Dear Forms Committee: I noticed questions about disclosure-type items in OREF C-501 – Commercial Sale Agreement in the Seller Representations section. If Oregon law doesn’t require a seller property disclosure statement for commercial property, does my seller have to answer these?

No, but not answering them has the effect of turning the offer into a counteroffer, which the buyer may not want to accept if the seller is unwilling to provide such basic information.  While Oregon statutes don’t require a seller property disclosure statement for commercial property, Oregon case law does require sellers and sellers’ agents to disclose all material information about the property of which they are aware. Similar representations are found in most commercial sale agreements because the answers are considered to be information that every buyer would want to know. Consider also the fact that answering these questions up front is a way to address title, property condition, insurability, suitability and other problems early, allowing the parties to move forward with fewer delays and reducing the likelihood of a failed sale.

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