Residential Landlord and Tenant

ORS 90.846
Notices and processes in facility transfer

  • remedies

(1)

During the process described in ORS 90.842 (Notice of sale of facility) to 90.850 (Owner affidavit certifying compliance with requirements for sale of facility), the parties shall act in a commercially reasonable manner, which includes a duty of the owner of the facility to consider in good faith any offer from the tenants or an entity formed by or associated with the tenants and to negotiate with the tenants or the entity in good faith.

(2)

Except as provided in ORS 90.848 (Exceptions to facility transfer requirements), before selling a facility to an entity that is not formed by or associated with the tenants, the owner of the facility must give the notice required by ORS 90.842 (Notice of sale of facility) and comply with the requirements of ORS 90.844 (Procedures for purchase of facility by tenants).

(3)

A minor error in providing the notice required by ORS 90.842 (Notice of sale of facility) or in providing the financial information required by ORS 90.844 (Procedures for purchase of facility by tenants) does not prevent the owner from selling the facility to an entity that is not formed by or associated with the tenants and does not cause the owner to be liable to the tenants for damages or a penalty.

(4)

During the process described in ORS 90.842 (Notice of sale of facility) to 90.850 (Owner affidavit certifying compliance with requirements for sale of facility), the owner may seek, or negotiate with, potential purchasers other than the tenants or an entity formed by or associated with the tenants.

(5)

If the owner does not comply with requirements of this section and ORS 90.842 (Notice of sale of facility) and 90.844 (Procedures for purchase of facility by tenants), in a substantial way that prevents the tenants from competing to purchase the facility, the tenants may:

(a)

Obtain injunctive relief to prevent a sale or transfer to an entity that is not formed by or associated with the tenants when the owner has not caused an affidavit to be recorded before the sale or transfer pursuant to ORS 90.850 (Owner affidavit certifying compliance with requirements for sale of facility); or

(b)

Recover 10 percent of the sale price of the facility.

(6)

Upon an award of damages under subsection (5)(b) of this section, the Department of Justice becomes a judgment creditor as to 50 percent of the award and the prevailing party becomes a judgment creditor for the remaining 50 percent of the award. Any recovery of the Department of Justice’s share of the award shall be deposited into the Manufactured Dwelling Parks Account under ORS 456.579 (Manufactured Dwelling Parks Account), after deducting the Department of Justice’s costs of collection.

(7)

Within seven days following a judgment award under subsection (5)(b) of this section, the prevailing party shall provide written notice of the award to the Department of Justice.

(8)

If a tenant misuses or discloses, in a substantial way, confidential information in violation of a confidentiality agreement described in ORS 90.844 (Procedures for purchase of facility by tenants), the owner may recover actual damages from the tenant.

(9)

The Housing and Community Services Department shall prepare and make available information for tenants about purchasing a facility. [2014 c.89 §3; 2019 c.625 §28; 2021 c.292 §3]
Source

Last accessed
May 30, 2023

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