Selling a House in Oregon

Selling a house is one of the most significant legal transactions you'll ever participate in. It's important to know your legal rights and understand the process.

Working With a Real Estate Agent

In Oregon, real estate agents may act as a seller's agent, a buyer's agent, or they may represent both the seller and the buyer as a limited disclosed agent. When you start working with a real estate agent, he or she should give you a copy of the "Oregon Real Estate Agency Disclosure Pamphlet," and you should be asked to sign an acknowledgment and consent form, which will describe the agency relationship between you and the real estate agent.

Oregon real estate agents have what's called a "fiduciary duty" to the party who they are representing, in this case, the seller, and this means that they legally represent the seller. Real estate agents are held by law to owe specific duties to the seller. In addition to duties or obligations that are stated in a listing agreement or other contract, a fiduciary's duties include:

• Loyalty
• Obedience
• Disclosure
• Confidentiality
• Reasonable care and diligence, including presenting written offers, notices and other communications about the sale in a timely manner
• Dealing honestly and in good faith
• Accounting in dealings with the seller

Oregon law requires sellers to provide a property disclosure statement to each buyer who makes a written offer to buy their property. The disclosure statement will provide information about the property and defects or problems with the property. You should disclose the following potential house defects:

• Problems with title to the property
• Existence of a special tax assessment
• Whether the water source for household water requires a permit
• Whether flow tests, bacterial tests or chemical contents tests have been performed within the previous 12 months on well or spring water
• Information about installation, repairs, alterations and evaluations of an on-site septic system
• Moisture problems in the dwelling
• Whether any materials used in construction of the structure are the subject of recall, a class action suit or litigation
• Plumbing and sewage problems
• Termites or other infestations
• Roof defects
• Heating or air conditioning system or electrical system problems
• Property drainage problems
• Foundation instabilities or cracks or structural problems
• Substantial additions or alterations made without a building permit
• Hazardous materials or conditions, including testing or treatment for radon gas, asbestos or formaldehyde
• Mold and problems potentially related to mold
• Lead paint (required under the federal Residential Lead-Based Paint Hazard Reduction Act of 1992 for homes built prior to 1978)
• Any other problems

Purchase Agreements

When you've got a serious buyer, you'll receive a written offer to purchase your home, sometimes called a "purchase agreement," "earnest money agreement," "offer to purchase" or "sale agreement," which states the finalized terms and conditions for the sale.

You won't have very long to decide whether or not to take the offer or propose a counteroffer so it's important to be informed ahead of time.

Common counter-proposal items include:

• A higher purchase price
• A higher deposit
• Giving buyer less time to remove contingencies
• Excluding certain items from the sale
• Providing you move in time to vacate the house after the sale is closed
• A clause making it a contingency that your attorney approve the contract
• A "liquidated damages clause" that details how much money the buyer will owe you if the buyer backs out of the deal for reasons other than the contingencies listed in the contract

Legal Title Issues

Your Oregon real estate lawyer or title company will investigate the legal title of the property you want to sell, and may find issues you'll need to understand.

In Oregon, for example, an implied easement may be present where a person grants lands to which there is no accessible right-of-way except over her or his land or retains land that is inaccessible except over the land which the person conveys. In such instances a right-of-way is presumed to have been granted or reserved. Such an implied grant or easement in lands or estates exists where there is no other reasonable and practicable way of accessing the property, and it is reasonably necessary for the beneficial use or enjoyment of the part granted or reserved.

Your property may also be subject to a "lien," which is a charge on the property to satisfy a debt or other obligation owed by the current owner of the property. A lien encumbers property as long as it exists and has been recorded in the public records.

In Oregon, liens on a piece of property may include:

• Mortgages
• Deeds of Trust
• Land sale contracts
• Involuntary liens (includes workmen's liens, liens for unpaid taxes and liens filed by creditors holding judgments against the owner)

Closing Costs

In Oregon, you can expect to pay for some or all of the following charges - called "closing costs"-at the time you sell your home:

• Broker's commission
• Survey
• Title insurance
• Recorded release of mortgage
• Transfer taxes
• Attorney's fee
• Home inspections

Specific Performance

In Oregon, a seller who agrees to sell a particular property must do so unless the buyer fails to meet all the terms of the purchase agreement. This is called "specific performance," which is a legal action to compel performance of a contract. For this contract remedy, a court can order the parties to complete the contract. The buyer must then deliver the purchase price and the seller must then deliver the deed. If you have second thoughts on a particular sale, you'll want to immediately contact an attorney.