OREGON PROPERTY BUYER ADVISORY
OREGON PROPERTY BUYER ADVISORY
A CONSUMER INFORMATION PUBLICATION
OF THE OREGON REAL ESTATE AGENCY
A real estate licensee is vital to the home buying process and can provide a
variety of services in locating property, negotiating the sale and advising
the buyer. A real estate agent is generally not qualified to discover
defects or evaluate the physical condition of property; however, a real estate
agent can assist a buyer in finding qualified inspectors and provide the buyer
with documents and other resources containing vital information about a
prospective new home.
This
Advisory is designed to assist home buyers in meeting their obligation to
satisfy themselves as to the condition and desirability of property they are
interested in purchasing. Common issues in real property transactions
that home buyers often decide to investigate or verify are summarized in this
Advisory. In addition to investigating or verifying these common issues,
the buyer should tell the licensee with whom they are working about any
special concerns or issues the buyer may have regarding the condition of the
property or surrounding area. Such special concerns are not addressed in
this Advisory.
PROPERTY
CONDITION INSPECTION AND INVESTIGATION
Professional
Home Inspections
OBTAINING A PROFESSIONAL HOME INSPECTION IS THE SINGLE MOST IMPORTANT THING A
BUYER CAN DO FOR THEIR PROTECTION. A professional home inspection report
will provide the buyer with detailed information about the home's physical
condition, its systems and fixtures and usually note any potential future
problems. The buyer should carefully review an inspector's proposal to
determine the scope of the inspection. Some home inspectors may not
inspect heating and cooling systems, the roof or other systems or components.
A home inspection should be done by a home inspector or contractor licensed by
the Oregon Construction Contractors Board (CCB). To inspect two or more
components (i.e., roof, siding, structural), the home inspector must be
certified and either be a licensed construction contractor or work for a
licensed construction company. Also, a home inspector is not allowed to
perform the repairs within a twelve-month period following the inspection.
Buyers can review state home inspector requirements and standards of practice
for inspectors on-line at: http://ccbed.ccb.state.or.us/WebPDF/CCB/Publications/hi-s-sop.pdf.
Additional information about inspections and inspectors is available from the
Oregon Association of Home Inspectors at: www.oahi.org
Inspection of property is beyond the scope of expertise of a real estate
licensee, but real estate licensees can provide buyers with a list of local
inspectors. Licensees ordinarily will not recommend a specific inspector.
Before hiring an inspector, the buyer should check with the CCB to determine
the inspector's current license status and whether there are any past or
pending claims against the inspector. This can be done by visiting: https://ccbed.ccb.state.or.us/ccb_frames/consumer_info/ccb_index.htm.
Buyers should not rely upon reports done for others (previous buyers and/or
sellers), because the report may not be accurate and buyers may have no
recourse against an inspector they have not retained. Most residential
sale contracts contain a clause that allows the buyer to withdraw from the
agreement if a professional inspection they have done shows defects in the
property. You will want to take advantage of this important right by
obtaining your own professional home inspection report from a licensed
professional inspector within the time frame specified in the sale contract.
Unless otherwise provided for in the Sale Agreement, the cost of the
inspection will not be refunded should you withdraw from the Agreement.
Pest
and Dry Rot Inspection
Pest
and dry rot inspections are done in many residential real estate transactions
and may be required by the lender. A pest and dry rot inspection may or
may not be included in a whole home inspection. If a pest and dry
rot inspection is desired or required and the buyer is obtaining a whole home
inspection, the buyer should verify that the inspection obtained covers pest
and dry rot and the inspector is properly licensed. The license status
of home inspectors can be checked at: https://ccbed.ccb.state.or.us/ccb_frames/consumer_info/ccb_index.htm.
Pest control operators who do inspections and treatment are licensed by the
Oregon Department of Agriculture. Buyers can check on licensing of pest
control operators and applicators by calling the Oregon Department of
Agriculture at (503) 986-4635 or online at http://oda.state.or.us/dbs/search.lasso#pesticide
Real estate licensees do not have the training or expertise to inspect
property for pests or dry rot. Like any property condition report,
buyers should not rely on the report of an inspector they did not hire.
A pest and dry rot inspection is a limited inspection and is no substitute for
a complete whole home inspection by a licensed home inspector.
Defective
Products and Materials
Some
materials used in home construction are, or have been, subject to a recall,
class action suit, settlement or litigation. These materials are
typically, but not limited to, modern engineered construction materials used
for siding, roofing, insulation or other building purposes. It is
critical that a buyer carefully review any disclosures or representations of
the seller regarding such materials. A real estate licensee may assist
the buyer in that review, but inspection of property for defective products,
systems, fixtures or materials is beyond the scope of expertise of a real
estate licensee. The buyer, therefore, should make certain inspection for such
materials is within the scope of any home inspection ordered by the buyer.
Like any property condition report, buyers should not rely on the report of an
inspector they did not hire.
Similarly,
homes may contain products in their systems or fixtures that are, or have
been, subject to a recall, class action suit, settlement or litigation.
Plumbing, heating and electrical systems, among others, may contain such
products. It is critical that a buyer carefully review any disclosures
or representations of the seller regarding such products. The buyer
should, therefore, make certain inspection for such products is within the
scope of any home inspection ordered by the buyer. A real estate
licensee can help the buyer find a suitable inspector.
Repairs
and Remodels
Buyers
should look for signs of repairs or remodeling when viewing property. If
repairs or remodeling have been done, the buyer will want to make certain the
work was properly done. Buyers can ask the seller for any invoices or
other documentation for the work but, as with other questions of property
condition, there is no substitute for professional inspection. A real estate
licensee can help the buyer assess the need for a building code compliance
inspection but do not themselves have the training or expertise to evaluate
building code compliance. Information about building permits can be found at: http://www.permitsprotect.info/,
a service of the Department of Consumer & Business Services Building Codes
Division. If building permits were required for work done on the property
(such permits are typically required for structural changes, new additions,
and new plumbing and electrical work), the buyer should check with the city or
county building department to make sure the permits are in order. If
permits were not properly obtained, the new property owner could be held
responsible. Ask your agent for assistance or you can find the website for the
county in which the property is located by visiting: http://www.aocweb.org/Cnty-links-frm.htm.
Websites for cities can be found at: http://www.orcities.org/CityResources/CityInformation/tabid/846/Default.aspx.
If repairs or remodels have been completed very recently, the buyer should
take steps to determine if there is any possibility of construction liens
being filed against the property after the sale has closed. This can be done
by the buyer raising the issue with their title insurance provider.
If
any repairs are being required during the transaction, the buyer should insure
a licensed construction contractor is doing the repairs. After the
repairs have been done, the buyer should consider having a re-inspection done
to assure the repairs were done properly.
Sewer
and Septic Systems
Whether
the property is connected to a city sewer, septic system or other on-site
wastewater treatment system is important information. Even if the MLS
data sheet or Seller's Property Disclosure Statement indicate that the home is
connected to the city sewer, the buyer should have their home inspector, or a
licensed plumber, verify the connection and its condition. Real estate
licensees are not licensed to do plumbing or septic inspections. If the
property has a septic system or other on-site wastewater treatment system, the
system should be inspected by a licensed septic system installer or other
on-site wastewater treatment system professional hired by the buyer.
Information about on-site wastewater treatment systems, and licensed
installers and pumpers, can be found on the website for the Oregon Department
of Environmental Quality (DEQ) at: http://www.deq.state.or.us/wq/onsite/onsite.htm.
Buyers should check with the appropriate county department for specific
information on a particular property.
Wells
If
domestic water for the property is supplied by a private well, the seller is
required by state law to test the well for total coliform bacteria and
nitrates. Buyers may also want to have the well tested for contaminants
other than bacteria and nitrates. Buyers should verify that the seller
uses proper procedures when having the well tested. More information on this
state law requirement can be found at http://www.dhs.state.or.us/publichealth/dwp/dwtfaq.cfm.
State law also requires that all private wells not already registered with the
state be registered at the time the property is transferred. Real estate
forms in use in Oregon often delegate to the buyer the responsibility for
registering the well. For information on the state well registration
program, visit: http://egov.oregon.gov/OWRD/GW/well_id.shtml.
Well
Flow Tests: If domestic water is supplied by a private well, the buyer should
verify to the extent possible whether the well provides adequate water for
domestic needs. It is strongly recommended that a well flow test be
conducted prior to the purchase of any property that depends on a well for
domestic water. Careful attention should be paid to any disclosures or
representations by the seller. Buyers should review all available well
records. More information on well logs is available at: http://apps2.wrd.state.or.us/apps/gw/well_log/Default.aspx.
Buyers are advised to have well flow tested by a professional.
While real estate licensees are not trained and do not have the expertise to
test wells, they may be able to direct you to the appropriate well
professionals. Even when wells are inspected and tested, it is
impossible to guarantee a continued supply of water. Catastrophic events
can and do occur that can change the well quality virtually overnight.
Other events, such as development and drought, can affect the quality of an
aquifer over time. Any test of a well is merely a snapshot in time and
is not an indication of a well's performance in the future. Any kind of
well report should be viewed in this light. PROFESSIONAL INSPECTION,
WELL LOG REVIEW AND FLOW TESTS ARE ABSOLUTELY CRITICAL IN DETERMINING THE
CONDITION OF A PRIVATE WELL.
Underground
Oil Storage Tanks
Buyers
should be aware of potential problems associated with underground oil storage
tanks. Although home heating oil tanks are not regulated, such tanks can
cause serious problems if they have leaked oil. Advice on home heating
oil tanks and the problems associated with them can be found at: http://www.deq.state.or.us/wmc/tank/ust-lust.htm.
A buyer who knows or suspects that property has an underground storage tank
should take appropriate steps to protect his own interests, including seeking
information from the Department of Environmental Quality (DEQ) and, if
necessary, consulting with an environmental hazards specialist or attorney.
BUYERS ARE ADVISED TO HIRE APPROPRIATELY TRAINED ENVIRONMENTAL PROFESSIONALS
TO INSPECT THE PROPERTY IF AN UNDERGROUD OIL STORAGE TANK IS FOUND OR
SUSPECTED. Oil storage tank inspection, decommissioning and cleanup
requires a special license from DEQ. A list of licensed providers can be
found at http://www.deq.state.or.us/wmc/tank/ust-lust.htm
or ask your real estate licensee for assistance in finding the proper
professional.
Environmental
Hazards
Buyers
should carefully review the Seller's Property Disclosure Statement and any
inspection reports available to determine if any of a number of potential
environmental hazards may require further investigation. Environmental
hazards include everything from expansive soils to landslides to forest fires,
tsunamis, floods and earthquakes. Environmental hazards can also include
indoor air quality (e.g., radon or carbon monoxide) and hazardous materials,
like asbestos. Buyers concerned about external environmental hazards
should check with the county in which the property is located. Oregon
counties can be located at: http://www.aocweb.org/Cnty-links-frm.htm.
Flood plain maps and information are available from the Federal Emergency
Management Agency (FEMA) at: http://www.fema.gov/business/nfip/sfhdform.shtm.
The Environmental Protection Agency (EPA) provides a great deal of information
about indoor hazards on its website at: www.epa.gov/iaq/iaqinfo.html.
Superfund sites are areas that have been listed by the federal government as
contaminated. A wealth of information on superfund sites, including
their locations, is available by visiting the EPA's website at: http://www.epa.gov/superfund/sites/.
Information on Oregon superfund sites can be obtained from the Oregon
Department of Human Services at: http://www.dhs.state.or.us/publichealth/superfund/sites.cfm.
Real estate licensees are not trained, and do not have the expertise, to
discover and evaluate environmental hazards. Buyers, therefore, are
advised to hire appropriately trained environmental professionals to inspect
the property and its systems or fixtures for environmental hazards.
Woodstoves
DEQ
has developed a statewide woodstove program to promote the use of
cleaner-burning woodstoves and to help homeowners to burn wood more
efficiently and with less pollution. Under Oregon law, no person may sell,
offer to sell or advertise to sell a used, non-certified woodstove.
Non-certified woodstoves (including fireplace inserts) are older models
(mostly pre-1985) that have not been certified by the DEQ or the federal
Environmental Protection Agency to meet cleaner-burning smoke emission
standards. Your community may have additional rules governing the sale
of or use of woodstoves and fireplaces. Ask your agent for assistance or you
can find the website for the county in which the property is located by
visiting: http://www.aocweb.org/Cnty-links-frm.htm.
Websites for cities can be found at: http://www.orcities.org/CityResources/CityInformation/tabid/846/Default.aspx.
Buyers should contact their insurer early in the home buying process to
determine what, if any, effect, a fireplace or woodstove may have on the
availability or cost of fire insurance For more information on
woodstoves, visit: http://www.deq.state.or.us/aq/woodstoves/index.htm.
Inspection of fireplaces and woodstoves requires special training and
expertise. Although a real estate licensee may be able to help you find
a local woodstove professional, they cannot themselves inspect or evaluate a
woodstove.
Mold
Molds
are one of a variety of biological contaminants which can be present in human
structures, including in residential housing. Mildew is perhaps the most
common and best known of the molds. Less well known, and far less
common, are certain molds identified as possible contributors to illness,
particularly in people with allergies. Such cases usually involve
property with defective siding, poor construction, water penetration problems,
improper ventilation or leaking plumbing. In a few cases, these problems
have led to the growth of molds which caused medical conditions in some
people. Buyers, if concerned about potentially harmful molds, should arrange
for inspection by a qualified professional. Information on moisture
intrusion and mold problems associated with human structures can be found at: http://www.epa.gov/iaq/molds/moldresources.html.
Inspection, discovery and evaluation of specific water intrusion or mold
problems requires extremely specialized training and is well beyond the scope
of a real estate licensee's expertise. Buyers are, therefore, advised to
hire appropriately trained professionals to inspect the property if the buyer
is concerned about the possibility of harmful molds.
Smoke
Alarms
In
Oregon, no person may sell a dwelling unless there is installed in the
dwelling unit an approved smoke detector or smoke alarm installed in
accordance with the rules of the State Fire Marshall. Because of this
state law requirement, most residential real estate sale forms contain a
representation by the seller that, at the earlier of possession or closing
date, the dwelling will have an operating smoke detector as required by law.
In Oregon, ionization smoke alarms (the most common type) must have a 10-year
battery and a "hush" mechanism which allows a person to temporarily
disengage the alarm. All dwellings must have the proper type, number and
placement of alarms as required by the building codes at the time the dwelling
was constructed but not less than one alarm adjacent to each sleeping area and
at least one alarm on each level of the dwelling. (Additional rules
apply to rented property.) For information about smoke alarm and
detector requirements in Oregon, you should visit the State Fire Marshall's
web site at: http://www.sfm.state.or.us/Comm_Ed/FireSafety/Smoke%20Alarm/smoke.htm
Real estate licensees are not trained in building code compliance, therefore,
if there is doubt about whether a smoke alarm or detector system complies with
building and fire code requirements, a licensed home inspector, or the home
alarm or detector company that installed the system, should be able assist
you. Your real estate agent may be able to assist you in finding the
right code compliance professional.
Deaths,
Crimes and External Conditions
In
Oregon, certain social conditions that may be of concern to buyers are
considered not to be "material" by state law. Oregon Revised
Statutes 93.275. Ordinarily, "material facts" must be
disclosed by the seller or the seller's agent. Because state law
declares certain facts that may be important to a buyer to be not material,
buyers cannot rely on the seller disclosing this kind of information. Buyers
should undertake their own investigation if concerned that the property or a
neighboring property has been the site of a death, crime, political activity,
religious activity, or any other act or occurrence that does not adversely
affect the physical condition of, or title to, real property, including that a
convicted sex offender resides in the area. Concerned buyers can contact
their local police for more information. Websites for Oregon counties
can be found at: http://www.aocweb.org/Cnty-links-frm.htm.
Websites for cities can be found at: http://www.orcities.org/CityResources/CityInformation/tabid/846/Default.aspx
Some large cities (e.g., Portland) publish crime maps (e.g., www.portlandmaps.com)
on their website. Information about registered sex offenders can be
found by visiting http://egov.oregon.gov/DOC/faqs.shtml.
Buyers concerned that neighborhood properties may have been used for illegal
drug manufacture can visit http://www.oregonbcd.org/druglabs/druglabs.html,
the website of the Building Codes Division, for more information.
Information on Oregon's Drug Lab Clean Up Program and meth labs can be found
at: http://www.dhs.state.or.us/publichealth/druglab/methlab.cfm.
Under Oregon law, neither the seller nor their agent is allowed to disclose
that an owner or occupant of the real property has or had human
immunodeficiency virus or acquired immune deficiency syndrome.
Neighborhoods
Neighborhoods
change over time so a buyer cannot expect the area surrounding their home to
stay as it is. Buyers concerned about potential development in the
surrounding area should check with governmental authorities to determine if
any large scale building projects are scheduled for the area. Building
permits, zoning applications and other planning actions are a matter of public
record. In Oregon, local governments must develop comprehensive plans
that guide development over long periods of time. These plans may
include "overlay zones" that can have a significant effect upon
development. If concerned about development, buyers should check with
local government planning departments. Information about planning
departments can be found on the county or city website: http://www.aocweb.org/Cnty-links-frm.htm
or http://www.orcities.org/CityResources/CityInformation/tabid/846/Default.aspx.
For information on state road building projects, check with the Oregon
Department of Transportation at: http://www.oregon.gov/ODOT/HighwayRegions.shtml.
Location within a school district can be an important attribute of a
neighborhood. School boundaries, however, are subject to change.
If location within a particular school district is material to the purchase of
real property, the buyer should investigate the boundaries and the likelihood
of change by contacting the school district directly.
Oregon
law provides a "just compensation" right for some Oregon property
owners if a public entity enacts or enforces a land use regulation that
restricts the use of property and has the effect of reducing the value of the
property. The law allows, but does not require, governing bodies to
modify, remove, or not apply land use regulations in lieu of paying
compensation. Property that has been in single ownership or held in a
family over a long period of time may have more development potential and,
therefore, value than has a neighboring property purchased more recently.
At the same time, some property may be less valuable because of the potential
for un-zoned, property specific uses on neighboring property. Real
estate licensees are not trained to predict the contingent and uncertain
potential effects of complex laws like Oregon compensation laws. Clients
who believe their decision to sell or purchase Oregon real estate may be
affected by Oregon's property compensation laws are advised to seek the
counsel of appraisers, attorneys or other land use professionals.
DOCUMENT
INSPECTION AND INVESTIGATION
Information
Generally
Information
from third parties contained in the many documents associated with a real
property transaction is not independently verified by real estate licensees.
It is the responsibility of the buyer to read the documents provided and ask
questions if uncertain or concerned. Interpretation of many real
property transaction documents involves the practice of law and is, therefore,
beyond the scope of a real estate licensee's expertise. BUYERS UNCERTAIN
ABOUT THE LEGAL EFFECT OF DOCUMENTS SHOULD CONSULT AN ATTORNEY.
MLS
Information
Most
properties marketed for sale by real estate licensees are listed in a Multiple
Listing Service (MLS). Information about the listing, provided to the
MLS by the listing broker, is made available to all subscribing members of the
MLS. This information is typically contained in what is called an MLS
"printout" or "data sheet." Most of the information
contained in an MLS data sheet or printout is obtained from the seller or
third-parties like the county assessor's office or other governmental entity.
MLS data may be incomplete, an approximation or otherwise inaccurate. Personal
property cited on the MLS data sheet should be included in the purchase
agreement if the buyer wishes to have the personal property included in the
sale. BUYERS SHOULD NOT RELY ON MLS- PROVIDED INFORMATION IF THAT
INFORMATION IS CONSIDERED IMPORTANT UNLESS THE BUYER VERIFIES THE INFORMATION.
Seller's
Property Disclosure Statement
In
most cases, residential property sellers in Oregon must provide a Seller's
Property Disclosure Statement to each residential buyer who makes a written
offer. The form used by the seller is mandated by state law. The
seller's representations regarding the property are based upon the seller's
actual knowledge at the time the disclosure statement is made and are not the
representations of any financial institution that may have made or may make a
loan pertaining to the property, or that may have a security interest in the
property, or any real estate licensee engaged by the seller or buyer.
Licensees are not responsible for misrepresentations by the seller unless they
know of the misrepresentation and fail to disclose it. A buyer should
carefully review the seller disclosures and verify, or ask their licensee to
verify, any statements of concern. REVIEW OF THE SELLER'S PROPERTY
DISCLOSURE STATEMENT IS NO SUBSTITUTE FOR PROFESSIONAL INSPECTIONS.
Real
Estate Sale Form (Sale Agreement)
A
contract for the sale of real property must be in writing to be enforceable in
an Oregon court. A VERBAL OFFER OR ACCEPTANCE SHOULD NOT BE MADE OR
RELIED UPON. Contracts for the sale of property are often called
"earnest money" or "sale" agreements. They are legally
binding contracts. Buyers and sellers should seek competent legal advice
before signing any contract they do not fully understand. Sale
agreements usually include provisions concerning who will hold the earnest
money and under what conditions it may be refunded to the buyer or forfeited
to the seller. Both buyers and sellers should carefully review these
provisions. The amount of earnest money pledged and the conditions under
which it may be refunded or forfeited are important matters that should be
carefully negotiated between the buyer and the seller.
Most
sale agreements are written using a standard form. In Oregon, most
licensees use a form developed specifically for Oregon real property
transactions. Many of these forms contain dispute resolution provisions
that require mediation or arbitration of disputes. Arbitration and
mediation clauses can affect legal rights, including the right to a judicial
determination of a claim and the right to appeal.
BUYERS
AND SELLERS ARE RESPONSIBLE FOR SELECTING THE TERMS AND CONDITIONS OF THEIR
AGREEMENT. REAL ESTATE LICENSEES CAN GIVE BUYERS IMPORTANT MARKETING,
BUSINESS AND NEGOTIATING ADVICE AND INFORMATION AND CAN ASSIST IN PREPARATION
OF THE SALE AGREEMENT BUT ONLY PURSUANT TO THE CLIENT'S INSTRUCTIONS. REAL
ESTATE LICENSEES ARE NOT ATTORNEYS AND ARE PROHIBITED BY LAW FROM GIVING LEGAL
ADVICE. To obtain a referral for a real estate attorney, visit the Oregon
State Bar at http://www.osbar.org/public/legalhelp.html
or contact by phone at 503-684-3763 (Portland metro) or 800-452-7636 (greater
Oregon).
Financing
The
buyer's ability to finance the property is an important contingency in most
residential transactions. Buyers must act in good faith and use best
efforts to obtain a loan if the sale is contingent upon obtaining a loan.
Buyers often seek pre-approval from a lender prior to writing an offer.
A pre-approval letter should state that the lender has reviewed the buyer's
credit report, income requirement and cash to close and pre-approves the buyer
for the loan, subject to an acceptable appraisal of the property. The
appraiser will normally work for the lender, not the buyer. To check the
status of an appraiser, visit the Appraiser Certification and Licensure Board
at: http://www.oregonaclb.org/index.php?option=com_content&task=view&id=20&Itemid=112.
Once the appraisal has been received, the underwriter authorizes final loan
approval. Only when the underwriting process is completed will an actual loan
be secured. The entire financing process normally takes approximately 30-45
days. If the seller is asked to finance any part of the transaction, the
buyer's financial status will become material to the transaction. Any
material defect in the buyer's financial status must be fully disclosed to the
seller. Because of the risks involved for the seller, the buyer should
anticipate that the seller will fully investigate the buyer's credit
worthiness prior to agreeing to carry financing for the buyer. A real
estate licensee cannot hide material information from any party to a real
estate transaction and should not be asked to do so by the buyer or seller.
Title
Report and Commitment
The
title report, or commitment to insure, produced by a title insurance company
contains important information that must be reviewed by the buyer. In
particular, the report will list certain "exceptions" to the policy
the company will issue. Buyers should request copies of any documents
mentioned in the report that are not understood or raise concerns about the
state of the title. General information about title issues can be found
at: http://www.titlelawannotated.com.
Questions about the title report and associated documents can be directed to
the title or escrow officer issuing the report or to the buyer's attorney or
surveyor. Review of title reports for legal deficiencies involves the
practice of law.
Homeowners'
Insurance
The
insurance claims history for a home may affect the cost of homeowners'
insurance, or even its insurability. Most insurance companies use a
database service called the Comprehensive Loss Underwriting Exchange (CLUE) to
track claims made. Depending on the content of the CLUE report, and the
insurance company's policy, home insurance may prove more difficult to get
than expected. The buyer's claims history and credit report may also be
used to determine insurability. Insurers have used CLUE reports and
other information, coupled with termination provisions in the policy, to
cancel coverage after closing. IT IS CRITICAL THAT BUYERS ARRANGE FOR
HOMEOWNERS' INSURANCE EARLY IN THE PROCESS OF PURCHASING PROPERTY RATHER THAN
WAITING UNTIL CLOSING TO GET INSURANCE. If difficulty is experienced in
obtaining the insurance, the buyer can ask the seller to furnish them with a
copy of the CLUE report on the property. Homeowners can obtain a copy of
the report for their property online at: http://www.choicetrust.com.
Buyers may want to talk to the licensee they are working with about whether
obtaining suitable homeowners' insurance should be made a contingency of the
sale. More information on homeowners insurance in Oregon can be found at: http://www.insuranceoregon.org/
Square
Footage and Acreage
The
square footage of structures and acreage data found in MLS printouts, assessor
records and the like are usually just estimates and should not be relied upon.
Many Oregon properties have not been surveyed and their exact boundaries are
not known. If square footage or land size is a material consideration in
a purchase, all structures and land should be measured by the buyer or a
licensed surveyor prior to entering into a sale agreement, or should be made
an express contingency of the agreement. You can find a licensed surveyor in
your area by visiting their website at: http://www.osbeels.org/
Homeowners' Association Documents, Covenants, Conditions and Restrictions
Covenants,
conditions and restrictions, called "CC&Rs," are formally
recorded private limitations on the right to use real property. Often,
but not always, CC&Rs are enforced by a homeowners' association.
Review of the CC&Rs is typically part of a real estate sale. Although real
estate licensees are familiar with common CC&R provisions, determining the
legal effect of specific provisions is considered the practice of law in
Oregon and, therefore, beyond the expertise of a real estate licensee.
If the subdivision in which the property is located is governed by a
homeowners' association, the CC&Rs may be very restrictive.
Homeowners' associations are often governed by their own articles of
incorporation, bylaws, rules and regulations. Homeowners' association
rules and regulations can significantly impact a buyer's plans for the
property the buyer wants to purchase. Planned communities and
condominiums are very likely to have detailed homeowners' association
governing documents, mandatory fees and ongoing homeowner obligations.
Governing documents, fees and homeowner obligations should be reviewed by the
buyer during the transaction. If you have questions about CC&Rs or
your legal rights and remedies under a homeowners' association governing
documents, you should have your attorney review the documents for you. A
real estate licensee is prohibited by law from giving legal advice. For more
information on homeowners' associations and CC&Rs, visit http://www.realtor.com/BASICS/condos/ccr.asp.
Lead-Based
Paint Disclosure Form
Residential
property built before 1978 (called "target" housing) is subject to
the Residential Lead-Based Paint Disclosure Program administered by the
Environmental Protection Agency (EPA) and the Department of Housing and Urban
Development (HUD). The Act requires sellers of target housing to provide
the buyer with a lead-based paint disclosure and the pamphlet entitled Protect
Your Family From Lead in Your Home. Information about the requirements
and samples of the forms can be found at: http://www.hud.gov/offices/lead/disclosurerule/index.cfm
If you make an offer on a home built before 1978 and do not receive the
disclosure and pamphlet, you should ask your real estate licensee about
lead-based paint disclosures. For more information and to locate
companies certified and licensed to conduct lead-based paint testing or
perform abatement, visit http://www.dhs.state.or.us/publichealth/leadpaint/index.cfm
for the Department of Human Resources.
For
Additional Information, Visit:
Oregon
Real Estate Agency: http://www.rea.state.or.us/
Oregon
State Government: http://www.oregon.gov/
Association
of Oregon Counties: http://www.aocweb.org
League
of Oregon Cities: http://www.orcities.org
Oregon
Association of REALTORS®:
