Oregon Statutes 311.411 – Certificate of taxes paid required to record instrument conveying real property to public entity; authorization for agent to withhold taxes; issuance; deficiency as personal debt of transferor; collection
(1) As used in this section:
Terms Used In Oregon Statutes 311.411
- City: includes any incorporated village or town. See Oregon Statutes 174.100
- Contract: A legal written agreement that becomes binding when signed.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Person: includes individuals, corporations, associations, firms, partnerships, limited liability companies and joint stock companies. See Oregon Statutes 174.100
- Personal property: All property that is not real property.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
(a) ‘Authorized agent’ means an agent who is responsible for closing and settlement services in a conveyance.
(b) ‘Charges against the real property‘ means all ad valorem property taxes, additional taxes and potential additional taxes, fees, interest, penalties, costs and other charges that have been or will be charged or listed during the property tax year on the assessment roll or the tax roll with respect to real property that is the subject of an instrument described in subsection (2) of this section.
(c) ‘Closing and settlement services’ means services that are provided by:
(A) A licensed escrow agent in a real estate closing escrow within the meaning of ORS § 696.505 to 696.590; or
(B) An attorney for the benefit of a transferor or a transferee in a conveyance, if, simultaneously with the conveyance, the attorney deposits the unpaid purchase price into the attorney’s client trust account for disbursal pursuant to the written instructions of, or the agreement between, the transferor and transferee.
(d) ‘Consideration’ means the amount of cash paid for a conveyance.
(e) ‘Conveyance’ means the transfer of, or a contract to transfer, fee title to any real property located in this state to a transferee whose property is exempt from taxation under ORS § 307.040 or 307.090. ‘Conveyance’ does not include a transfer of fee title of less than an entire parcel of property for state highway, county road or city street purposes.
(2)(a) Notwithstanding ORS § 205.130, a county clerk may not record or cause to be recorded an instrument conveying or contracting to convey fee title to real property to an entity whose property is exempt from taxation under ORS § 307.040 or 307.090 unless the instrument is accompanied by a certificate issued by the assessor of the county in which the real property is located attesting that all charges against the real property as of the date of the recording have been paid.
(b) If an instrument is recorded without a certificate as required under paragraph (a) of this subsection, any charges against the real property as of the date of the recording that have not been paid shall be collected in the manner provided under subsection (6) of this section.
(3)(a) On or after July 1 of any year, and before the date on which the assessor makes a certificate pursuant to ORS § 311.105, a person seeking to record an instrument described in subsection (2) of this section shall pay to the tax collector of the county:
(A) If the exact amount of charges against the real property can be computed by the county assessor, the exact amount.
(B) If the exact amount cannot be computed, an amount equal to the county assessor’s estimate of the exact amount.
(b) The county assessor shall levy and the tax collector shall collect the exact amount or the county assessor’s estimate of the exact amount under this subsection.
(c) Payment made pursuant to this subsection may be made less any discount allowed under ORS § 311.505.
(4)(a) Pursuant to written instructions from the transferor, an authorized agent in a conveyance may withhold from the consideration payable to the transferor an amount equal to the amount of charges against the real property as of the date of the conveyance.
(b) Amounts withheld pursuant to this subsection are held in trust for the taxing districts within the county in which the real property is located and shall be paid to the county tax collector before the consideration, net of the amounts withheld, may be paid to the transferor.
(5)(a) If all charges against the real property as of the date of the recording have been paid, the county assessor shall issue the certificate described in subsection (2) of this section and may not unreasonably withhold delivery of the certificate.
(b) The certificate shall be in a form prescribed by the Department of Revenue.
(6) Any deficiency in the amount required to be paid under this section:
(a) Notwithstanding ORS § 311.405, is not a lien on the real property that is the subject of the instrument described in subsection (2) of this section;
(b) Constitutes a personal debt of the person who has conveyed or contracted to convey the real property under the instrument described in subsection (2) of this section; and
(c) Shall be collected as provided by law for the collection of delinquent property taxes on personal property. [2015 c.96 § 1; 2016 c.98 § 3; 2023 c.30 § 1]
311.411 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS Chapter 311 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.