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OregonHB 37462025 Regular SessionHouse

Relating to real property.

Sponsored By: Sponsor information unavailable

Signed by Governor

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 1 benefits, 1 costs, 7 mixed.

Condo owners get stronger handover records

Developers must call a turnover meeting within 90 days after their control ends, with 10–50 days’ notice to owners. Without reserved developer control, turnover is due within 90 days after the applicable first trigger: three years after the first sale or 50% sold for single-stage condos; seven years or 50% sold for staged or flexible condos. Owners or first mortgage lenders can call the meeting if the developer fails. Developers must hand over governing records, funds, property, plans, insurance, permits, contractor lists, owner contacts, contracts, and a reserve study and maintenance plan. They must also provide independent moisture-inspection results and the inspector’s name, except for condos covered by the owner-maintenance exemption. Financial statements must cover the previous 12 months, or the shorter period since declaration; annual assessments above $75,000 require review by an Oregon CPA. A three-month transition requires at least three meetings with the new board; after delivery and loss of voting control, developers generally have no further administrative duties beyond those of an owner. Failure to elect directors or obtain a quorum can lead to a special meeting or court-appointed receiver.

Fewer escrow safeguards for condo buyers

Condo escrow instructions no longer must block release of buyers’ money until the declaration is recorded and promised ownership transfers. This removes a required safeguard on when purchase money can leave escrow. Other protections remain, including return of escrow funds and investment income if the developer defaults.

Condo boards must check for moisture

For condos first declared on or after the law’s effective date, boards must arrange independent moisture-intrusion inspections. Inspections are due before the end of years two and six after substantial completion. The reserve account pays for the first inspection. Condos where each owner handles both their unit’s interior and exterior are exempt from this inspection duty. Those condos are also exempt from the turnover moisture-report requirement and special association construction-defect tort deadline.

Condo maps need fewer area measurements

Condo plats and supplemental plats no longer must show dimensions for limited common areas. These are shared-property areas reserved for particular units. The maps must still identify those areas and show their locations as far as feasible, as described in the declaration. This reduces required documentation but removes a required source of size information for buyers and owners.

Homeowners face revised defect lawsuit deadlines

The revised building-claim deadlines apply only to structures whose condo or homeowner-association declaration is first recorded on or after the law’s effective date. Association construction-defect tort claims generally have a seven-year deadline after substantial completion or abandonment, subject to the owner-maintenance condo exemption. Discovery after year six but before year seven gives the association one year after discovery to sue. Other nonpublic claims must meet the earlier applicable filing deadline or outer limit: 10 years for residential, small commercial, and association-owned or maintained large commercial structures; six years for other large commercial structures. Public bodies have 10 years. Claims against licensed architects, engineers, and landscape architects must meet the earliest deadline: two years after discovery or the applicable 10- or six-year outer limit after substantial completion. Substantial completion is the earliest of owner acceptance as usable, an occupancy certificate, or intended occupancy or use; the rules also cover manufactured and prefabricated structures but exclude claims against the possessor when the claim arises. Separately, for defect notices delivered on or after the effective date, repairs under an accepted offer count back to the earliest completion or abandonment date rather than starting a new deadline.

Homeowners get clearer defect settlement choices

For association defect notices, payment offers must cover repair costs and can offer a choice between money and contractor repairs. After offering to cover costs, the construction party has 30 days to state a firm amount; disputed amounts can go to mediation. Owners have 30 days to accept an offer; silence counts as rejection, and accepting payment requires a good-faith effort to hire a contractor. Acceptance settles only the defects covered; completing an accepted secondary-notice offer also resolves related contribution and reimbursement claims among responsible parties. Owners can seek arbitration or sue after a late response, no offer, an inadequate offer, or failure to perform; another responsible party can perform or pay after a failed accepted offer. The owner’s filing period extends to the latest applicable date: 120 days after a response without an offer, 120 days after rejecting an offer, or 30 days after the promised repair or payment date. These extensions do not shorten existing deadlines. The changes apply to defect notices delivered on or after the effective date and resulting secondary notices.

New inspection rules for defect disputes

For association defect notices, contractors, subcontractors, and suppliers get 30 days instead of 14 to request an inspection. They can bring an expert and must respond within 14 days after inspection, or 90 days after notice without inspection. An owner is excused from further statutory steps if the response is late or fails the legal requirements. Owners must provide visual-examination access within 20 days after a written request, during business hours or another agreed time. Reasonable testing is allowed; absent another agreement, inspectors must repair inspection damage, and owners can claim unrepaired damage in court or arbitration. Parties requesting inspections must attach an inspection report to their written response. The law also removes a special exclusion for unaccepted repair or payment offers and owner replies, while retaining limits on using responses and replies to establish arbitration requirements or timely filing. These changes apply to defect notices delivered on or after the effective date and resulting secondary notices.

Owners get notice before association lawsuits

Homeowner and condo associations need board approval at a properly noticed meeting before bringing or joining qualifying construction-defect cases. The meeting must follow three owner notices: at least 90 days after the first and 15 days after the third. The second notice requires first-class mail with a certificate of mailing; the third requires first-class mail. Notices must describe the defect, suspected responsible parties, association contacts, damages sought, and how recoveries are determined and shared. They must warn that pending litigation may limit property sales, and identified responsible parties must receive copies by certified mail. Owners also receive at least 10 days’ written notice before covered proceedings and can opt out within 10 days after mailing. The association then cannot seek damages for that owner and owes no reimbursement or indemnity for those damages. Opting out does not erase dues, assessments, easements, or required repairs.

Construction parties get longer claim windows

A construction party sending a secondary defect notice can sue its recipient until the owner’s time to sue that sender expires. This applies despite other limitation periods or outer lawsuit deadlines. Sending a secondary notice does not extend the owner’s own filing time. The rule covers defect notices delivered on or after the law’s effective date and resulting secondary notices.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • Housing and Homelessness

    Affiliation unavailable

Roll Call Votes

All Roll Calls

Yes: 126 • No: 23

House vote • 6/20/2025

House concurred in Senate amendments and repassed bill.

Yes: 42 • No: 7

Senate vote • 6/16/2025

Third reading. Carried by Meek. Passed.

Yes: 24 • No: 4

Senate vote • 5/21/2025

Housing and Development: Heard and Reported Out with Amendments

Yes: 4 • No: 1

House vote • 4/22/2025

Third reading. Carried by Breese-Iverson. Passed.

Yes: 46 • No: 10

House vote • 4/9/2025

Housing and Homelessness: Heard and Reported Out with Amendments

Yes: 10 • No: 1

Actions Timeline

  1. Chapter 578, (2025 Laws): Effective date January 1, 2026.

    8/13/2025House

  2. Governor signed.

    7/24/2025House

  3. President signed.

    6/24/2025Senate

  4. Speaker signed.

    6/23/2025House

  5. House concurred in Senate amendments and repassed bill.

    6/20/2025House

  6. Third reading. Carried by Meek. Passed.

    6/16/2025Senate

  7. Carried over to 06-16 by unanimous consent.

    6/12/2025Senate

  8. Carried over to 06-12 by unanimous consent.

    6/11/2025Senate

  9. Carried over to 06-11 by unanimous consent.

    6/10/2025Senate

  10. Carried over to 06-10 by unanimous consent.

    6/9/2025Senate

  11. Second reading.

    6/5/2025Senate

  12. Recommendation: Do pass with amendments to the A-Eng. bill. (Printed B-Eng.)

    6/4/2025Senate

  13. Work Session held.

    5/21/2025Senate

  14. Public Hearing held.

    5/12/2025Senate

  15. Public Hearing held.

    5/5/2025Senate

  16. Referred to Housing and Development.

    4/23/2025Senate

  17. First reading. Referred to President's desk.

    4/23/2025Senate

  18. Third reading. Carried by Breese-Iverson. Passed.

    4/22/2025House

  19. Rules suspended. Carried over to April 22, 2025 Calendar.

    4/21/2025House

  20. Rules suspended. Carried over to April 21, 2025 Calendar.

    4/17/2025House

  21. Second reading.

    4/16/2025House

  22. Recommendation: Do pass with amendments and be printed A-Engrossed.

    4/15/2025House

  23. Work Session held.

    4/9/2025House

  24. Public Hearing held.

    4/7/2025House

  25. Public Hearing held.

    4/2/2025House

Bill Text

  • SHDEV Amendment -A5 (Adopted)

    5/21/2025

    PDF

  • SHDEV Amendment -A5 (Proposed)

    5/19/2025

    PDF

  • HHOUSH Amendment -3 (Adopted)

    4/9/2025

    PDF

  • HHOUSH Amendment -3 (Proposed)

    4/7/2025

    PDF

  • HHOUSH Amendment -1 (Proposed)

    4/2/2025

    PDF

  • A-Engrossed

    PDF

  • B-Engrossed

    PDF

  • Enrolled

    PDF

  • House Amendments to Introduced

    PDF

  • Introduced

    PDF

  • Senate Amendments to A-Engrossed

    PDF

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