Even if a Seller is not required to provide the Seller Property Disclosure Statement (SPDS) or is exempt from providing the SPDS (e.g. Seller is a court appointed Conservator), the Seller will still have disclosure requirements both under law and in the purchase and sale agreement.
Seller Representations [Section 41 of Form 1.1] require the Seller to disclose if they know of any liens, assessments, encroachments, or material defects related to the property otherwise not described in the SPDS. ORS 92.465 prohibits express misrepresentations, and Oregon courts have upheld actions for “reckless misrepresentation.” If the Seller knows that there is a lien/encroachment/defect in the property, or believes that one exists, they are bound by contract and by law to disclose the truth of the matter.
E.g. Seller knows that the house floods every May due to bad drainage. Seller is a court-appointed Conservator and is exempt from providing an SPDS, the Seller representation section will still require Seller to inform the Buyer that the material defect exists.
Seller should disclose these defects in writing, whether that’s on the SPDS or in a separate email or letter. Even when exempt, the Seller may want to use the SPDS as a checklist to ensure they have met all their disclosure requirements.