Bulletin: OR2021003

Date:
January 20, 2021
To:
All Oregon Issuing Offices
RE:
UNDERWRITING - Tenants Right to Purchase A Lot in a Newly Subdivided Manufactured Home Park

Dear Associates:

The State of Oregon Legislative Assembly found that there was a need to create a mechanism for owners of manufactured dwellings in existing manufactured dwelling parks and mobile home parks to acquire individual ownership interest in the lot on which the dwelling is located. However, the creation of an individual ownership interest should not impose an undue financial burden on the owner of a park. 

Essentially, a developer who subdivides an existing manufactured home park into lots must offer to sell each new lot to the tenant who occupies the lot prior to offering it for sale to anyone else. The tenant has 60 days to accept the offer, the right terminates 60 days after receipt of the offer by the tenant or upon written rejection of the offer, whichever occurs first. The developer is barred for an additional 60 days from selling the lot to anyone other than the current tenant at a price or terms more favorable than those offered to the tenant. The developer must also notify the Housing and Community Services Department of subdivision approval when it is received. ORS 92.830 to 92.845 sets out the requirements for doing so. 

An exception for the tenants right to purchase should appear in a title report or commitment that concerns the newly created lot. Please see sample exception below. 

The right, if not expired or rejected, of the lot tenant to purchase the lot described herein as set out in ORS 92.840. 

NOTE: The Company will require proof of compliance.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None