Selling A Home In Oregon? What You Need To Disclose And What You Don't

If you're selling residential real estate in Oregon, you want to present your home in the best light possible. But you also need to be careful, because Oregon law requires sellers to be upfront about certain issues that could affect the property's value, safety, or appeal.

Trying to hide a known problem, like a leaky roof or faulty wiring, is not just unethical; it can lead to real estate lawsuits, delays, or even a canceled sale. The good news is that full transparency usually works in your favor. Here's what Oregon home sellers need to know.

What Oregon Law Requires You to Disclose (ORS 105.464, 105.465)

Oregon law (ORS 105.464 and 105.465) requires sellers to provide a Seller's Property Disclosure Statement to any buyer making a written offer. This applies whether you're selling a house, condo, duplex, manufactured home, or timeshare.

The standardized form covers key areas of the property:

• Title and easements: Legal ownership issues and access rights.
• Systems: Water, sewage, plumbing, electrical, and HVAC.
• Structure: Roof condition, insulation, foundation, and unpermitted additions (often a high-risk disclosure area).
• Community: HOA dues or shared common areas, if applicable.

You answer based on your actual knowledge of the home's condition.

Buyer's Right to Revocation: After delivery of the disclosure statement, the buyer has five business days to revoke their offer by delivering a separate signed written revocation, unless the buyer has already waived this right. If the seller fails or refuses to provide the disclosure, the buyer's right to revoke continues until it terminates under the statute, including at closing. (ORS 105.475)

Defining "Material Defect" for Oregon Sellers

At the end of the form, there is a final, heavily scrutinized question asking whether there are any other material defects that could affect the property or its value.

You must answer "Yes" or "No" to this last question (you cannot choose "Unknown" for this item). If you answer "Yes," you must provide an explanation.

A material defect is anything that could significantly impact a buyer's decision or the home's value. Sellers often encounter examples like:

• Mold or pervasive water damage in a crawl space, basement, or walls.
• Cracked foundation or other serious structural issues.
• Active pest infestations, such as termites or carpenter ants.
• Known problems with a septic system or sewer line.

If you are unsure whether an issue qualifies, speak with an Oregon real estate attorney.

The Risk of Concealment: Why Silence Leads to Litigation

You are required to disclose what you know, but you cannot willfully ignore an obvious or recurring problem. Trying to cover up issues can lead to fraudulent misrepresentation and breach-of-contract claims.

A common path to a disclosure lawsuit is attempted concealment. For example, a seller worries about water intrusion, consults a contractor, then decides not to fix it or disclose it. After closing, the buyer hires the same company, which still has the earlier property-address file. When that prior report surfaces, it can become direct evidence that the seller knew about the defect and failed to disclose it.

Stigmatized Property: Death or Crime Disclosure (ORS 93.275)

Unlike in many states, Oregon law (ORS 93.275) does not require sellers to disclose if someone died in the home, whether by natural causes, suicide, or violent crime. The same is true of crimes that occurred on the property. Those events are not "material facts" because they do not affect the physical condition or title. If a buyer asks directly about the property's history, answer honestly to maintain good faith and avoid later disputes.

Federal Requirement: Lead-Based Paint Disclosure (Pre-1978 Homes)

If your home was built before 1978, federal law requires that you:

• Provide a lead-based paint disclosure noting any known lead-based paint or hazards.
• Give buyers the EPA's pamphlet "Protect Your Family from Lead in Your Home."
• Provide buyers with a 10-day period to conduct a lead-based paint inspection or risk assessment, unless the buyer waives it in writing.

Honesty Is Your Best Strategy for a Smooth Closing

While disclosing a defect can feel risky, transparency builds trust and minimizes risk. Disclosed issues are often handled through price adjustments, repair credits, or agreed repairs, which lets the transaction move forward. Hiding issues is far more likely to cost you later in a failure to disclose lawsuit.

Need Legal Guidance on Your Oregon Real Estate Disclosure?

Oregon requires home sellers to disclose all known physical defects, but the statutory language and the form's structure can be confusing. If you are unsure what to disclose or how to complete the Seller's Property Disclosure Statement, consult a professional.

Do not guess with your financial and legal security.

FAQs: Oregon Seller Disclosure

What does "actual knowledge" mean under Oregon disclosure law?

"Actual knowledge" means what you truly know based on your own observations, records, and communications. You are not required to guarantee the home is defect-free; you must answer the disclosure questions truthfully according to what you actually know at the time you complete the form.

Am I legally required to hire an inspector before completing the disclosure form?

No. Oregon's Seller's Property Disclosure Statement is based on your actual knowledge, not a mandatory inspection. Many sellers still choose a pre-listing inspection to identify issues early, but the law does not require you to investigate beyond what you already know.

When is a seller exempt from providing the Seller's Property Disclosure Statement (SPDS)?

Oregon law lists several exemptions (see ORS 105.465 and related provisions). Common examples include certain transfers between co-owners or to a spouse, some court-ordered or foreclosure sales, and certain transfers by fiduciaries (personal representatives, trustees) who have not occupied the property. Always confirm whether an exemption applies to your specific transaction.

Does the "As-Is" clause in my contract protect me from a failure-to-disclose lawsuit in Oregon?

Generally, no. An "As-Is" clause does not relieve a seller of the duty to disclose known material defects required by ORS 105.464. "As-Is" language can limit liability for defects you did not know about and reinforces the buyer's duty to inspect, but it will not shield you from claims based on knowingly withholding or concealing a material defect. Consult an Oregon real estate attorney before relying on "As-Is" terms.

Do I have to disclose that someone died in the home or that a crime occurred there?

No. Oregon law does not require disclosure of deaths or crimes because those are not material facts that affect the property's physical condition or title. (ORS 93.275)

Do I have to provide the Seller's Property Disclosure Statement in every sale?

Most residential sales require it, but there are exceptions described in the statutes. Verify applicability to your specific transaction before you proceed. (ORS 105.465; see also 105.470)

The defect was fixed five years ago. Do I still have to disclose it on the Seller's Property Disclosure Statement?

It is best to simply disclose the history and the repair. Provide dates, receipts, and any warranties if available. Transparent context about a resolved issue is far safer than silence.

If I answer "Yes" to a material defect, does the buyer automatically have the right to cancel the sale?

Not automatically. After you deliver the disclosure, the buyer has the time specified in the contract to revoke their offer (unless they waived that right). If you later amend the disclosure because new information arises, your contract may give the buyer additional time or remedies. Review your purchase agreement and ORS 105.475 with your agent or attorney.

What is the difference between answering "Unknown" and "No" on a question?

"Unknown" means you genuinely do not know based on your actual knowledge. "No" is an affirmative representation that, to your knowledge, the condition does not exist. Answering "No" when you are unsure can create misrepresentation risk. Remember: on the final "material defects" question, you must answer "Yes" or "No"; "Unknown" is not allowed on that item.

Will disclosing known issues kill my deal?

Usually, no. Most disclosure-driven problems are resolved through negotiations. Deals fail when undisclosed defects surface late in escrow or after closing.

Do I have to disclose if I had work done without a proper building permit?

Yes. Unpermitted work is a classic material issue for buyers, lenders, and insurers. Disclose what was done, when, and whether it was later permitted or inspected. Be prepared to supply documents or consider corrective steps.

Are sellers required to disclose the presence of radon gas, mold, or asbestos in Oregon?

If you know of radon, mold, asbestos, or similar environmental conditions, disclose that knowledge and provide any test results or reports you have. Federal lead-based paint rules separately apply to pre-1978 homes and require specific documents and a 10-day inspection period unless waived.

My foundation has been repaired. What exactly should I disclose about that?

Disclose the nature of the issue and the repair, including the date, the contractor or engineer, permits or inspections, and whether any warranty is transferable. Attaching invoices, engineer letters, and permit finals helps buyers assess risk and keeps deals on track.

How long does a buyer have to revoke after receiving my disclosure?

The buyer typically has five business days (but this can be longer or shorter depending on the contract) after delivery of your disclosure to revoke their offer by delivering a separate signed written revocation, unless the buyer previously waived this right. If you fail or refuse to provide the disclosure, the buyer's revocation right continues until it terminates under the statute, including at closing. (ORS 105.475)

If I discover a new issue after accepting an offer, what should I do?

Notify your agent and the buyer promptly, then amend your disclosure. You can propose solutions such as repairs, credits, or a price change. Prompt, documented disclosure reduces litigation risk.

Selling a Home in Oregon? What You Need to Disclose and What You Don't

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.