A seller in Corvallis, Oregon is selling a home that is located just outside the city's Urban Growth Boundary. The seller's principal broker advises that this UGB status should be addressed in the disclosure process. Which of the following statements most accurately reflects the seller's disclosure obligation regarding the property's UGB status under Oregon law?
Correct Answer
B) UGB status is a material fact affecting the property's permitted uses and development potential, and failure to disclose it may constitute a violation of the seller's disclosure obligations
Oregon's Urban Growth Boundaries (UGBs), established under ORS Chapter 197 and administered by the Department of Land Conservation and Development (DLCD) and local governments, directly affect a property's permitted uses and development potential. A property located outside a UGB is restricted to farm, forest, or rural uses, which is a material fact that could significantly affect a buyer's decision. Failure to disclose material facts that affect value or desirability can constitute a violation of ORS 105.464 and expose the seller to liability.
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