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Loren, Attorney
Category: Legal
Satisfied Customers: 33457
Experience:  30 years experience representing clients.
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In 1977, an owners agreement was drawn up in Oregon. It was

Customer Question

In 1977, an owners agreement was drawn up in Oregon. It was never notarized or filed anywhere as a legal binding document...except with the parties involved. Is this considered a legally binding contract?
Submitted: 10 months ago.
Category: Legal
Expert:  Loren replied 10 months ago.

Good afternoon. I am Loren, a licensed attorney, and I look forward to assisting you.

What does the agreement control (what is it for)? Have the parties conducted themselves in accordance with the terms of the agreement?

Customer: replied 10 months ago.
The agreement controls how the involved parties relate to the real property. Specifically, how parties conduct transfer of ownership. One party wishes to bypass the agreement and receive market value rather than invested value (as defined in the original agreement). Prior to this owner's request, transfer of property has proceeded according to the original agreement.
Expert:  Loren replied 10 months ago.

Thank you for the additional information.

As a general rule, a notary is not required for an enforceable contract. In other words, it is enforceable agonist the original parties without notarization.

Where it might fail is if it was meant to be enforceable against a successor in interest. Notarization would be required to for the agreement to be recorded and recording would be required for it to be enforceable against successor owners.

Otherwise, assuming is is otherwise valid, it would be enforceable by the parties.

Customer: replied 10 months ago.
All parties agreed to and signed the owners agreement back in 1977, owner in question is an original owner/signer. Do I understand you to say, all owners are legally bound by the terms of the owner's agreement...and one owner cannot arbitrarily decide to change terms delineated in the agreement, which other owners do not agree with.
Expert:  Loren replied 10 months ago.

Is this the first time the agreement has been called into enforcement? Has it been invoked prior to this occasion?

Expert:  Loren replied 10 months ago.

Also, do the terms of the agreement provide for expiration or termination?

Customer: replied 10 months ago.
This is the first time its been called into enforcement, no other transfers have been questioned or requested to differ from the agreement. The agreement is in perpetuity.
Expert:  Loren replied 10 months ago.

If it has no expiration then it is still enforceable by the parties and it is not discretionary.

However, if you want to make it a covenant running with the land then it will need to be notarized and recorded.

Expert:  Loren replied 10 months ago.

Did you have further questions? Have I answered your question?