Editor's Note: Earlier this year MHCO passed significant changes to Oregon's abandonment law in the Oregon Legislature. To assist MHCO Members with these changes, MHCO has developed three new forms as a result of the new abandonment law: The new forms are: MHCO Form 31A "Declaration of Intent"; MHCO Form 31B "Declaration of Compliance"; and MHCO Form 31C "Declaration of Sale". Attorneys Phil Querin and Mark Busch provided input as well as the Oregon Department of Revenue. Below is Phil Querin's explanation of the changes to Oregon's abandonment law. Further clarification will be provided in the 2016 MHCO Management Training Seminars and future "Question and Answer" sessions with Phil Querin.
Current Oregon Law. ORS 90.675(14) provides that following the public or private sale of an abandoned home, a landlord may deduct from the proceeds of the sale the reasonable or actual costs of notice, storage and sale and the unpaid rent. If any funds remain, the landlord is required to remit the excess proceeds to the county tax collector to the extent of any unpaid property taxes and assessments owed.1
However, if one of the following circumstances apply, the county tax collector is required to cancel all unpaid property taxes and assessments:
The landlord destroys or disposes of the home after a determination from the assessor that its current market value is $8,000 or less;
The sale was held, but there was no buyer of the home;
There is a buyer of the home; its current market value is $8,000 or less; but the
proceeds of sale are insufficient to satisfy the unpaid property taxes and assessments owed after distribution of the proceeds for the landlord’s actual cost of notice, storage and sale and unpaid rent; or
The landlord buys the home at the sale; its current market value is more than $8,000; the proceeds of sale are insufficient to satisfy the unpaid property taxes and assessments; and, the landlord disposes of the home.