Contractors routinely provide express
warranties against construction defects in new
commercial and residential projects. However,
as of January 1, 2006, Oregon Revised
Statute 701.560-701.595 now allows
contractors to record agreements describing
any express warranties the contractor has
made. Although the courts have not yet tested
the consequences of recording a warranty
agreement, the new law appears to benefit
contractors in several ways, and raises many
questions for developers.
The law states that its purpose is to
facilitate remediation of construction defects,1
and allows the contractor who builds a new
structure to record a written warranty
agreement in the deed records of the county in
which the structure is built. The warranty must
contain the names of the contractor and the
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S P R I N G 20 06
Washington, D.C.
Portland, Oregon
Bend, Oregon
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I N S I D E TH I S I S S U E :
CONSTRUCTION LAW REPORT
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RECORDING CONSTRUCTION WARRANTY
AGREEMENTS: WHO AND WHAT MAY BE
IMPACTED BY NEW LAW?
CO-AUTHORED BY DINA E. ALEXANDER AND SUSAN J. BAIRD
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Page 2
CONSTRUCTION LAW REPORT
Continued on page 3
original property owner, the legal description of
the property, the title of the agreement, and
the express warranties provided. The
agreement must also be signed before a
notary public by both the owner and the
contractor. The contractor is not required to
record the warranty agre