What Sellers in Oregon Must Disclose (And Why It Matters)

Oregon law requires residential sellers to complete a written disclosure statement before closing — and the standard most sellers don't realize is this: you disclose what you know, not what you discover. That's both the protection and the responsibility built into the system.

Understanding what you must disclose, what you don't, and why any of it matters isn't just legal housekeeping. Getting it right protects you from lawsuits, keeps deals together, and builds the kind of trust that makes a transaction actually close.

The Legal Foundation: ORS 105.464 and 105.465

Oregon's disclosure requirements are governed by two statutes. ORS 105.465 establishes who must provide a disclosure and when. ORS 105.464 defines the form — a standardized document called the Seller's Property Disclosure Statement (SPDS) that must be completed in substantially the form prescribed by the legislature. The form applies to single-family homes, duplexes, triplexes, quads, condos, manufactured homes, and timeshares.

The core standard is actual knowledge. Oregon law doesn't require you to hire inspectors or engineers to find hidden defects. You're required to honestly report what you already know. If your roof has never leaked to your knowledge, you can mark "No." If it leaked three years ago and was repaired, you disclose the leak and the repair — including dates, contractor, and any transferable warranty.

What you cannot do: stay silent about known material defects. Oregon common law established the seller's duty to disclose before the statute codified it. The Oregon Realtors' Property Seller Advisory is direct: "A seller in Oregon cannot remain silent if they know of some hidden defect that affects the value or desirability of the property." The statute made that duty standardized and enforceable.

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What the Disclosure Form Covers

The Oregon SPDS walks through the property section by section. Here's what each covers:

Title and ownership. Easements, encroachments, boundary disputes, liens, shared driveways or walls, and any legal restrictions on the property. If a neighbor's fence crosses your property line or a utility easement runs through the backyard, it goes here.

Water systems. Public water vs. well, required permits, any plumbing problems. For rural properties throughout South Clackamas County — Canby, Aurora, Hubbard, Molalla — private wells are common. Oregon law separately requires sellers on well water to test for total coliform bacteria, arsenic, and nitrates through an accredited lab before transfer.

Sewage. Public sewer vs. septic, system condition, any failures, pump history, or drain field work. Septic disclosure is critical for properties outside city limits. Buyers typically want a professional onsite wastewater inspection, and some lenders require it.

Dwelling structure. Roof condition, foundation, insulation, additions or conversions, and whether required permits were obtained and final inspections passed. Unpermitted work is one of the most frequently flagged disclosure items in Oregon. Added a room, finished a basement, installed a detached structure with electrical — without permits? It goes on the form.

Systems and fixtures. Electrical, plumbing, HVAC, appliances, water heater. Any known problems or needed repairs belong here.

Environmental hazards. Radon, asbestos, mold, underground storage tanks, and contaminated soil or water. If the property has been tested for any of these, disclose the results. Oregon has areas with elevated radon levels, and prior test results are material regardless of outcome.

Geological and natural hazards. Flood zone, landslide risk, drainage problems, soil settling, earthquake or storm damage. Oregon's climate makes moisture and drainage issues relevant throughout the Willamette Valley. If your crawl space has a moisture history — even after remediation — it belongs on the form.

HOA and community. Any dues, rules, special assessments, or pending HOA litigation. Buyers often don't ask until they're in contract, so disclose proactively.

The catchall: material defects. The final question asks whether there are any other material defects affecting the property or its value that a buyer should know about. Unlike every other item on the form, this one doesn't allow "Unknown" as an answer. You must answer Yes or No. If yes, a written explanation is required. A material defect is anything that could significantly affect a buyer's decision or the home's value.

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What You Are NOT Required to Disclose

Oregon is more seller-friendly than many states on a few points.

Deaths and crimes on the property. Under ORS 93.275, you're not required to disclose that someone died in the home — regardless of cause — or that a crime occurred there. These facts don't affect the physical condition or title, so they're not considered material under Oregon law. If a buyer asks, answer honestly. But you're under no statutory obligation to volunteer it.

Registered sex offenders in the area. Oregon law specifically limits agent disclosure of this information. The state maintains a public registry for buyers who want to research it themselves.

Speculative future defects. You're disclosing what you know. A roof that has never leaked doesn't require a caveat about Oregon rainfall.

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What Happens If You Skip the Disclosure

Under ORS 105.475, if a seller fails or refuses to provide the disclosure, the buyer retains the right to revoke their offer at any time — right up until closing. A deal that has been negotiated for weeks can fall apart the day before funding over a missing form.

If the seller provides the disclosure, the buyer has five business days from delivery to revoke by delivering a separate signed written statement. Miss that window, and the right to revoke lapses.

Beyond the deal mechanics: failing to disclose known material defects exposes sellers to claims for damages or rescission of the sale under Oregon common law. The Oregon Realtors' Seller Advisory is unambiguous — when in doubt, disclose. The cost of disclosure is zero. The cost of withholding a known defect can be significant.

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The Federal Layer: Lead-Based Paint

If your home was built before 1978, federal law requires three things regardless of Oregon state rules:

1. A lead-based paint disclosure noting any known hazards
2. The EPA pamphlet "Protect Your Family from Lead in Your Home"
3. A 10-day inspection period for the buyer to assess lead risk — unless waived in writing

This is a separate obligation that applies on top of the Oregon SPDS. If your pre-1978 home has had any lead testing or abatement work, bring that documentation to your agent before listing.

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What This Means If You're Selling Now

The current market in South Clackamas County adds a practical lens to all of this. According to Redfin data from March 2026, the Canby median sale price is $546,000 — up 7.3% year over year — with homes averaging 22 days on market. That's a significant shift from the 109-day averages seen earlier this year.

In a faster market, buyers have less time to build confidence before their offer window closes. A complete, honest disclosure statement — one that proactively addresses known issues and documents any past repairs — actually keeps deals together. Buyers who feel informed stay in the transaction. Buyers who feel like something was buried do not.

If you've made repairs, done updates, or addressed known issues, document everything: dates, contractors, permits, and any transferable warranties. That documentation doesn't weaken your position — it shows you're a seller who maintains the property and deals straight. That matters.

One more thing for Oregon sellers: there's no state real estate transfer tax in Oregon, and Clackamas County doesn't impose one either. That's real money compared to sellers in states that do.

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Jennifer Schurter serves buyers, sellers, and investors throughout South Clackamas County and the North Willamette Valley — including Canby, Oregon City, Wilsonville, Aurora, Hubbard, Molalla, Woodburn, Newberg, Sherwood, Tualatin, West Linn, Lake Oswego, and the greater Portland metro south. Her goal is simple: to be the most knowledgeable, most responsive, and most genuinely helpful real estate agent in the area — every single time. Jennifer is a licensed Oregon real estate broker with Real Broker LLC.

Have questions or want to get started? Connect with Jennifer here. She'd love to hear from you.