Usa Oregon

USA Statutes : oregon
Title : TITLE 09 MORTGAGES AND LIENS
Chapter : Chapter 100 Condominiums
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) “Dwelling unit,” “premises,” “rental agreement” and “tenant”
mean those terms as defined in ORS 90.100.

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that may be reclassified or withdrawn from the condominium pursuant to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

(16) “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, 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.

(17) “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.

(18) “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.

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

(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)(i). [Formerly
94.004; 1997 c.816 §1; 1999 c.677 §38; 2001 c.756 §24] This chapter may be cited as the Oregon
Condominium Act. [Formerly 94.011] 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. (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) 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, 59.660 to 59.830, 59.991 and
59.995.

(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 the sale of
condominium units to be used for nonresidential purposes.

(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. [Formerly 94.013; 1997 c.816 §2; 1999 c.677 §39; 2001 c.756
§25] 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(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] (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 or, if a
larger percentage is specified in the declaration to effect amendments to
the declaration, the larger percentage;

(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, all 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]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.(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.

(b) Unless the purchase options provide otherwise, the purchase
price must be allocated among the individual units on the basis of the
percentage ownership interest in the common elements pertaining to
individual units.

(c) Except for segregating the former leasehold into individual
leaseholds in each of the units and reallocating lease payments among the
units as provided in this section, the terms and provisions of the former
lease are unaffected by submission of the fee title to the provisions of
this chapter.

(d) Except for segregating the purchase options and allocating the
purchase price, if not otherwise allocated by the terms of the purchase
option, the terms and provisions of the purchase option are unaffected by
submission of the fee title to the provisions of this chapter. [2003
c.569 §44]Note: See note under 100.102.(1) A declaration shall contain:

(a) A description of the property, including property on which a
unit or a limited common element is located, whether held in fee simple,
leasehold, easement or other interest or combination thereof, that is
being submitted to the condominium form of ownership and that conforms to
the description in the surveyor’s certificate provided under ORS 100.115
(2).

(b) Subject to subsection (11) of this section, a statement of the
interest in the property being submitted to the condominium form of
ownership, whether fee simple, leasehold, easement or other interest or
combination thereof.

(c) Subject to subsection (5) of this section, the name by which
the property shall be known and a general description of each unit and
the building or buildings, including the number of stories and basements
of each building, the total number of units and the principal materials
of which they are constructed.

(d) The unit designation, a statement that the location of each
unit is shown on the plat, a description of the boundaries and area in
square feet of each unit and any other data necessary for proper
identification. The area of a unit shall be the same as shown for that
unit on the plat described in ORS 100.115 (2).

(e) A description of the general common elements.

(f) An allocation to each unit of an undivided interest in the
common elements in accordance with ORS 100.515 and the method used to
establish the allocation.

(g) The designation of any limited common elements including:

(A) A general statement of the nature of the limited common element;

(B) A statement of the unit to which the use of each limited common
element is reserved, provided the statement is not a reference to an
assignment of use specified on the plat; and

(C) The allocation of use of any limited common element
appertaining to more than one unit.

(h) The method of determining liability for common expenses and
right to common profits in accordance with ORS 100.530.

(i) The voting rights allocated to each unit in accordance with ORS
100.525 or in the case of condominium units committed as property in a
timeshare plan defined in ORS 94.803, the voting rights allocated in the
timeshare instrument.

(j) A statement of the use, residential or otherwise, for which the
building or buildings and each of the units is intended.

(k) A statement that the designated agent to receive service of
process in cases provided in ORS 100.550 (1) is named in the Condominium
Information Report which will be filed with the Real Estate Agency in
accordance with ORS 100.250 (1)(a).

(L) The method of amending the declaration and the percentage of
voting rights required to approve an amendment of the declaration in
accordance with ORS 100.135.

(m) A statement as to whether or not the association of unit owners
pursuant to ORS 100.405 (5) and (8) has authority to grant leases,
easements, rights of way, licenses and other similar interests affecting
the general and limited common elements of the condominium and consent to
vacation of roadways within and adjacent to the condominium.

(n) If the condominium contains a floating structure described in
ORS 100.020 (3), a statement regarding the authority of the board of
directors of the association, subject to ORS 100.410, to temporarily
relocate the floating structure without a majority vote of affected unit
owners.

(o) Any restrictions on alienation of units. Any such restrictions
created by documents other than the declaration may be incorporated by
reference in the declaration to the official records of the county in
which the property is located.

(p) Any other details regarding the property that the person
executing the declaration considers desirable. However, if a provision
required to be in the bylaws under ORS 100.415 is included in the
declaration, the voting requirements for amending the bylaws shall also
govern the amendment of the provision in the declaration.

(2) In the event the declarant proposes to annex additional
property to the condominium under ORS 100.125, the declaration shall also
contain a general description of the plan of development, including:

(a) The maximum number of units to be included in the condominium.

(b) The date after which any right to annex additional property
will terminate.

(c) A general description of the nature and proposed use of any
additional common elements which declarant proposes to annex to the
condominium, if such common elements might substantially increase the
proportionate amount of the common expenses payable by existing unit
owners.

(d) A statement that the method used to establish the allocation of
undivided interest in the common elements, the method used to determine
liability for common expenses and right to common profits and the method
used to allocate voting rights for each unit annexed shall be as stated
in the declaration in accordance with subsection (1)(f), (h) and (i) of
this section.

(e) Such other information as the Real Estate Commissioner shall
require in order to carry out the purposes of ORS 100.015, 100.635 to
100.730 and 100.740 to 100.910.

(3) Except where expressly prohibited by the declaration and
subject to the requirements of ORS 100.135 (2) and subsections (9) and
(10) of this section:

(a) Not later than two years following the termination dates
specified in subsections (2)(b) and (7)(d) of this section, such
termination dates may be extended for a period not exceeding two years;
and

(b) The general description under subsection (2)(c) of this section
and the information included in the declaration in accordance with
subsection (7)(c), (g) and (h) of this section may be changed by an
amendment to the declaration.

(4) The information included in the declaration in accordance with
subsection (2)(a) and (d) of this section and subsection (7)(a), (b),
(e), (f) and (k) of this section may not be changed unless all owners
agree to the change and record an amendment to the declaration in
accordance with this chapter.

(5) The name of the property shall include the word “condominium”
or “condominiums” or the words “a condominium.”

(6) A condominium may not bear a name which is the same as or
deceptively similar to the name of any other condominium located in the
same county.

(7) If the condominium is a flexible condominium containing
variable property, the declaration shall also contain a general
description of the plan of development, including:

(a) A statement that the rights provided for under ORS 100.150 (1)
are being reserved.

(b) A statement:

(A) Of any limitations on rights reserved under ORS 100.150 (1),
including whether the consent of any unit owner shall be required, and if
so, a statement of the method by which the consent shall be ascertained;
or

(B) That there are no limitations on rights reserved under ORS
100.150 (1).

(c) A statement of the total number of tracts of variable property
within the condominium, including:

(A) A designation of each tract as withdrawable or nonwithdrawable
variable property;

(B) Identification of each variable tract by a label in accordance
with ORS 100.115 (2)(i);

(C) A statement of the method of labeling each tract depicted on
the plat in accordance with ORS 100.115 (2)(i); and

(D) A statement of the total number of tracts of each type of
variable property.

(d) The termination date, which is the date or time period after
which any right reserved under ORS 100.150 (1) will terminate, and a
statement of the circumstances, if any, that will terminate any right on
or before the date or time period specified. The date or time period may
not exceed seven years from the recording of the conveyance of the first
unit in the condominium to a person other than the declarant. Recording
shall be in the county in which the property is located.

(e) The maximum number of units that may be created.

(f) A statement that the method used to establish the allocations
of undivided interest in the common elements, the method used to
determine liability for common expenses and right to common profits and
the method used to allocate voting rights as additional units are created
shall be the same as stated in the declaration in accordance with
subsection (1)(f), (h) and (i) of this section.

(g) A general description of all existing improvements and the
nature and proposed use of any improvements that may be made on variable
property if the improvements might substantially increase the
proportionate amount of the common expenses payable by existing unit
owners.

(h) A statement of whether or not the declarant reserves the right
to create limited common elements within any variable property, and if
so, a general description of the types that may be created.

(i) A statement that the plat shows the location and dimensions of
all withdrawable variable property that is labeled “WITHDRAWABLE VARIABLE
PROPERTY.”

(j) A statement that if by the termination date all or a portion of
the withdrawable variable property has not been withdrawn or
reclassified, the withdrawable property shall automatically be withdrawn
from the condominium as of the termination date.

(k) A statement of the rights of the association under ORS 100.155
(2).

(L) A statement of whether or not all or any portion of the
variable property may not be withdrawn from the condominium and, if so,
with respect to the nonwithdrawable variable property:

(A) A statement that the plat shows the location and dimensions of
all nonwithdrawable property that is labeled “NONWITHDRAWABLE VARIABLE
PROPERTY.”

(B) A description of all improvements that may be made and a
statement of the intended use of each improvement.

(C) A statement that, if by the termination date all or a portion
of the variable property designated as “nonwithdrawable variable
property” has not been reclassified, the property shall automatically be
reclassified as of the termination date as a general common element of
the condominium and any interest in such property held for security
purposes shall be automatically extinguished by such classification.

(D) A statement of the rights of the association under ORS 100.155
(3).

(m) A statement by the local governing body or appropriate
department thereof that the withdrawal of any variable property
designated as “withdrawable variable property” in the declaration in
accordance with paragraph (L) of this subsection, will not violate any
applicable planning or zoning regulation or ordinance. The statement may
be attached as an exhibit to the declaration.

(8) The plan of development for any variable property included in
the declaration or any supplemental declaration of any stage in
accordance with subsection (7) of this section shall be subject to any
plan of development included in the declaration in accordance with
subsection (2) of this section, except that the time limitation specified
in subsection (7)(d) of this section shall govern any right reserved
under ORS 100.150 (1) with respect to any variable property.

(9) The information included in the declaration in accordance with
subsection (7)(j), (k) and (m) of this section may not be deleted by
amendment.

(10) Approval by the unit owners shall not be required to
redesignate variable property as “nonwithdrawable variable property” by
supplemental declaration or amendment if such redesignation is required
by the local governing body or appropriate department thereof to comply
with any planning or zoning regulation or ordinance. If as a result of
such redesignation the information required to be included in the
supplemental declaration or an amendment under subsection (7)(L)(B) of
this section is inconsistent with the information included in the
declaration or supplemental declaration in accordance with subsection
(7)(g) of this section, an amendment to the declaration approved by at
least 75 percent of owners shall be required.

(11) The statement of an interest in property other than fee simple
submitted to the condominium form of ownership and any easements, rights
or appurtenances belonging to property submitted to the condominium form
of ownership, whether leasehold or fee simple, shall include:

(a) A reference to the recording index numbers and date of
recording of the instrument creating the interest; or

(b) A reference to the law, administrative rule, ordinance or
regulation that creates the interest if the interest is created under
law, administrative rule, ordinance or regulation and not recorded in the
office of the recording officer of the county in which the property is
located. [Formerly 94.029; 1995 c.31 §1; 1997 c.816 §3; 1999 c.677 §40;
2001 c.756 §26; 2003 c.569 §23](1) Before a declaration,
supplemental declaration or an amendment thereto may be recorded, it must
be approved as provided in this section by the county assessor and the
Real Estate Commissioner. Before a declaration or supplemental
declaration may be recorded, it must be approved by the tax collector of
the county in which the property is located. A declaration or amendment
thereto may not be approved unless the requirements of subsections (2) to
(6) of this section are met. Approval shall be evidenced by execution of
the declaration or amendment or by a written approval attached thereto.

(2) The county assessor of the county in which the property is
located shall approve a declaration, supplemental declaration or
amendment thereto if:

(a) The name complies with ORS 100.105 (5) and (6); and

(b) The plat and floor plans comply with the requirements of ORS
100.115.

(3) The tax collector of the county in which the property is
located shall approve the declaration or supplemental declaration, or an
amendment that adds property to the condominium or changes the boundary
of a unit for which a plat is required under ORS 100.115 (9)(a), if:

(a) All ad valorem taxes, special assessments, fees, or other
charges required by law to be placed upon the tax roll which have or will
become a lien upon the property during the tax year have been paid;

(b) Advance payment of ad valorem taxes, special assessments, fees
or other charges which are not on the tax roll and for which payment is
required under paragraph (a) of this subsection has been made to the tax
collector utilizing the procedures contained in ORS 92.095 and 311.370;
and

(c) The additional taxes, penalty, and any interest attributable
thereto, required because of disqualification of the property from any
special assessment have been paid.

(4) Subject to subsection (5) of this section, the commissioner
shall approve the declaration or amendment thereto if:

(a) The declaration or the amendment thereto complies with the
requirements of ORS 100.105 and 100.135;

(b) The bylaws adopted under ORS 100.410 comply with the
requirements of ORS 100.410 and 100.415;

(c) The plat and floor plans comply with the requirements of ORS
100.115;

(d) The declaration is for a conversion condominium and the
declarant has submitted:

(A) An affidavit that the notice of conversion was given in
accordance with ORS 100.305 and that the notice period has expired;

(B) An affidavit that the notice of conversion was given in
accordance with ORS 100.305 and copies of the written consent of any
tenants who received the notice of conversion before expiration of the
notice; or

(C) Any applicable combination of the requirements of subparagraphs
(A) and (B) of this paragraph; and

(e) A paper copy of the plat executed by the declarant and prepared
in conformance with ORS 100.115 and a certification of plat execution, on
a form prescribed and furnished by the commissioner, have been submitted
stating that the paper copy is a true copy of the plat signed by the
declarant. The certification may be executed by the declarant, the
professional land surveyor who signed the surveyor’s certificate on the
plat, the attorney for the declarant, a representative of the title
insurance company that issued the information required under ORS 100.640
(5) or 100.660 (2)(d) or another person authorized by the declarant in
writing to execute the certification.

(5) Approval by the commissioner shall not be required for an
amendment to a declaration transferring the right of use of a limited
common element pursuant to ORS 100.515 (5).

(6) Before the commissioner approves the declaration or amendment
thereto under this section:

(a) The declarant shall pay to the commissioner a fee determined by
the commissioner under ORS 100.670; and

(b) For an amendment, the Condominium Information Report and the
Annual Report described in ORS 100.260 shall be designated current by the
Real Estate Agency as provided in ORS 100.255 and the fee required under
ORS 100.670 shall be paid.

(7) If the declaration or amendment thereto approved by the
commissioner under subsection (4) of this section is not recorded in
accordance with ORS 100.115 within two years from the date of approval by
the commissioner, the approval shall automatically expire and the
declaration or amendment thereto must be resubmitted for approval in
accordance with this section. The commissioner’s approval shall set forth
the date on which the approval will expire. [Formerly 94.036; 1991 c.459
§339; 1993 c.270 §1; 1997 c.816 §4; 1999 c.677 §41; 2001 c.756 §27](1) When a declaration or a supplemental declaration under ORS 100.125 is
made and approved as required, it shall, upon the payment of the fees
provided by law, be recorded by the recording officer. The fact of
recording and the date thereof shall be entered thereon. At the time of
recording the declaration or supplemental declaration, the person
offering it for record shall also file an exact copy, certified by the
recording officer to be a true copy thereof, with the county assessor.

(2) A plat of the land described in the declaration or a
supplemental plat described in a supplemental declaration, complying with
ORS 92.050, 92.060 (1) and (2), 92.080 and 92.120, shall be recorded
simultaneously with the declaration or supplemental declaration. Upon
request, the person offering the plat or supplemental plat for recording
shall also file an exact copy, certified by the surveyor who made the
plat to be an exact copy of the plat, with the county assessor and the
county surveyor. The exact copy shall be made on suitable drafting
material having the characteristics of strength, stability and
transparency required by the county surveyor. The plat or supplemental
plat, titled in accordance with subsection (4) of this section, shall:

(a) Show the location of:

(A) All buildings and public roads. The location shall be
referenced to a point on the boundary of the property; and

(B) For a condominium containing units described in ORS 100.020
(3)(b)(C) or (D), the moorage space or floating structure. The location
shall be referenced to a point on the boundary of the upland property
regardless of a change in the location resulting from a fluctuation in
the water level or flow.

(b) Show the designation, location, dimensions and area in square
feet of each unit including:

(A) For units in a building described in ORS 100.020 (3)(b)(A), the
horizontal and vertical boundaries of each unit and the common elements
to which each unit has access. The vertical boundaries shall be
referenced to a known benchmark elevation or other reference point as
approved by the city or county surveyor;

(B) For a space described in ORS 100.020 (3)(b)(B), the horizontal
boundaries of each unit and the common elements to which each unit has
access. If the space is located within a structure, the vertical
boundaries also shall be shown and referenced to a known benchmark
elevation or other reference point as approved by the city or county
surveyor;

(C) For a moorage space described in ORS 100.020 (3)(b)(C), the
horizontal boundaries of each unit and the common elements to which each
unit has access; and

(D) For a floating structure described in ORS 100.020 (3)(b)(D),
the horizontal and vertical boundaries of each unit and the common
elements to which each unit has access. The vertical boundaries shall be
referenced to an assumed elevation of an identified point on the floating
structure even though the assumed elevation may change with the
fluctuation of the water level where the floating structure is moored.

(c) Identify and show, to the extent feasible, the location and
dimensions of all limited common elements described in the declaration.
The plat may not include any statement indicating to which unit the use
of any noncontiguous limited common element is reserved.

(d) Include a statement, including signature and official seal, of
a registered architect, registered professional land surveyor or
registered professional engineer certifying that the plat fully and
accurately depicts the boundaries of the units of the building and that
construction of the units and buildings as depicted on the plat has been
completed, except that the professional land surveyor who prepared the
plat need not affix a seal to the statement.

(e) Include a surveyor’s certificate, complying with ORS 92.070,
that includes information in the declaration in accordance with ORS
100.105 (1)(a) and a metes and bounds description or other description
approved by the city or county surveyor.

(f) Include a statement by the declarant that the property and
improvements described and depicted on the plat are subject to the
provisions of ORS 100.005 to 100.625.

(g) Include such signatures of approval as may be required by local
ordinance or regulation.

(h) Include any other information or data not inconsistent with the
declaration that the declarant desires to include.

(i) If the condominium is a flexible condominium, show the location
and dimensions of all variable property identified in the declaration and
label the variable property as “WITHDRAWABLE VARIABLE PROP- ERTY” or
“NONWITHDRAWABLE VARIABLE PROPERTY,” with a letter different from those
designating a unit, building or other tract of variable property. If
there is more than one tract, each tract shall be labeled in the same
manner.

(3) The supplemental plat required under ORS 100.150 (1) shall be
recorded simultaneously with the supplemental declaration. Upon request,
the person offering the supplemental plat for recording shall also file
an exact copy, certified by the surveyor who made the plat to be an exact
copy of the plat, with the county assessor and the county surveyor. The
exact copy shall be made on suitable drafting material having the
characteristics of strength, stability and transparency required by the
county surveyor. The supplemental plat, titled in accordance with
subsection (4) of this section, shall:

(a) Comply with ORS 92.050, 92.060 (1), (2) and (4), 92.080, 92.120
and subsections (4) and (5) of this section.

(b) If any property is withdrawn:

(A) Show the resulting perimeter boundaries of the condominium
after the withdrawal; and

(B) Show the information required under subsection (2)(i) of this
section as it relates to any remaining variable property.

(c) If any property is reclassified, show the information required
under subsection (2)(a) to (d) of this section.

(d) Include a “Declarant’s Statement” that the property described
on the supplemental plat is reclassified or withdrawn from the
condominium and that the condominium exists as described and depicted on
the plat.

(e) Include a surveyor’s affidavit complying with ORS 92.070.

(4) The title of each supplemental plat described in ORS 100.120
shall include the complete name of the condominium, followed by the
additional language specified in this subsection and the appropriate
reference to the stage being annexed or tract of variable property being
reclassified. Each supplemental plat for a condominium recorded on or
after January 1, 2002, shall be numbered sequentially and shall:

(a) If property is annexed under ORS 100.125, include the words
“Supplemental Plat No._____: Annexation of Stage_____; or

(b) If property is reclassified under ORS 100.150, include the
words “Supplemental Plat No._____: Reclassification of Variable Property,
Tract_____.

(5) Before a plat or a supplemental plat may be recorded, it must
be approved by the city or county surveyor as provided in ORS 92.100.
Before approving the plat as required by this section, the city or county
surveyor shall:

(a) Check the boundaries of the plat and units and take
measurements and make computations necessary to determine that the plat
complies with this section.

(b) Determine that the name complies with ORS 100.105 (5) and (6).

(c) Determine that the following are consistent:

(A) The designation and area in square feet of each unit shown on
the plat and the unit designations and areas contained in the declaration
in accordance with ORS 100.105 (1)(d);

(B) Limited common elements identified on the plat and the
information contained in the declaration in accordance with ORS 100.105
(1)(g);

(C) The description of the property in the surveyor’s certificate
included on the plat and the description contained in the declaration in
accordance with ORS 100.105 (1)(a); and

(D) For a flexible condominium, the variable property depicted on
the plat and the identification of the property contained in the
declaration in accordance with ORS 100.105 (7)(c).

(6) The person offering the plat for approval shall:

(a) Submit a copy of the proposed declaration and bylaws or
applicable supplemental declaration at the time the plat is submitted; and

(b) Submit the original or a copy of the executed declaration and
bylaws or the applicable supplemental declaration approved by the
commissioner if required by law prior to approval.

(7) For performing the services described in subsection (5)(a) to
(c) of this section, the city surveyor or county surveyor shall collect
from the person offering the plat for approval a fee of $150 plus $25 per
building. The governing body of a city or county may establish a higher
fee by resolution or order.

(8)(a) Whenever variable property is reclassified or withdrawn as
provided in ORS 100.155 (1) or (2) or property is removed as provided in
ORS 100.600 (2), the county surveyor shall, upon the surveyor’s copy of
all previously recorded plats relating to the variable property or
property being removed and upon any copy thereof certified by the county
clerk, trace, shade or make other appropriate marks or notations,
including the date and the surveyor’s name or initials, with archival
quality black ink in such manner as to denote the reclassification,
withdrawal or removal. The recording index numbers and date of recording
of the supplemental declaration and plat or amendment and amended plat
shall also be referenced on the copy of each plat. The original plat may
not be changed or corrected after the plat is recorded.

(b) For performing the activities described in this subsection, the
county clerk shall collect a fee set by the county governing body. The
county clerk shall also collect a fee set by the county governing body to
be paid to the county surveyor for services provided under this
subsection.

(9) In addition to the provisions of subsection (12) of this
section, a plat, including any floor plans that are a part of the plat,
may be amended as follows:

(a)(A) Except as otherwise provided in ORS 100.600, a change to the
boundary of the property, a unit or a limited common element or a change
to the configuration of other information required to be graphically
depicted on the plat shall be made by a plat entitled “Plat Amendment”
that shall reference in the title of the amendment the recording
information of the original plat and any previous plat amendments.

(B) The plat amendment shall comply with ORS 92.050, 92.060 (1),
(2) and (4), 92.080 and 92.120 and shall include:

(i) A graphic depiction of the change.

(ii) For a change to the boundary of the property, a surveyor’s
certificate, complying with ORS 92.070.

(iii) For a change to a boundary of a unit or a limited common
element or a change to other information required to be graphically
depicted, the statement of a registered architect, registered
professional land surveyor or registered professional engineer described
in subsection (2)(d) of this section.

(iv) A declaration by the chairperson and secretary on behalf of
the association of unit owners that the plat is being amended pursuant to
this subsection. Such declaration shall be executed and acknowledged in
the manner provided for acknowledgment of deeds.

(C) The plat amendment shall be accompanied by an amendment to the
declaration authorizing such plat amendment. The declaration amendment
shall be executed, approved and recorded in accordance with ORS 100.110
and 100.135.

(D) Before a plat amendment may be recorded, it must be approved by
the city or county surveyor as provided in ORS 92.100. The surveyor shall
approve the plat amendment if it complies with the requirements of this
subsection. The person offering the plat amendment shall:

(i) Submit a copy of the proposed amendment to the declaration
required under this paragraph when the plat amendment is submitted; and

(ii) Submit the original or a copy of the executed amendment to the
declaration approved by the commissioner if required by law prior to
approval of the plat amendment.

(E) Upon request, the person offering the plat amendment for
recording shall also file an exact copy, certified by the surveyor who
made the plat to be an exact copy of the plat amendment, with the county
assessor and the county surveyor. The exact copy shall be made on
suitable drafting material having the strength, stability and
transparency required by the county surveyor.

(b)(A) A change to a restriction or other information not required
to be graphically depicted on the plat may be made by amendment of the
declaration without a plat amendment described in paragraph (a) of this
subsection. An amendment under this paragraph shall include:

(i) A reference to recording index numbers and date of recording of
the declaration, plat and any applicable supplemental declarations,
amendments, supplemental plats or plat amendments.

(ii) A description of the change to the plat.

(iii) A statement that the amendment was approved in accordance
with the declaration and ORS 110.135.

(B) The amendment shall be executed, approved and recorded in
accordance with ORS 100.110 and 100.135.

(C) Before the amendment may be recorded, it must be approved by
the city or county surveyor as provided in ORS 92.100. The surveyor shall
approve the amendment if it complies with this subsection. Such approval
shall be evidenced by execution of the amendment or by written approval
attached thereto.

(c)(A) Floor plans of a condominium for which a plat was not
required at the time of creation may be amended by an amendment to the
declaration. An amendment under this paragraph shall include:

(i) A reference to recording index numbers and date of recording of
the declaration and any applicable supplemental declarations or
amendments.

(ii) A description of the change to the floor plans.

(iii) A graphic depiction of any change to the boundaries of a unit
or common element and a statement by a registered architect, registered
professional land surveyor or registered professional engineer certifying
that such graphic depiction fully and accurately depicts the boundaries
of the unit or common element as it currently exists.

(B) The amendment shall be approved and recorded in accordance with
ORS 100.110 and 100.135 except that any change to the floor plans need
only comply with the requirements of the unit ownership laws in effect at
the time the floor plans were initially recorded.

(10) After recording of any declaration amendment or plat amendment
pursuant to subsection (9) of this section, the county surveyor shall,
upon the surveyor’s copy of all previously recorded plats relating to the
condominium and any copies filed under ORS 92.120 (3), make such
appropriate marks or notations, including the date and the surveyor’s
name or initials, with archival quality black ink in such manner as to
denote the changes. The recording index numbers and date of recording of
the declaration amendment and any plat amendment shall also be referenced
on the copy of each plat. The original plat may not be changed or
corrected after the plat is recorded.

(11) For performing the services described in subsections (9) and
(10) of this section, the county surveyor shall collect from the person
offering the plat amendment or declaration amendment for approval a fee
established by the county governing body.

(12) The following may be amended by an affidavit of correction in
accordance with ORS 92.170:

(a) A plat, whenever recorded.

(b) Floor plans recorded prior to October 15, 1983. [Formerly
94.042; 1991 c.763 §28; 1997 c.489 §8; 1997 c.816 §5; 1999 c.677 §42;
1999 c.710 §7; 2001 c.104 §30; 2001 c.173 §3; 2001 c.756 §28; 2003 c.569
§24; 2005 c.22 §75](1) To annex additional property to the condominium or to reclassify
variable property under ORS 100.125 or 100.150, a supplemental
declaration and a supplemental plat shall be executed, approved and
recorded by declarant at the time of each annexation or reclassification.
The supplemental plat shall comply with ORS 100.115 and the supplemental
declarations shall:

(a) Include a reference to recording index numbers and date of
recording of the initial declaration and bylaws.

(b) Be consistent with the provisions of the original declaration
prepared pursuant to ORS 100.105 and any prior recorded supplemental
declarations.

(c) Contain the information required by ORS 100.105 (1) insofar as
that information relates to the property being annexed or reclassified.

(d) State the allocation of undivided interest in the common
elements of each unit previously submitted to the provisions of this
chapter upon the creation or annexation of the additional property.

(e) If the stage being annexed contains any variable property,
include the information required under ORS 100.105 (7) insofar as that
information relates to the property being annexed. The termination date
shall be consistent with the information included in the declaration in
accordance with ORS 100.105 (2)(b) but may not exceed seven years from
the recording of the conveyance of the first unit in the stage to a
person other than the declarant. Recording shall be in the county in
which the property is located.

(2) If the Condominium Information Report and the Annual Report
described in ORS 100.250 are designated current as provided in ORS
100.255, all such supplemental declarations and plats shall be approved,
executed and recorded as provided in ORS 100.100, 100.110 and 100.115. No
unit being annexed or created by a supplemental declaration shall be
conveyed until after such recording.

(3) To withdraw all or a portion of variable property from a
flexible condominium pursuant to ORS 100.150 (1)(b), a supplemental
declaration and plat shall be recorded in accordance with subsection (2)
of this section. The supplemental plat shall comply with ORS 100.115 (3)
and the supplemental declaration shall:

(a) Be consistent with the provisions of the declaration or
supplemental declaration drawn pursuant to ORS 100.105 (7).

(b) Include a metes and bounds legal description of the variable
property being withdrawn.

(c) Include a metes and bounds legal description of the resulting
boundaries of the condominium after the withdrawal.

(d) State whether or not any variable property remains which may be
reclassified or withdrawn from the condominium and, if property may be
withdrawn, include the statement required under ORS 100.105 (7)(m).

(e) If any variable property is being redesignated as
“nonwithdrawable variable property,” include the information required
under ORS 100.105 (7)(L).

(4) Except as provided in subsection (5) of this section, as to
property submitted to unit ownership after October 4, 1977, additional
units may not be added within property previously submitted to unit
ownership unless all unit owners consent to an amendment to the
declaration, plat and any floor plans recorded pursuant to ORS 100.115 in
order to provide for such additional units.

(5) As to property submitted to unit ownership before September 27,
1987, if the declaration provides that additional property may be annexed
to the condominium, any subsequent stage may contain variable property.
The termination date may not be later than the earlier of:

(a) The date specified in the declaration under ORS 100.105 (2)(b);
or

(b) Seven years from the recording of the conveyance of the first
unit in the condominium to a person other than the declarant. Recording
shall be in the county in which the property is located. [Formerly
94.047; 1995 c.31 §2; 1999 c.677 §43; 2001 c.756 §29]In the event of a conflict between the
declaration and the bylaws or between the declaration and any articles of
incorporation, the declaration shall prevail except to the extent the
declaration is inconsistent with ORS 100.005 to 100.910. [1999 c.677 §62]Note: 100.122 was added to and made a part of ORS chapter 100 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation. Subject to
ORS 100.120 (4), if the declaration complies with ORS 100.105 (2), until
the termination date, additional property may be annexed to the
condominium by the recording of a supplemental declaration and
supplemental plat in accordance with ORS 100.115 and 100.120. [Formerly
94.048; 2001 c.756 §30](1) Subject to any limitations contained in the
declaration, the boundaries between adjoining units, including any
intervening common elements, may be relocated or eliminated by an
amendment to the declaration. The owners of the affected units shall
submit to the board of directors of the association a proposed amendment
which shall identify the units involved, state any reallocations of
common element interest, voting rights, common expense liability and
right to common profits and contain words of conveyance. The board of
directors shall approve the amendment unless it determines within 45 days
that the reallocations are unreasonable or the relocation or elimination
will impair the structural integrity or mechanical systems of the
condominium or lessen the support of any portion of the condominium.

(2) The board of directors of the association of unit owners may
require the owners of the affected units to submit an opinion of a
registered architect or registered professional engineer that the
proposed relocation or elimination will not impair the structural
integrity or mechanical systems of the condominium or lessen the support
of any portion of the condominium.

(3) The board of directors of the association or any agent
appointed by the board of directors may supervise the work necessary to
effect the boundary relocation or elimination.

(4) Any expenses incurred under subsections (2) and (3) of this
section shall be charged to the owners of the units requesting the
boundary relocation or elimination.

(5) The amendment shall be executed by the owners and mortgagees or
trust deed beneficiaries of the affected units, certified by the
chairperson and secretary of the association and approved and recorded in
accordance with ORS 100.135 (2)(b).

(6) An amendment to the plat and any floor plans necessary to show
the altered boundaries between the adjoining units shall be recorded in
accordance with ORS 100.115. [Formerly 94.053; 2003 c.569 §25] (1)
Unless otherwise provided in the declaration, an amendment to the
declaration may be proposed by a majority of the board of directors of
the association of unit owners or by least 30 percent of the unit owners.

(2) Except as otherwise provided in ORS 100.005 to 100.625, an
amendment of the declaration is not effective unless:

(a) The amendment is approved by the unit owners as provided in
this section and the Real Estate Commissioner and county assessor
according to ORS 100.110; and

(b) The amendment, certified by the chairperson and secretary of
the association of unit owners as being adopted in accordance with the
declaration and the provisions of this section and acknowledged in the
manner provided for acknowledgment of deeds, is recorded notwithstanding
a provision in a declaration, including a declaration recorded before
January 1, 2002, that requires amendments to be executed and acknowledged
by all owners approving the amendment.

(3) Except as otherwise provided in ORS 100.105 or 100.130 or this
section, the declaration may be amended only with the approval of at
least 75 percent of owners, or such greater percentage as may be required
by the declaration.

(4) Unless the declaration requires a greater percentage:

(a) The declaration and plat may be amended to change a general
common element to a limited common element or change the boundary of a
limited common element with the approval of at least 75 percent of owners
and approval of the owners of all units to which the limited common
element appertains.

(b) The declaration may be amended to change a limited common
element, or portion thereof, to a general common element with the
approval of the owners of all units to which the limited common element
appertains and the board of directors.

(5)(a) Except as otherwise provided in ORS 100.120, 100.130,
100.515, 100.600, 100.605 and 100.625 and paragraph (b) of this
subsection or other provisions of the Oregon Condominium Act, an
amendment that changes the boundary of the property or a unit shall be
approved by all unit owners. Such amendment shall constitute a conveyance
and shall include words of conveyance. In addition to the certification
required under subsection (2)(b) of this section, an amendment to the
boundary of a unit shall also be executed by the owners of all affected
units.

(b) An amendment that adds property owned by the association to the
condominium as a common element shall constitute a conveyance and shall:

(A) Be approved by at least 75 percent of owners;

(B) Contain words of conveyance;

(C) Be executed by the chairperson and secretary of the association
on behalf of the unit owners and be certified in accordance with
subsection (2)(b) of this section; and

(D) Be accompanied by a plat amendment in accordance with ORS
100.115.

(c) Nothing in paragraph (b) of this subsection is intended to
require property acquired or held by the association pursuant to ORS
100.405 (4)(i) to be added to the condominium.

(6) Except as otherwise provided in ORS 100.005 to 100.625, an
amendment may not change the allocation of undivided interest in the
common elements, the method of determining liability for common expenses,
the method of determining the right to common profits or the method of
determining voting rights of any unit unless such amendment has been
approved by the owners of the affected units.

(7) The declaration may not be amended to limit or diminish any
right of a declarant reserved under ORS 100.105 (2) or (7) or any other
special declarant right without the consent of the declarant. However,
the declarant may waive the declarant’s right of consent.

(8) Nothing in this section shall affect any other approval that
may be required by the declaration, bylaws or other instrument.

(9) During a period of declarant control reserved under ORS
100.200, voting on an amendment under this section must be without regard
to any weighted vote or other special voting allocation reserved by the
declarant unless the declaration provides that the declarant has the
right to exercise the voting rights with respect to specifically
described amendments. Nothing in this subsection prohibits a declarant
from reserving the right that declarant’s consent is required for an
amendment during a period of declarant control reserved in the
declaration.

(10) An amendment to a declaration or a supplemental declaration
shall be conclusively presumed to have been regularly adopted in
compliance with all applicable procedures relating to such amendment
unless an action is brought within one year after the date such amendment
was recorded or the face of the recorded amendment indicates that the
amendment received the approval of fewer votes than are required for such
approval. However, nothing in this subsection shall prevent the further
amendment of an amended declaration or plat in accordance with ORS
100.005 to 100.625.

(11)(a) The board of directors, by resolution and without the
further approval of the unit owners, may cause a restated declaration to
be prepared and recorded to codify individual amendments that have been
adopted in accordance with this section.

(b) A declaration restated under this subsection must:

(A) Include all previously adopted amendments that are in effect
and may not include any other changes except to correct scriveners’
errors or to conform format and style;

(B) Include a statement that the board of directors has adopted a
resolution in accordance with paragraph (a) of this subsection and is
causing the declaration to be restated and recorded under this subsection;

(C) Include a reference to the recording index numbers and date of
recording of the initial declaration and all previously recorded
amendments that are in effect and are being codified;

(D) Include a certification by the chairperson and secretary of the
association that the restated declaration includes all previously adopted
amendments that are in effect, that amendments were approved by the
county assessor and tax collector if required under ORS 100.110 and that
no other changes were made except, if applicable, to correct scriveners’
errors or to conform format and style;

(E) Be executed and acknowledged by the chairperson and secretary
of the association and recorded in the deed records of each county in
which the condominium is located; and

(F) Be approved by the commissioner, and by the county assessor and
the tax collector under ORS 100.110 if the restated declaration includes
any amendments required to be approved by the county assessor and the tax
collector under ORS 100.110 but not previously approved.

(c) The board of directors shall cause a copy of the recorded
restated declaration, including the recording information, to be filed
with the commissioner. [Formerly 94.059; 1995 c.31 §3; 1997 c.816 §6;
1999 c.677 §70; 2001 c.756 §31; 2003 c.569 §26](1) A floating structure
described in ORS 100.020 (3)(b)(D) that constitutes part of a condominium
may be temporarily relocated for purposes of safety, renovation, repair
or remodeling without affecting its status as a condominium or real
property. However, if the floating structure is not returned to its
original location within 18 months after the relocation, the condominium
shall be terminated or, if there are remaining units, partially
terminated pursuant to ORS 100.600 and subsection (2) of this section.

(2) If the condominium is terminated, all security interests
affecting any interest in the condominium shall continue to be considered
a security in real property after the termination, notwithstanding that
the floating structure portion of the condominium may be physically moved
from its permanent moorage.

(3) When a floating structure has been relocated under subsection
(1) of this section, the board of directors of the association shall give
written notice of the temporary location of the structure to the county
assessor within 10 days of the relocation. [1997 c.816 §18]Note: 100.140 was added to and made a part of ORS chapter 100 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation.FLEXIBLE CONDOMINIUMS (1) With regard
to a flexible condominium, before the termination date, and by recording
a supplemental declaration and a supplemental plat in accordance with ORS
100.115 and 100.120, the declarant may:

(a) Reclassify all or a portion of the property designated as
variable in the declaration and on the plat, as one or more general
common elements, limited common elements, units or a combination of the
elements and units.

(b) Unless designated in the declaration or on the plat as
nonwithdrawable property, withdraw all or a portion of the variable
property from the condominium.

(2) Until variable property is withdrawn or reclassified as
provided in subsection (1) of this section or under ORS 100.155 (1):

(a) The property shall be a distinct classification of property and
may not be a common element or unit of the condominium.

(b) The property shall be considered a parcel of real property and
shall be subject to separate assessment and taxation by any taxing unit
in like manner as other parcels of real property.

(c) Unless otherwise specifically provided in the declaration or
supplemental declaration:

(A) The declarant shall be responsible for the payment of all
assessments, taxes and other expenses of the variable property. If the
declarant fails to pay any expenses of any variable property designated
as nonwithdrawable variable property, the board of directors may elect to
pay the expenses and assess the unit owners as a common expense. All
costs incurred may be charged to the declarant.

(B) Ownership or occupancy of variable property shall not confer
any right to use the common elements of the condominium.

(C) Ownership or occupancy of units shall not confer any right to
use variable property.

(D) Variable property shall not be subject to assessments for
expenses of the condominium. [Formerly 94.021; 2001 c.756 §32] (1) If by the
termination date specified in the declaration there is any remaining
variable property:

(a) Any property designated nonwithdrawable variable property shall
become part of the common elements and any interest in such property held
for security purposes shall be automatically extinguished by
reclassification.

(b) Any property designated withdrawable variable property shall be
automatically withdrawn from the condominium as of the termination date.

(c) Subject to paragraph (d) of this subsection, the association
may record in the office of the recording officer in the county in which
the condominium is located:

(A) For property reclassified under paragraph (a) of this
subsection, a “Statement of Reclassification of Variable Property”
stating that the remaining nonwithdrawable variable property has been
reclassified to common elements pursuant to paragraph (a) of this
subsection.

(B) For property withdrawn under paragraph (b) of this subsection,
a “Statement of Withdrawal of Variable Property from Condominium” stating
that remaining withdrawable variable property has been withdrawn from the
condominium pursuant to paragraph (b) of this subsection.

(d) A statement described in paragraph (c) of this subsection shall:

(A) Include the name of the condominium, a reference to the
recording index numbers and date of recording of the declaration, the
plat creating the affected variable property and any applicable
supplemental declaration.

(B) Include a description of the reclassified or withdrawn variable
property complying with ORS 93.600.

(C) Be executed by the chairperson and secretary of the association
and acknowledged in the manner provided for acknowledgment of deeds.

(e) After recording a statement under paragraph (c) of this
subsection, the association shall provide a copy of the recorded
statement to the county surveyor. Upon receipt of the copy or other
notification, the county surveyor shall, upon the surveyor’s copy of all
previously recorded plats relating to the condominium and any copies of
the plat filed under ORS 92.120 (3), make appropriate marks and
notations, including the date and the surveyor’s name or initials, with
archival quality black ink in a manner that denotes the reclassification
or withdrawal. The recording index numbers and date of recording of the
statement shall also be referenced on the copy of each plat. The original
plat may not be changed or corrected after it is recorded with the county
clerk.

(2)(a) Unless expressly prohibited by the declaration, any variable
property automatically withdrawn from the condominium under subsection
(1)(b) of this section or voluntarily withdrawn under ORS 100.150 (1)(b)
may be later annexed to the condominium by the recording of a
supplemental declaration and plat in accordance with ORS 100.120 (2) if
such action is first approved by at least 75 percent of all voting rights
in the manner required for an amendment to the declaration.

(b) The supplemental declaration and plat shall be executed by the
chairperson and secretary on behalf of the association and acknowledged
in the manner provided for acknowledgment of deeds by such officers.
Except for the termination date, the supplemental declaration shall
comply with ORS 100.120 (1) and shall state that the annexation was
approved by at least 75 percent of all voting rights.

(3)(a) Unless expressly prohibited by the declaration and
notwithstanding the termination date, the association may, with respect
to any variable property automatically reclassified, exercise any rights
previously held by the declarant. The exercise of any right shall first
be approved by at least a majority of all voting rights. All other
actions relating to such reclassified general common elements shall be
regulated and governed in like manner as other general common elements of
the condominium.

(b) If a supplemental declaration and plat is required for any
action, the plat shall be executed by the chairperson and secretary of
the association and shall comply with the requirements of this chapter as
to a supplemental declaration and the recording of plats.

(4) Title to any additional units created under subsection (3) of
this section shall automatically be vested in the association upon the
recording of a supplemental declaration and plat. The board of directors
acting on behalf of the association shall have the power to hold, convey,
lease, encumber or otherwise deal with a unit or any interest therein in
like manner as other property owned by the association.

(5) The county clerk may charge a fee for recording a statement
under this section according to provisions of ORS 205.320 (4). [Formerly
94.022; 2001 c.756 §33]RIGHTS AND DUTIES OF DECLARANT Subject to the provisions of
the declaration, a declarant has an easement through the common elements
as may be reasonably necessary for the purpose of discharging any
obligation of the declarant or exercising any special declarant right,
whether arising under the provisions of this chapter or reserved in the
declaration or bylaws. [Formerly 94.066](1) The declarant shall:

(a) Conduct a reserve study described in subsection (3) of this
section; and

(b) Establish a reserve account for replacement of those common
elements all or part of which will normally require replacement in more
than three and less than 30 years, for exterior painting if the common
elements include exterior painted surfaces, and for such other items as
may be required by the declaration or bylaws. The reserve account need
not include:

(A) Items that could reasonably be funded from operating
assessments; or

(B) A reserve for limited common elements for which maintenance and
replacement are the responsibility of one or more unit owners under the
provisions of the declaration or bylaws.

(2)(a) The reserve account must be funded by assessments against
the individual units for the purposes for which the reserve account is
being established.

(b) The assessment under this subsection will accrue from the time
of the conveyance of the first individual unit assessed as provided in
ORS 100.530.

(3)(a) The reserve account shall be established in the name of the
association of unit owners that will be responsible for administering the
account and for making periodic payments into the account.

(b) The reserve portion of the initial assessment determined by the
declarant shall be based on the following:

(A) The reserve study described in paragraph (c) of this subsection;

(B) In the case of a conversion condominium, the statement
described in ORS 100.655 (1)(g); or

(C) Other reliable information.

(c) The board of directors of the association annually shall
conduct a reserve study or review and update an existing study to
determine the reserve account requirements and may:

(A) Adjust the amount of payments in accordance with the study or
review; and

(B) Provide for other reserve items that the board of directors, in
its discretion, may deem appropriate.

(d) The reserve study shall include:

(A) Identification of all items for which reserves are to be
established;

(B) The estimated remaining useful life of each item as of the date
of the reserve study;

(C) An estimated cost of maintenance, repair or replacement of each
item at the end of its useful life; and

(D) A 30-year plan for the maintenance, repair and replacement of
common elements and association property with regular and adequate
contributions, adjusted by estimated inflation and interest earned on
reserves, to meet the maintenance, repair and replacement schedule.

(4) The 30-year plan under subsection (3) of this section shall:

(a) Be appropriate for the size and complexity of the common
elements and association property; and

(b) Address issues that include but are not limited to warranties
and the useful life of the common elements and association property.

(5) The board of directors and the declarant shall, within 30 days
after conducting the reserve study, provide to every unit owner a written
summary of the reserve study and of any revisions to the 30-year plan
adopted by the board of directors or the declarant as a result of the
reserve study.

(6)(a) If the declaration or bylaws require a reserve account, the
reserve study requirements of subsection (3) of this section first apply
to the association of a condominium recorded prior to October 23, 1999:

(A) Upon adoption of a resolution by the board of directors in
accordance with the bylaws providing that the requirements of subsection
(3) of this section apply to the association; or

(B) Upon submission to the board of directors of a petition signed
by a majority of unit owners mandating that the requirements of
subsection (3) of this section apply to the association.

(b) The reserve study shall be completed within one year of the
date of adoption of the resolution or submission of the petition to the
board of directors.

(7)(a) Except as provided in paragraph (b) of this subsection, the
reserve account is to be used only for the purposes for which reserves
have been established and is to be kept separate from other funds.

(b) After the individual unit owners have assumed administrative
responsibility for the association under ORS 100.210, if the board of
directors has adopted a resolution, which may be an annual continuing
resolution, authorizing the borrowing of funds:

(A) The board of directors may borrow funds from the reserve
account to meet high seasonal demands on the regular operating funds or
to meet unexpected increases in expenses.

(B) Not later than the adoption of the budget for the following
year, the board of directors shall adopt by resolution a written payment
plan providing for repayment of the borrowed funds within a reasonable
period.

(8) Restrictions on the use of the reserve account do not prohibit
its prudent investment subject to any constraints on investment of
association funds imposed by the declaration, bylaws or rules of the
association of unit owners.

(9) Assessments paid into the reserve account are the property of
the association of unit owners and are not refundable to sellers of units.

(10) In addition to the authority of the board of directors under
subsection (3)(c) of this section, following turnover, the association
may:

(a) On an annual basis, elect not to fund the reserve account
described in subsection (1) of this section by unanimous vote of the
owners; or

(b) Elect to reduce or increase future assessments for the reserve
account described in subsection (1) of this section by an affirmative
vote of at least 75 percent of the owners. [Formerly 94.072; 1997 c.816
§7; 1999 c.677 §44; 2001 c.756 §34; 2003 c.569 §27; 2005 c.543 §2]WARRANTIES ON NEW UNITS(1) The declarant shall
expressly warrant against defects in the plumbing, electrical,
mechanical, structural, and all other components of the newly constructed
units and common elements. Such warranty:

(a) Shall exist on a unit and the related limited common elements
for not less than one year from the date of delivery of possession of
that unit by the declarant to the first unit owner other than the
declarant;

(b) Shall exist on the general common elements for not less than
one year from the initial conveyance of title to a unit by the declarant
to a unit owner other than the declarant, or, in the case of a staged or
a flexible condominium, for not less than one year from such initial
conveyance of title or completion of the construction of the specific
general common element, whichever is later;

(c) Shall be contained in the contract or other agreement to
purchase;

(d) Shall be separate from, and in addition to, any warranties
provided by any other person;

(e) Shall be in lieu of any implied warranties by the declarant
against defects in the plumbing, electrical, mechanical, structural or
other components of any newly constructed unit or common elements; and

(f) Shall name the association of unit owners as an express
beneficiary with regard to general common elements.

(2) A written claim reasonably specifying a breach of the warranty
on the unit and the related limited common elements must be delivered to
the declarant before the expiration of such warranty. A written claim
reasonably specifying a breach of the warranty on the general common
elements must be delivered to the declarant within two years of
expiration of such warranty, but the claim must be for a defect existing
prior to the expiration of such warranty under this section. An action to
enforce such warranty shall not be commenced later than four years after
expiration of such warranty.

(3) For the purposes of this section, “newly constructed units and
common elements” means:

(a) Units and related limited common elements:

(A) That have been substantially completed for less than three
years; and

(B) That have been occupied for less than 12 months.

(b) General common elements:

(A) That have been substantially completed for less than three
years; and

(B) That were constructed contemporaneously with units that have
been occupied for less than 12 months.

(4) The warranty required under subsection (1) of this section is
not required for consumer products as defined in 15 United States Code
2301 (1). [Formerly 94.017; 1999 c.677 §45; 2001 c.756 §35]DECLARANT CONTROL; TURNOVER (1) Subject to subsection
(2) of this section, the declaration or bylaws may specifically provide
for a period of declarant control of the association of unit owners,
during which period a declarant or person designated by the declarant may
appoint and remove officers and members of the board of directors and
exercise powers and responsibilities otherwise assigned by the
declaration, bylaws or the provisions of this chapter to the association,
the officers or the board of directors. No formal or written proxy or
power of attorney need be required of the unit owners to vest the
declarant with such authority. Declarant control may be achieved by
allocating in the declaration greater voting rights to a unit owned by
the declarant.

(2) The declaration or bylaws may not provide for a period of
administrative control of the association of unit owners by the declarant
for a period exceeding:

(a) In a single stage condominium the earlier of:

(A) Three years from the date the first unit is conveyed; or

(B) The date of conveyance to persons other than the declarant of
75 percent of the units.

(b) In a staged or flexible condominium the earlier of:

(A) Seven years from the date the first unit is conveyed; or

(B) The date of conveyance to persons other than the declarant of
75 percent of the units which may be created or annexed under ORS 100.125
or 100.150, whichever is applicable.

(3) A declarant may voluntarily relinquish any rights reserved in
the declaration or bylaws under subsection (1) of this section.

(4) Upon the expiration of any period of declarant control reserved
in the declaration or bylaws under subsection (1) of this section, such
right shall automatically pass to the unit owners, including the
declarant if the declarant then owns one or more units in the condominium.

(5) A declaration or bylaws may not be amended to increase the
scope of any rights reserved in the declaration or bylaws under
subsection (1) of this section without the consent of all unit owners.

(6) The limitations specified in subsection (2) of this section
shall not limit any right reserved by the declarant under ORS 100.105 (2)
or (7), 100.125 or 100.150 or any other special declarant right which
does not relate to administrative control of the association by the
declarant including, but not limited to, the right to require that the
declaration or bylaws may not be amended without the declarant’s consent
until a stated date, the expiration of a stated number of years or the
occurrence of a stipulated event.

(7) The limitations of subsection (2) of this section do not apply
to a condominium or condominium units committed to a timeshare plan as
defined in ORS 94.803. [Formerly 94.078] A
transitional committee shall be established as provided in this section
in a single stage condominium consisting of at least 20 units and in a
staged or flexible condominium if the number of units which the declarant
may submit to the provisions of this chapter under ORS 100.125 or 100.150
totals at least 20.

(1) Unless the turnover meeting has been held, the declarant shall
call a meeting of the unit owners for the purpose of forming a
transitional committee in accordance with the bylaws of the condominium.
The declarant shall call such meeting:

(a) In a single stage condominium, within 60 days of conveyance to
persons other than the declarant of 50 percent of the units.

(b) In a staged or flexible condominium, within 60 days of
conveyance to persons other than the declarant of 50 percent of the total
number of units which the declarant may submit to the provisions of this
chapter under ORS 100.125 or 100.150.

(2) The transitional committee shall be advisory only and shall
consist of two or more members selected by unit owners other than the
declarant and may include not more than one representative of the
declarant. The members shall serve until the turnover meeting. The
function of the committee shall be that of enabling ease of transition
from control of the administration of the association of unit owners by
the declarant to control by the unit owners. The committee shall have
access to the information, documents and records which the declarant must
turn over to the unit owners under ORS 100.210 (5).

(3) The declarant shall give notice of the meeting required under
subsection (1) of this section in accordance with the bylaws of the
condominium to each unit owner at least seven but not more than 50 days
prior to the meeting. The notice shall state the purpose of the meeting
and the time and place where it is to be held.

(4) If the meeting required under subsection (1) of this section is
not called by the declarant within the time specified, the meeting may be
called and notice given by a unit owner.

(5) If the owners other than the declarant do not select members
for the committee under subsection (2) of this section, the declarant
shall have no further responsibility to form the committee. [Formerly
94.084] (1) A
turnover meeting shall be called by the declarant within 90 days of the
expiration of any period of declarant control reserved in the declaration
or bylaws under ORS 100.200. If no control has been reserved, the
declarant shall call the turnover meeting within 90 days of the earlier
of:

(a) In a single stage condominium, three years from the date of
conveyance of the first unit to a person other than the declarant or
conveyance of 50 percent of the units.

(b) In a staged or flexible condominium, seven years from the date
of conveyance of the first unit to a person other than the declarant or
conveyance to persons other than the declarant of 50 percent of the total
number of units which the declarant may submit to the provisions of this
chapter under ORS 100.125 or 100.150.

(2) The declarant shall give notice of the turnover meeting in
accordance with the bylaws of the condominium to each unit owner at least
10 but not more than 50 days prior to the meeting. The notice shall state
the purpose of the meeting and the time and place where it is to be held.

(3) If the meeting required under subsection (1) of this section is
not called by the declarant within the time specified, the meeting may be
called and notice given by a unit owner or any first mortgagee of a unit.

(4) At the turnover meeting:

(a) The declarant shall relinquish control of the administration of
the association of unit owners and the unit owners shall assume the
control;

(b) The unit owners shall elect a board of directors in accordance
with the bylaws of the condominium; and

(c) The declarant shall deliver to the association the items
specified in subsection (5) of this section.

(5) At the turnover meeting the declarant shall deliver to the
association all property of the unit owners and the association of unit
owners held or controlled by the declarant including, but not limited to,
the following items, if applicable:

(a) The original or a photocopy of the recorded declaration and
bylaws of the condominium and any supplements and amendments thereto.

(b) A copy of the articles of incorporation.

(c) The minute books, including all minutes, and other books and
records of the association.

(d) The reserve study, updates described in ORS 100.175 and other
sources of information that serve as a basis for calculating reserves in
accordance with ORS 100.175 (3).

(e) Any rules and regulations which have been promulgated.

(f) Resignations of officers and members of the board of directors
who are required to resign because of the expiration of any period of
declarant control reserved under ORS 100.200.

(g) A financial statement. The financial statement:

(A) Must consist of a balance sheet and an income and expense
statement for the preceding 12-month period or the period following the
recording of the declaration, whichever period is shorter.

(B) Must be reviewed, in accordance with the Statements on
Standards for Accounting and Review Services issued by the American
Institute of Certified Public Accountants, by an independent certified
public accountant licensed in the State of Oregon if the annual
assessments of an association of unit owners exceed $75,000.

(h) Association funds or control thereof, including, but not
limited to, funds for reserve required under ORS 100.530 (3)(b) and any
bank signature cards.

(i) All tangible personal property that is property of the
association and an inventory of such property.

(j) A copy of the following, if available:

(A) The as-built architectural, structural, engineering,
mechanical, electrical and plumbing plans.

(B) The original specifications indicating thereon all material
changes.

(C) The plans for underground site service, site grading, drainage
and landscaping together with cable television drawings.

(D) Any other plans and information relevant to future repair or
maintenance of the property.

(k) Insurance policies.

(L) Copies of any occupancy permits which have been issued for the
condominium.

(m) Any other permits issued by governmental bodies applicable to
the condominium in force or issued within one year prior to the date the
unit owners assume control of the administration of the association of
unit owners.

(n) A list of the general contractor and the subcontractors
responsible for construction or installation of the major plumbing,
electrical, mechanical and structural components of the common elements.

(o) A roster of unit owners and their addresses and telephone
numbers, if known, as shown on the records of the declarant.

(p) Leases of the common elements and any other leases to which the
association is a party.

(q) Employment or service contracts in which the association is one
of the contracting parties or service contracts in which the association
or the unit owners have an obligation or responsibility, directly or
indirectly, to pay some or all of the fee or charge of the person
performing the service.

(r) Any other contracts to which the association of unit owners is
a party.

(6) In order to facilitate an orderly transition, during the
three-month period following the turnover meeting, the declarant or an
informed representative shall be available to meet with the board of
directors on at least three mutually acceptable dates to review the
documents delivered under subsection (5) of this section.

(7) If the declarant has complied with this section, unless the
declarant otherwise has sufficient voting rights as a unit owner to
control the association, the declarant shall not be responsible for the
failure of the unit owners to comply with subsection (4) of this section
and the declarant shall be relieved of any further responsibility for the
administration of the association except as a unit owner of any unsold
unit. [Formerly 94.091; 1999 c.677 §46; 2001 c.756 §36; 2003 c.803 §21]SPECIAL DECLARANT RIGHTS(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. 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
directors; or

(d) Has contributed more than 20 percent of the capital of the
transferor or successor declarant.

(2) 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 and remains liable for warranty obligations
imposed under ORS 100.185. Lack of privity does not deprive any unit
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 this chapter 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 condominium.

(c) A transferor who retains no special declarant right has no
liability for any act or omission or any breach of a contractual or
warranty obligation arising from the exercise of a special declarant
right by a successor declarant who is not an affiliate of the transferor.

(3) 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, including without limitation warranties required
under ORS 100.185, by the declarant or previous successor declarant or
for any breach of fiduciary obligation by such person. Such a successor
declarant, however, shall:

(A) Comply with any provisions of the declaration and bylaws which
pertain to such successor declarant’s ownership of the unit or units and
the exercise of any special declarant right;

(B) Comply with the provisions of ORS 100.015 and 100.635 to
100.910 in connection with the sale of any unit or units, except as
provided in ORS 100.665; and

(C) Give the warranties described in ORS 100.185 only with respect
to common elements or units constructed by the successor declarant.
[Formerly 94.097](1) Except as otherwise provided in subsections
(2) and (3) of this section, a developer, vendor under a land sale
contract, mortgagee of a mortgage or beneficiary of a trust deed
affecting the declarant’s interest in the property shall acquire all
special declarant rights of the transferor upon transfer by the declarant
or prior successor declarant of all of such transferor’s interest in the
condominium, unless:

(a) The conveyance evidences an intent not to transfer any special
declarant rights;

(b) An instrument executed by the transferor and the transferee
evidences an intent not to transfer any special declarant rights and is
recorded in the office of the recording officer of every county in which
the property is located; or

(c) The transferee executes an instrument disclaiming any right to
exercise any special declarant rights and such instrument is recorded in
the office of the recording officer of every county in which the property
is located.

(2) A transferee under subsection (1) of this section shall acquire
less than all special declarant rights if:

(a) The conveyance from the transferor or an instrument executed by
the transferor and the transferee evidences an intent to transfer less
than all special declarant rights and states the specific right being
transferred, and such instrument is recorded in the office of the
recording officer of every county in which the property is located; or

(b) The transferee executes an instrument disclaiming specific
special declarant rights and the instrument is recorded in the office of
the recording officer of every county in which the property is located.

(3) When a transferee acquires all of the declarant’s interest in a
condominium in which the declarant has reserved the right to add
additional stages under ORS 100.125, the transferee shall not acquire the
right to annex additional stages to the condominium unless the transferee
simultaneously acquires from the declarant property adjacent to the
condominium which is entitled to be annexed to the condominium, or unless
the conveyance evidences an intent to transfer such right to the
transferee.

(4) A declarant or a successor declarant may transfer all or less
than all of the transferor’s special declarant rights to a transferee,
whether or not any interest in real property is conveyed, by an
instrument executed by the declarant or successor declarant and the
transferee evidencing an intent to transfer all or specific special
declarant rights, which instrument shall be recorded in the office of the
recording officer of every county in which the property is located. If
the transfer is not subject to subsection (1) of this section, it shall
also bear the written consent of any holder of a blanket encumbrance on
the condominium. [Formerly 94.103]DOCUMENT FILING(1) The following shall be delivered to the Real Estate Agency for
filing on behalf of the association in accordance with ORS 100.260 (5):

(a) A Condominium Information Report described in ORS 100.260 (1)
by the declarant not later than 90 days after the declaration is recorded
under ORS 100.100 or by the board of directors if required under ORS
100.275.

(b) The Annual Report described in ORS 100.260 (2) by the declarant
until the turnover meeting and the board of directors thereafter every
year not later than the report date which shall be the anniversary date
of filing the Condominium Information Report.

(c) An amendment to the reports required under this subsection by
the declarant until the turnover meeting and the board of directors
thereafter, within 30 days after there is a change in the information
contained in a report.

(2) The Real Estate Agency shall collect the following fees for the
documents delivered for filing:

___________________________________________________________________________
___Document Fee (a)  Condominium Information

Report$100

(b)  Annual Report     $ 25

(c)  Amendment    $ 75

(d) Application for

Termination Statement $ 75

(e)  Statement of Resignation$ 75___________________________________________________________________________
___

(3) Any fee paid under subsection (2) of this section or ORS
100.275 may be a common expense of the condominium. [1989 c.595 §38; 1991
c.132 §13; 1995 c.31 §4; 2001 c.756 §37]Note: 100.250 to 100.290 were added to and made a part of ORS
100.005 to 100.910 by legislative action but were not added to any
smaller series therein. See Preface to Oregon Revised Statutes for
further explanation.(1) If after review the Real Estate Agency determines that a
report or amendment submitted for filing under ORS 100.250 (1) satisfies
the requirements of ORS 100.260, and all fees have been paid, the Real
Estate Agency shall file the document and designate the filing “current.”

(2) The Real Estate Agency files a document by indicating thereon
that it has been filed by the Real Estate Agency and the date of filing.
The time of filing shall be considered to be 12:01 a.m. on that date.
After filing a document, the Real Estate Agency shall return a copy to
the association.

(3) If the Real Estate Agency refuses to file a document, the Real
Estate Agency shall return it to the association within 10 business days
after the document was received by the Real Estate Agency, together with
a brief written explanation of the reason or reasons for the refusal.

(4) The Real Estate Agency’s duty to file documents under this
section and ORS 100.250 is ministerial. The Real Estate Agency is not
required to verify or inquire into the legality or truth of any matter
included in any document delivered to the Real Estate Agency for filing.
The Real Estate Agency’s filing or refusing to file a document does not:

(a) Affect the validity or invalidity of the document in whole or
in part; or

(b) Relate to the correctness or incorrectness of information
contained in the document.

(5) The Real Estate Agency’s refusal to file a document does not
create a presumption that the document is invalid or that information
contained in the document is incorrect.

(6) If the Real Estate Agency refuses to file a document delivered
to the Real Estate Agency for filing, the association, in addition to any
other legal remedy which may be available, shall have the right to appeal
from such final order pursuant to the provisions of ORS 183.484. [1989
c.595 §39; 1995 c.31 §5]Note: See note under 100.250. (1) The
Condominium Information Report required under ORS 100.250 (1)(a) shall
set forth:

(a) The name of the association;

(b) The name of the condominium and the county in which the
condominium is located;

(c) The mailing address, including the street and number, if any,
and county of the association;

(d) The date the condominium declaration was recorded and the
recording index numbers;

(e) The name and residence or business address, including the
street and number, of the person designated as agent to receive service
of process in cases provided in ORS 100.550 (1) and any other legal
proceeding relating to the condominium or association; and

(f) The number and type of units as follows:No._____ Living Units

No._____ Commercial/Office Units

No._____ Other (describe) ________

________________________ (2) The Annual Report required under ORS 100.250 (1)(b) shall set
forth:

(a) The information required under subsection (1)(a), (b), (c) and
(e) of this section;

(b) The names and addresses of the chairperson and secretary of the
association; and

(c) If the designated agent is changed, a statement that the new
agent has consented to the appointment.

(3) The amendment required under ORS 100.250 (1)(c) shall set forth:

(a) The name of the association as shown on the current records of
the Real Estate Agency;

(b) The name of the condominium and county in which the condominium
is located;

(c) A statement of the information as changed; and

(d) If the current designated agent is to be changed, the name of
the new designated agent and residence or business address, including the
street and number, and a statement that the new agent has consented to
the appointment.

(4) The filing by the Real Estate Agency of an amendment which
changes the designated agent shall terminate the existing designated
agent on the effective date of the filing and establish the newly
appointed designated agent as that of the association.

(5) The reports and amendment described in this section and an
application for termination described in ORS 100.280 shall be made on
forms prescribed and furnished by the Real Estate Agency and must be
accompanied by the correct filing fee and shall:

(a) Contain information current as of 30 days before delivery for
filing;

(b) Be executed by the designated agent and until the turnover
meeting by the declarant and thereafter by the chairperson or secretary
of the association;

(c) State beneath or opposite the signature the name of the person
and the capacity in which the person signs; and

(d) Contain any additional identifying information that the Real
Estate Agency may require by rule. [1989 c.595 §40; 1995 c.31 §6; 2001
c.756 §38]Note: See note under 100.250. (1) Not less than 30
days before the report date, the Real Estate Agency shall mail the Annual
Report form described in ORS 100.260 (2) to the association at the
mailing address shown for the association in the current records of the
office and shall indicate the date by which the report is due. Failure of
the association to receive the Annual Report form from the Real Estate
Agency shall not relieve the association of its duty to deliver for
filing to the office as required under ORS 100.250 (1)(c).

(2) After the report date, if no Annual Report has been delivered
for filing, the Real Estate Agency shall send to the designated agent a
notice of delinquency notifying the association that the filing shall be
designated “delinquent” unless a report is filed within 45 days after the
mailing of such notice.

(3) When an association has been given a notice of delinquency in
accordance with subsection (2) of this section and failed to correct the
delinquency within 45 days:

(a) The Real Estate Agency shall designate the filing “delinquent.”

(b) If within 30 days after written notice has been given to the
association by the opposing party in any suit or action to which the
association is a party, the association has not complied with the filing
requirements of ORS 100.250 (1), the association may not continue to
prosecute or defend such suit or action until the filing is designated
“current” as provided in ORS 100.255. A copy of such notice shall be
delivered to the Real Estate Agency. The Real Estate Agency shall retain
such copy with the filing for the association for a period of not less
than 12 months. [1989 c.595 §41; 1995 c.31 §7]Note: See note under 100.250. (1) Subject to ORS
100.550 (3), ORS 100.250 to 100.280, including the filing of a
Condominium Information Report described in ORS 100.260 (1), apply to
property submitted to the provisions of this chapter before October 3,
1989, if:

(a) The board of directors of the association receives a written
request to comply with such sections from at least one unit owner or
holder of a first mortgage or deed of trust on a unit;

(b) The board of directors of the association adopts a resolution
to comply with such sections in accordance with the bylaws;

(c) The association is a party to a suit or action, the person
designated in the declaration under ORS 100.105 (1)(k), the chairperson
or secretary receives written notice to comply with such sections from
any other party to such suit or action. A copy of the notice shall be
delivered to the Real Estate Agency. The Real Estate Agency shall provide
a copy of the filed report to the requesting party and may charge the
association a fee for cost of such action. If the association fails to
deliver for filing such report, the provisions of ORS 100.265 (3) shall
apply; or

(d) A filing is required to comply with the requirements of ORS
100.120, 100.135 or 100.450.

(2) The Condominium Information Report required under subsection
(1) of this section shall be executed by the chairperson or secretary of
the association and the designated agent. [1989 c.595 §42; 1995 c.31 §8;
2001 c.756 §60]Note: See note under 100.250. (1)
An association may apply to the Real Estate Agency to terminate a filing
under ORS 100.250 (1). The application shall satisfy the requirements of
ORS 100.260 (5) and set forth:

(a) The name of the association as shown on the current records of
the Real Estate Agency;

(b) The name of the condominium and county in which the condominium
is located;

(c) The name and residence or business address, including the
street and number, of a designated agent to whom a person initiating any
proceeding may direct service for a period of two years; and

(d) A commitment to notify the Real Estate Agency for a period of
two years from the date of termination of any change of the person or
address stated in paragraph (c) of this subsection.

(2) A copy of the instrument of termination, evidencing the
recording index numbers, recorded under ORS 100.600, shall be delivered
with the application.

(3) Upon filing by the Real Estate Agency of the application to
terminate the filing, the duty of the association to comply with ORS
100.250 (1) shall cease. [1989 c.595 §43; 1995 c.31 §9]Note: See note under 100.250.(1) The designated agent of the association may resign as agent by
delivering a signed statement of resignation to the Real Estate Agency
together with the filing fee prescribed in ORS 100.250 and giving notice
in the form of a copy of the statement to the association. The statement
shall include the name of the association and the name of the condominium
and the county in which the condominium is located.

(2) Upon receipt of the statement of resignation in proper form and
the correct fee, the Real Estate Agency shall file the resignation
statement. The copy of the statement given under subsection (1) of this
section shall be mailed to the association at the mailing address shown
for the association in the current records of the office. For purposes of
this subsection, written notice is effective at the earliest of the
following:

(a) When received;

(b) Five days after its deposit in the United States mail, as
evidenced by the postmark, if mailed postpaid and correctly addressed; or

(c) On the date shown on the return receipt, if sent by registered
or certified mail, return receipt requested and the receipt is signed by
or on behalf of the addressee.

(3) The agency appointment is terminated on the 31st day after the
date on which the statement of resignation was filed by the Real Estate
Agency unless the association sooner appoints a successor designated
agent as provided in ORS 100.260 (4), thereby terminating the capacity of
the prior agent.

(4) If by the 31st day after the date on which the statement of
resignation was filed by the Real Estate Agency, the association has
failed to submit for filing an amendment appointing a designated agent,
the Real Estate Agency shall designate the filing “delinquent” and the
provisions of ORS 100.265 (3) shall apply. [1989 c.595 §43a; 1993 c.190
§16; 1995 c.31 §10]Note: See note under 100.250. The Real Estate Agency may adopt rules as are
necessary or proper for the administration of ORS 100.250 to 100.280.
[1989 c.595 §44; 1995 c.31 §11]Note: See note under 100.250.CONVERSION CONDOMINIUMS (1) A declarant
of a conversion condominium shall give each of the existing tenants of
any building which the declarant intends to submit to the provisions of
this chapter notice of the conversion at least 120 days before the
conversion condominium is submitted to the provisions of this chapter.
Thereafter, until the property is submitted to the provisions of this
chapter, the declarant shall provide a copy of such notice to any new
tenant before the commencement of the tenancy. The notice of conversion
shall:

(a) State that the declarant intends to create a conversion
condominium and include general information relating to the nature of
condominium ownership;

(b) State that the notice does not constitute a notice to terminate
the tenancy;

(c) State whether there will be a substantial alteration of the
physical layout of the unit;

(d) State whether the declarant intends to offer the unit for sale
and, if so:

(A) Set forth the rights of the tenant under ORS 100.310 (1) to (3);

(B) Set forth a good faith estimate of the approximate price range
for which the unit will be offered for sale to the tenant under ORS
100.310 (1) and (2); and

(C) Set forth a good faith estimate of the monthly operational,
maintenance and any other common expenses or assessments appertaining to
the unit; and

(e) Be hand delivered to the dwelling unit of the tenant or sent to
the tenant at the address of the dwelling unit by certified mail, return
receipt requested.

(2) A notice of conversion given under subsection (1) of this
section shall:

(a) Be for the sole purpose of providing the tenant with general
information regarding the anticipated cost of acquisition of the unit and
estimated monthly expenses.

(b) Not obligate the declarant to submit the property to the
provisions of this chapter.

(c) Not constitute an offer to sell the unit to the tenant or an
offer to sell at a particular price.

(d) Not be a limitation on monthly common expenses or assessments.

(3) The notice of conversion given under subsection (1) of this
section must be delivered to the tenant at least 30 days prior to the
presentation of an offer to sell under ORS 100.310 (1) and (2).

(4) The declaration may be recorded prior to the end of the 120-day
period required under subsection (1) of this section with the written
consent of all tenants who received the notice of conversion less than
120 days before the date of such consent.

(5) The requirement under subsection (1) of this section to provide
a copy of the notice of conversion to new tenants shall not extend the
120-day period nor shall such tenant’s consent be required to record the
declaration prior to the end of the 120-day period as provided for under
subsection (4) of this section.

(6) A notice of conversion shall not constitute a notice to
terminate the tenancy. [Formerly 94.116] (1) Prior to the sale of
any dwelling unit which is to be retained as a unit in the conversion
condominium without substantial alteration in its physical layout, the
declarant shall first offer to sell the respective unit to the tenant who
occupies the unit. The offer shall:

(a) Terminate 60 days after its receipt or upon written rejection
of the offer by the tenant, whichever occurs earlier.

(b) Be accompanied by a copy of all applicable disclosure
statements issued by the Real Estate Commissioner pursuant to ORS 100.700.

(c) Not constitute a notice to terminate the tenancy.

(2) The tenant’s dwelling unit may not be shown to any prospective
purchasers of a conversion condominium unit without the tenant’s
permission before the termination of the tenancy.

(3) The declarant shall not sell the unit to a person other than
the tenant during the 60 days following the termination of an offer to
the tenant under subsections (1) and (2) of this section at a price or on
terms more favorable to the purchaser than the price or terms offered to
the tenant.

(4) After the property has been submitted to the provisions of the
Oregon Condominium Act, the declarant, until a unit is offered for sale
in accordance with subsections (1) and (2) of this section, shall notify
in writing any prospective tenant, prior to the commencement of the
tenancy, that the property has been submitted to the provisions of the
Oregon Condominium Act and the rights of a tenant under subsections (1)
to (3) of this section. [Formerly 94.122; 1997 c.816 §8](1) The declarant shall not begin improvements or rehabilitation
or cause improvements or rehabilitation to be undertaken in a conversion
condominium unit without the tenant’s permission during the 120-day
notice period prescribed by ORS 100.305 (1).

(2) The declarant may begin improvements or rehabilitation or cause
improvements or rehabilitation to be undertaken in the general common
elements during the 120-day notice period. [Formerly 94.128]A city or county may adopt an ordinance that
requires a declarant to pay the moving expense of a tenant vacating a
conversion condominium unit. [Formerly 94.134]ASSOCIATION OF UNIT OWNERS; MANAGEMENT OF PROPERTY; ENCUMBRANCES;
CONVEYANCES(1)(a) An association of unit owners
shall be organized to serve as a means through which the unit owners may
take action with regard to the administration, management and operation
of the condominium. The association shall be organized as a corporation
for profit or nonprofit corporation or as an unincorporated association.
If the association is incorporated, the name of the association shall
include the complete name of the condominium.

(b) Unless otherwise provided in the declaration or bylaws, an
unincorporated association may be incorporated if such action is approved
by a majority of unit owners in person, by written ballot or by proxy at
a meeting at which a quorum is present.

(2) Membership in the association of unit owners shall be limited
to unit owners.

(3) The affairs of the association shall be governed by a board of
directors as provided for in the bylaws adopted under ORS 100.410.

(4) Subject to the provisions of the condominium’s declaration and
bylaws, and whether or not the association is unincorporated, the
association may:

(a) Adopt and amend bylaws and rules and regulations;

(b) Adopt and amend budgets for revenues, expenditures and reserves
and levy and collect assessments for common expenses from unit owners;

(c) Hire and terminate managing agents and other employees, agents
and independent contractors;

(d) Defend against any claims, proceedings or actions brought
against it;

(e) Subject to subsection (11) of this section, initiate or
intervene in litigation or administrative proceedings in its own name,
and without joining the individual unit owners, in the following:

(A) Matters relating to the collection of assessments and the
enforcement of declarations and bylaws;

(B) Matters arising out of contracts to which the association is a
party;

(C) Actions seeking equitable or other nonmonetary relief regarding
matters that affect the common interests of the unit owners, including
but not limited to the abatement of nuisance;

(D) Matters relating to or affecting common elements, including but
not limited to actions for damage, destruction, impairment or loss of use
of any common element;

(E) Matters relating to or affecting the units or interests of unit
owners including but not limited to damage, destruction, impairment or
loss of use of a unit or portion thereof, if:

(i) Resulting from a nuisance or a defect in or damage to a common
element; or

(ii) Required to facilitate repair to any common element; and

(F) Any other matter to which the association has standing under
law or pursuant to the declaration, bylaws or any articles of
incorporation;

(f) Make contracts and incur liabilities;

(g) Regulate the use, maintenance, repair, replacement and
modification of common elements;

(h) Cause additional improvement to be made as a part of the common
elements;

(i) Acquire by purchase, lease, devise, gift or voluntary grant
real or personal property or any interest therein and take, hold, possess
and dispose of real or personal property or any interest therein;

(j) Impose and receive any payments, fees or charges for the use,
rental or operation of the common elements;

(k) Impose charges for late payments of assessments, attorney fees
for collection of assessments and, after giving written notice and an
opportunity to be heard, levy reasonable fines for violations of the
declaration, bylaws and rules and regulations of the association,
provided that the charge imposed or fine levied by the association is
based:

(A) On a schedule contained in the declaration or bylaws, or an
amendment to either that is delivered to each unit, mailed to the mailing
address of each unit or mailed to the mailing addresses designated in
writing by the owners; or

(B) On a resolution adopted by the board of directors or the
association that is delivered to each unit, mailed to the mailing address
of each unit or mailed to the mailing addresses designated by the owners
in writing;

(L) Adopt rules regarding the termination of utility services paid
for out of assessments of the association and access to and use of
recreational and service facilities available to unit owners and, after
giving written notice and an opportunity to be heard, terminate the
rights of any owners to receive such benefits or services until the
correction of any violation covered by such rule has occurred;

(m) Impose reasonable charges for the preparation and recordation
of amendments to the declaration or statements of assessments;

(n) Assign its right to future income, including the right to
receive common expense assessments;

(o) Provide for the indemnification of its officers and executive
board, as may be limited by ORS 61.218 (3)(d) (1987 Replacement Part),
and maintain directors’ and officers’ liability insurance;

(p) Exercise any other powers conferred by the declaration or
bylaws;

(q) Exercise all other powers that may be exercised in this state
by any such association; and

(r) Exercise any other powers determined by the association to be
necessary and proper for the governance and operation of the association.

(5) Subject to subsection (6) of this section, unless expressly
limited or prohibited by the declaration, the association has the
authority to grant, execute, acknowledge, deliver and record on behalf of
the unit owners leases, easements, rights of way, licenses and other
similar interests affecting the general common elements and consent to
vacation of roadways within and adjacent to the condominium.

(6)(a)(A) Except as provided in subparagraph (B) of this paragraph,
the granting of a lease, easement, right of way, license or other similar
interest pursuant to subsection (5) of this section shall be first
approved by at least 75 percent of owners.

(B) Unless the declaration otherwise provides:

(i) The granting of a lease, easement, right of way, license or
other similar interest affecting the general common elements for a term
of two years or less shall require the approval of a majority of the
board of directors.

(ii) The granting of a lease, easement, right of way, license or
other similar interest affecting the general common elements for a term
of more than two years to a public body, as defined in ORS 174.109, or to
a utility or a communications company for underground installation and
maintenance of power, gas, electric, water or other utility and
communication lines and services requires the approval of a majority of
the board of directors.

(iii) The granting of a lease, easement, license or other similar
interest to an owner for the exclusive use of a part of the general
common elements to which the owner’s unit provides primary access
requires the approval of a majority of the board of directors. If the
approval by the board of directors includes the right of the owner to
make improvements to the general common elements to which the owner is
being granted exclusive use, ORS 100.535 applies to the general common
elements to the same extent that ORS 100.535 applies to a unit, including
the right of the board under ORS 100.535 to require an owner, at owner’s
expense, to submit an opinion of a registered architect or registered
professional engineer that the proposed improvement will not impair the
structural integrity or mechanical systems of the condominium.

(b) Unless the declaration otherwise provides, the consent to
vacation of roadways within and adjacent to the condominium must be
approved first by at least a majority of unit owners present voting in
person or by proxy at a duly constituted meeting of the association
called for the purpose.

(7) The instrument granting an interest or consent pursuant to
subsection (5) of this section shall be executed by the chairperson and
secretary of the association and acknowledged in the manner provided for
acknowledgment of such instruments by such officers and shall state that
such grant or consent was approved, if appropriate, by at least the
percent of owners required under subsection (6) of this section.

(8) Unless expressly prohibited by the declaration, any action
permitted under subsections (5) and (6) of this section regarding a
general common element may be taken with respect to any limited common
element, provided that the owner of the unit to which the use of the
limited common element is reserved and the holder of any mortgage or
trust deed affecting the unit consent to the action and also execute an
instrument as provided under subsection (7) of this section.

(9) Except as otherwise provided in the association’s declaration
or bylaws, the board of directors of the association may modify, close,
remove, eliminate or discontinue the use of a general common element
facility or improvement or portion of the common element landscaping,
regardless of whether such facility, improvement or landscaping is
mentioned in the declaration or shown on the plat provided that:

(a) Nothing in this subsection shall be construed as limiting the
authority of the board of directors, in its discretion, to seek approval
of such modification, closure, removal, elimination or discontinuance by
the unit owners; and

(b) Modification, closure, removal, elimination or discontinuance
other than on a temporary basis of any swimming pool, spa or recreation
or community building must be approved by at least a majority of the unit
owners voting on such matter at a meeting or by written ballot held in
accordance with the declaration, bylaws or ORS 100.425.

(10)(a) A permit or authorization issued by the board of directors
pursuant to authority granted to the board under law, the declaration or
the bylaws, may be recorded in the deed records of the county where the
condominium is located. An instrument recorded under this subsection
shall:

(A) Include the name of the condominium and a reference to where
the declaration and any applicable supplemental declarations are recorded;

(B) Identify, by the designations stated in the declaration or
applicable supplemental declaration, all affected units and common
elements;

(C) Include such other information and signatures as may be
required by law, under the declaration or bylaws or as the board of
directors may desire; and

(D) Be executed by the chairperson and secretary of the association
and acknowledged in the manner provided for acknowledgment of such
instruments by the officers.

(b) The board of directors may record an amendment, modification,
termination or other instrument relating to the permit or authorization
described in this subsection. Any such instrument shall include a
reference to the location of the recorded instrument and be executed by
the chairperson and secretary of the association and acknowledged in the
manner provided for acknowledgment of such instruments.

(11)(a) Subject to paragraph (f) of this subsection, before
initiating litigation or an administrative proceeding in which the
association and an owner have an adversarial relationship, the party that
intends to initiate litigation or an administrative proceeding shall
offer to use any dispute resolution program available within the county
in which the condominium is located that is in substantial compliance
with the standards and guidelines adopted under ORS 36.175. The written
offer must be hand-delivered or mailed by certified mail, return receipt
requested, to the address, contained in the records of the association,
for the other party.

(b) If the party receiving the offer does not accept the offer
within 10 days after receipt by written notice hand-delivered or mailed
by certified mail, return receipt requested, to the address, contained in
the records of the association, for the other party, the initiating party
may commence the litigation or the administrative proceeding. The notice
of acceptance of the offer to participate in the program must contain the
name, address and telephone number of the body administering the dispute
resolution program.

(c) If a qualified dispute resolution program exists within the
county in which the condominium is located and an offer to use the
program is not made as required under paragraph (a) of this subsection,
litigation or an administrative proceeding may be stayed for 30 days upon
a motion of the noninitiating party. If the litigation or administrative
action is stayed under this paragraph, both parties shall participate in
the dispute resolution process.

(d) Unless a stay has been granted under paragraph (c) of this
subsection, if the dispute resolution process is not completed within 30
days after receipt of the initial offer, the initiating party may
commence litigation or an administrative proceeding without regard to
whether the dispute resolution is completed.

(e) Once made, the decision of the court or administrative body
arising from litigation or an administrative proceeding may not be set
aside on the grounds that an offer to use a dispute resolution program
was not made.

(f) The requirements of this subsection do not apply to
circumstances in which irreparable harm to a party will occur due to
delay or to litigation or an administrative proceeding initiated to
collect assessments, other than assessments attributable to fines.
[Formerly 94.146; 1997 c.816 §9; 1999 c.677 §47; 2001 c.756 §39; 2003
c.569 §28]Note: Section 29, chapter 569, Oregon Laws 2003, provides:

Sec. 29. Unless the declaration of a condominium recorded before
the effective date of this 2003 Act [July 14, 2003] expressly limits or
prohibits the authority of the association of unit owners to grant,
execute, acknowledge, deliver and record on behalf of the unit owners
leases, easements, rights of way, licenses and other similar interests
affecting the general common elements and consent to vacation of roadways
within and adjacent to the condominium pursuant to ORS 100.405 (6) in
effect at the time the declaration was recorded, the amendments to ORS
100.405 (6) by section 28 of this 2003 Act apply to a condominium
recorded before the effective date of this 2003 Act. [2003 c.569 §29] (1) The
association of unit owners shall hold at least one meeting of the owners
each calendar year.

(2)(a) Special meetings of the association may be called by the
chairperson of the board of directors, a majority of the board of
directors or a percentage of owners specified in the bylaws. However, the
bylaws may not require a percentage greater than 50 percent or less than
10 percent of the owners for the purpose of calling a meeting.

(b) If the bylaws do not specify a percentage of owners that may
call a special meeting, 30 percent or more of the owners may call a
special meeting, notice of which shall be given as specified in this
section.

(3)(a) Not less than 10 nor more than 50 days before any meeting
called under this section, the secretary or other officer of the
association specified in the bylaws shall cause notice to be hand
delivered or mailed to the mailing address of each unit or to the mailing
address designated in writing by the owner, and to all mortgagees that
have requested such notice.

(b) The notice shall state the time and place of the meeting and
the items on the agenda, including the general nature of any proposed
amendment to the declaration or bylaws, any budget changes or any
proposal to remove a director or officer of the association.

(c) Mortgagees may designate a representative to attend a meeting
called under this section. [1999 c.677 §59; 2003 c.569 §30]Note: 100.407 and 100.408 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. Unless the bylaws
provide otherwise, a quorum for any meeting of the association of unit
owners shall consist of the number of persons who are entitled to cast 20
percent of the votes and who are present in person or by proxy at the
beginning of the meeting. [1999 c.677 §60]Note: See note under 100.407. Unless other rules of order are required by
the declaration or bylaws or by a resolution of the association or its
board of directors:

(1) Meetings of the association and the board of directors shall be
conducted according to the latest edition of Robert’s Rules of Order
published by the Robert’s Rules Association.

(2) A decision of the association or the board of directors may not
be challenged because the appropriate rules of order were not used unless
a person entitled to be heard was denied the right to be heard and raised
an objection at the meeting in which the right to be heard was denied.

(3) A decision of the association and the board of directors is
deemed valid without regard to procedural errors related to the rules of
order one year after the decision is made unless the error appears on the
face of a written instrument memorializing the decision. [2001 c.756 §58]Note: 100.409 was added to and made a part of ORS chapter 100 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation.(1) The declarant shall adopt on behalf of the
association of unit owners the initial bylaws that govern the
administration of the condominium. The bylaws shall be recorded
simultaneously with the declaration as an exhibit or as a separate
instrument.

(2) Unless otherwise provided in the declaration or bylaws,
amendments to the bylaws may be proposed by a majority of the board of
directors or by at least 30 percent of the owners.

(3) Subject to subsections (4) and (5) of this section and ORS
100.415 (20), an amendment of the bylaws is not effective unless the
amendment is:

(a) Approved by at least a majority of the unit owners; and

(b) Certified by the chairperson and secretary of the association
of unit owners as being adopted in accordance with the bylaws and the
provisions of this section, acknowledged in the manner provided for
acknowledgment of instruments and recorded.

(4) In condominiums that are exclusively residential:

(a) The bylaws may not provide that greater than a majority of the
unit owners is required to amend the bylaws except for amendments
relating to age restrictions, pet restrictions, limitations on the number
of persons who may occupy units and limitations on the rental or leasing
of units.

(b) An amendment relating to a matter specified in paragraph (a) of
this subsection is not effective unless approved by at least 75 percent
of the owners or a greater percentage specified in the bylaws.

(5) The bylaws may not be amended to limit or diminish any special
declarant right without the consent of the declarant. However, the
declarant may waive the declarant’s right of consent.

(6)(a) For five years after the recording of the initial bylaws,
before any amended bylaw may be recorded, the amended bylaw must be
approved by the Real Estate Commissioner. The commissioner shall approve
such amendment if the requirements of ORS 100.415 and this section have
been satisfied.

(b) The approval by the commissioner under paragraph (a) of this
subsection is not required for bylaws restated under subsection (10) of
this section unless the bylaws are restated during the five-year period
after the recording of the initial bylaws.

(7) Before the commissioner approves amended bylaws or restated
bylaws under this section, the person submitting the amended bylaws or
restated bylaws shall pay to the commissioner the fee provided by ORS
100.670.

(8) Notwithstanding a provision in the bylaws, including bylaws
adopted prior to July 14, 2003, that requires an amendment to be
executed, or executed and acknowledged, by all owners approving the
amendment, amendments to the bylaws under this section become effective
after approval by the owners if executed and certified on behalf of the
association by the chairperson and secretary in accordance with
subsection (3)(b) of this section.

(9) An amendment to the bylaws must be conclusively presumed to
have been regularly adopted in compliance with all applicable procedures
relating to the amendment unless an action is brought within one year
after the effective date of the amendment or the face of the amendment
indicates that the amendment received the approval of fewer votes than
required for the approval. Nothing in this subsection prevents the
further amendment of an amended bylaw.

(10)(a) The board of directors, by resolution and without the
further approval of unit owners, may cause restated bylaws to be prepared
and recorded to codify individual amendments that have been adopted in
accordance with this section.

(b) Bylaws restated under this subsection must:

(A) Include all previously adopted amendments that are in effect,
state that the amendments were approved by the commissioner as required
under this section and state that no other changes were made except, if
applicable, to correct scriveners’ errors or to conform format and style;

(B) Include a statement that the board of directors has adopted a
resolution in accordance with paragraph (a) of this subsection and is
causing the bylaws to be restated and recorded under this subsection;

(C) Include a reference to the recording index numbers and date of
recording of the initial bylaws and all previously recorded amendments
that are in effect and are being codified;

(D) Include a certification by the chairperson and secretary of the
association that the restated bylaws include all previously adopted
amendments that are in effect, that amendments were approved by the
commissioner if required under this section and that no other changes
were made except, if applicable, to correct scriveners’ errors or to
conform format and style;

(E) Be executed and acknowledged by the chairperson and secretary
of the association and recorded in the deed records of each county in
which the condominium is located; and

(F) If required under subsection (6) of this section, be approved
by the commissioner.

(c) The board of directors shall cause a copy of the recorded
restated bylaws, including the recording information, to be filed with
the commissioner. [Formerly 94.152; 2001 c.756 §40; 2003 c.569 §31; 2005
c.22 §76]
Unless otherwise provided in the bylaws, the board of directors at least
annually shall adopt a budget for the association of unit owners. Within
30 days after adopting the annual budget for the association, the board
of directors shall provide a summary of the budget to all owners. If the
board of directors fails to adopt an annual budget, the last adopted
budget shall continue in effect. [1999 c.677 §58]Note: 100.412 was added to and made a part of ORS chapter 100 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation. The bylaws shall include a reference to
the declaration to which the bylaws relate and shall provide for:

(1) The organization of the association of unit owners in
accordance with ORS 100.405, when the initial meeting shall be held and
the method of calling that meeting.

(2) If required under ORS 100.205, the formation of a transitional
committee in accordance with such section.

(3) The turnover meeting required under ORS 100.210, including when
the meeting shall be called, the method of calling the meeting, the right
of a unit owner under ORS 100.210 (3) to call the meeting and a statement
of the purpose of the meeting.

(4)(a) The method of calling the annual meeting and all other
meetings of the unit owners in accordance with ORS 100.407; and

(b) The percentage of owners that constitutes a quorum.

(5)(a) The election from among the unit owners of a board of
directors and the number of persons constituting the board;

(b) The terms of office of directors;

(c) The powers and duties of the board;

(d) The compensation, if any, of the directors;

(e) The method of removal from office of directors; and

(f) The method of filling vacancies on the board.

(6) The method of calling meetings of the board of directors in
accordance with ORS 100.420 and a statement that all meetings of the
board of directors of the association of unit owners shall be open to
unit owners.

(7) The election of a chairperson, a secretary, a treasurer and any
other officers of the association.

(8) The preparation and adoption of a budget in accordance with ORS
100.412.

(9)(a) The maintenance, repair and replacement of the common
elements and association property;

(b) Payment for the expense of maintenance, repair and replacement
of common elements and association property and other expenses of the
condominium in accordance with ORS 100.530; and

(c) The method of approving payment vouchers.

(10) The employment of personnel necessary for the maintenance and
repair of the common elements.

(11) The manner of collecting assessments from the unit owners.

(12) Insurance coverage in accordance with ORS 100.435.

(13) The preparation and distribution of the annual financial
statement in accordance with ORS 100.480.

(14) The reserve account and the preparation, review and update of
the reserve study required under ORS 100.175.

(15) The filing of an Annual Report and any amendment with the Real
Estate Agency in accordance with ORS 100.250.

(16) The method of adopting and of amending administrative rules
and regulations governing the details of the operation of the condominium
and use of the common elements.

(17) Restrictions on and requirements respecting the enjoyment and
maintenance of the units and the common elements as are designed to
prevent unreasonable interference with the use of their respective units
and of the common elements by the several unit owners.

(18) Any restrictions on use or occupancy of units. Any such
restrictions created by documents other than the bylaws may be
incorporated by reference in the bylaws to the official records of the
county in which the property is located.

(19) The method of amending the bylaws in accordance with ORS
100.410.

(20) Any other details regarding the property that the declarant
considers desirable. However, if a provision required to be in the
declaration under ORS 100.105 is included in the bylaws, the voting
requirements for amending the declaration shall also govern the amendment
of the provision in the bylaws.

(21) In the event additional units are proposed to be annexed or
created pursuant to ORS 100.125 or 100.150, the method of apportioning
common expenses in the event new units are added during the course of the
fiscal year. [Formerly 94.158; 1995 c.31 §12; 1999 c.677 §48; 2001 c.756
§41] (1)
The board of directors of an association of unit owners may act on behalf
of the association except as limited by the declaration or bylaws. In the
performance of their duties, officers and members of the board of
directors shall be governed by this section and the applicable provisions
of ORS 65.357, 65.361, 65.367, 65.369 and 65.377 whether or not the
association is incorporated under ORS chapter 65.

(2) Unless otherwise provided in the bylaws, the board of directors
of an association may fill vacancies in its membership for the unexpired
portion of any term.

(3) At least annually, the board of directors of an association
shall review the insurance coverage of the association.

(4) The board of directors of the association annually shall cause
to be filed the necessary income tax returns for the association.

(5) The board of directors of the association may record a
statement of association information as provided in ORS 94.667.

(6) The board of directors, in the name of the association, shall
maintain a current mailing address.

(7) The board of directors shall cause to be maintained and kept
current the information required to enable the association to comply with
ORS 100.480 (10).

(8) Unless otherwise provided in the declaration or bylaws:

(a) The unit owners may remove any member of the board of directors
of the association, other than members appointed by the declarant or
persons who are ex officio directors, with or without cause, by a
majority vote of all owners present and entitled to vote at any meeting
of the owners at which a quorum is present.

(b) Removal of a member of the board of directors is not effective
unless the matter of removal is an item on the agenda and stated in the
notice for the meeting required under ORS 100.407. [1999 c.677 §63; 2001
c.756 §42; 2003 c.569 §32]Note: 100.417 was added to and made a part of ORS chapter 100 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation. (1)(a) All meetings of
the board of directors of the association of unit owners shall be open to
unit owners except that, in the discretion of the board, the following
matters may be considered in executive session:

(A) Consultation with legal counsel concerning the rights and
duties of the association regarding existing or potential litigation, or
criminal matters;

(B) Personnel matters, including salary negotiations and employee
discipline;

(C) Negotiation of contracts with third parties; and

(D) Collection of unpaid assessments.

(b) Except in the case of an emergency, the board of directors of
an association shall vote in an open meeting whether to meet in executive
session. If the board of directors votes to meet in executive session,
the presiding officer of the board of directors shall state the general
nature of the action to be considered, as precisely as possible, when and
under what circumstances the deliberations can be disclosed to owners.
The statement, motion or decision to meet in executive session must be
included in the minutes of the meeting.

(c) A contract or an action considered in executive session does
not become effective unless the board of directors, following the
executive session, reconvenes in open meeting and votes on the contract
or action, which must be reasonably identified in the open meeting and
included in the minutes.

(d) The meeting and notice requirements in this section may not be
circumvented by chance or social meetings or by any other means.

(2) Except as provided in subsection (3) of this section, board of
directors’ meetings may be conducted by telephonic communication or by
the use of a means of communication that allows all members of the board
of directors participating to hear each other simultaneously or otherwise
to be able to communicate during the meeting. A member of the board of
directors participating in a meeting by this means is deemed to be
present in person at the meeting.

(3) In condominiums where the majority of the units are the
principal residences of the occupants, meetings of the board of directors
shall comply with the following:

(a) For other than emergency meetings, notice of board of
directors’ meetings shall be posted at a place or places on the property
at least three days prior to the meeting or notice shall be provided by a
method otherwise reasonably calculated to inform unit owners of such
meetings.

(b) Only emergency meetings of the board of directors may be
conducted by telephonic communication or in a manner described in
subsection (2) of this section.

(4) Subsection (3)(a) of this section first applies to property
submitted to the provisions of this chapter prior to October 3, 1979,
upon receipt by the board of directors of the association of unit owners
of a written request from at least one unit owner that notice of board of
directors meetings be given in accordance with subsection (3)(a) of this
section.

(5) As used in this section, “meeting” means a convening of a
quorum of members of the board of directors where matters relating to
association business are discussed, except a convening of a quorum of
members of the board of directors for the purpose of participating in
litigation, mediation or arbitration proceedings. [Formerly 94.164; 1999
c.677 §49; 2001 c.756 §43; 2003 c.569 §33](1) Unless
prohibited or limited by the declaration, articles of incorporation or
bylaws, any action that may be taken at any annual, regular or special
meeting of the association of unit owners may be taken without a meeting
if the association delivers a written ballot to every association member
that is entitled to vote on the matter. Action by written ballot may not
substitute for the following meetings:

(a) The turnover meeting required under ORS 100.210.

(b) The annual meeting of an association if more than a majority of
the units are the principal residences of the occupants.

(2)(a) A written ballot shall set forth each proposed action and
provide an opportunity to vote for or against each proposed action.

(b) The board of directors must provide owners with at least 10
days’ notice before written ballots are mailed or otherwise delivered.
If, at least three days before written ballots are scheduled to be mailed
or otherwise distributed, at least 10 percent of the owners petition the
board of directors requesting secrecy procedures, a written ballot must
be accompanied by:

(A) A secrecy envelope;

(B) A return identification envelope to be signed by the owner; and

(C) Instructions for marking and returning the ballot.

(c) The notice required under paragraph (b) of this subsection
shall state:

(A) The general subject matter of the vote by written ballot;

(B) The right of owners to request secrecy procedures specified in
paragraph (b) of this subsection;

(C) The date after which ballots may be distributed;

(D) The date and time by which any petition must be received by the
board requesting secrecy procedures; and

(E) The address where any petition must be delivered.

(d) Notwithstanding the applicable provisions of subsection (3) or
(4) of this section, written ballots that are returned in secrecy
envelopes may not be examined or counted before the deadline for
returning ballots has passed.

(3) Matters that may be voted on by written ballot shall be deemed
approved or rejected as follows:

(a) If approval of a proposed action otherwise would require a
meeting at which a certain quorum must be present and at which a certain
percentage of total votes cast is required to authorize the action, the
proposal shall be deemed to be approved when the date for return of
ballots has passed, a quorum of unit owners has voted and the required
percentage of approving votes has been received. Otherwise, the proposal
shall be deemed to be rejected; and

(b) If approval of a proposed action otherwise would require a
meeting at which a specified percentage of unit owners must authorize the
action, the proposal shall be deemed to be approved when the percentage
of total votes cast in favor of the proposal equals or exceeds such
required percentage. The proposal shall be deemed to be rejected when the
number of votes cast in opposition renders approval impossible or when
both the date for return of ballots has passed and such required
percentage has not been met. Unless otherwise prohibited by the
declaration, articles of incorporation or bylaws, the votes may be
counted from time to time before the final return date to determine
whether the proposal has passed or failed by the votes already cast on
the date they are counted.

(4) All solicitations for votes by written ballot shall state the
following:

(a) If approval of a proposal by written ballot requires that the
total number of votes cast equal or exceed a certain quorum requirement,
the number of responses needed to meet such quorum requirement; and

(b) If approval of a proposal by written ballot requires that a
certain percentage of total votes cast approve the proposal, the required
percentage of total votes needed for approval.

(5) All solicitations for votes by written ballot shall specify the
period during which the association shall accept written ballots for
counting, which period shall end on the earliest of the following dates:

(a) If approval of a proposed action by written ballot requires
that a certain percentage of the unit owners approve the proposal, the
date on which the association has received a sufficient number of
approving ballots;

(b) If approval of a proposed action by written ballot requires
that a certain percentage of the unit owners approve the proposal, the
date on which the association has received a sufficient number of
disapproving ballots to render approval impossible; and

(c) In all cases, a date certain on which all ballots must be
returned to be counted.

(6) Except as otherwise provided in the declaration, articles of
incorporation, or bylaws, a written ballot may not be revoked. [1997
c.816 §17; 2001 c.756 §44; 2003 c.569 §34]Note: 100.425 was added to and made a part of ORS chapter 100 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation. (1) Unless the bylaws provide otherwise, the
vote or votes of a unit owner may be cast by absentee ballot or pursuant
to a proxy executed by the owner.

(2) An owner may not revoke a proxy given pursuant to this section
except by actual notice of revocation to the person presiding over a
meeting of the association of unit owners or to the board of directors if
a vote is being conducted by written ballot in lieu of a meeting pursuant
to ORS 100.425.

(3) A proxy is not valid if it is undated or purports to be
revocable without notice. A proxy shall terminate one year after its date
unless the proxy specifies a shorter term. [1999 c.677 §61; 2003 c.569
§35]Note: 100.427 was added to and made a part of ORS chapter 100 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation. The deed of a unit shall contain:

(1) The name of the property, and the recording index numbers and
date of recording of the declaration and in the case of a staged or
flexible condominium, the applicable supplemental declaration or
declaration amendment.

(2) The unit designation of the unit.

(3) Any further details the grantor and grantee may consider
desirable. [Formerly 94.171] (1) If
the bylaws provide that the association of unit owners has the sole
authority to decide whether to repair or reconstruct a unit that has
suffered damage or that a unit must be repaired or reconstructed, the
board of directors shall obtain and maintain at all times and shall pay
for out of the common expense funds, the following insurance covering
both the common elements and individual units:

(a) Property insurance including, but not limited to, fire,
extended coverage, vandalism and malicious mischief; and

(b) Insurance covering the legal liability of the association of
unit owners, the unit owners individually and the manager including, but
not limited to, the board of directors, the public and the unit owners
and their invitees or tenants, incident to ownership, supervision,
control or use of the property. There may be excluded from the policy
required under this paragraph, coverage of a unit owner, other than
coverage as a member of the association of unit owners or board of
directors, for liability arising out of acts or omissions of that unit
owner and liability incident to the ownership or use of the part of the
property as to which that unit owner has the exclusive use or occupancy.
Liability insurance required under this paragraph shall be issued on a
comprehensive liability basis and shall provide a cross liability
indorsement providing that the rights of a named insured under the policy
shall not prejudice any action against another named insured.

(2) If the bylaws require the individual unit owners to obtain
insurance for their units, the bylaws also shall contain a provision
requiring the board of directors to obtain the following insurance
covering the common elements:

(a) Property insurance including, but not limited to, fire,
extended coverage, vandalism and malicious mischief; and

(b) Insurance covering the legal liability of the association of
unit owners and the manager including, but not limited to, the board of
directors, to the public or the unit owners and their invitees or
tenants, incident to supervision, control or use of the property.

(3) The board of directors shall obtain, if reasonably available,
terms in insurance policies under this section that provide a waiver of
subrogation by the insurer as to any claims against the board of
directors of the association, any owner or any guest of an owner.
[Formerly 94.177; 1999 c.677 §50](1) Subsequent to recording a declaration and while the property
remains subject to this chapter, no lien shall arise or be effective
against the property. During such period liens or encumbrances shall
arise or be created only against each unit and the undivided interest in
the common elements appertaining thereto, in the same manner and under
the same conditions as liens or encumbrances may arise or be created upon
or against any other separate parcel of real property subject to
individual ownership.

(2) No labor performed or materials furnished with the consent or
at the request of a unit owner, the agent, contractor or subcontractor of
the unit owner, shall be the basis for the filing of a mechanic’s or
materialman’s lien against the unit of any other unit owner not
consenting to or requesting the labor to be performed or the materials to
be furnished, except that consent shall be considered given by the owner
of any unit in the case of emergency repairs thereto performed or
furnished with the consent or at the request of the board of directors.

(3) If a lien becomes effective against two or more units, the
owner of each unit subject to such a lien shall have the right to have
the unit of the owner released from the lien by payment of the amount of
the lien attributable to the unit. The amount of the lien attributable to
a unit and the payment required to satisfy such a lien, in the absence of
agreement, shall be determined by application of the allocation
established in the declaration. Such partial payment, satisfaction or
discharge shall not prevent the lienor from proceeding to enforce the
rights of the lienor against any unit and the undivided interest in the
common elements appertaining thereto not so released by payment,
satisfaction or discharge. [Formerly 94.185]Where a leasehold interest is submitted to the provisions of
this chapter, the master lease shall:

(1) Contain independent default clauses, the effect of which shall
be that a unit owner cannot be evicted because the board of directors of
the association of unit owners has defaulted so long as the unit owner
has paid the pro rata share of the unit owner of the funds necessary to
correct the default or because another unit owner has defaulted.

(2) Contain the procedure for the submission of the fee simple
interest in the property to the condominium if the lease includes an
option for the unit owners to purchase the fee simple interest.

(3) Be recorded in the office of the recording officer before the
declaration for the property is recorded in accordance with ORS 100.100.
[Formerly 94.190; 2001 c.756 §45](1) Whenever an association of
unit owners levies any assessment against a unit, the association of unit
owners shall have a lien upon the individual unit and the undivided
interest in the common elements appertaining to such unit for any unpaid
assessments. The lien includes interest, late charges, attorney fees,
costs or other amounts levied under the declaration or bylaws. The lien
is prior to a homestead exemption and all other liens or encumbrances
upon the unit except:

(a) Tax and assessment liens; and

(b) A first mortgage or trust deed of record unless:

(A) The condominium consists of fewer than seven units, all of
which are to be used for nonresidential purposes;

(B) The declaration provides that the lien of any mortgage or trust
deed of record affecting the property shall be subordinate to the lien of
the association provided under subsection (1) of this section; and

(C) The holder of any mortgage or trust deed of record affecting
the property when the declaration is recorded executes a separate
subordination of the holder’s interest to the declaration which is
attached as an exhibit and which states that the holder understands that
the declaration subordinates the holder’s lien to the assessment lien of
the association provided under subsection (1) of this section.

(2) Recording of the declaration constitutes record notice and
perfection of the lien for assessments. No further recording of a claim
of lien for assessments or notice of a claim of lien under this section
is required to perfect the association’s lien. The association shall
record a notice of claim of lien for assessments under this section in
the deed records of the county in which the unit is located before any
suit to foreclose may proceed under subsection (4) of this section. The
notice shall contain:

(a) A true statement of the amount due for the unpaid assessments
after deducting all just credits and offsets;

(b) The name of the owner of the unit, or reputed owner, if known;

(c) The name of the condominium and the designation of the unit as
stated in the declaration or applicable supplemental declaration; and

(d) A statement that if the owner of the unit thereafter fails to
pay any assessments when due, as long as the original or any subsequent
unpaid assessment remains unpaid, the unpaid amount of assessments
automatically continue to accumulate with interest without the necessity
of further recording.

(3) The notice shall be verified by the oath of some person having
knowledge of the facts and shall be recorded by the county recording
officer. The record shall be indexed as other liens are required by law
to be indexed.

(4)(a) The proceedings to foreclose liens created by this section
shall conform as nearly as possible to the proceedings to foreclose liens
created by ORS 87.010 except, notwithstanding ORS 87.055, a lien may be
continued in force for a period of time not to exceed six years from the
date the assessment is due. For the purpose of determining the date the
assessment is due in those cases when subsequent unpaid assessments have
accumulated under a notice recorded as provided in subsection (2) of this
section, the assessment and claim regarding each unpaid assessment shall
be deemed to have been levied at the time the unpaid assessment became
due.

(b) The lien may be enforced by the board of directors acting on
behalf of the association of unit owners.

(c) An action to recover a money judgment for unpaid assessments
may be maintained without foreclosing or waiving the lien securing the
claim for unpaid assessments.

(d) An action to foreclose a lien under this section or recover a
money judgment for unpaid assessments may not be maintained unless the
Condominium Information Report and the Annual Report described in ORS
100.250 are designated current as provided in ORS 100.255.

(5) Unless the declaration or bylaws provides otherwise, fees, late
charges, fines and interest imposed pursuant to ORS 100.405 (4)(j), (k),
(L) and (m) are enforceable as assessments under this section.

(6) With respect to condominium units also constituting timeshare
property as defined by ORS 94.803, liens created by this section shall be
assessed to the timeshare owners in the timeshare property according to
the method for determining each owner’s liability for common expenses
under the timeshare instrument and shall be enforced individually against
each timeshare owner in the condominium unit.

(7) Notwithstanding the priority established for a lien for unpaid
assessments and interest under subsection (1) of this section, the lien
shall also be prior to the lien of a first mortgage or trust deed of
record for the unit and the undivided interest in the common elements, if:

(a) The association of unit owners for the condominium in which the
unit is located has given the lender under the mortgage or trust deed 90
days prior written notice that the owner of the unit is in default in
payment of an assessment. The notice shall contain:

(A) Name of borrower;

(B) Recording date of trust deed or mortgage;

(C) Recording information;

(D) Name of condominium, unit owner and unit designation stated in
the declaration or applicable supplemental declaration; and

(E) Amount of unpaid assessment.

(b) The notice under paragraph (a) of this subsection shall set
forth the following in 10-point type:

___________________________________________________________________________
___

NOTICE: The lien of the association may become prior to that of the
lender pursuant to ORS 100.450.

___________________________________________________________________________
___

(c) The lender has not initiated judicial action to foreclose the
mortgage or requested issuance of a trustee’s notice of sale under the
trust deed or accepted a deed in lieu of foreclosure in the circumstances
described in ORS 100.465 prior to the expiration of 90 days following the
notice by the unit owners’ association.

(d) The unit owners’ association has provided the lender, upon
request, with copies of any liens filed on the unit, a statement of the
assessments and interest remaining unpaid on the unit and other documents
which the lender may reasonably request.

(e) The borrower is in default under the terms of the mortgage or
trust deed as to principal and interest.

(f) A copy of the notice described in paragraph (a) of this
subsection, together with an affidavit of notice by a person having
knowledge of the facts, has been recorded in the manner prescribed in
subsection (3) of this section. The affidavit shall recite the date and
the person to whom the notice was given. [Formerly 94.195; 1995 c.31 §13;
1997 c.816 §10; 1999 c.59 §18; 1999 c.677 §71; 2001 c.104 §31; 2003 c.569
§36]In any foreclosure suit against
a unit, the unit owner shall be required to pay a reasonable rental for
the unit, if so provided in the bylaws, and the plaintiff in such
foreclosure shall be entitled to the appointment of a receiver to collect
the rent. The board of directors, acting on behalf of the unit owners,
shall have power, unless prohibited by the declaration, to bid in the
unit at the foreclosure sale, and to acquire and hold, lease, mortgage
and convey the same. [Formerly 94.202]Unless the declarations or bylaws otherwise provide, a
deed in lieu of foreclosure accepted by the holder of a first mortgage or
the beneficiary of a first deed of trust in respect to a condominium unit
shall have the effect of extinguishing a lien of the association securing
unpaid assessments through the date of recording of the deed in lieu of
foreclosure in the following circumstances:

(1) Written notice has been given to the association, addressed to
the individual authorized to accept service of process sent by first
class mail, return receipt requested, notifying the association of the
mortgagee or beneficiary’s intent to accept a deed in lieu of foreclosure
and stating that the lien of the association may be extinguished in the
circumstances specified in this section; and

(2) The deed in lieu of foreclosure is recorded not later than 30
days after the date the notice is mailed to the association. [1989 c.595
§36; 2003 c.569 §36a]Note: 100.465 and 100.470 were added to and made a part of ORS
100.005 to 100.910 by legislative action but were not added to any
smaller series therein. See Preface to Oregon Revised Statutes for
further explanation.Unless otherwise provided in the
declaration or bylaws, in any suit or action brought by an association of
unit owners to foreclose its lien or to collect delinquent assessments or
in any suit or action brought by declarant, the association or any owner
or class of owners to enforce compliance with the terms and provisions of
the Oregon Condominium Act, the condominium declaration or bylaws,
including all amendments and supplements thereto or any rules or
regulations adopted by the association, the prevailing party shall be
entitled to recover reasonable attorney fees therein and in any appeal
therefrom. [1989 c.595 §37; 2001 c.756 §46]Note: See note under 100.465.(1) A unit owner
shall be personally liable for all assessments imposed on the unit owner
or assessed against the unit by the association of unit owners.

(2) Where the purchaser of a unit obtains title to the unit as a
result of foreclosure of the first mortgage or trust deed, such
purchaser, the successors and assigns of the purchaser, shall not be
liable for any of the assessments against such unit or its owner which
became due prior to the acquisition of title to such unit by such
purchaser except as specifically provided otherwise in ORS 100.450. Such
unpaid assessments shall be a common expense of all the unit owners
including such purchaser, the successors and assigns of the purchaser.

(3)(a) Subject to paragraph (b) of this subsection, in a voluntary
conveyance of a unit, the grantee shall be jointly and severally liable
with the grantor for all unpaid assessments against the grantor of the
unit to the time of the grant or conveyance, without prejudice to the
grantee’s right to recover from the grantor the amounts paid by the
grantee therefor.

(b) Upon request of an owner or owner’s agent, for the benefit of a
prospective purchaser, the board of directors shall make and deliver a
written statement of the unpaid assessments against the prospective
grantor or the unit effective through a date specified in the statement,
and the grantee in that case shall not be liable for any unpaid
assessments against the grantor not included in the written statement.

(4) An escrow agent or a title insurance company providing escrow
services or issuing title insurance in conjunction with the conveyance:

(a) May rely upon a written statement of unpaid assessments
delivered pursuant to this section; and

(b) Is not liable for a failure to pay to the association at
closing any amount in excess of the amount set forth in the written
statement. [Formerly 94.208; 1997 c.816 §11; 2003 c.569 §37](1) An association
of unit owners shall retain within this state the documents, information
and records delivered to the association under ORS 100.210 and all other
records of the association for not less than the period specified for the
record in ORS 65.771 or any other applicable law, except that:

(a) The documents specified in ORS 100.210 (5)(j), if received,
must be retained as permanent records of the association.

(b) Proxies and ballots must be retained for one year from the date
of determination of the vote.

(2) The association of unit owners shall keep financial records
sufficient for proper accounting purposes. All assessments shall be
deposited in a separate bank account, located within this state, in the
name of the association. All expenses of the association shall be paid
from the association bank account.

(3) Within 90 days after the end of the fiscal year, the board of
directors shall:

(a) Prepare or cause to be prepared an annual financial statement
consisting of a balance sheet and income and expenses statement for the
preceding fiscal year; and

(b) Distribute to each unit owner a copy of the annual financial
statement.

(4) Subject to section 26, chapter 803, Oregon Laws 2003, the
association of unit owners of a condominium that has annual assessments
exceeding $75,000 shall cause the financial statement required under
subsection (3) of this section to be reviewed within 180 days after the
end of the fiscal year by an independent certified public accountant
licensed in the State of Oregon in accordance with the Statements on
Standards for Accounting and Review Services issued by the American
Institute of Certified Public Accountants.

(5) The association of unit owners of a condominium that has annual
assessments of $75,000 or less shall cause the most recent financial
statement required by subsection (3) of this section to be reviewed in
the manner described in subsection (4) of this section within 180 days
after the board of directors receives the petition requesting review
signed by at least a majority of the owners.

(6) An association of unit owners subject to the requirements of
subsection (4) of this section may elect, on an annual basis, not to
comply with the requirements of subsection (4) of this section by an
affirmative vote of at least 60 percent of the owners, not including the
votes of the declarant with respect to units owned by the declarant.

(7)(a) The association shall provide, within 10 business days of
receipt of a written request from an owner, a written statement that
provides:

(A) The amount of assessments due from the owner and unpaid at the
time the request was received, including:

(i) Regular and special assessments;

(ii) Fines and other charges;

(iii) Accrued interest; and

(iv) Late payment charges.

(B) The percentage rate at which interest accrues on assessments
that are not paid when due.

(C) The percentage rate used to calculate the charges for late
payment or the amount of a fixed charge for late payment.

(b) The association is not required to comply with paragraph (a) of
this subsection if the association has commenced litigation by filing a
complaint against the owner and the litigation is pending when the
statement would otherwise be due.

(8)(a) Except as provided in paragraph (b) of this subsection, the
documents, information and records described in subsections (1) to (3) of
this section and all other records of the association of unit owners must
be reasonably available for examination and, upon written request,
available for duplication by a unit owner and any mortgagee of a unit
that makes the request in good faith for a proper purpose.

(b) Records kept by or on behalf of the association may be withheld
from examination and duplication to the extent the records concern:

(A) Personnel matters relating to a specific identified person or a
person’s medical records.

(B) Contracts, leases and other business transactions that are
currently under negotiation to purchase or provide goods or services.

(C) Communications with legal counsel that relate to matters
specified in subparagraphs (A) and (B) of this paragraph.

(D) Disclosure of information in violation of law.

(E) Documents, correspondence or management or board reports
compiled for or behalf of the association or the board of directors by
its agents or committees for consideration by the board of directors in
executive session held in accordance with ORS 100.420 (1).

(F) Documents, correspondence or other matters considered by the
board of directors in executive session held in accordance with ORS
100.420 (1).

(G) Files of individual owners, other than those of a requesting
owner or requesting mortgagee of an individual owner, including any
individual owner’s file kept by or on behalf of the association.

(9) The association of unit owners shall maintain a copy, suitable
for the purpose of duplication, of the following:

(a) The declaration and bylaws, including amendments or supplements
in effect, the recorded plat, if feasible, and the association rules and
regulations currently in effect;

(b) The most recent annual financial statement prepared in
accordance with subsection (3) of this section;

(c) The current operating budget of the association;

(d) The reserve study, if any, described in ORS 100.175; and

(e) Architectural standards and guidelines, if any.

(10) The association, within 10 business days after receipt of a
written request by an owner, shall furnish the requested information
required to be maintained under subsection (9) of this section.

(11) The board of directors, by resolution, may adopt reasonable
rules governing the frequency, time, location, notice and manner of
examination and duplication of association records and the imposition of
a reasonable fee for furnishing copies of any documents, information or
records described in this section. The fee may include reasonable
personnel costs incurred to furnish the information.

(12) Subsection (3) of this section first applies to property
submitted to the provisions of this chapter before January 1, 1982, when
the board of directors of the association of unit owners receives a
written request from at least one unit owner that a copy of the annual
financial statement be distributed in accordance with subsection (3) of
this section. [Formerly 94.214; 1999 c.677 §51; 2001 c.756 §47; 2003
c.569 §38; 2003 c.803 §22a]Note: Section 26, chapter 803, Oregon Laws 2003, provides:

Sec. 26. The requirements of ORS 100.480 (4) first apply:

(1) Commencing with the fiscal year following the turnover meeting
for the association of unit owners of a condominium created prior to
January 1, 2004, if the turnover meeting has not yet occurred on January
1, 2004.

(2) Commencing with the fiscal year beginning in calendar year 2004
for the association of unit owners of a condominium created prior to
January 1, 2004, if the turnover meeting has occurred on or before
January 1, 2004.

(3) Commencing with the fiscal year following the turnover meeting
for the association of unit owners of a condominium created on or after
January 1, 2004. [2003 c.803 §26](1) If entered into prior to the turnover meeting of the
condominium, no management agreement, service contract or employment
contract that is directly made by or on behalf of the association, the
board of directors or the unit owners as a group shall be in excess of
three years.

(2) Any contract or agreement that is subject to subsection (1) of
this section entered into after January 1, 1982, may be terminated
without penalty by the association or the board of directors upon not
less than 30 days’ written notice to the other party given not later than
60 days after the turnover meeting.

(3) The provisions of the Condominium and Cooperative Abuse Relief
Act of 1980 (15 U.S.C. 3601 to 3616), except for 15 U.S.C. 3609 and 3610,
shall not apply in the State of Oregon. [Formerly 94.221; 2005 c.22 §77](1) At least 10 days prior to instituting any
litigation or administrative proceeding to recover damages under ORS
100.405 (4)(e)(E), the association of unit owners shall provide written
notice to each affected owner of the association’s intent to seek damages
on behalf of the owner. The notice shall, at a minimum:

(a) Be mailed to the mailing address of each unit or to the mailing
addresses designated by the owners in writing to the association;

(b) Inform each owner of the general nature of the litigation or
proceeding;

(c) Describe the specific nature of the damages to be sought on the
owner’s behalf;

(d) Set forth the terms under which the association is willing to
seek damages on the owner’s behalf, including any mechanism proposed for
the determination and distribution of any damages recovered;

(e) Inform each owner of the owner’s right not to have the damages
sought on the owner’s behalf and specify the procedure for exercising the
right; and

(f) Inform the owner that exercising the owner’s right not to have
damages sought on the owner’s behalf:

(A) Relieves the association of its duty to reimburse or indemnify
the owner for the damages;

(B) Does not relieve the owner from the owner’s obligation to pay
dues or assessments relating to the litigation or proceeding;

(C) Does not impair any easement owned or possessed by the
association; and

(D) Does not interfere with the association’s right to make repairs
to common elements.

(2) Within 10 days of mailing the notice described in this section,
any owner may request in writing that the association not seek damages on
the owner’s behalf. If an owner makes such a request, the association
shall not make or continue any claim or action for damages with regard to
the objecting owner’s unit or interest and shall be relieved of any duty
to reimburse or indemnify the owner for damages under the litigation or
proceeding. [1999 c.677 §57; 2001 c.756 §48]Note: 100.490 was added to and made a part of ORS chapter 100 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation.ATTRIBUTES AND DUTIES OF OWNERSHIP (1) While the property is
submitted to the provisions of this chapter, a unit may be individually
conveyed and encumbered and may be the subject of ownership, possession
or sale and of all types of juridic acts inter vivos or mortis causa, as
if it were sole and entirely independent of the other units of which they
form a part, and the corresponding individual titles and interests shall
be recordable.

(2) Each unit owner shall be entitled to the exclusive ownership
and possession of the unit of the owner. [Formerly 94.231] Unless otherwise
provided in the declaration, if the declaration designates walls, floors
or ceilings as boundaries of a unit:

(1) All lath, furring, wallboard, plaster-board, plaster, paneling,
tiles, wallpaper, paint, finished flooring and any other materials
constituting any part of the finished surfaces thereof shall be a part of
the unit except those portions of the walls, floors or ceilings that
materially contribute to the structural or shear capacity of the
condominium. All other portions of the walls, floors or ceilings shall be
a part of the common elements.

(2) The following shall be a part of the unit:

(a) All spaces, nonbearing interior partitions, windows, window
frames, exterior doors, door frames and all other fixtures and
improvements within the boundaries of the unit; and

(b) All outlets of utility service lines, including but not limited
to power, light, gas, hot and cold water, heating, refrigeration, air
conditioning and waste disposal within the boundaries of the unit.
[Formerly 94.237; 1999 c.677 §52] (1) Each unit shall
be entitled to an undivided interest in the common elements in the
allocation expressed in the declaration. Such allocation shall be
expressed as a fraction or percentage of undivided interest in the common
elements. Except as otherwise provided in this chapter, the allocation of
undivided interest of each unit in the common elements as expressed in a
declaration shall not be altered unless all unit owners having an
interest in the particular common element agree thereto and record an
amendment to the declaration setting forth the altered allocation of each
unit having an interest.

(2) The sums of the undivided interest in the common elements shall
equal one if stated as fractions or 100 percent if stated as percentages.

(3) The undivided interest in the common elements shall not be
separated from the unit to which it appertains and shall be conveyed or
encumbered with the unit even though such interest is not expressly
mentioned or described in the conveyance or other instrument.

(4) The common elements shall remain undivided and no unit owner
shall bring any action for partition or division of any part thereof,
except as provided in this chapter. Any covenant to the contrary is void.

(5) Notwithstanding subsections (1) and (3) of this section, except
where expressly prohibited by the declaration or bylaws, the right of use
of any unit in a limited common element may be transferred to any other
unit. Such transfer shall occur only if the existing unit owner and all
mortgagees of the unit for which the right of use of the limited common
element is presently reserved and the unit owner to whom the right of use
is being transferred agree to and record an amendment to the declaration
setting forth the transfer.

(6) Notwithstanding subsections (1) and (3) of this section, in the
case where a single unit is originally designed and constructed to be two
or more separate hotel, motel or other similar living accommodations with
separate bathrooms and separate entrances from a hallway, balcony,
staircase or other common element, the owner, or owners, with the consent
of the holder, or holders, of any recorded mortgage or lien on the unit,
may separate such unit into two or more units each having such separate
bathrooms and entrances from such common elements. Such persons may
divide between such separate units the allocation of the common elements
assigned to the original unit on substantially the basis that the square
footage of such separated units bears to the total square footage of the
original unit by recording an amendment to the declaration signed by such
owner, or owners, of original unit together with an amendment to any plat
and floor plan of such original unit recorded pursuant to ORS 100.115
showing the division thereof into such two or more units. The amendment
shall comply with ORS 100.115. Such separated parts of the original unit
shall not be used for any purpose other than the purpose for which such
separable parts were originally designed and constructed and thereafter
have generally been used. [Formerly 94.243] (1) Except as
otherwise provided in the declaration, each unit shall have an easement
through each other unit and through the common elements for utility,
wiring, heat, plumbing and other service elements, and for reasonable
access required to effectuate and continue proper operation of the
condominium.

(2) Each unit and all common elements shall have an easement over
all adjoining units and common elements for the purpose of accommodating
any present or future encroachment as a result of engineering errors,
construction, reconstruction, repairs, settlement, shifting, or movement
of any portion of the property, or any other similar cause, and any
encroachment due to building overhang or projection. There shall be valid
easements for the maintenance of the encroaching units and common
elements so long as the encroachments shall exist, and except as
otherwise provided in subsection (3) of this section, the rights and
obligations of owners shall not be altered in any way by the encroachment.

(3) The easement described under subsection (2) of this section
does not relieve a unit owner of liability in case of willful misconduct
of a unit owner or relieve a declarant or any contractor, subcontractor
or materialman of liability for failure to adhere to the plat and any
floor plans recorded pursuant to ORS 100.115.

(4) The encroachments described in subsection (2) of this section
shall not be construed to be encumbrances affecting the marketability of
title to any unit. [Formerly 94.250; 2001 c.756 §49] (1) Unless otherwise provided in the
declaration, each unit shall be entitled to one vote.

(2) Unless otherwise provided in the declaration or bylaws:

(a) An executor, administrator, guardian or trustee may vote, in
person or by proxy, at a meeting of the association with respect to a
unit owned or held in a fiduciary capacity, whether or not the same has
been transferred to the fiduciary, if the person satisfies the secretary
that the person is the executor, administrator, guardian or trustee
holding the unit in a fiduciary capacity.

(b) Whenever a unit is owned by two or more persons jointly,
according to the records of the association:

(A) Except as provided in this subsection, the vote or proxy of the
unit may be exercised by any one of the owners present, in the absence of
protest by a co-owner. In the event of a disagreement among the
co-owners, the vote of the unit shall be disregarded completely in
determining the proportion of votes given with respect to the matter.

(B) A valid court order may establish the right of co-owners’
authority to vote. [Formerly 94.255; 2001 c.756 §50](1) Unless otherwise provided in the
declaration, the common profits of the property shall be distributed
among, and the common expenses shall be charged to, the unit owners
according to the allocation of undivided interest of each unit in the
common elements.

(2) No unit owner by the owner’s own action may claim exemption
from liability for contribution towards the common expenses by waiver by
the owner of the use or enjoyment of any of the common elements or by
abandonment by the owner of the owner’s unit. An owner may not claim an
offset against an assessment for failure of the association to perform
its obligations.

(3) Subject to subsection (4) of this section:

(a) The declarant shall pay assessments due for operating expenses
on all unsold units:

(A) From the date of conveyance of the first unit in the
condominium; and

(B) For a staged or flexible condominium, from the date of
recording the applicable supplemental declaration and supplemental plat
recorded pursuant to ORS 100.120.

(b) From the date of conveyance of the first unit in the
condominium, the declarant shall pay assessments due for reserves on all
unsold units.

(c) The declarant may defer payment of accrued assessments for
reserves required under ORS 100.175 for a unit until the date the unit is
conveyed. However, the declarant may not defer payment of accrued
assessments for reserves:

(A) Beyond the date of the turnover meeting provided for in the
bylaws in accordance with ORS 100.210; or

(B) If a turnover meeting is not held, the date the owners assume
administrative control of the association.

(d) Failure of the declarant to deposit the balance due within 30
days after the due date constitutes a violation under ORS 100.545.

(e) The books and records of the association shall reflect the
amount the declarant owes for all reserve account assessments.

(4)(a) The association shall not assess units owned by the
declarant for additional capital improvements without the written consent
of the declarant as long as:

(A) In a single stage condominium, the declarant owns more than two
units or five percent of the units, whichever is greater.

(B) In a staged or flexible condominium, the declarant owns more
than two units or five percent of the units submitted to the provisions
of this chapter, whichever is greater, or the termination date has not
expired.

(b) The declarant may waive the declarant’s right of consent
provided in paragraph (a) of this subsection.

(5)(a) Except with respect to assessments for reserves required by
ORS 100.175, a declaration or bylaws may provide that, until the turnover
meeting, the declarant may elect to defer commencement of all or part of
common expense assessments as to all units in a condominium or as to all
units in a stage of a condominium or as to all units created by a
supplemental declaration and plat pursuant to ORS 100.150.

(b) If a declarant so elects to defer commencement of all or part
of common expense assessments, declarant shall pay as they accrue and be
responsible for all or part of the common expenses attributable to the
condominium or attributable to the stage of the condominium or the units
and common elements created by such supplemental declaration and plat for
which assessments have been deferred, until assessments commence for all
common expenses.

(c) The declarant shall give not less than 10 days’ written notice
to all affected unit owners prior to the commencement of common expense
assessments if such a deferral occurs. [Formerly 94.260; 1999 c.677 §53;
2001 c.756 §51] (1) Subject to
subsections (2) and (3) of this section and any additional limitations
contained in the declaration or bylaws, a unit owner:

(a) May make any improvements or alterations to the unit of the
unit owner that do not impair the structural integrity or mechanical
systems of the condominium or lessen the support of any portion of the
condominium.

(b) After acquiring an adjoining unit or an adjoining part of an
adjoining unit, may submit a written request to the board of directors
for permission to remove or alter any intervening partition or to create
apertures therein, even if the partition in whole or in part is a common
element. The board of directors shall approve the change unless it
determines within 45 days that the proposed change will impair the
structural integrity or mechanical systems of the condominium or lessen
the support of any portion of the condominium. The board of directors may
require the unit owner, at the expense of the unit owner, to submit an
opinion of a registered architect or registered professional engineer
that the proposed change will not impair the structural integrity or
mechanical systems of the condominium or lessen the support of any
portion of the condominium. Removal of partitions or creation of
apertures under this paragraph is not an alteration of boundaries.

(2) A unit owner shall make no repair or alteration or perform any
other work on the unit which would jeopardize the soundness or safety of
the property, reduce the value thereof, impair any easement or
hereditament or increase the common expenses of the association unless
the consent of all the other unit owners affected is first obtained.

(3) Unless otherwise provided in the declaration or bylaws, a unit
owner may not change the appearance of the common elements or the
exterior appearance of a unit without permission of the board of
directors of the association. [Formerly 94.265](1) Each unit owner may use the common elements in
accordance with the purposes for which they are intended, but may not
hinder or encroach upon the lawful rights of the other unit owners.

(2) The necessary work of maintenance, repair and replacement of
the common elements and additions or improvements to the common elements
shall be carried out only as provided in the bylaws.

(3) The association of unit owners shall have the right to have
access to each unit as may be necessary for the maintenance, repair or
replacement of the common elements, or to make emergency repairs therein
necessary for the public safety or to prevent damage to the common
elements or to another unit. [Formerly 94.270] Each unit
owner and the declarant shall comply with the bylaws and with the
administrative rules and regulations adopted pursuant thereto, and with
the covenants, conditions and restrictions in the declaration or in the
deed to the unit. Failure to comply therewith shall be grounds for an
action maintainable by the association of unit owners or by an aggrieved
unit owner. [Formerly 94.275] (1) Service of process in any action
relating to the condominium may be made on:

(a) If the condominium was submitted to the provisions of this
chapter before October 3, 1989, the person designated in the declaration
to receive service of process;

(b) The person named as designated agent in the Condominium
Information Report filed with the Real Estate Agency under ORS 100.250;

(c) If the association is organized as a corporation under Oregon
law, the registered agent in accordance with ORS 60.111 or 61.086 (1987
Replacement Part); or

(d) The chairperson or secretary of the association.

(2) Except as provided in subsection (4) of this section, if the
association of unit owners of property submitted to the provisions of
this chapter before October 15, 1983, wishes to designate a person other
than the one named in the declaration to receive service of process in
the cases provided in subsection (1) of this section, it shall record an
amendment to the declaration. The amendment shall be certified by the
chairperson and the secretary of the association of unit owners, and
shall state the name of the successor with the successor’s residence or
place of business as required by ORS 100.105 (1)(k), and that the person
named in the amendment was designated by resolution duly adopted by the
association of unit owners.

(3) Unless prohibited by the declaration or bylaws, the board of
directors of the association of unit owners of property submitted to the
provisions of this chapter after October 15, 1983, may elect to designate
a person other than the one named in the declaration to receive service
of the process in the cases provided in subsection (1) of this section.
After the adoption of a resolution by the board of directors in
accordance with the bylaws, the board of directors, without the need for
further action by the association or approval under ORS 100.110 and
100.135, shall record an amendment to the declaration. The amendment
shall be certified by the chairperson and the secretary of the
association of unit owners, and shall state the name of the successor
with the successor’s residence or place of business as required by ORS
100.105 (1)(k), that the person named in the amendment has consented to
the designation and that the resolution was duly adopted by the
association of unit owners.

(4) Subsection (3) of this section applies to property submitted to
the provisions of this chapter before October 15, 1983, if:

(a) The board of directors of the association of unit owners
receives a written request from at least one unit owner that subsection
(3) of this section applies; or

(b) The board of directors of the association of unit owners adopts
a resolution in accordance with the bylaws of the association that
subsection (3) of this section applies. [Formerly 94.280; 1995 c.31 §14;
1999 c.677 §54; 2001 c.756 §61](1)(a) Each unit with its allocation of undivided
interest in the common elements shall be considered a parcel of real
property, whether fee simple, leasehold, easement or other interest or
combination thereof, subject to separate assessment and taxation by any
taxing unit in like manner as other parcels of real property. A unit
created by a declaration or supplemental declaration recorded with the
recording officer under ORS 100.100 or 100.120 shall be assessed in the
name of the unit owner.

(b) The common elements may not be considered a separate parcel for
purposes of taxation.

(2) In determining the real market value of a unit with its
undivided interest in the common elements, the county assessor may use
the allocation of undivided interest in the common elements appertaining
to a unit as expressed in the declaration. Determination of real market
value of a unit based upon a leasehold estate shall be the same as a unit
in fee simple. There shall be no diminution of value by reason of the
term of said lease.

(3) Exemptions from executions and real property taxes apply to the
owner of each unit or to the individual units, as the case may be.

(4) The Department of Revenue shall have the authority to make
rules and regulations prescribing methods best calculated to secure
uniformity according to law in the appraisal and assessment of units
constituting part of a property submitted to the provisions of this
chapter. [Formerly 94.285; 1991 c.459 §340; 2001 c.756 §52]REMOVAL OF PROPERTY FROM UNIT OWNERSHIP(1)(a) Subject to ORS 100.605, the condominium may be
terminated if all of the unit owners remove the property from the
provisions of this chapter by executing and recording an instrument to
that effect and the holders of all liens affecting the units consent
thereto or agree, in either case by instruments duly recorded, that their
liens be transferred to the undivided interest of the unit owner in the
property after the termination. The instrument shall state the interest
of each unit owner and lienholder as determined under ORS 100.610.

(b) The recording of an instrument of termination shall vacate the
plat but shall not vacate or terminate any recorded covenants,
restrictions, easements or other interests not imposed under the
declaration or bylaws or any easement granted by the plat unless the
instrument of termination otherwise provides.

(c) Before the instrument of termination may be recorded, it must
be signed by the county assessor for the purpose of acknowledging that
the county assessor has been notified of the proposed termination.

(d) The person offering the instrument of termination for recording
shall cause a copy of the recorded instrument, including the recording
information, to be filed with the commissioner. The county clerk shall
promptly provide a certified copy of the recorded instrument of
termination to the county assessor and the county surveyor. Upon receipt
of the instrument of termination, the county surveyor shall make
appropriate annotations, including the date and surveyor’s name or
initials, with archival quality black ink on the surveyor’s copy of the
plat and any copies filed under ORS 92.120. Corrections or changes shall
not be allowed on the original plat once it is recorded with the county
clerk.

(e) Failure to file the copies as required under paragraph (d) of
this subsection shall not invalidate the termination.

(2) A portion of the property may be removed from the provisions of
this chapter by recording simultaneously with the recording officer an
amendment to the declaration and an amended plat approved as required
under ORS 100.110, 100.115 and 100.135. The amendment to the declaration
shall:

(a) Include a metes and bounds legal description of the property
being removed;

(b) Include a metes and bounds legal description of the resulting
boundaries of the condominium after the removal;

(c) State the interest of each owner and lienholder in the property
being removed;

(d) State the interest of each unit owner and lienholder in the
condominium after the removal;

(e) Be approved and executed by all owners and lienholders and
acknowledged in the manner provided for acknowledgment of deeds; and

(f) Include a statement by the local governing body or appropriate
department thereof that the removal will not violate any applicable
planning or zoning regulation or ordinance. The statement may be attached
as an exhibit to the amendment.

(3) The amended plat required under subsection (2) of this section
shall:

(a) Comply with ORS 100.115 (9) and (10);

(b) Include a “Statement of Removal” that the property described on
the amended plat is removed from the condominium and that the condominium
exists as described and depicted on the amended plat. Such statement
shall be made by the chairperson and secretary of the association and
acknowledged in the manner provided for acknowledgment of deeds; and

(c) Include such signatures of approval as may be required by local
ordinance or regulation.

(4) The tax collector for any taxing unit having a lien for taxes
or assessments shall have authority to consent to such a transfer of any
tax or assessment lien under subsection (1) of this section or the
removal of a portion of the property under subsection (2) of this
section. [Formerly 94.295; 1991 c.763 §29; 1997 c.816 §12; 1999 c.710 §8;
2001 c.756 §62; 2005 c.22 §78](1) If 90 percent of the unit
owners agree that the property is obsolete and shall be sold, the
property shall be considered removed from the provisions of this chapter.

(2) Except where the declaration or bylaws provide to the contrary,
if all or part of the property is damaged or destroyed, then the
association of unit owners shall repair, reconstruct or rebuild the
property, unless 60 percent of the unit owners agree that the property
shall not be repaired, reconstructed or rebuilt. If 60 percent of the
unit owners agree that the property shall not be repaired, reconstructed
or rebuilt, the property shall be considered removed from the provisions
of this chapter.

(3) Removal of the condominium or a portion thereof from the
provisions of this chapter under subsections (1) or (2) of this section
shall comply with all of the requirements of ORS 100.600 except that the
percent of the owners required to take action shall conform only to
subsections (1) or (2) of this section, as applicable. [Formerly 94.300](1) If the property is removed from the provisions of
this chapter, as provided by ORS 100.600 (1) and 100.605, the property
shall be considered owned in common by all the unit owners. The
respective interest of a unit owner shall be the total of the fair market
value of the unit of the unit owner and common element interest
appertaining to such unit immediately before termination of the
condominium. The proportion of any unit owner’s interest to that of all
unit owners is determined by dividing the fair market value of that unit
owner’s unit and common element interest by the total fair market values
of all units and common element interests. The fair market value of each
unit and common element interest appertaining to such unit shall be
determined by:

(a) Agreement of all of the unit owners; or

(b) An independent appraiser selected by the board of directors of
the association. The decision of the appraiser shall be distributed to
the unit owners and shall become final unless within 15 days after the
distribution, the board of directors receives written objection from at
least 25 percent of the unit owners. In such event, a new appraiser shall
be selected by the presiding judge for the judicial district in which the
property is located. Such appraiser’s decision shall be final.

(2) All costs and expenses incurred under subsection (1) of this
section shall be common expenses.

(3) In the event any part of the property has been damaged or
destroyed, the appraiser may use any available data and information
pertaining to the condominium including, but not limited to, building
plans, prior appraisals and information on file with governmental
authorities.

(4) Liens affecting any unit shall be liens, in accordance with the
then existing priorities, against the undivided interest of the unit
owner in the property owned in common.

(5) If a portion of the property is removed from the provisions of
this chapter, as provided by ORS 100.600 (2), the respective interest of
each unit owner and lienholder in the property removed and the remaining
condominium shall be as stated in the amendment to the declaration in
accordance with ORS 100.600 (2)(c) and (d). [Formerly 94.306; 1995 c.781
§37] If the
property is removed from the provisions of this chapter, as provided in
ORS 100.600 and 100.605, it shall be subject to an action for partition
at the suit of any unit owner. The net proceeds of sale, together with
the net proceeds of the insurance on the property, if any, shall be
considered as one fund and shall be divided among the unit owners in
proportion to their respective undivided interests as determined under
ORS 100.600 and 100.610 after first paying out of the respective shares
of the unit owners, to the extent sufficient for the purpose, all liens
on the undivided interest in the property owned by each unit owner.
[Formerly 94.312] The
termination of the condominium or the removal of a portion of the
property from the condominium shall in no way bar its resubmission.
[Formerly 94.318]DIVIDING OR CONVERTING UNITS (1) Subject to
the provisions of the declaration and any applicable law, and upon
compliance with this section:

(a) A unit designated in the declaration to be used for commercial,
industrial or other nonresidential purpose may be divided by an owner,
including the declarant, into two or more units.

(b) A unit owned by the declarant and located in a condominium that
consists exclusively of units designated in the declaration to be used
for nonresidential purposes, may be divided or converted into two or more
units, common elements or a combination of units and common elements.

(2) The owner of a unit to be divided or converted shall submit to
the board of directors of the association of unit owners a proposed
amendment which shall:

(a) State the purposes of the amendment;

(b) Assign an identifying number to each unit created;

(c) Reallocate the interest in the common elements and the use of
any limited common elements, voting rights, common expense liability and
the right to common profits in the manner prescribed in the declaration;

(d) Indicate the means of access for each unit to common elements;
and

(e) Include any additional provisions necessary to conform any
other provisions of the declaration or bylaws.

(3) The board of directors shall approve the proposed amendment
unless the board determines within 45 days that the amendment is
inconsistent with the declaration or bylaws, or the division or
conversion will impair the structural integrity or mechanical systems of
the condominium or lessen the support of any portion of the condominium.

(4) The board of directors may require the owner of the unit to be
divided or converted to submit an opinion of a registered professional
engineer as to whether or not the proposed division or conversion will
impair the structural integrity or mechanical systems of the condominium
or weaken the support of any portion of the condominium. The board of
directors or any agent appointed by the board of directors may supervise
the work necessary to effect the division or conversion. Any expenses
incurred under this section shall be charged to the owner of the unit
requesting the division or conversion.

(5) The amendment shall be executed by the owner and mortgagees or
trust deed beneficiaries of the affected unit, certified by the
chairperson and secretary of the association and approved and recorded in
accordance with ORS 100.135 (2)(b).

(6) A plat showing each unit created or the conversion of a unit to
common elements or combination thereof shall be recorded in accordance
with ORS 100.115.

(7) This section applies only if the declaration expressly permits
and contains:

(a) A statement of the maximum number of units into which a unit
may be divided under subsection (1) of this section;

(b) A general description of the nature and proposed use of any
unit or portion of any unit which the declarant may convert to common
elements; and

(c) A statement of the method to be used to reallocate interest in
the common elements, the use of any limited common elements, voting
rights, common expense liability and right to common profits. [Formerly
94.322; 2003 c.569 §39]REGULATION OF SALES; FILING REQUIREMENTS Except as provided by ORS
100.660 and 100.665, prior to negotiating within this state for the sale
of a condominium unit located in another state, or prior to the sale of
any condominium unit located within this state, the developer shall file
the following information with the Real Estate Commissioner:

(1) General information on the condominium, including:

(a) The name and address of the condominium and the county in which
the condominium is located; and

(b) The name, address and telephone number of the developer.

(2) Two copies of the disclosure statement for the condominium
prepared in accordance with ORS 100.655.

(3) The documents for and other information on the condominium as
required by ORS 100.640.

(4) The filing shall be accompanied by a fee as provided in ORS
100.670. [Formerly 94.331] The following
documents and information shall be submitted to the Real Estate
Commissioner as part of the filing required under ORS 100.635:

(1) A copy of the proposed or recorded declaration or supplemental
declaration of condominium ownership drawn in conformance with ORS
100.105 or 100.120, or the law applicable in the state where the
condominium was created;

(2) A copy of the proposed or recorded bylaws drawn in conformance
with ORS 100.415 or the law applicable in the state where the condominium
was created;

(3) A copy of the full size plat prepared in conformance with ORS
100.115 (2) or the law applicable in the state where the condominium was
created, or a copy of the site plan;

(4) A statement from the county assessor or county surveyor that
the name for the condominium is acceptable under ORS 100.105 (6);

(5) A copy of a preliminary title report, title insurance policy or
condominium guarantee that has been issued within the preceding 30 days,
including a map showing the location of property described in the report,
policy or guarantee or other evidence of title satisfactory to the
commissioner;

(6) A copy of all restrictive covenants, reservations or other
documents that may create an encumbrance on or limit the use of the
property other than those restrictions contained in the declaration or
bylaws;

(7) A copy of the reserve study required by ORS 100.175 and other
sources of information that serve as a basis for calculating reserves in
accordance with ORS 100.175 (3), unless the information is contained in
the disclosure statement;

(8) The following sample forms:

(a) Unit sales agreement, including the notice to purchaser of
cancellation rights in accordance with ORS 100.730 and 100.740, the
statement required by ORS 93.040 (1) and any warranty required under ORS
100.185; and

(b) A receipt for documents required under ORS 100.725;

(9) If required by ORS 100.680:

(a) A copy of the escrow agreement drawn in conformance with ORS
100.680 and executed by both the declarant and the escrow agent. If
individual escrow agreements or instructions are to be executed by the
purchaser, other than the standard escrow instruction required by the
escrow agent, submit sample form and a letter from the escrow agent,
agreeing to the establishment of the escrows and the procedure set forth
in the sample form; and

(b) A unit sales agreement drawn in conformance with ORS 100.680;

(10) If any of the sales will be by means of an installment
contract of sale:

(a) A copy of the escrow agreement or escrow instructions executed
by the developer and the escrow agent providing for the establishment of
collection escrows and the deposit of documents in accordance with ORS
100.720; and

(b) The proposed installment contract of sale form, if available;

(11) Any other documents by which the purchasers will be bound;

(12) Any report or disclosure statement issued for the condominium,
by the federal government and any other state; and

(13) A statement of any additional facts or information which the
developer desires to submit to the commissioner. [Formerly 94.353; 1997
c.816 §13; 2001 c.756 §53] (1) The information
required by ORS 100.635 shall be kept current by the developer. Any
material change in the information furnished to the Real Estate
Commissioner shall be reported by the developer within 10 days after the
change occurs. The report shall be accompanied by a filing fee as
required by ORS 100.670.

(2) A developer shall be responsible for the accuracy of and for
providing all information required by ORS 100.635 and any information
required under this section for as long as the developer retains any
unsold interest in the condominium to which the information pertains.
[Formerly 94.342](1) Every nonresident developer, at the time of filing the
information required by ORS 100.635, shall also file with the Real Estate
Commissioner an irrevocable consent that if, in any suit or action
commenced against the nonresident developer in this state arising out of
a violation of any provision of this chapter, personal service of summons
or process upon the nonresident developer cannot be made in this state
after the exercise of due diligence, a valid service may thereupon be
made upon the nonresident developer by service on the commissioner.

(2) The consent shall be in writing executed and verified by an
officer of a corporation or association, a general partner of a
partnership or by an individual developer and shall set forth:

(a) The name of the developer.

(b) The address to which documents served upon the commissioner are
to be forwarded.

(c) If the developer is a corporation or unincorporated
association, that the consent signed by such officer was authorized by
resolution duly adopted by the board of directors.

(3) The address for forwarding documents served under this section
may be changed by filing a new consent in the form prescribed in
subsection (2) of this section.

(4) Service on the commissioner of any such process shall be made
by delivery to the commissioner or a clerk on duty in any office of the
commissioner, duplicate copies of such process, with duplicate copies of
any papers required by law to be delivered in connection with such
service.

(5) When the commissioner is served with any such process, the
commissioner shall immediately cause one of the copies thereof, with any
accompanying papers, to be forwarded by registered mail or by certified
mail with return receipt to the developer at the address set forth in the
consent.

(6) The commissioner shall keep a record of all processes, notices
and demands served upon the commissioner under this section, and shall
record therein the time of such service and the action with reference
thereto. [Formerly 94.348; 1991 c.249 §12](1) The disclosure statement
submitted to the Real Estate Commissioner as part of a filing under ORS
100.635 shall contain the following information:

(a) The name and address of the condominium, and the name, address
and telephone number of the developer;

(b) A general narrative description of the condominium stating the
total number of units, a description of the types of units, the total
number of units that may be included in the condominium pursuant to ORS
100.105 (2), and a precise statement of the nature of the interest which
is being offered;

(c) If at the time of filing:

(A) The construction of the project is not completed, general
disclosure of the status of construction and the actual or scheduled
dates of completion of buildings, recreational facilities and other
common elements, including a statement describing any recreational
facilities or improvements to the common elements that the developer
reserves the right to develop or promises to develop, or a statement that
there are no such facilities or improvements; or

(B) The construction of the project is completed, the actual dates
of completion of buildings, recreational facilities and other common
elements if known by the developer;

(d) The nature and significant terms of any financing offered by
the developer to purchasers of the condominium units;

(e) Copies of any warranties for structural elements and mechanical
and other systems or a brief description of such warranties;

(f)(A) A current or projected budget of the association of unit
owners for the operation and maintenance and any other common expenses of
the condominium, including an amount for a subsidy of the association by
the declarant, if any, by a contribution of funds, goods or services;

(B) A brief statement of the method of determining liability for
common expenses and the right to common profits; and

(C) The following notice in at least 12-point type that is either
all capitals or boldface:

___________________________________________________________________________
___

NOTICE TO PROSPECTIVE PURCHASERSTHE PROJECTION OF THE BUDGET OF THE ASSOCIATION OF UNIT OWNERS FOR THE
OPERATION AND MAINTENANCE AND OTHER COMMON EXPENSES OF THE CONDOMINIUM IS
ONLY AN ESTIMATE, PREPARED WITH DUE CARE.

___________________________________________________________________________
___

(g) If a provision for reserves under ORS 100.175 is included in
the budget disclosed under paragraph (f) of this subsection:

(A) A statement identifying the information constituting the basis
for the reserve assessment under ORS 100.175 (3)(b); and

(B) A statement that the information constituting the basis for the
reserve assessment identified under ORS 100.175 (3)(b) is available for
review upon written request to the declarant or the designated person,
unless included in the disclosure statement;

(h) In the case of a conversion condominium, a statement of:

(A) The present condition of all structural components and major
mechanical and utility installations in the condominium, including the
approximate date of construction and a reasonable estimate of the
remaining useful life of, at a minimum, the roof, siding, plumbing,
electrical, HVAC system, asphalt, sidewalks and decks;

(B) Whether or not the assessment of conditions under subparagraph
(A) of this paragraph, which shall be in at least 12-point type that is
all capitals or boldface, was prepared by a licensed engineer, architect
or home inspector; and

(C) The statutory procedure required to create a conversion
condominium;

(i) A cross-reference to the portions of the declaration, any
supplemental declaration and bylaws containing the general power and
authority of the board of directors, the method of apportionment of
voting rights among the members of the association of unit owners and a
statement of the nature and extent of control of the board of directors
retained by the developer by voting rights or otherwise;

(j) A list of the documents by which purchasers may be bound,
including the declaration, bylaws, ground leases, management agreement,
easements, covenants, restrictions and conditions;

(k) A statement of whether there are any restrictions on alienation
of units or any use or occupancy restrictions, such as limitations on
residential or commercial use, pets, age of occupants or number of
occupants, and a cross-reference to those portions of the declaration,
any supplemental declaration, bylaws or any other document containing the
principal provisions relating to those restrictions; and

(L) If the condominium is a staged condominium:

(A) Whether the declarant reserves the right to annex additional
property to the condominium pursuant to ORS 100.125 and, if so:

(i) The maximum number of units;

(ii) The date after which annexation right terminates;

(iii) The description of additional common elements declarant
reserves right to annex to the property and whether such common elements
might substantially increase the proportionate amount of common expenses
by current unit owners; and

(iv) The effect of annexation of additional units on allocation of
interest in the common elements and voting rights.

(B) If the condominium or any stage being filed under ORS 100.635
contains or may contain any variable property, a statement of the rights
reserved by the declarant under ORS 100.150 (1) and the results specified
in ORS 100.155 if such rights are not exercised.

(2) In lieu of the disclosure statement required under subsection
(1) of this section, the commissioner may accept a disclosure report
issued or approved by another state or governmental agency.

(3) No disclosure statement is required for condominiums described
in ORS 100.660.

(4) The declarant is not liable to the association or the owners
with respect to a statement of condition or estimate of useful life
contained in the disclosure statement if:

(a) The declarant did not have actual knowledge of any inaccuracies
in the statement at the time of delivery of the disclosure statement to
the purchaser; and

(b) The declarant relied upon reports prepared by licensed
engineers or architects in making the statement or, if the condominium
has four or fewer units, reports prepared by licensed engineers,
architects or home inspectors. [Formerly 94.351; 1997 c.816 §14; 1999
c.677 §55; 2001 c.756 §54; 2003 c.569 §40] A
developer of 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, 59.660 to 59.830, 59.991 and 59.995, shall submit to the Real
Estate Commissioner a filing that consists of:

(1) General information on the condominium including:

(a) The name and address of the condominium and the county in which
the condominium is located; and

(b) The name, address and telephone number of the developer and any
agent of the developer; and

(2) The following documentation:

(a) The original executed declaration or supplemental declaration
and a copy thereof, drawn in conformance with ORS 100.105 and 100.120, if
applicable;

(b) The original executed bylaws, and a copy thereof, drawn in
conformance with ORS 100.415;

(c) A copy of the full size plat prepared in conformance with ORS
100.115;

(d) A copy of a current preliminary title report or title insurance
policy or condominium guarantee that has been issued within the preceding
30 days, including a map showing the location of property described
therein, or other evidence of title satisfactory to the commissioner;

(e) A copy of all restrictive covenants, reservations or other
documents containing provisions that may create an encumbrance on or
limit the use of the property other than those restrictions contained in
the declaration, supplemental declaration or bylaws; and

(f) A statement from the county assessor that the name for the
condominium is acceptable under ORS 100.105 (5). [Formerly 94.356] A
vendor under a land sale contract, a mortgagee of a mortgage or a
beneficiary of a trust deed who becomes a developer by reason of
acquiring a unit or units in a condominium through foreclosure of its
lien or acceptance of a deed in lieu thereof, is not required to submit a
filing to the Real Estate Commissioner under ORS 100.635, or to
distribute a disclosure statement under ORS 100.705 or provide the notice
to purchaser required under ORS 100.740 if the vendor, mortgagee or
beneficiary sells, in a single sale, all of the units so acquired to a
developer who agrees to comply with the provisions of ORS 100.635 and
100.705 before negotiating a sale of the unit or units to others. [1989
c.595 §46] (1) A developer or other person
required to file materials or information with the Real Estate
Commissioner under ORS 100.005 to 100.910 shall pay to the commissioner a
fee as required under subsections (2) and (3) of this section for the
review, approval and handling of the filings by the commissioner at the
time of the initial filing with the commissioner.

(2) A fee charged by the commissioner under subsection (1) of this
section shall be determined by the commissioner to cover the costs of the
commissioner’s review, approval or revision activity. The fee shall be
based upon an hourly rate that is subject to prior approval of the Oregon
Department of Administrative Services and a report to the Emergency Board
prior to adopting the fee and shall be within the budget authorized by
the Legislative Assembly as that budget may be modified by the Emergency
Board.

(3) The commissioner shall collect a deposit of $100 from a
developer at the time of submitting a filing described in subsection (1)
of this section. The amount of the deposit shall be deducted from the
final fee computed as provided in subsection (2) of this section.
[Formerly 94.354; 1991 c.703 §3] (1)(a) Upon receipt
of an informational filing, submitted as required under ORS 100.005 to
100.910 and the prescribed filing fee, within five working days after
receipt of the filing the Real Estate Commissioner shall inventory the
filing and acknowledge whether the filing contains all required documents
and information. If the filing contains all required documents and
information, the commissioner shall issue a notice acknowledging their
receipt.

(b) If the filing under paragraph (a) of this subsection does not
contain the required documents and information, the commissioner shall
issue a notice of receipt of a partial filing, a statement itemizing the
required documents and information that must be submitted, and a
statement that the filing will not be acknowledged as containing all
required documents and information until the itemized documents and
information have been received and inventoried by the commissioner.

(c) Within 45 days from the date that the filing has been
inventoried and acknowledged as containing all the required documents and
information, the commissioner shall review the filing to determine
whether the documents and information submitted conform to the statutory
requirements of ORS 100.005 to 100.910 and, upon determination of their
conformity shall adopt and issue the disclosure statement filed under ORS
100.655.

(2) For any document filed with the commissioner that requires the
commissioner’s approval under ORS 100.005 to 100.910, the commissioner
shall issue a notice of receipt for the filing within five days following
receipt by the commissioner of the document. The document shall be
considered approved by the commissioner on the expiration of 45 days
following issuance by the commissioner of the notice of receipt, unless
within the 45-day period:

(a) The commissioner notifies the person making the filing in
writing of the portions of the document that do not comply with the
applicable requirements of ORS 100.005 to 100.910; or

(b) The commissioner notifies the person making the filing in
writing that the document complies with the applicable requirements of
ORS 100.005 to 100.910 and is approved. [Formerly 94.357] (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]INSPECTION OF CONDOMINIUM; DISCLOSURE STATEMENT
The Real Estate Commissioner may make an on-site inspection of any
condominium and require a report of the commissioner’s findings from such
inspection to be included in the disclosure statement for use in the sale
of the condominium. [Formerly 94.359](1) Except as
provided in ORS 100.665, no developer or agent of a developer shall enter
into a unit sales agreement prior to the issuance of the disclosure
statement for the condominium.

(2) A copy of the disclosure statement for a condominium shall be
given to the prospective purchaser of a unit in the condominium by the
developer or an agent of the developer, not later than the date the unit
sales agreement is fully executed by all parties. The developer shall
take a receipt from the prospective purchaser upon delivery of a copy of
the disclosure statement, and such receipts shall be kept on file within
this state in the possession of the developer or the agent of the
developer subject to inspection by the Real Estate Commissioner for a
period of three years from the date the receipt is taken.

(3) The disclosure statement shall not be used for advertising
purposes unless it is used in its entirety. No portion of the disclosure
statement shall be underscored, highlighted, italicized or printed in
larger or heavier type than the balance of the statement unless the true
copy of the statement so emphasizes such portion.

(4) The commissioner may furnish at cost copies of the disclosure
statement for the use of developers.

(5) Violations of this section shall be subject to the provisions
of ORS 646.605 to 646.656, in addition to other sanctions provided by
law. [Formerly 94.384] When an on-site inspection under ORS
100.700 is to be made of a condominium situated in the State of Oregon,
or situated outside the state which will be offered for sale within this
state, the Real Estate Commissioner, in addition to the fee provided in
ORS 100.670, may require the developer to advance a deposit. Such
deposits shall not exceed $200 per day for making the on-site inspection.
Any unexpended portion of the deposit shall be refunded to the developer.
[Formerly 94.391]REQUIREMENTS FOR SALE (1) No condominium unit
shall be sold by a developer by means of a land sale contract unless a
collection escrow is established within this state with a person or firm
authorized to receive escrows under the laws of this state and all of the
following are deposited in the escrow:

(a) A copy of the title report or abstract, as it relates to the
property being sold.

(b) The original sales document or a true copy thereof relating to
the purchase of the condominium unit.

(c) A commitment to give a partial release for the condominium unit
being sold from the terms and provisions of any blanket encumbrance. The
commitment shall be in a form satisfactory to the Real Estate
Commissioner.

(d) A document in good and sufficient form transferring the
interest purchased.

(2) The developer shall submit written authorization allowing the
commissioner to inspect all escrow deposits established pursuant to
subsection (1) of this section.

(3) In lieu of the procedures provided in subsection (1) of this
section, the developer shall conform to such alternative requirement or
method which the commissioner may deem acceptable to carry into effect
the intent and provisions of this section. [Formerly 94.400](1) Before the unit sales agreement is fully executed
by all parties, the developer shall deliver to the purchaser a copy of
the declaration and bylaws of the condominium and any supplements and
amendments thereto affecting the unit.

(2) When the unit sales agreement is fully executed by all parties,
the developer shall deliver to the purchaser a copy of the fully executed
agreement which contains the “Notice to Purchaser” required by ORS
100.740.

(3) The developer shall deliver to the purchaser prior to the
conveyance of the unit by deed, lease or contract any ground leases,
leases with the association for recreation or parking facilities and
escrow instructions applying to the transaction.

(4) The developer shall take a receipt from the purchaser upon the
delivery of the documents referred to in subsection (1) of this section,
and such receipts shall be kept on file within this state by the
developer or the agent of the developer subject to inspection by the Real
Estate Commissioner for a period of three years from the date the receipt
is taken. [Formerly 94.406](1) A purchaser of a
condominium unit may cancel for any reason the sale of a condominium unit
from a developer or any contract, agreement or evidence of indebtedness
associated with the sale of the condominium unit, within five business
days (excluding Saturdays and holidays) after the date on which the
latest of the following events occurs:

(a) The signing by the purchaser of the unit sales agreement;

(b) The signing by the purchaser of the receipt required under ORS
100.705 (2) upon the delivery of the disclosure statement, if any; or

(c) The signing by the purchaser of the receipt required under ORS
100.725 (4) upon delivery of a copy of the documents specified in ORS
100.725 (1).

(2) Cancellation, under subsection (1) of this section, occurs when
the purchaser of an interest gives written notice to the developer at the
developer’s address stated in the notice to purchaser required under ORS
100.740 (1).

(3) A notice of cancellation given by a purchaser of a condominium
unit need not take a particular form and is sufficient if it indicates by
any form of written expression the intention of the purchaser not to be
bound by the contract or evidence of indebtedness.

(4) Notice of cancellation, if given by mail, shall be given by
certified mail, return receipt requested, and is effective on the date
that such notice is deposited with the United States Postal Service,
properly addressed and postage prepaid.

(5) Upon receipt of a timely notice of cancellation, the developer
shall immediately return to the purchaser all payments received from the
purchaser. In case of payments made by check, the developer shall not be
required to return the payment to a purchaser until the check is finally
paid as provided in ORS 74.2130. Upon return of all such payments the
purchaser shall immediately transfer rights in the interest to the
developer, not subject to any encumbrance created or suffered by the
purchaser. In the case of cancellation by a purchaser of any evidence of
indebtedness, the purchaser shall return the purchaser’s copy of the
executed evidence of indebtedness to the developer, and the developer
shall cancel the evidence of indebtedness. Any encumbrances against the
purchaser’s interest in the unit arising by operation of law from an
obligation of the purchaser existing prior to transfer of the interest to
the purchaser shall be extinguished by the reconveyance.

(6) Except as otherwise provided in ORS 100.735, no act of a
purchaser shall be effective to waive the right of cancellation granted
by subsection (1) of this section. A developer may require that a
purchaser of a condominium unit execute and deliver to the developer,
after the expiration of the cancellation period, a signed statement
disclaiming any notice of cancellation that may have been made by the
purchaser prior to expiration of the cancellation period granted under
subsection (1) of this section and that may have been timely and properly
done under this section whether or not the statement has been received by
the developer. In case of execution of any such statement by the
purchaser, the statement shall be sufficient to rescind the notice of
cancellation.

(7) A purchaser’s right to cancel under subsection (1) of this
section terminates at the time of the closing of the unit purchase
transaction.

(8) This section shall not apply to:

(a) The sale of a unit in a condominium used or intended to be used
solely for commercial or industrial purposes;

(b) The sale of a condominium unit conducted by public auction; or

(c) A sale described in ORS 100.665. [Formerly 94.412] (1) A purchaser may waive the
right to cancellation granted under ORS 100.730 (1) after the unit sales
agreement is fully executed by all parties. The waiver shall be in
writing and dated and shall include a notice that by signing such
statement the purchaser waives only the right of cancellation granted
under ORS 100.730 (1) and no other right.

(2) No provision which obligates a purchaser to waive or limit the
right of cancellation granted under ORS 100.730 (1) shall be included in
the unit sales agreement or any other agreement associated with the sale.
[Formerly 94.418] (1)
Subject to ORS 100.730 (8), a unit sales agreement shall contain, either
upon the first page or upon a separate sheet attached to such first page,
the following notice in at least 12-point type that is all capitals or
boldface:

___________________________________________________________________________
___

NOTICE TO PURCHASER(RIGHT OF CANCELLATION)BY SIGNING A UNIT SALES AGREEMENT YOU ARE INCURRING A CONTRACTUAL
OBLIGATION TO PURCHASE AN INTEREST IN A CONDOMINIUM. HOWEVER, YOU HAVE
THE RIGHT TO CANCEL THIS AGREEMENT FOR ANY REASON FOR FIVE BUSINESS DAYS
(EXCLUDING SATURDAYS AND HOLIDAYS) AFTER WHICHEVER OF THE FOLLOWING IS
LAST TO OCCUR: (1) SIGNING BY THE PURCHASER OF THE UNIT SALES AGREEMENT; (2) SIGNING BY THE PURCHASER OF THE RECEIPT FOR THE DISCLOSURE
STATEMENT, IF ANY; OR (3) SIGNING BY THE PURCHASER OF THE RECEIPT FOR A COPY OF THE
CONDOMINIUM DECLARATION AND BYLAWS AND ANY AMENDMENTS OR SUPPLEMENTS
THERETO AFFECTING THE UNIT.

TO CANCEL THIS AGREEMENT, YOU MUST GIVE WRITTEN NOTICE TO THE DEVELOPER
OR THE AGENT OF THE DEVELOPER AT THE FOLLOWING ADDRESS:__________________

__________________

__________________

__________________

__________________(SUGGESTED PROCEDURE)BEFORE EXECUTING THIS AGREEMENT, OR BEFORE THE CANCELLATION PERIOD
ENDS, YOU SHOULD DO THE FOLLOWING: (1) CAREFULLY EXAMINE THE DISCLOSURE STATEMENT, IF ANY, ISSUED BY
THE REAL ESTATE COMMISSIONER ON THE CONDOMINIUM AND ALL ACCOMPANYING
INFORMATION DELIVERED BY THE DEVELOPER. OREGON LAW REQUIRES THE DEVELOPER
TO DELIVER TO YOU A COPY OF THE DECLARATION AND BYLAWS OF THE CONDOMINIUM
AND ANY SUPPLEMENTS AND AMENDMENTS THERETO AFFECTING THE UNIT PRIOR TO
THE TIME THE UNIT SALES AGREEMENT IS FULLY EXECUTED BY ALL PARTIES. A
COPY OF THE DECLARATION AND BYLAWS, AND ANY SUPPLEMENTS AND AMENDMENTS
THERETO, ARE AVAILABLE FROM THE ASSOCIATION FOR EXAMINATION AND
DUPLICATION, AT A REASONABLE FEE, UPON YOUR WRITTEN REQUEST. (2) INQUIRE OF YOUR LENDER WHETHER YOU CAN GET ADEQUATE FINANCING
ON AN ACCEPTABLE BASIS. (3) INQUIRE OF THE DEVELOPER AND THE LENDER WHAT THE AMOUNT OF THE
CLOSING COSTS WILL BE.

OREGON LAW REQUIRES THAT YOU IMMEDIATELY BE GIVEN A COPY OF THIS NOTICE
AND A COPY OF THE UNIT SALES AGREEMENT WHEN IT HAS BEEN FULLY EXECUTED BY
ALL PARTIES.___________________________________________________________________________
___

(2) Except as provided in ORS 100.665, a copy of the notice set
forth in subsection (1) of this section shall be given to each purchaser
at the time of or immediately following the purchaser’s signing of the
unit sales agreement, for the use of the purchaser. [Formerly 94.424;
2001 c.756 §55; 2003 c.569 §41](1) A purchaser of a vendor’s interest or a holder of an
encumbrance secured by a vendor’s interest in an installment contract of
sale for which an escrow has been established pursuant to ORS 100.720
shall deposit in the escrow any instruments necessary to assure that the
contract vendee can obtain the legal title bargained for upon compliance
with the terms and conditions of the contract.

(2) A developer who has sold interests in a condominium under an
installment contract of sale shall not dispose of or subsequently
encumber the vendor’s interest therein unless the terms of the instrument
of disposition or the encumbrance provide the means by which the
purchaser or holder of the encumbrance will comply with subsection (1) of
this section. [Formerly 94.431] Records of the sale of any
condominium unit shall be subject to inspection by the Real Estate
Commissioner and shall be made available to the commissioner in Oregon at
the request of the commissioner. [Formerly 94.437]PROHIBITED ACTS No developer or agent of a
developer shall, in connection with the sale of a condominium unit,
directly or indirectly:

(1) Employ any device, scheme or artifice to defraud;

(2) Make any untrue statement of a material fact or fail to state a
material fact necessary to make the statement made, in the light of the
circumstances under which it is made, not misleading;

(3) Engage in any act, practice or course of business which
operates or would operate as a fraud or deception upon any person;

(4) Issue, circulate or publish any prospectus, circular,
advertisement, printed matter, document, pamphlet, leaflet or other
literature, including a public report issued pursuant to ORS 100.700,
which contains an untrue statement of a material fact or fails to state a
material fact necessary in order to make the statements therein made, in
the light of the circumstances under which they are made, not misleading;

(5) Issue, circulate or publish any advertising matter or make any
written representation, including a public report issued pursuant to ORS
100.700, unless the name of the person issuing, circulating or publishing
the matter or making the representation is clearly indicated; or

(6) Make any statement or representation, or issue, circulate or
publish any advertising matter containing any statement to the effect
that the condominium has been in any way approved or indorsed by the Real
Estate Commissioner. [Formerly 94.448] It
shall be unlawful for any developer or agent of a developer, who with
intent, directly or indirectly, to sell a condominium unit, to authorize,
use, direct or aid in the publication, distribution or circularization of
any advertisement, radio broadcast or telecast concerning the
condominium, which contains any statement, pictorial representation or
sketch which is false or misleading. Nothing in this section shall be
construed to hold the publisher or employee of any newspaper, any job
printer, broadcaster or telecaster liable for any publication referred to
in this chapter unless the publisher, employee, printer, broadcaster or
telecaster has actual knowledge of the falsity thereof or has an interest
in the condominium advertised or the sale thereof. [Formerly 94.454] Any condition, stipulation or
provision in any sales contract or lease, or in any other legal document,
binding any purchaser or lessee to waive any legal rights under this
chapter against the developer shall be deemed to be contrary to public
policy and void. [Formerly 94.460] (1) Subject to the
provisions of ORS 100.720, a condominium unit may not be conveyed by a
developer subject to a blanket encumbrance.

(2) Notwithstanding subsection (1) of this section, the developer
shall conform to an alternative requirement or method which the Real
Estate Commissioner may deem acceptable to afford a purchaser the
protection provided by the prohibition in subsection (1) of this section.
[Formerly 94.465; 2001 c.756 §56]ENFORCEMENT (1) In addition to any other penalties
provided by law, the Real Estate Commissioner may impose a civil penalty
for violation of the provisions of ORS 100.015, 100.635 to 100.730 and
100.740 to 100.780 or any of the rules adopted thereunder. No civil
penalty shall exceed $1,000 per violation.

(2) Civil penalties under this section shall be imposed as provided
in ORS 183.745.

(3) All penalties recovered shall be paid into the State Treasury
and credited to the General Fund. [Formerly 94.470; 1991 c.734 §6] (1) Whenever the Real
Estate Commissioner finds that any developer or other person is violating
any of the provisions of ORS 100.015, 100.635 to 100.730 and 100.740 to
100.780 or the rules adopted thereunder or of the alternative
requirements of the commissioner prescribed pursuant to ORS 100.720 (3),
the commissioner may order the persons to desist and refrain from
violating such provisions or requirements, or from the further sale of
condominium units.

(2) Whenever the commissioner finds that any developer or other
person is violating, or has violated or is about to violate, any of the
provisions of ORS 100.015, 100.635 to 100.730 and 100.740 to 100.780 or
the rules adopted thereunder or the alternative requirements of the
commissioner prescribed pursuant to ORS 100.720 (3), the commissioner may
bring proceedings in the circuit court within the county in which the
violation or threatened violation has occurred or is about to occur, or
in the county where such person, firm or corporation resides or carries
on business, in the name of and on behalf of the people of the State of
Oregon against such person, firm or corporation, and any other person or
persons concerned in or in any way participating or about to participate
in such violation, to enjoin such person, firm or corporation or any
other person from continuing such violation or engaging therein or doing
any act or acts in furtherance thereof, and to apply for the appointment
of a receiver or conservator of the assets of the defendant where such
appointment is appropriate. [Formerly 94.475] The moneys received under this chapter shall
be paid into the State Treasury and placed to the credit of the General
Fund in the Oregon Real Estate Department Account. [Formerly 94.480]CRIMINAL PENALTIESSubject to ORS 153.022, any person who
violates any of the provisions of ORS 100.015, 100.635 to 100.730 and
100.740 to 100.780 or any rules adopted thereunder or any alternative
requirements of the Real Estate Commissioner prescribed pursuant to ORS
100.720 (3), shall be punished by a fine not exceeding $10,000, or by
imprisonment in the custody of the Department of Corrections for a period
not exceeding three years, or in the county jail not exceeding one year,
or by both such fine and imprisonment. [Formerly 94.991; 1999 c.1051 §300]

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USA Statutes : oregon