Trade Regulation

ORS 646A.750
Rebuttable presumptions

  • accounting
  • bona fide purchaser
  • memorandum of agreement
  • form


For purposes of determining whether an equity purchaser has violated ORS 646A.745 (Required and prohibited acts) (1)(a), there is a rebuttable presumption that:


An equity seller has or will have a reasonable ability to pay for a subsequent reconveyance of a residential real property if, on the date the equity seller signs the equity conveyance contract, the monthly payments projected for the equity seller’s primary housing expenses under the contract and monthly payments for regular principal and interest payments on other personal debt do not, in total, exceed 60 percent of the equity seller’s monthly gross income.


The equity purchaser has failed to verify that the equity seller has a reasonable ability to pay for a subsequent reconveyance of a property if the equity purchaser has not obtained supporting documents other than a statement by the equity seller of assets, liabilities and income.


If a property is resold within 24 months after an equity seller enters into an equity conveyance contract, at the time of making the equity recapture payment to the equity seller under ORS 646A.745 (Required and prohibited acts) (1)(e), the equity purchaser shall provide the equity seller with a detailed accounting of the basis for the payment amount. The accounting shall include detailed documentation of the amounts subtracted by the equity purchaser from the resale price to determine the amount of the equity recapture payment.


A bona fide purchaser that enters into a transaction with an equity seller or equity purchaser receives good title to the property, free and clear of:


The rights of the parties to an equity conveyance contract or a memorandum of agreement; or


Any cancellation of the equity conveyance contract.


ORS 646A.725 (Definitions for ORS 646A.725 to 646A.750) to 646A.750 (Rebuttable presumptions) do not impose a duty on a property purchaser, settlement agent, title insurer or title insurance producer regarding the application of the proceeds of a resale of property by an equity purchaser.


At the time of presenting an equity conveyance for recording, the equity purchaser shall present a memorandum of agreement for recording in the county where the residential real property is located. The memorandum of agreement must be signed by the equity purchaser and the equity seller, witnessed by a notary public and in substantially the following form:

DATED: _________
SELLER NAME (print):
(print): ____________
EXPIRATION DATE:_____, unless otherwise extended by written agreement between the parties.
AGREEMENT: _________
IS: ____________

[2008 c.19 §14]
§§ 646A.600 to 646A.628

Law Review Citations

52 WLR 451 (2016)

§§ 646A.400 to 646A.418

(formerly 646.315 to 646.375)

Notes of Decisions

Where purchaser fails to provide notice of condition requiring repair, presumption does not arise that repair time exceeding 30 business days demonstrates inability of manufacturer to conform vehicle. Pavel v. Winnebago Industries, Inc., 127 Or App 16, 870 P2d 856 (1994)

Repair time exceeding 30 business days as evidence of inability to conform vehicle applies only to presently existing defect. Pavel v. Winnebago Industries, Inc., 127 Or App 16, 870 P2d 856 (1994)

Law Review Citations

19 WLR 329 (1983)


Last accessed
Jun. 26, 2021