§ 646A.750 — Rebuttable presumptions; accounting; bona fide purchaser; memorandum of agreement; form

Oregon § 646A.750

• Jurisdiction: Oregon
• Vol.: 16
• Title 50: Trade Regulations and Practices
• Ch. 646A: Trade Regulation

Text

(1) For purposes of determining whether an equity purchaser has violated ORS 646A.745 (1)(a), there is a rebuttable presumption that:
(a) An equity seller has or will have a reasonable ability to pay for a subsequent reconveyance of a residential real property if, on the date the equity seller signs the equity conveyance contract, the monthly payments projected for the equity seller’s primary housing expenses under the contract and monthly payments for regular principal and interest payments on other personal debt do not, in total, exceed 60 percent of the equity seller’s monthly gross income.
(b) The equity purchaser has failed to verify that the equity seller has a reasonable ability to pay for a subsequent reconveyance of a property if the equity purchaser has not obtained supporting documents other than a statement by the equity seller of assets, liabilities and income.
(2) If a property is resold within 24 months after an equity seller enters into an equity conveyance contract, at the time of making the equity recapture payment to the equity seller under ORS 646A.745 (1)(e), the equity purchaser shall provide the equity seller with a detailed accounting of the basis for the payment amount. The accounting shall include detailed documentation of the amounts subtracted by the equity purchaser from the resale price to determine the amount of the equity recapture payment.
(3) A bona fide purchaser that enters into a transaction with an equity seller or equity purchaser receives good title to the property, free and clear of:
(a) The rights of the parties to an equity conveyance contract or a memorandum of agreement; or
(b) Any cancellation of the equity conveyance contract.
(4) ORS 646A.725 to 646A.750 do not impose a duty on a property purchaser, settlement agent, title insurer or title insurance producer regarding the application of the proceeds of a resale of property by an equity purchaser.
(5) At the time of presenting an equity conveyance for recording, the equity purchaser shall present a memorandum of agreement for recording in the county where the residential real property is located. The memorandum of agreement must be signed by the equity purchaser and the equity seller, witnessed by a notary public and in substantially the following form:
______________________________________________________________________________
SELLER NAME (print):
____________
(print): ____________
EXPIRATION DATE: _____, unless otherwise extended by written agreement between the parties.
____________
____________
______________________________________________________________________________

Legislative History

2008 c.19 §14