ORS 94.873
Escrow account
- closing
- release
(1)
All funds, negotiable instruments, purchase money agreements and credit card authorizations and proceeds thereof received in this state by a developer from or on behalf of a purchaser or prospective purchaser in connection with the purchase or reservation of a timeshare must be placed in an escrow account with an escrow agent authorized under ORS 94.881 (Who may serve as escrow agent) or the trustee of a lien payment trust established under ORS 94.890 (Lien payment trust).(2)
The establishment of an escrow account under subsection (1) of this section shall be by written agreement between the developer and the escrow agent. The escrow agreement must provide for the handling of a purchaser’s funds, negotiable instruments, purchase money agreements and credit card authorizations and proceeds as required by ORS 94.873 (Escrow account) to 94.905 (Surety bond).(3)
A purchaser’s funds, negotiable instruments, purchase money agreements, credit card authorizations and any proceeds may be released from escrow without a closing only as follows:(a)
If the purchaser gives a valid notice of cancellation under ORS 94.836 (Cancellation of purchase within five days), to the purchaser within 15 days after the notice of cancellation is received.(b)
If the purchaser or developer properly terminates a sales agreement under its terms or terminates a reservation agreement, to the purchaser or developer according to the terms of the sales agreement or reservation agreement.(c)
If the purchaser or developer defaults in performing an obligation under the sales agreement, to the purchaser or developer according to the terms of the sales agreement.(4)
After an escrow closing for the sale of a timeshare, a purchaser’s funds, negotiable instruments, purchase money agreements and credit card authorizations and proceeds shall be delivered by the escrow agent:(a)
To the trustee of a lien payment trust established under ORS 94.890 (Lien payment trust) to protect the purchaser from any blanket encumbrance.(b)
As provided by an alternative arrangement approved by the Real Estate Commissioner under ORS 94.900 (Alternative to lien payment trust).(c)
To the developer if the timeshare is conveyed to the purchaser free and clear of any blanket encumbrance or as provided in ORS 94.876 (Requirements for closing escrow).(5)
Under no circumstances may the escrow agent release a purchaser’s funds, negotiable instruments, purchase money agreements or credit card authorizations or proceeds from the escrow account to anyone except the purchaser until:(a)
The five-day cancellation period under ORS 94.836 (Cancellation of purchase within five days) expires as to the purchaser whose funds, instruments, agreements, authorizations or proceeds are being released;(b)
The escrow agent receives a written statement from the developer that no valid cancellation notice under ORS 94.836 (Cancellation of purchase within five days) has been received from the purchaser involved or from the purchaser that the purchaser has not given such a notice; and(c)
The escrow agent receives a written statement from the developer that no other cancellation notice was received during the five-day cancellation period from the purchaser involved.(6)
The purpose of any escrow established under this section shall be to protect a purchaser’s right to a refund if the purchaser cancels the timeshare sales agreement during the five-day cancellation period under ORS 94.836 (Cancellation of purchase within five days), or if a prospective purchaser cancels a reservation agreement for the purchase of a timeshare.(7)
As used in this section “reservation agreement” means an agreement relating to the future sale of a timeshare that is not binding on the purchaser which grants the purchaser the right to cancel the agreement for any reason without penalty and to obtain a refund of any funds deposited at any time until the purchaser executes a timeshare sales agreement. [1983 c.530 §29; 2017 c.354 §4]
Source:
Section 94.873 — Escrow account; closing; release, https://www.oregonlegislature.gov/bills_laws/ors/ors094.html.
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