Oregon Statutes 696.505 – Definitions for ORS 696.505 to 696.590
As used in ORS § 696.505 to 696.590:
Terms Used In Oregon Statutes 696.505
- Contract: A legal written agreement that becomes binding when signed.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Grantor: The person who establishes a trust and places property into it.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- 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.
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
(1) ‘Business day’ means a day other than Saturday or Sunday or a federal or State of Oregon legal holiday.
(2) ‘Close an escrow‘ means the final disbursement of all funds, property and documents in an escrow as directed by written escrow instructions from the principals.
(3) ‘Collection escrow’ means an escrow in which the escrow agent:
(a) Receives:
(A) Installment payments;
(B) Instruments evidencing or securing an obligation; or
(C) Instruments discharging the security interest; and
(b) Disburses the payments or delivers the instruments upon specified conditions pursuant to the written instructions of an obligor and obligee.
(4) ‘Compensation’ means valuable consideration for services rendered or to be rendered, whether contingent or otherwise.
(5) ‘Escrow’ means a transaction in which any written instrument, money, evidence of title to real or personal property or other thing of value is delivered, for the purpose of paying an obligation or effecting the sale, transfer, encumbrance or lease of real or personal property, to a person who does not otherwise have a right, title or interest in the real or personal property, to be held by that person as a neutral third party until a specified event happens or a prescribed condition is performed, when the written instrument, money, evidence of title or other thing of value is to be delivered by the neutral third party to a grantee, grantor, promisee, promisor, obligee, obligor, bailee, bailor or any agent or employee of any of them pursuant to the written instructions of the principals to the transaction.
(6) ‘Escrow agent’ means a person who engages in the business of receiving escrows for deposit or delivery and who receives or is promised compensation, whether contingent or otherwise, for or in anticipation of performance.
(7) ‘Escrow trust account‘ means a bank account that is:
(a) Kept separate, distinct and apart from funds belonging to the escrow agent;
(b) Designated as an escrow trust account; and
(c) Used to deposit trust funds received by an escrow agent on behalf of a principal.
(8) ‘Principal’ means:
(a) The buyer, seller, lessor, lessee or exchanging party in an escrow transaction involving the sale, lease, lease-option or exchange of real property or personal property;
(b) The borrower in an escrow transaction involving the refinancing of real property or personal property, including but not limited to the refinancing of an obligation secured by a land sale contract requiring a deed to be delivered as part of the refinancing;
(c) The buyer, seller, lender, borrower, vendor or vendee in a collection escrow;
(d) A person directing the escrow agent to hold back funds from a closing escrow for payment of obligations related to the closing or the financing of real property or personal property;
(e) A person who deposits funds, property or documents in a one-sided escrow, as defined by rule of the Real Estate Commissioner; or
(f) A subservicer.
(9) ‘Real estate closing escrow’ means an escrow in which:
(a) The escrow fee is paid in whole or in part by the principals to a real estate transaction; and
(b) The unpaid purchase price is delivered to an escrow agent for disbursal pursuant to the written instructions of the principals to the transaction simultaneously on the transfer of specified title to the real property.
(10) ‘Subservicer’ means an escrow agent, a financial institution or a trust company, as those terms are defined in ORS § 706.008, or a collection agency registered under ORS § 697.015 when providing, pursuant to written instructions, a portion of the escrow services for an escrow to an escrow agent, or a person in the business of receiving escrows under the laws of another state, that would otherwise provide the escrow services directly to the principals.
(11) ‘Trust funds’ means funds held by an escrow agent on behalf of a principal. [1963 c.440 § 1; 1977 c.351 § 4; 1981 c.617 § 20; 1991 c.874 § 1; 1993 c.18 § 150; 2003 c.427 § 4; 2005 c.116 § 23; 2007 c.337 § 2; 2009 c.174 § 1; 2017 c.234 § 23]