(1) Unless the developer of a condominium has complied with subsections (2) and (3) of this section, the developer and a purchaser may not enter into a unit sales agreement before the recording of the declaration or supplemental declaration and plat under ORS 100.115 or, if the condominium is located outside of this state, before the condominium has been created under the laws of the jurisdiction within which the condominium is located.
(2) Any purchaser’s funds, the unit sales agreement, any notes or security documents and any loan commitments shall be placed in an escrow located within this state with a person or firm authorized under ORS 696.505 to 696.582. The escrow instructions may not allow distribution of the purchaser’s funds until the declaration or any applicable supplemental declaration is recorded and the legal title or other interest bargained for has been transferred to the purchaser as provided in the unit sales agreement. If any funds of the purchaser are invested, the funds shall be invested in federally insured accounts or other investments approved by the Real Estate Commissioner. If the developer defaults under the unit sales agreement, the purchaser’s funds held in escrow and all income earned from investment of the funds held in escrow shall be returned.
(3) A unit sales agreement shall contain:
(a) The unit designation;
(b) The full amount of the purchase price, including the amount and form of earnest money paid by the purchaser;
(c) The name and address of the escrow agent to hold the purchaser’s funds and a reference to the escrow instructions controlling the escrow;
(d) If the purchaser’s funds are to be invested, the name of the financial institution where the funds will be deposited and to whom any interest earnings will accrue under all possible circumstances;
(e) The date of closing with any conditions and requirements of closing;
(f) The closing procedure;
(g) Any authority of the developer to terminate the sale and, in the case of termination, any forfeiture provisions;
(h) If the developer specifies any contingency, the date other than closing when all purchaser’s funds and interest earnings will be returned to the purchaser if the contingency is not met;
(i) Provision that the purchaser will recover any funds paid to the developer and any interest earnings upon default by the developer;
(j) Any rights reserved by the developer to modify the declaration, any supplemental declaration, bylaws, plat or other documents by which the purchaser is or will be bound;
(k) Notice to the purchaser of cancellation rights under ORS 100.730 and 100.740;
(L) For the sale of newly constructed units, any express warranty required under ORS 100.185; and
(m) Any other provisions deemed necessary by the developer and purchaser.
(4) In lieu of the requirements of subsection (2) of this section, the commissioner may approve any alternative requirement or method which the commissioner finds will assure the same protection to the purchaser as the protection provided by the escrow. [Formerly 94.358]
Section: Previous 100.645 100.650 100.655 100.660 100.665 100.670 100.675 100.680 100.700 100.705 100.710 100.720 100.725 100.730 100.735 NextLast modified: August 7, 2008