New property disclosure requirements enhance buyer awareness of risks and defects

Oregon's House Bill 3526, introduced on February 17, 2025, aims to enhance property disclosure requirements for real estate transactions, particularly focusing on environmental hazards and property conditions. The bill seeks to address growing concerns about public safety and environmental health, especially in areas prone to natural disasters and contamination.

Key provisions of HB 3526 include mandatory disclosures regarding the presence of hazardous materials such as asbestos, radon gas, and lead-based paint, as well as the history of the property concerning illegal drug manufacturing. Additionally, sellers will be required to disclose if the property is located in a floodplain or a designated geologic hazard zone, ensuring that potential buyers are fully informed about risks associated with their prospective homes.

The bill has sparked notable debates among lawmakers and stakeholders. Proponents argue that increased transparency will protect buyers and promote safer living conditions, while opponents express concerns about the potential burden on sellers and the real estate market. Amendments have been proposed to streamline the disclosure process and reduce the administrative load on property owners.

The implications of HB 3526 are significant. By mandating comprehensive disclosures, the bill aims to reduce the likelihood of future health and safety issues, potentially lowering insurance costs and fostering a more informed real estate market. Experts suggest that this legislation could lead to a shift in buyer behavior, with increased demand for properties that meet higher safety standards.

As the bill progresses through the legislative process, its future remains uncertain. However, if passed, HB 3526 could set a precedent for similar legislation in other states, reflecting a growing trend toward prioritizing environmental health and safety in real estate transactions. The outcome of this bill will be closely monitored by both the real estate industry and environmental advocates, as it could reshape the landscape of property ownership in Oregon.