How Do I Sell Timberland in Oregon? (What Buyers Want and How to Maximize Your Return)
Timberland: What Oregon timberland buyers actually want, why a professional timber cruise pays for itself, and how to maximize your return.
Oregon’s new Senate Bill 608
Eviction Standards Eliminates no-cause eviction standard after the first year of occupancy. o Landlords can continue to evict for a tenant-based cause (current law – i.e., non-payment, violation of the rental agreement, outrageous conduct, etc.). • Adds new landlord-based for-cause reasons to evict a tenant: o Sale to a person who will move in; o Landlord or family member move-in; o Significant repair or renovation of the unit; o Removal of the unit from residential use. • If landlord uses one of these four landlord-based reasons, they must provide the tenant with 90-day notice and relocation expenses in the amount of 1 month’s rent. Exceptions • Small landlords (4 or fewer units) do not have to pay relocation expenses. • Landlords who live on the same property as their tenant (owner occupied, 2 units or less) may still use a nocause eviction at any time. Month-to-Month Tenancies • For the first 12 months of occupancy, a landlord may terminate the tenancy without cause with a 30-day notice. • After the first 12 months of occupancy, a landlord may only evict a tenant for cause, by using an existing tenantbased reason or by using one of the four new landlord-based reasons. Fixed-Term Tenancies • After the first 12 months of occupancy, the fixed-term lease will automatically roll over to month-to-month unless the landlord has a tenant or landlord-based reason to terminate. Exceptions: • A fixed-term lease might not automatically roll over at the end of the fixed term per landlord discretion if the tenant has violated the terms of the rental agreement 3 separate times during a 12-month period, with written warnings for each violation given contemporaneously with the violation. Annual Rent Increase • Landlords may increase rent by no more than 7% + consumer price index in a 12-month period. • Maintains current law regarding rent increases: prohibits rent increases in first year of month-to-month tenancy and requirement that landlords give 90-day notice of rent increases thereafter. Exceptions: • New Construction: A landlord may increase the rent above 7% +CPI in a 12-month period if the certificate of occupancy was issued less than 15 years ago. • New Tenancy: If the previous tenant vacated the unit voluntarily or their tenancy was otherwise terminated in compliance with other applicable law, the landlord may reset the rent on the new tenancy without limitation. • Subsidized Housing: If the landlord is providing reduced rent to the tenant as part of a federal, state, or local program or subsidy, they are exempt. Enforcement • If a landlord violates the new provisions, they are liable for three months’ rent plus actual damages. 2 SENATE BILL 608 SUMMARY Frequently Asked Questions: SB 608 When will the changes go into effect? Senate Bill 608 has an “emergency clause” and thus becomes effective once signed by Governor Brown. We anticipate this could be as early as March 1, 2019. If I have a transaction that closes after the law goes into effect, can the new owner evict the tenants? Depends. Generally, you may only evict for a tenant cause or a “qualifying reason for termination” under of the enumerated circumstances that the law provides. Once you become an owner of qualifying rental property, you become a “landlord” whose conduct is governed by the bill and you should review both the current law and existing tenant contracts of the property you’re purchasing. However, the law does allow for specific circumstances under which a landlord, including a new landlord, could evict a tenant landlord-based reasons including significant renovations, demolitions, safety, or owner-occupancy. How does this impact closing timelines for rental occupied properties where the new owner will occupy the residence? The closing date in the sale of real property is a construct of contract law between the parties and thus would not be affected by the new law which governs landlord-tenant relations. However, displacing a current tenant (and thus effectuating the intent of new owner who would like to move-in) is another issue (because notwithstanding the transaction between the buyer and the seller, the tenant has their own rights subject to their lease agreement and current law). If the tenant is a week-to-week tenant, or a month-to-month tenant within the first year, you have some flexibility to displace them without cause (so long as you give them the specified amount of notice) and certain circumstances apply. If the current tenant is a month-to-month renter who has been occupying for more than a year or is under a fixed term lease, evicting a tenant is subject to more regulations. Fixed-term leases will always continue, unless there is a tenantbased reason (failure to pay rent) for eviction. On a month-to-month tenancy, 90-days’ notice and the payment of relocation expenses (1-month’s rent) will be required. I heard that the law caps rent increases, but that cities and counties will be able to set high rent caps if they want? There are no exceptions for cities and counties, and therefore the rent increase cap would apply to the entire state equally. Further, any local ordinances that conflict with the statewide cap on rent increases would likely be preempted by the legislature’s acts. We advise seeking legal counsel to determine where estate and local laws may conflict and the potential impact of such a situation. 3 SENATE BILL 608 SUMMARY When it says that it applies to buildings 15 years or older, when does that date start? Is it rolling? The time period is calculated by the difference between when a notice of rent increase is sent out and when a certificate of occupancy was issued for the dwelling unit. Does selling your home count as a for-cause or no-cause eviction? The bill is intended to provided protections for tenants. Thus, if a home owner wishes to sell their home, this law would have no effect on that transaction (which is between the buyer and the seller) unless the rights of a tenant are affected. Fixed-term leases will always continue, unless there is a tenant-based reason (failure to pay rent) for eviction. On a month-to-month tenancy of under a year, a no-cause notice may be issued with 30-days’ notice. On
Oregon real estate-No money down loans
Oregon real estate No Money Down Loans Rents right now are getting to the point of being more expensive than buying a home, not to mention the increased freedom you have with home ownership. As one of the few 100% financing options currently, the USDA government sponsored mortgage program is a great way to go. Loans are issued through the USDA Rural Development Guaranteed Housing Loan Program which was created by the U.S. Department of Agricultural. If you would look at a map that shows the eligible places in your search area you will see that many areas border the city or town where you are looking. The areas that qualify are much larger than the areas not in the program. A USDA loan you would think would refer to a farm – land setting, however this program is offered in communities with populations of 20,000 or less, and in many areas surrounding larger towns. If a buyer qualifies for this loan, a plan on how to find a home should follow. Oregon real Estate for sale I you take this chore on yourself, you will be going up against many buyers with good realtors. I can help www.homesforsalesalemoregon.net. Either way, go the direction that has the highest chance of success. Your MLS properly listed properties will have the most competition. The listings that are less professionally marketed will have the second most competition, and your FSBO (For Sale by Owner) will have the least competition along with the make-me-move people on Zillow. If your FSBO seller will work with an agent on the buyer side, chances are you can get all the paperwork done correctly. If the FSBO seller does not want to contribute then you may have to go to plan B. This is why national statistics show that only 9% of FSBO people are successful. Be ready to negotiate and craft a deal where there may be none. Here are some GREAT articles that will help. For personal service just contact me at al@cronemiller.com or visit my site at www.homesforsalesalemoregon.net. Enjoy your search and Good Luck!