(1) As used in this section, “affiliate” means any person who controls a transferor or successor declarant, is controlled by a transferor or successor declarant or is under common control with a transferor or successor declarant.
(2) A person controls or is controlled by a transferor or successor declarant if the person:
(a) Is a general partner, officer, director or employee;
(b) Directly or indirectly, or acting in concert with one or more other persons or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing more than 20 percent of the voting interests of the transferor or successor declarant;
(c) Controls in any manner the election of a majority of the members of the board of directors; or
(d) Has contributed more than 20 percent of the capital of the transferor or successor declarant.
(3) Upon the transfer of any special declarant right, the liabilities and obligations of a transferor are as follows:
(a) A transferor is not relieved of any obligation or liability arising before the transfer. Lack of privity does not deprive any owner of standing to bring an action to enforce any obligation of the transferor.
(b) If a transferor retains any special declarant right, or if a successor declarant is an affiliate of the transferor, the transferor is subject to liability for all obligations and liabilities imposed on a declarant by the provisions of ORS 94.550 to 94.783 or by the declaration or bylaws arising after the transfer and is jointly and severally liable with the successor declarant for the liabilities and obligations of the successor declarant which relate to the subject lot.
(c) A transferor who retains no special declarant right has no obligation or liability for any act or omission or any breach of a contractual obligation arising from the exercise of a special declarant right by a successor declarant who is not an affiliate of the transferor.
(4) Upon transfer of any special declarant right, the liabilities and obligations of a successor declarant are as follows:
(a) A successor declarant who is an affiliate of the transferor is subject to all obligations and liabilities imposed on a declarant by the provisions of this chapter or by the declaration or bylaws.
(b) A successor declarant who is not an affiliate of the transferor shall not be liable for any misrepresentations or warranties made or required to be made by the declarant or previous successor declarant or for any breach of fiduciary obligation by such person. Such a successor declarant, however, shall comply with any provisions of the declaration and bylaws which pertain to such successor declarant’s ownership of the lot or lots and the exercise of any special declarant right. [1999 c.677 §34]Section: Previous 94.605 94.609 94.610 94.615 94.616 94.620 94.621 94.622 94.623 94.625 94.630 94.635 94.640 94.641 94.642 Next
Last modified: August 7, 2008