Davis Wright Tremaine
Suite 2300, 1300 SW Fifth Ave.
503-241-2300
www.dwt.com
Q: Is perpetual fee simple ownership of real property permitted? If not, what are the principal forms of ownership, or other principal form of ownership, of real property?
A: Yes, fee simple absolute property ownership is permitted and is the principal form of ownership in Oregon.
Q: What instruments are used to convey fee simple ownership, or other principal form of ownership, of real estate?
A: Conveyances of lands, or of any estate or interest therein, may be made by deed, signed by the person of lawful age from whom the estate or interest is intended to pass, or by the lawful agent or attorney of the person, and acknowledged or proved, and recorded without any other act or ceremony. No seal of the grantor, corporate or otherwise, shall be required on the deed. ORS 93.010.
Q: How in this jurisdiction is the ownership of real property recorded or searched? Who generally performs the search?
A: A proper direct index and a proper indirect index is kept by county clerks for the record of deeds, mortgages and all other real property interests required or permitted by law to be recorded, in which the county clerk shall enter, alphabetically, the name of every party to each instrument recorded by the county clerk, with a reference to where it is recorded. ORS 93.630. The most common search method is to conduct a title search by a grantor or grantee index. A title search may be conducted by an attorney or a title company, although, in Oregon, a title company generally conducts this search. The customary time period of ownership that is searched in Oregon depends on the type of transaction. Since computerized databases have been created that make searches easier, a person may search as far back as necessary.
Q: What assurances of ownership are available to purchasers of real property (e.g., title insurance or title opinions)? What is the cost of obtaining such assurances?
A: Title insurance is available in Oregon. It is regulated by the Oregon Insurance Division under the Department of Consumer and Business Services. Title insurance costs vary, but rates are tested under ORS 737.310.
Q: What are the most common forms of investment vehicles? What are the most common entities employed to own investment real estate in a tax efficient manner?
A: An Oregon limited liability company, an Oregon limited partnership, or an Oregon corporation. The Oregon limited liability company is typically the most tax-favorable option.
Q: Has this jurisdiction adopted, or is it considering, legislation permitting the creation of real estate investment trusts or similar entities?
A: Yes. ORS 128.565 permits businesses to create and operate real estate investment trusts in Oregon.
Q: What state or local transfer, stamp or similar taxes are levied generally on sellers or buyers upon the direct transfer of real estate?
A: Generally, a tax or fee upon the transfer of a fee estate in real property is prohibited by ORS 306.815. However, a tax or fee may be charged in the following circumstances: (1) a fee or charge that becomes due or payable at the time of transfer of a fee estate in real property, except where that fee or charge is imposed upon the right, privilege or act of transferring title to real property; (2) fees or charges in connection with the Public Land Conservation Fund; (3) recording and filing fees; and (4) any tax if the ordinance or other law imposing the tax was in effect and operative on March 31, 1997. There is one exception. In Washington County, there is a “Real Property Transfer Tax Ordinance” that requires all transfers of real property be taxed based on the selling price unless the owner meets the standards for an exemption. The tax is one dollar per thousand of the “selling price.”
Q: What state or local transfer, stamp or similar taxes are levied generally on sellers or buyers upon the transfer of interests in entities which own real estate?
A: ORS 306.815 and the Washington County “Real Property Tax Ordinance” may apply to certain transfers of interests in entities that own real estate (See answer number 7 above). © Copyright Lex Mundi Ltd. 2008 3
Q: How significant is local regulation and taxation of real estate? How significant is the variation of real estate law among political subdivisions of this jurisdiction?
A: Not significant.
Q: Must ultimate beneficial owners of entities which own real estate be disclosed as a matter of public record?
A: No.
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