Dear Forms Committee: Why doesn’t the Termination Agreement list the reason for termination?

OREF 057—Termination Agreement was created to allow the parties to agree to terminate a transaction and identify how earnest money should be distributed. This one-page form should be provided to escrow to allow them to process the termination as agreed by the parties.

There is usually no requirement to communicate more about the reason for termination than what the pre-printed forms already say.  Explaining the reason in greater detail can cause more harm than good. For example, if the explanation fits the definition of confidential information in ORS 696.800(3), you cannot disclose it without your client’s permission. The explanation could also lead to a dispute, such as whether the party has a right to terminate, whether there is a material defect, or whether the party is being reasonable. The safest way to terminate is to check the appropriate boxes on the appropriate forms and leave it at that.

All comments and responses from OREF or its staff, managers, and volunteers are non-legal opinions made for general purposes. Each Forms subscriber must rely solely upon their Principal broker or personal legal counsel for specific advice and instruction. You and your client should independently confirm that the Form(s) you use are legally suitable for the purposes intended and that they are current with respect to all laws and regulations.