General Oregon RE Exam Prep Question
WHY is this?
15.All of the following are exempt from the property disclosure requirements EXCEPT a purchase intended for residential use by the buyer’s child. The seller property condition disclosure applies to the transfer of all one-to-four dwelling units where the buyer or the buyer’s spouse, parent, or child will reside It does not apply to a bank foreclosure sale, sale by a governmental agency or sale for residential use by other than by the buyer’s immediate family.
If you are willing to sell a property to your mother, child, brother, etc. without telling them that the basement leaks then you are allowed to do so. The state of Oregon is not going to get involved. Sell it to a stranger without the same disclosures and the state is interested.
Mostly this is to avoid incuring disclosure liablity on intra-family transactions.