Chapter 0638

Chapter 638 Oregon Laws 2003

AN ACT

HB 2156

Relating to public assistance; creating new provisions; and amending ORS 205.246.

Be It Enacted by the People of the State of Oregon:

SECTION 1. As used in sections 1 to 3 of this 2003 Act, “encumbrance” means a voluntary instrument granting a security interest in the affected real property to secure a monetary obligation.

SECTION 2. (1) When an individual receives public assistance as defined in ORS 411.010 and the individual is the holder of record title to real property or the purchaser under a land sale contract, the Department of Human Services may present to the county clerk for recordation in the deed and mortgage records of a county a request for notice of transfer or encumbrance of the real property.

(2) A title insurance company or agent shall provide the department with a notice of transfer or encumbrance as required by section 3 of this 2003 Act.

(3) If the department has caused a request for notice of transfer or encumbrance to be recorded in the deed and mortgage records, the department shall present to the county clerk for recordation a termination of request for notice of transfer or encumbrance when, in the judgment of the department, it is no longer necessary or appropriate for the department to monitor transfers or encumbrances related to the real property.

(4) The department shall adopt by rule a form of the request for notice of transfer or encumbrance, the notice of transfer or encumbrance and the termination of request for notice of transfer or encumbrance that, at a minimum:

(a) Contains the name of the public assistance recipient, a departmental case identifier or other appropriate information that links the individual who is the holder of record title to real property or the purchaser under a land sale contract to the individual’s public assistance records;

(b) Contains the legal description of the real property;

(c) Contains a mailing address for the department to receive the notice of transfer or encumbrance; and

(d) Complies with the requirements for recordation in ORS 205.232 and 205.234 for those forms intended to be recorded.

(5) The department shall pay the recordation fee required by the county clerk under ORS 205.320.

(6) The request for notice of transfer or encumbrance described in this section does not affect title to real property and is not a lien on, encumbrance of or other interest in the real property.

SECTION 3. (1) A title insurance company or agent that discovers the presence of a request for notice of transfer or encumbrance pursuant to section 2 of this 2003 Act in the deed and mortgage records when performing a title search on real property shall:

(a) Provide the Department of Human Services with a notice of transfer or encumbrance of the real property within 30 days of a transfer or encumbrance that results in the issuance of a certificate of title insurance; and

(b) Disclose the presence of the request for notice of transfer or encumbrance in any report preliminary to, or any commitment to offer, a certificate of title insurance for the real property.

(2) If the Department of Human Services has caused to be recorded a termination of request for notice of transfer or encumbrance in the deed and mortgage records, a title insurance company or agent is no longer required to provide the notice of transfer or encumbrance required by subsection (1)(a) of this section for the affected real property.

(3) The Department of Human Services shall adopt by rule a model form for notice of transfer or encumbrance required by subsection (1)(a) of this section. A title insurance company or agent shall use the model form or a form substantially similar to the model form when notifying the department under subsection (1)(a) of this section.

SECTION 4. ORS 205.246 is amended to read:

205.246. (1) The county clerk shall record the following instruments required or permitted by law to be recorded and entered in the office of the county clerk:

(a) Financing statements recorded in the office of the county clerk under ORS 79.0501 (1)(a);

(b) Hospital and physician liens recorded under ORS 87.565;

(d) Cooperative contracts recorded under ORS 62.360;

(e) Special district assessments attaching to real property;

(f) Lien foreclosure statements recorded under ORS 87.202;

(g) A certified copy of the judgment or a lien record abstract or other liens affecting the title to real property;

(h) Building code exemptions required under ORS 455.320 and 455.345;

(i) Construction liens recorded under ORS 87.050;

(j) Liens upon chattels recorded under ORS 87.246;

(k) Liens on real property recorded under ORS 87.372;

(L) Employee benefit plan liens recorded under ORS 87.860;

(m) Attorney liens recorded under ORS 87.455 and 87.460;

(n) Long term care liens recorded under ORS 87.517;

(o) Ambulance services liens recorded under ORS 87.623;

(p) Community property records recorded under ORS 108.530;

(q) Sheriff transfer of records recorded under ORS 206.100;

(r) Corrected instruments required under ORS 205.244;

(s) Mineral and mining records required under ORS 517.030, 517.052, 517.160, 517.180, 517.210, 517.220, 517.280, 517.310 and 517.320;

(t) Copies of records certified by a county clerk or court clerk;

(u) Subdivision and partition plats recorded under ORS 92.140; [and]

(v) Condominiums recorded under ORS chapter 100; and

(w) Requests for notice of transfer or encumbrance or terminations of requests for notice of transfer or encumbrance presented for recordation under section 2 of this 2003 Act.

(2) The county clerk shall charge and collect fees specified in ORS 205.320, 205.327 and 205.350 for recording any instrument required to be recorded under subsection (1) of this section.

(3) Indexes may be maintained for instruments recorded under subsection (1) of this section in the same manner as provided in ORS 205.160.

Approved by the Governor August 12, 2003

Filed in the office of Secretary of State August 13, 2003

Effective date January 1, 2004

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