Oregon law requires sellers to complete a detailed Seller's Property Disclosure Statement (SPDS) covering everything from roof age and water intrusion to past permits and environmental hazards. Knowingly concealing a material defect, or failing to disclose one you were aware of, can expose a seller to significant legal liability after closing.

Common undisclosed issues that lead to lawsuits include water damage and mold, foundation problems, unpermitted additions, pest infestations, and malfunctioning HVAC systems. Oregon courts have consistently held sellers and their agents responsible when buyers prove disclosure should have been made.

What this means for you: As a seller, over-disclose. If you are unsure, disclose it. As a buyer, read every disclosure carefully and ask questions before removing contingencies.

Misrepresentation occurs when a false statement, whether intentional or accidental, is made about the property and a buyer relies on it when making their purchase decision. This can include verbal statements made during showings, written descriptions in the MLS, and marketing materials.

Even innocent errors can lead to legal action. Claiming a property has a newer roof than it does, overstating square footage, or describing a septic system as recently serviced when it was not are all grounds for a misrepresentation claim. Oregon law distinguishes between fraudulent, negligent, and innocent misrepresentation. All three can result in damages.

Agent responsibility: Agents have a duty not to make statements they cannot verify. When in doubt, verify through a licensed inspector or third party. Never estimate or guess in writing.

Once an Oregon real estate purchase agreement is signed, both parties are legally bound to its terms. Breach of contract claims arise when either the buyer or seller fails to fulfill their obligations: failing to close on time, backing out without a valid contingency, refusing to make agreed-upon repairs, or not vacating by the possession date.

A common scenario: a seller agrees during negotiations to repair a specific item before closing. The repair is noted in the contract, never completed, and the buyer closes anyway. Post-closing, the buyer discovers the repair was not done. This becomes a breach of contract claim, even if the item seems minor.

Prevention tip: Ensure all repair requests, credits, and agreements are in writing, signed by both parties, and verified complete before closing.

Title problems include unresolved liens, easements the buyer was not informed of, encroachments from neighboring properties, and disputed boundary lines. In rural Southern Oregon, boundary and access issues are particularly common, especially with properties that have creek or road frontage, shared wells, or agricultural easements.

Many of these disputes could be discovered before closing with proper due diligence: a current survey, a thorough title search, and careful review of the preliminary title report. Buyers who skip these steps, or agents who do not flag issues in the title commitment, set the stage for post-closing conflict.

Owner's title insurance is optional in Oregon but strongly recommended: it protects against future title claims that were not discovered at closing.

In competitive markets, buyers sometimes waive inspection contingencies to strengthen their offers. While this can be an effective strategy, it transfers all risk of unknown defects to the buyer and eliminates most legal recourse after closing, unless fraud or intentional concealment can be proven.

Even when buyers waive formal contingencies, Oregon agents have a duty to advise clients of the risks involved. A lawsuit can still arise if the buyer later claims they were not properly informed about what they were giving up, or if undisclosed defects suggest the seller had knowledge they chose not to share.

Best practice: Even in as-is sales, encourage buyers to complete an informational inspection. Knowing about a defect and choosing to proceed is far better than discovering it after closing.

In Southern Oregon, unpermitted additions, garage conversions, accessory dwelling units, and outbuildings are surprisingly common. When a seller, or their agent, represents a structure as livable square footage without disclosing that it lacks permits, the buyer may find themselves unable to insure the space, refinance, or resell without costly corrections.

Oregon's disclosure laws require sellers to disclose known unpermitted work. County records can be checked to verify what permits were pulled: a step every thorough buyer's agent should take before closing. Zoning violations, such as a short-term rental operating in a non-allowed zone, can also surface post-sale and lead to litigation.

Vacant and absentee-owner properties carry elevated risk here, as owners are sometimes unaware of what previous tenants or owners may have built or modified without permits.