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?
A deed that conveys whatever interest the grantor may have but provides NO covenants of title is a:
What is the default form of co-ownership in Oregon when a deed to two unrelated buyers does not specify otherwise?