Robert is a broker listing a rural property in Yamhill County, Oregon. The 50-acre parcel is outside any city's UGB, zoned Exclusive Farm Use (EFU), and has an existing farmhouse that was legally established in 1978. A prospective buyer, an attorney named Grace, tells Robert she plans to convert the farmhouse into a bed-and-breakfast inn with eight guest rooms and host corporate retreats. Robert knows that EFU zoning severely restricts non-farm commercial uses. Under Oregon's land use planning framework, which of the following most accurately describes the situation?

Correct Answer

B) Grace's intended bed-and-breakfast and corporate retreat use would likely require a conditional use permit under EFU zoning rules, and approval is not guaranteed — Robert has a duty to disclose this material land use restriction to Grace

Under ORS Chapter 215 and applicable Oregon Administrative Rules, EFU-zoned land outside a UGB severely restricts non-farm commercial uses. While Oregon law does allow certain limited commercial uses on EFU land — including bed-and-breakfast establishments on existing farm dwellings — these uses are typically subject to conditional use permit approval, specific criteria (such as limits on the number of guest rooms, which under OAR 660-033 is generally capped at five rooms for a farm B&B), and findings that the use is compatible with surrounding farm operations. An eight-room bed-and-breakfast hosting corporate retreats would likely exceed the permitted scale and could be denied. Robert has a clear duty as Grace's listing broker to disclose this material land use restriction, regardless of Grace's professional background. Failure to disclose could constitute misrepresentation or a violation of ORS Chapter 696.