provisions; restrictions

 

100.025     Rule against perpetuities; inapplicable

 

CREATION OF UNIT OWNERSHIP

 

100.100     Property submitted to unit ownership by declaration; executors of declaration; conflict between this chapter and ORS chapter 65

 

100.102     Leasehold condominium submitted to unit ownership

 

100.103     Effect of submission of leasehold condominium to unit ownership

 

100.105     Contents of declaration; property name; variable property description

 

100.110     Approval of declaration, supplemental declaration or amendment required; prerequisites; fee

 

100.115     Recording declaration and plat; plat contents; supplemental declaration and plat; approval of declaration and plat amendments; fees

 

100.120     Supplemental declaration and plat required to annex additional property or reclassify variable property; termination date

 

100.122     Declaration prevails over inconsistent provisions of bylaws or articles of incorporation

 

100.123     Authority to amend declaration or bylaws to comply with federal or state law

 

100.125     Annexation of additional property; requirements

 

100.130     Relocation of unit boundaries and common elements by amendment to declaration

 

100.135     Amendments to declaration; requirements; procedure

 

100.140     Temporary relocation of floating structure; security interests upon termination of condominium

 

FLEXIBLE CONDOMINIUMS

 

100.150     Declarant’s options until termination date

 

100.155     Variable property; uses and restrictions

 

RIGHTS AND DUTIES OF DECLARANT

 

100.170     Easement held by declarant

 

100.175     Reserve account for maintaining, repairing and replacing common elements; reserve study; maintenance plan

 

WARRANTIES ON NEW UNITS

 

100.185     Express warranties; form; exclusion of implied warranties; exemption for consumer products; claims

 

DECLARANT CONTROL; TURNOVER

 

100.200     Declarant control of association

 

100.205     Transitional committee; notice of meeting for formation

 

100.210     Turnover meeting; notice; transfer of control

 

SPECIAL DECLARANT RIGHTS

 

100.220     Liabilities and obligations arising from transfer of special declarant right; exemptions

 

100.225     Acquisition of special declarant rights by successor declarant; exceptions

 

DOCUMENT FILING

 

100.250     Documents required to be filed with Real Estate Agency; fees

 

100.255     Processing of documents filed with Real Estate Agency; procedures

 

100.260     Condominium Information and Annual Reports; contents; fees

 

100.265     Annual Report; notification; filing

 

100.275     Application of ORS 100.250 to 100.280

 

100.280     Termination of filing Condominium Information Report

 

100.285     Resignation of designated agent; procedures; effective date

 

100.290     Rules

 

CONVERSION CONDOMINIUMS

 

100.300     Inapplicability of ORS 100.301 to 100.320 to transient lodgings

 

100.301     Definitions for ORS 100.301 to 100.320

 

100.305     Conversion condominium; notice

 

100.310     Rights of tenants in conversion

 

100.315     Improvements in conversion condominium during notice period

 

100.320     Authority of city or county to require developer to pay tenant moving expenses

 

ASSOCIATION OF UNIT OWNERS; MANAGEMENT OF PROPERTY; ENCUMBRANCES; CONVEYANCES

 

100.405     Association of unit owners; powers; granting of interest in common elements; dispute resolution

 

100.407     Annual and special meetings of association

 

100.408     Quorum for meeting of association

 

100.409     Rules of order

 

100.410     Adoption of bylaws; recording; amendment; approval by commissioner; fee

 

100.412     Annual budget; distribution of budget summary to owners

 

100.415     Contents of bylaws

 

100.417     Board of directors of association; powers and duties

 

100.418     Receivership for failure of association to fill vacancies on board of directors

 

100.419     Assent of director to board action

 

100.420     Board meetings; executive sessions

 

100.423     Electronic notice to owner or director

 

100.425     Use of written ballot for approving or rejecting matters subject to meeting of unit owners; procedures; exceptions

 

100.427     Methods of voting

 

100.428     Electronic ballot

 

100.430     Unit deeds; contents

 

100.435     Insurance for individual units and common elements

 

100.440     Liens against property; removal from lien; effect of part payment

 

100.445     Independent default clauses; option to purchase fee simple interest

 

100.450     Association lien against individual unit; recording notice of claim; foreclosure; priority of lien

 

100.460     Foreclosure against unit; receiver for unit; power of board of directors to bid at foreclosure sale

 

100.465     Circumstances in which deed in lieu of foreclosure extinguishes lien

 

100.470     Lien foreclosure; other legal action by declarant, association or owner; attorney fees

 

100.475     Personal liability for assessment; joint liability of grantor and grantee following conveyance; limitation

 

100.480     Maintaining documents and records; annual financial statement; review of financial statement by certified public accountant; availability of documents and records for examination

 

100.485     Duration and termination of initial management agreements and service and employment contracts; applicability of federal condominium law

 

100.490     Notice to unit owners of intent of association to commence judicial or administrative proceedings; contents of notice; right of unit owner to opt out

 

ATTRIBUTES AND DUTIES OF OWNERSHIP

 

100.505     Status and ownership of units

 

100.510     Units and common elements distinguished

 

100.515     Interest of units in common elements

 

100.520     Easement held by units and common elements

 

100.525     Voting or consenting

 

100.530     Allocation of common profits and expenses; liability of unit owner; limitation on assessments against declarant; deferral of assessments by declarant

 

100.535     Maintenance and improvement of units

 

100.540     Use and maintenance of common elements; access for maintenance

 

100.545     Compliance with bylaws and other restrictions

 

100.550     Service of process

 

100.555     Taxation of units; exemptions; uniform appraisal and assessment; rules

 

REMOVAL OF PROPERTY FROM UNIT OWNERSHIP

 

100.600     Termination of association or removal of real property by unit owners; consent of lienholders; recordation; amended plat requirements

 

100.605     Removal of property from association; repair or removal of property that is damaged or destroyed

 

100.610     Common ownership of property removed from unit ownership; valuation; liens

 

100.615     Action for partition; division of sale proceeds

 

100.620     Termination or removal no bar to resubmission

 

DIVIDING OR CONVERTING UNITS

 

100.625     Procedure for dividing or converting units

 

REGULATION OF SALES; FILING REQUIREMENTS

 

100.635     Filing with commissioner; fee

 

100.640     Filing; required documents and information

 

100.645     Filing information to be kept current

 

100.650     Service of process on nonresident developer; consent for service on commissioner; contents of consent; records of service on commissioner

 

100.655     Disclosure statement; contents; disclosure statement from other state; declarant liability limited

 

100.660     Nonresidential condominium or security filing; contents

 

100.665     Exemption to certain disclosure and notice requirements

 

100.670     Fees; hourly rate; deposit

 

100.675     Inventory; review; approval; timelines

 

100.680     Escrow; sales agreement; requirements

 

INSPECTION OF CONDOMINIUM; DISCLOSURE STATEMENT

 

100.700     Inspection of condominium; report in disclosure statement

 

100.705     Sale prohibited prior to issuance of disclosure statement; exception; distribution; use of disclosure statement

 

100.710     Inspection deposit

 

REQUIREMENTS FOR SALE

 

100.720     Conditions prerequisite to sale

 

100.725     Documents prerequisite to execution of sale agreement and conveyance of unit

 

100.730     Cancellation of sale of unit; notice to seller; return of payments and reconveyance; extinguishment of encumbrances; waiver prohibited; disclaimer of notice; applicability

 

100.735     Waiver of right to cancel

 

100.740     Notice to purchaser of cancellation rights; form

 

100.745     Escrow documents required of successor to vendor’s interest

 

100.750     Inspection of records

 

PROHIBITED ACTS

 

100.770     Fraud and deceit prohibited

 

100.775     False or misleading advertising prohibited; liability

 

100.780     Waiver of legal rights void

 

100.785     Blanket encumbrance prohibited

 

ENFORCEMENT

 

100.900     Civil penalty

 

100.905     Cease and desist order; injunction

 

100.910     Use of fees

 

CRIMINAL PENALTIES

 

100.990     Criminal penalties

 

GENERAL PROVISIONS

 

      100.005 Definitions. As used in this chapter, unless the context requires otherwise:

      (1) “Assessment” means any charge imposed or levied by the association of unit owners on or against a unit owner or unit pursuant to provisions of the declaration or the bylaws of the condominium or provisions of ORS 100.005 to 100.910.

      (2) “Association of unit owners” means the association provided for under ORS 100.405.

      (3) “Association property” means any real property or interest in real property acquired, held or possessed by the association under ORS 100.405.

      (4) “Blanket encumbrance” means a trust deed or mortgage or any other lien or encumbrance, mechanic’s lien or otherwise, securing or evidencing the payment of money and affecting more than one unit in a condominium, or an agreement affecting more than one such unit by which the developer holds such condominium under an option, contract to sell or trust agreement.

      (5) “Building” means a multiple-unit building or single-unit buildings, or any combination thereof, comprising a part of the property. “Building” also includes a floating structure described in ORS 100.020 (3)(b)(D).

      (6) “Commissioner” means the Real Estate Commissioner.

      (7) “Common elements” means the general common elements and the limited common elements.

      (8) “Common expenses” means:

      (a) Expenses of administration, maintenance, repair or replacement of the common elements;

      (b) Expenses agreed upon as common by all the unit owners; and

      (c) Expenses declared common by ORS 100.005 to 100.625 or by the declaration or the bylaws of the particular condominium.

      (9) “Condominium” means:

      (a) With respect to property located within this state:

      (A) The land, if any, whether fee simple, leasehold, easement or other interest or combination thereof, and whether contiguous or noncontiguous;

      (B) Any buildings, improvements and structures on the property; and

      (C) Any easements, rights and appurtenances belonging to the property submitted to the provisions of ORS 100.005 to 100.625; and

      (b) With respect to property located outside this state, the property that has been committed to the condominium form of ownership in accordance with the jurisdiction within which the property is located.

      (10) “Conversion condominium” means a condominium in which there is a building, improvement or structure that was occupied prior to any negotiation and that is:

      (a) Residential in nature, at least in part; and

      (b) Not wholly commercial or industrial, or commercial and industrial, in nature.

      (11) “Declarant” means a person who records a declaration under ORS 100.100 or a supplemental declaration under ORS 100.110.

      (12) “Declaration” means the instrument described in ORS 100.100 by which the condominium is created and as modified by any amendment recorded in accordance with ORS 100.135 or supplemental declaration recorded in accordance with ORS 100.120.

      (13) “Developer” means a declarant or any person who purchases an interest in a condominium from declarant, successor declarant or subsequent developer for the primary purpose of resale.

      (14) “Flexible condominium” means a condominium containing property that may be reclassified or withdrawn from the condominium pursuant to ORS 100.150 (1).

      (15) “General common elements,” unless otherwise provided in a declaration, means all portions of the condominium that are not part of a unit or a limited common element, including but not limited to the following:

      (a) The land, whether fee simple, leasehold, easement, other interest or combination thereof, together with any rights and appurtenances;

      (b) The foundations, columns, girders, beams, supports, bearing and shear walls, windows, except glazing and screening, unit access doors, except glazing and screening, roofs, halls, corridors, lobbies, stairs, fire escapes, entrances and exits of a building;

      (c) The basements, yards, gardens, parking areas and outside storage spaces;

      (d) Installations of central services such as power, light, gas, hot and cold water, heating, refrigeration, air conditioning, waste disposal and incinerating;

      (e) The elevators, tanks, pumps, motors, fans, compressors, ducts and in general all apparatus and installations existing for common use;

      (f) The premises for the lodging of janitors or caretakers of the property; and

      (g) All other elements of a building and the condominium necessary or convenient to their existence, maintenance and safety, or normally in common use.

      (16) “Leasehold” means the interest of a person, firm or corporation who is the lessee under a lease from the owner in fee and who files a declaration creating a condominium under ORS 100.100.

      (17) “Limited common elements” means those common elements designated in the declaration, as reserved for the use of a certain unit or number of units, to the exclusion of the other units.

      (18) “Majority” or “majority of unit owners” means more than 50 percent of the voting rights allocated to the units by the declaration.

      (19) “Mortgagee” means any person who is:

      (a) A mortgagee under a mortgage;

      (b) A beneficiary under a trust deed; or

      (c) The vendor under a land sale contract.

      (20) “Negotiation” means any activity preliminary to the execution by either developer or purchaser of a unit sales agreement, including but not limited to advertising, solicitation and promotion of the sale of a unit.

      (21) “Nonwithdrawable property” means property which pursuant to ORS 100.150 (1)(b):

      (a) Is designated nonwithdrawable in the declaration and on the plat; and

      (b) Which may not be withdrawn from the condominium without the consent of all of the unit owners.

      (22) “Percent of owners” or “percentage of owners” means the percent of the voting rights determined under ORS 100.525.

      (23) “Purchaser” means an actual or prospective purchaser of a condominium unit pursuant to a sale.

      (24) “Recording officer” means the county officer charged with the duty of filing and recording deeds and mortgages or any other instruments or documents affecting the title to real property.

      (25) “Reservation agreement” means an agreement relating to the future sale of a unit which is not binding on the purchaser and which grants purchaser the right to cancel the agreement without penalty and obtain a refund of any funds deposited at any time until purchaser executes a unit sales agreement.

      (26) “Sale” includes every disposition or transfer of a condominium unit, or an interest or estate therein, by a developer, including the offering of the property as a prize or gift when a monetary charge or consideration for whatever purpose is required by the developer. “Interest or estate” includes a lessee’s interest in a unit for more than three years or less than three years if the interest may be renewed under the terms of the lease for a total period of more than three years. “Interest or estate” does not include any interest held for security purposes or a timeshare regulated or otherwise exempt under ORS 94.803 and 94.807 to 94.945.

      (27) “Special declarant right” means any right, in addition to the regular rights of the declarant as a unit owner, reserved for the benefit of or created by the declarant under the declaration, bylaws or the provisions of this chapter.

      (28) “Staged condominium” means a condominium which provides for annexation of additional property pursuant to ORS 100.115 and 100.120.

      (29) “Successor declarant” means the transferee of any special declarant right.

      (30) “Termination date” means that date described in ORS 100.105 (2)(b) or (7)(d).

      (31) “Transitional committee” means the committee provided for under ORS 100.205.

      (32) “Turnover meeting” means the meeting provided for under ORS 100.210.

      (33) “Unit” or “condominium unit” means a part of the property which:

      (a) Is described in ORS 100.020 (3);

      (b) Is intended for any type of independent ownership; and

      (c) The boundaries of which are described pursuant to ORS 100.105 (1)(d).

      (34) “Unit designation” means the number, letter or combination thereof designating a unit in the declaration and on the plat.

      (35) “Unit owner” means, except to the extent the declaration or bylaws provide otherwise, the person owning fee simple interest in a unit, the holder of a vendee’s interest in a unit under a recorded installment contract of sale and, in the case of a leasehold condominium, the holder of the leasehold estate in a unit.

      (36) “Unit sales agreement” means a written offer or agreement for the sale of a condominium unit which when fully executed will be binding on all parties. “Unit sales agreement” includes but is not limited to an earnest money receipt and agreement to purchase and other such agreements which serve as an agreement of sale for a cash transaction or which are preliminary to the execution of an installment contract of sale, but does not include a reservation agreement.

      (37) “Variable property” means property described in ORS 100.150 (2) and designated as variable property in the declaration and on the plat.

      (38) “Voting rights” means the portion of the votes allocated to a unit by the declaration in accordance with ORS 100.105 (1)(j). [Formerly 94.004; 1997 c.816 §1; 1999 c.677 §38; 2001 c.756 §24; 2007 c.410 §5]

 

      100.010 Short title. This chapter may be cited as the Oregon Condominium Act. [Formerly 94.011]

 

      100.015 Rules. The Real Estate Commissioner may adopt such rules as are necessary for the administration of this chapter. [Formerly 94.333]

 

      Note: 100.015 was added to and made a part of 100.635 to 100.910 by legislative action but was not added to any other series. See Preface to Oregon Revised Statutes for further explanation.

 

      100.020 Condominium provisions; restrictions. (1) Except as otherwise provided in subsections (2) and (3) of this section, ORS 100.100 to 100.625 apply only to property located within this state which a person elects to submit to the condominium form of ownership as provided in ORS 100.005 to 100.625.

      (2) Unless the declarant elects otherwise, ORS 100.175, 100.185, 100.200 (2), 100.205, 100.210, 100.300, 100.305, 100.310, 100.315 and 100.320 apply only to condominiums that include units to be used for residential purposes.

      (3) Property may not be submitted to the condominium form of ownership under ORS 100.005 to 100.625 unless:

      (a) Each unit has legal access to a public street or highway or, if the unit has such access only by virtue of common ownership with other units, the declaration executed under ORS 100.110 prohibits conveyance of the unit unless after conveyance the unit will continue to have legal access to a public street or highway;

      (b) Subject to paragraph (c) of this subsection, each unit consists of:

      (A) A building or part of a building;

      (B) A space used for the parking or storage of automobiles, trucks, boats, campers or other vehicles or equipment;

      (C) A space for the moorage of a watercraft, floating home or other structure; or

      (D) A floating structure, including a structure formerly used as a ship or other vessel that:

      (i) Is permanently moored to structures in a river, lake or other waterway pursuant to a long-term lease with a remaining term at the time the declaration and plat are recorded of not less than 15 years;

      (ii) Contains two or more residential units with a combined floor space of not less than 2,000 square feet; and

      (iii) Has upland common elements owned in fee or by leasehold having a remaining term of not less than the remaining term of the leasehold on the submerged or submersible land. The units in a condominium described in this subparagraph shall be considered real property for purposes of the Oregon Condominium Act; and

      (c) Each unit has an interest in the common elements in accordance with ORS 100.515. However, a unit may not include any portion of the land. A declaration may not provide that there are no common elements.

      (4)(a) Except as otherwise provided in subsection (5) of this section, ORS 100.015 and 100.635 to 100.910 apply to condominiums having units to be used for residential purposes which are not offered for sale as a security pursuant to ORS 59.005 to 59.451.

      (b) ORS 100.635 (2), 100.640 (8) to (12), 100.655, 100.705, 100.720, 100.725, 100.730, 100.735, 100.740 and 100.745 do not apply to the sale of units to be used for nonresidential purposes unless the units, including units used for parking or storage, are ancillary to the sale of units to be used for residential purposes.

      (5) ORS 100.650, 100.660, 100.670, 100.675, 100.750, 100.770, 100.775, 100.780, 100.900, 100.905 and 100.990 apply to a condominium located in this state that consists exclusively of units to be used for nonresidential purposes or that consists of units to be offered for sale as a security under ORS 59.005 to 59.451.

      (6) The units in a condominium described in subsection (3)(b)(C) and (D) of this section shall be considered real property for purposes of this chapter.

      (7) Unless the declaration or bylaws provide otherwise, a condominium unit may be submitted to the condominium form of ownership under ORS 100.005 to 100.625. [Formerly 94.013; 1997 c.816 §2; 1999 c.677 §39; 2001 c.756 §25; 2007 c.410 §6]

 

      100.025 Rule against perpetuities; inapplicable. The rule against perpetuities may not be applied to defeat any provisions of a declaration, supplemental declaration, bylaw or rule for a condominium adopted under ORS 100.005 to 100.625. [Formerly 94.016]

 

CREATION OF UNIT OWNERSHIP

 

      100.100 Property submitted to unit ownership by declaration; executors of declaration; conflict between this chapter and ORS chapter 65. (1) In order to submit any property to the provisions of this chapter, the declarant shall record a declaration in the office of the recording officer of every county in which such property is located. The declaration shall comply with ORS 100.105 and shall be executed in accordance with subsection (2) of this section and acknowledged in the manner provided for acknowledgment of deeds.

      (2) If the declarant is not the fee owner of the property, the fee owner and the vendor under any instrument of sale shall also execute the declaration for the purpose of consenting to the property being submitted to the provisions of this chapter.

      (3) If the condominium contains any variable property, the holder of any mortgage or trust deed shall also execute the declaration for the purpose of consenting to the property being submitted to the provisions of ORS 100.005 to 100.625 and the terms and conditions of the declaration and bylaws.

      (4) A flexible or staged condominium may be created only as provided in ORS 100.005 to 100.625.

      (5) The provisions of and rights conferred by ORS 100.005 to 100.910 shall not be varied or waived except as expressly provided in those statutes. A declarant shall not act under a power of attorney or use any other device to evade the limitations or prohibitions in the declaration, bylaws or ORS 100.005 to 100.910.

      (6) If the provisions of this chapter and the provisions of ORS chapter 65 apply to an association and the provisions conflict, the provisions of this chapter control. [Formerly 94.023; 2003 c.569 §22]

 

      100.102 Leasehold condominium submitted to unit ownership. (1) The owner of fee title interest in the real property underlying a leasehold condominium may submit the fee title to the provisions of this chapter by the procedures set forth in this section. Submission has the effect set forth in ORS 100.103.

      (2) The fee title interest of a leasehold condominium may be submitted to the provisions of this chapter by an amendment to the declaration. The amendment must:

      (a) Include a reference to the recording index numbers and date of recording of the initial declaration, supplemental declarations recorded pursuant to ORS 100.120 and the lease;

      (b) State that the fee title interest in the real property subject to the leasehold is submitted to the provisions of this chapter pursuant to this section;

      (c) State that the submission of the fee title interest in the real property subject to the leasehold to the provisions of this chapter has the effect set forth in ORS 100.103;

      (d) State that there are no encumbrances against the fee title interest securing payment of moneys except for the assessments of the owners association that are not yet due;

      (e) Be approved by at least 75 percent of the unit owners, notwithstanding that the declaration may require approval by a larger percentage of owners or the consent of another person to amend the declaration;

      (f) Be executed by the fee title holder and the chairperson and secretary of the association and acknowledged in the manner provided for acknowledgment of instruments;

      (g) Be certified by the chairperson and secretary as being adopted in accordance with this section;

      (h) Be approved as required by ORS 100.110; and

      (i) Be recorded in the office of the recording officer of each county in which the condominium is located.

      (3) At the time of submission, the fee title interest being submitted may not be subject to an encumbrance securing payment of money except for the assessments of an association that are not yet due.

      (4) Nothing in this section precludes the declarant of a leasehold condominium, the unit owners and the association from agreeing to other procedures for submitting the fee title interest to the provisions of this chapter, provided the procedures are set forth in:

      (a) The declaration; or

      (b) An amendment to the declaration approved by at least 75 percent of the unit owners or, if a larger percentage is specified in the declaration to effect amendments to the declaration, the larger percentage, and 75 percent of the lenders holding a first-priority security position in any unit in the condominium. [2003 c.569 §43; 2007 c.410 §7]

 

      Note: 100.102 and 100.103 were added to and made a part of ORS chapter 100 by legislative action but were not added to any smaller series therein. See Preface to Oregon Revised Statutes for further explanation.

 

      100.103 Effect of submission of leasehold condominium to unit ownership. (1) After an amendment submitting the fee title interest underlying a leasehold condominium has been recorded as provided in ORS 100.102:

      (a) The leasehold or leaseholds affecting the fee title interest of the land underlying the condominium property must be converted to individual leaseholds of the units;

      (b) The former owner of the underlying fee title interest of the condominium property shall become the holder of the fee title interest to all individual units and the lessor of the individual units. The individual unit owners of the leasehold condominium units shall become lessees of the fee title condominium units;

      (c) Unless otherwise provided by the lease or agreed by the lessor and lessee of the fee title condominium units, the obligations to pay rent under the former lease must be allocated among all former leasehold units on the basis of the percentage ownership in the common elements of the condominium allocated to each unit;

      (d) Liens against leasehold condominium units become liens on the lessee’s interest in the leased unit and have the same priority and rights against the leasehold of the individual unit in the fee title condominium formerly held against the leasehold condominium unit;

      (e) The holder of the fee title to the unit in the fee condominium shall have the same priority and rights in the individual leasehold of the fee title condominium unit as was held under the leases prior to submission of the fee title interest; and

      (f) The fee title interest is not subject to the liens suffered or incurred by the unit lessee, except for property taxes and condominium association assessment liens.

      (2) The assessor shall assign all value of the fee simple interest to the fee title condominium units and allocate any additional value in accordance with the allocation of interest of each unit in the common elements.

      (3) All easements, covenants, conditions and restrictions or other interests encumbering the fee title and the leasehold at the time of submission of the fee title to the provisions of this chapter continue and remain in full force, unaffected by the submission.

      (4)(a) Options to purchase that were granted to unit owners or to the association prior to submission of the fee title interest to the provisions of this chapter pursuant to ORS 100.102 continue according to their terms, except that purchaser options must be segregated so that each option pertains to an individual unit only.