Oregon Revised Statutes Chapter 696 § 696.662 — Disclosure requirements; rules

Disclosure requirements; rules. (1) Residential property wholesalers shall provide a residential property wholesaler written disclosure: (a) To any potential buyers and sellers before entering into a written contract for a residential property wholesale transaction; (b) To any individual licensed under ORS 696.022 who is engaged to assist the residential property wholesaler in marketing or listing the property; (c) To any individual licensed under ORS 696.022 who is assisting a potential buyer in purchasing the property; and (d) In all advertising related to the residential property that is the subject of a residential property wholesale transaction. (2) For purposes of this section, the Real Estate Agency shall establish the standards for proper residential property wholesaler written disclosure requirements under this section. The disclosure must be in at least 10-point bold type, must contain information prescribed by the Real Estate Commissioner and at a minimum must state that the residential property wholesaler or, if applicable, the entity on behalf of which the residential property wholesaler is conducting residential property wholesaling: (a) Is a residential property wholesaler; (b) Has only an equitable interest in the property being sold; (c) Does not have legal title to the property and therefore might be unable to directly transfer title to the buyer; (d) Might not be a licensed real estate broker or principal broker and therefore might not be permitted to engage in professional real estate activity; and (e) Might not be a licensed appraisal specialist and therefore might not be permitted to provide an opinion as to the value of the property. (3) A seller or buyer who enters into a written contract for a residential property wholesale transaction may cancel the contract without penalty by delivery of a written notice of cancellation any time before 12 midnight at the end of the third business day after the receipt of the residential property wholesaler written disclosure. The right of cancellation granted by this subsection may not be waived. Upon cancellation, all earnest money or deposits shall be returned to the person who provided the earnest money or deposit. (4) If the residential property wholesaler fails to provide a residential property wholesaler written disclosure to the seller before entering into a written contract for a residential property wholesale transaction, the seller may terminate the contract at any time without penalty and retain any earnest money or deposit paid to the seller or deposited in escrow by the residential property wholesaler. An escrow agent may disburse the earnest money or deposit to the seller without the need for separate written instructions from the residential property wholesaler if: (a) The seller in writing asserts that the residential property wholesaler written disclosure was not provided to the seller before entering into the written contract for the residential property wholesale transaction and demands disbursement to the seller of all deposits held by the escrow agent; and (b) The seller has provided the escrow agent with a written release and indemnification against all liability arising from the disbursement of the earnest money and deposits to the seller. (5) If the residential property wholesaler fails to provide a residential property wholesaler written disclosure to the seller or buyer, and if the purchase and sale agreement is terminated as a result, the wholesaler shall be liable for damages incurred by seller and buyer. (6) In any mediation or arbitration proceeding or civil action between buyer and seller, between buyer and residential property wholesaler or between seller and residential property wholesaler that arises due to the residential property wholesaler’s failure to provide a residential property wholesaler written disclosure before entering into a written contract for a residential property wholesale transaction as prescribed under this section, the prevailing party is entitled to recover all reasonable attorney fees, costs and expenses incurred at trial, on appeal, at mediation and at arbitration from the residential property wholesaler. [2024 c.3 §5] Note: See note under 696.650.