OR Real Estate key terms

The most complete form of property ownership, giving the holder the right to use, sell, lease, or pass the property to heirs, subject only to government powers and private restrictions.

Ownership lasting only for the lifetime of a named person. The life tenant may use the property but must not commit waste, and when that person dies the estate passes to the remainderman or reverts.

A right to use a neighboring parcel that benefits the owner's own land and travels with that land when it is sold. The benefited land is the dominant estate and the burdened land is the servient estate.

A right to use another person's land gained through open, notorious, hostile, and continuous use for the period state law requires, without the owner's permission and without payment.

An existing use of property that was lawful when it began but no longer complies with current zoning rules. It may generally continue, but usually cannot be expanded or restarted after abandonment.

A line drawn around an Oregon city separating land intended for urban development from surrounding rural land. It must contain enough buildable land to accommodate projected growth for a set planning period.

The legal obligations an agent owes a client, typically including loyalty, obedience, disclosure, confidentiality, reasonable care and skill, and accounting for money or property handled on the client's behalf.

Information that could reasonably affect a person's decision about a transaction or its terms. Licensees must disclose known material facts to their clients and may not conceal them from other parties.

A written contract in which a buyer engages a brokerage to represent the buyer, setting out the term of the agreement, the services to be provided, and how the brokerage will be compensated.

A definite proposal by one party and an unqualified agreement to its terms by another, creating a binding contract when consideration is present and the parties have legal capacity.

A response that changes the terms of an offer. It legally rejects the original offer and places a new proposal on the table for the other party to accept or reject.

A contract condition that must be satisfied before a party is obligated to complete the transaction, such as obtaining financing, an inspection, or an appraisal by a stated deadline.

A state law requiring certain agreements, including real estate purchase contracts and leases longer than one year, to be in writing and signed by the party to be bound.

A court remedy ordering a party who breached a contract to carry out the agreed transfer. It is common in real estate because each parcel of land is treated as unique.

The borrower's written promise to repay a debt on stated terms, including principal, interest rate, payment schedule, and the consequences of default. It is separate from the security instrument.

A three-party security instrument, common in Oregon, in which a borrower conveys title to a trustee to hold as security for a lender until the debt is paid or the property is foreclosed.

Sale of pledged property by a trustee under a deed of trust after the borrower defaults, following statutory notice steps without going to court. It is faster than judicial foreclosure and is regulated.

The loan amount divided by the property's appraised value or purchase price, shown as a percentage. Higher ratios generally mean greater lender risk and often require mortgage insurance.

A seller-financed agreement in which the buyer takes possession and pays over time while the seller keeps legal title until the debt is satisfied. Oregon law regulates default and forfeiture.

The use of a property that is legally allowed, physically possible, financially feasible, and produces the greatest value. It underlies most appraisal conclusions about value.

An appraisal method that estimates value by analyzing recent sales of similar properties and adjusting those prices for differences in size, condition, location, and date of sale.

A rate that converts a property's net operating income into an indication of value. Value equals income divided by the rate, and lower rates usually reflect lower risk or stronger demand.

Oregon's statutory warranty deed form conveys title with warranties defined by statute, chiefly that the grantor has not already conveyed the property and will defend title against encumbrances the grantor created.

A deed that transfers whatever interest the grantor may have, if any, without promising that title is good or that the grantor owns anything. It carries no warranties.

Notice of a document treated by law as known to everyone because it appears in the public record. Recording also helps establish priority among competing interests in the same property.

A policy protecting an owner or lender against loss from title defects, liens, or competing claims that existed on the policy date but are not listed as exceptions in the policy.

An Oregon form on which a residential seller reports known defects, repairs, and other conditions affecting the property. It must be delivered to the buyer as state law requires before the buyer is bound.

Money a tenant pays a landlord as protection against unpaid rent or damage beyond normal wear. Oregon law limits how it is handled and requires an accounting and refund within a set period after the tenancy ends.

A landlord's promise, implied by law, that rented housing will meet basic health, safety, and repair standards throughout the tenancy, even when the lease says otherwise.

A signed statement by a tenant or borrower confirming the current terms, rent, and status of a lease or loan, which a purchaser or lender relies on and the signer cannot later contradict.

Groups shielded from housing discrimination by law. Federal law covers race, color, religion, sex, national origin, familial status, and disability; Oregon adds categories such as marital status, source of income, sexual orientation, and gender identity.

Directing prospective buyers or renters toward or away from particular neighborhoods based on a protected characteristic. It is illegal even when the housing involved is otherwise available to everyone.

A change in rules, policies, or practices, or a structural modification, needed so a person with a disability can use and enjoy housing. Requests are evaluated case by case and denied only for good reason.

In Oregon, the licensee who supervises a real estate business, holds the license under which brokers and property managers act, and is responsible for trust accounts and compliance with agency rules.

Oregon's term for a transaction in which one brokerage represents more than one party, permitted only with written informed consent and within specific statutory limits on the brokerage's duties.

The Oregon Real Estate Agency publication explaining agency relationships that licensees must give consumers early in the relationship, generally before or at the time services are provided.

A separate regulated bank account where a brokerage holds money belonging to clients, such as earnest money or rents. Mixing client funds with the brokerage's own money is prohibited.

The division of a brokerage's commission between the principal broker and the licensee who earned it, and sometimes between cooperating brokerages, calculated as agreed percentages of the total fee.

Oregon constitutional limits that cap tax rates per thousand dollars of value and tie most assessed values to a maximum yearly increase, so assessed value can differ from real market value.

The amount a seller actually receives at closing after subtracting loan payoff, commissions, fees, prorations, and other closing costs from the agreed sale price.