Oregon Code § 94.816·Enacted ·Last updated March 01, 2026
Statute Text
Partition prohibited; exception.
(1) Except as otherwise provided in this section, no judicial action for
partition of a timeshare property may be undertaken as long as the property
remains subject to a timeshare plan.
(2) If any
timeshare is owned by two or more persons as tenants in common, as tenants by
the entirety or as tenants with rights of survivorship, nothing in this section
shall prohibit the judicial sale of the timeshare in lieu of partition as
between the cotenants.
(3) A court of
competent jurisdiction, on petition of the developer of a timeshare plan or the
developers successor in interest, may grant a waiver of the prohibition
against partition under subsection (1) of this section, if the court is
satisfied that:
(a) The developer
retains at least 50 percent of the timeshares created in the timeshare plan;
(b) The timeshare
plan has failed and the continuation of the use of timeshare property by
timeshare owners is no longer possible in the manner prescribed by the
timeshare instruments;
(c) It is in the
best interest of timeshare owners to terminate the timeshare plan and that no
reasonable alternative to partition of the timeshare property exists;
(d) The petition
has not been brought by the developer to avoid the developers responsibilities
under the timeshare instrument without good cause; and
(e) The holder of
each blanket encumbrance consents to the proceeding under this section.
(4) Except as
otherwise provided in subsection (5) of this section, upon a court declaration
of timeshare plan failure under subsection (3) of this section, the court shall
proceed to partition the timeshare property as otherwise provided by law.
(5) In the event
of a court-ordered sale in connection with partition, proceeds of the sale
shall be applied in the following order:
(a) Costs
described in ORS 105.285 (1) and (2);
(b) Repayment to
owners except the developer of down payments and payments of principal and
interest paid by such owners for their timeshares less the value, as determined
by the court, of the owners use of their timeshares;
(c) Payments to
satisfy and discharge the remaining timeshare purchase money obligations of all
owners except the developer. If the developer or an entity closely related to
the developer holds the beneficial interest in any of such purchase money
obligations, funds shall first be applied to discharge the purchase money
obligations held by other holders, and then to the credit of the developer and
its related entity for purchase money obligations held by the developer or such
entity. Funds paid to the developer or the related entitys credit shall be
held by the court as proceeds available to lienholders and other claimants in
such partition. If there are insufficient funds to fully discharge purchase
money obligations of all owners except the developer, the balance of
unsatisfied purchase money obligations of all owners except the developer shall
be discharged by judgment of the court; and
(d) As otherwise
provided by law. [1983 c.530 §6; 2003 c.576 §356]