2.3 Oregon Property Disclosures

Seller's Property Disclosure Statement

Under ORS 105.464 and 105.465, a seller of covered residential property must deliver a completed Seller's Property Disclosure Statement to any buyer who makes a written offer to purchase. The statutory form's wording and questions are set by ORS 105.464 — sellers complete it, but its structure is fixed by law.

Properties covered

The requirement reaches transactions involving residential property by sale, exchange, or land sale contract, including:

• Single-family homes
• Duplexes, triplexes, and quadplexes (up to four units)
• Condominium units
• Manufactured dwellings
• Timeshares

The actual-knowledge standard

Oregon asks only for the seller's actual knowledge at the time of disclosure. The seller is not required to inspect the property, hire a professional, or investigate beyond what they already know.

The five-business-day right to revoke

This is the most frequently missed Oregon fact: a buyer who receives the disclosure statement has five business days from delivery to revoke the offer in writing by delivering a signed statement disapproving the disclosure — unless the buyer waived this right at or before signing the sale agreement.

Worked scenario: A seller delivers the disclosure on a Monday revealing a past basement flood the buyer did not know about. The buyer, having not waived, delivers a signed written revocation that Thursday — within five business days — and walks away with the offer revoked. Miss the window or fail to use writing, and the right is lost.

Federal Lead-Based Paint Disclosure

Independent of Oregon law, the federal Residential Lead-Based Paint Hazard Reduction Act (Title X) governs housing built before 1978. It applies to most pre-1978 sales nationwide, and an Oregon transaction must satisfy both layers.

Warning: Lead-based paint disclosure is required by federal law regardless of what Oregon requires. Exempt categories include housing built in 1978 or later, zero-bedroom units, and most rentals certified lead-free.

Residential Property Wholesaling Disclosure (Effective July 1, 2025)

Oregon's House Bill 4058 (2024) created new duties for residential property wholesalers, effective July 1, 2025. Oregon now defines wholesaling by three thresholds — a marketer who holds only an equitable interest or option, has held it fewer than 90 days, and has invested less than $10,000 in development/improvements.

Required written disclosure content

• The wholesaler holds only an equitable interest (or option), not legal title
• The wholesaler may not be able to directly transfer title
• The wholesaler might not be a licensed broker and might not be a licensed appraiser

Licensed brokers and principal brokers who wholesale must use the OREA-published broker version of the disclosure.

The Licensee's Independent Disclosure Duty

Regardless of what the seller writes on the statement, a licensee owes all parties an independent duty to disclose known material defects and may never conceal or misrepresent them.

Trap: A licensee cannot hide behind "the seller didn't disclose it." If the licensee personally knows the roof leaks, that material fact must be disclosed to all parties even if the seller's statement is silent.

Stigmatized Property and What Need NOT Be Disclosed

Oregon, like most states, distinguishes material facts (physical/legal conditions affecting value or use) from psychologically affecting facts. Oregon law does not require disclosure that a death, suicide, or felony occurred on the property, or that a former occupant had a disease such as HIV. These are not treated as material defects. The exam tests whether you know the line: a leaking roof is material and must be disclosed; a prior occupant's natural death generally need not be volunteered.

How These Disclosures Fit the Transaction Timeline

The disclosures arrive at predictable points, and the exam expects you to sequence them correctly:

1. At first contact — the Initial Agency Disclosure Pamphlet (Section 2.2).
2. Before contract / before offer — the wholesaling written disclosure (if a wholesaler is involved) and the federal lead pamphlet for pre-1978 homes.
3. On the buyer's written offer — the seller delivers the Seller's Property Disclosure Statement.
4. After delivery of the disclosure statement — the buyer's five-business-day window to revoke begins.

Recordkeeping and Liability

A licensee should retain copies of every required disclosure and document the date and method of delivery, because OREA can request transaction files during an audit or investigation. Lead-based paint records, for example, must be kept for three years. A failure to deliver or a misrepresentation can expose the licensee to OREA discipline (civil penalties, suspension, or revocation) and to civil liability from a harmed party.

Worked scenario: A seller honestly checks "unknown" for the septic system on the statement because they never used it. The buyer waives the five-day right, closes, and later finds the system failed. Because the seller disclosed only actual knowledge and did not conceal a known defect, the disclosure standard was met — but if the licensee had known the system failed and stayed silent, the licensee would still be liable. Disclosure duties of the seller and of the licensee are separate and independent.