3.2 Oregon Property Ownership
Key Takeaways
Oregon is a SEPARATE-PROPERTY / equitable-distribution state, NOT a community property state.
Tenancy by the entirety is the married-couple co-ownership form that carries right of survivorship and creditor protection in Oregon.
Tenancy in common is the default co-ownership form when a deed does not specify otherwise; joint tenancy requires the four unities and survivorship language.
Oregon's four statutory deeds (ORS 93.850-93.865) are warranty, special warranty, bargain and sale, and quitclaim, in descending order of protection.
Recording at the county clerk where the property sits gives constructive notice and sets priority under 'first in time, first in right.'
Oregon Is NOT a Community Property State
This is a high-yield correction the exam loves to bait. Oregon is a separate-property, equitable-distribution state. There are only nine community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin) — Oregon is not one of them.
- Separate property belongs to the spouse who earned or acquired it; title and earnings are not automatically split 50/50.
- On divorce, an Oregon court divides marital assets by equitable distribution — what is fair, considering length of marriage, contributions, and each party's economic circumstances — which is not necessarily equal.
Exam Trap: If an answer says "Oregon became a community property state" on any date, it is FALSE. Married couples in Oregon usually hold real estate as tenants by the entirety, the survivorship form below.
Forms of Co-Ownership
| Form | Equal shares? | Survivorship? | Who can hold | Notes |
|---|---|---|---|---|
| Tenancy in common | No — shares can be unequal | No — share passes to heirs | Any number of owners | Default form if the deed is silent |
| Joint tenancy | Yes — equal | Yes — to survivors | Any persons, with clear language | Needs the four unities |
| Tenancy by the entirety | Yes | Yes | Married couples only | Protected from one spouse's individual creditors |
The Four Unities of Joint Tenancy
Time, Title, Interest, Possession — remember T-TIP. All four must exist at creation. If one joint tenant sells, that share converts to a tenancy in common with the remaining owners (the survivorship link is severed for the sold share).
Worked example: A, B, and C own a duplex as joint tenants. C sells to D. A and B remain joint tenants with each other; D holds a one-third interest as a tenant in common. If C had died instead, A and B would split C's share by survivorship and the property would never enter C's estate.
Types of Property Interests (Estates)
Freehold estates have indefinite duration; leasehold estates are for a set term.
| Estate | Duration | Key feature |
|---|---|---|
| Fee simple absolute | Perpetual | Highest, fullest ownership; freely inheritable and transferable |
| Fee simple defeasible | Until a condition fails | Title can revert or be re-entered if a condition is violated |
| Life estate | Measured by a person's life | At death passes to the remainderman; life tenant must avoid waste |
| Leasehold | Term of the lease | Tenant has possession, not title |
Leasehold Subtypes
- Estate for years — fixed start and end date; no notice needed to terminate.
- Periodic tenancy — month-to-month; auto-renews until proper notice.
- Tenancy at will — open-ended, terminable by either party with notice.
- Tenancy at sufferance — a holdover tenant remaining after the lease ends without permission.
Oregon's Four Statutory Deeds (ORS 93.850-93.865)
| Deed | Statute | Covenants / protection |
|---|---|---|
| Warranty deed | 93.850 | Full covenants: grantor has good title, property is free of encumbrances except those noted, and will defend against ALL claims |
| Special warranty deed | 93.855 | Warrants only against encumbrances created or suffered by the grantor; defends claims arising "by, through, or under" the grantor |
| Bargain and sale deed | 93.860 | No title covenants; implies the grantor holds some interest. Common in Oregon for trustee/REO/estate transfers |
| Quitclaim deed | 93.865 | Releases whatever interest the grantor has, if any; no warranties |
Exam Tip: Order from most to least buyer protection — warranty > special warranty > bargain and sale > quitclaim. The statutory forms are optional, not mandatory (ORS 93.870), but using them triggers the implied covenants.
Recording and Notice
| Requirement | Detail |
|---|---|
| Where to record | County clerk's office in the county where the property is located |
| Effect | Recording gives constructive notice to the world |
| Priority | "First in time, first in right" — earlier recorded interests generally win |
| Title evidence | Buyers rely on title insurance and the recorded chain of title |
Easements and Encumbrances
| Type | Description |
|---|---|
| Easement appurtenant | Runs with the land; benefits an adjacent dominant parcel, burdens the servient parcel |
| Easement in gross | Benefits a person or utility, not a parcel |
| Prescriptive easement | Acquired by open, continuous, adverse use for the statutory period |
| Easement by necessity | Granted to reach a landlocked parcel |
Other encumbrances include liens (mortgage, tax, mechanic's), deed restrictions/CC&Rs, and encroachments.
Severalty and Trusts
When one person owns property alone, it is held in severalty (do not confuse this with 'several' owners — it means a single owner). Title may also be held by a trust (with a trustee holding legal title for beneficiaries), an LLC, a corporation, or a partnership. On the exam, watch for the distinction between holding title in severalty (one owner, no co-ownership rules) versus the three co-ownership forms above.
Quick Comparison: Which Form Fits the Scenario
| Scenario in a question | Most likely answer |
|---|---|
| Married couple wants survivorship and creditor protection | Tenancy by the entirety |
| Two investors, unequal contributions, want shares to pass to their own heirs | Tenancy in common |
| Two siblings want the survivor to automatically own the whole | Joint tenancy with right of survivorship |
| One person owns alone | Severalty |
Exam Tip: Survivorship interests (joint tenancy and tenancy by the entirety) pass outside probate directly to the surviving owner. A tenant-in-common interest passes through the deceased owner's will or estate, which is the single most-tested ownership distinction.
Which statement about marital property in Oregon is correct?
Oregon is a community property state, so married couples own everything 50/50
Oregon abolished co-ownership for married couples
All property acquired during marriage automatically becomes joint tenancy
Oregon is a separate-property, equitable-distribution state; married couples often hold title as tenants by the entirety
A deed that conveys whatever interest the grantor may have but provides NO covenants of title is a:
Warranty deed
Special warranty deed
Bargain and sale deed
Quitclaim deed
What is the default form of co-ownership in Oregon when a deed to two unrelated buyers does not specify otherwise?
Tenancy in common
Joint tenancy with right of survivorship
Tenancy by the entirety
Community property
Sections you finish are checked off in the contents.