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03/14/2025

When is it a “Dwelling?”

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Many of the property related clauses and provisions of Oregon law only apply to dwelling units; for instance, the Seller Property Disclosure Statement is only required when there is a sale of “real property consisting of or improved by one to four dwelling units.”  Your local region (county or city depending on where the property is located) will define a dwelling unit more precisely, but generally speaking, the definition cleaves towards “a structure used as a home, residence, or sleeping place by one or more persons who maintain a household there.”  Many cities include the requirement that the location have usage for a mixture of “living, sleeping, eating, cooking, and sanitation.”  For example, several cities in Yamhill County establish the standard as merely “having a place to sleep and a place to cook” to make a dwelling, but Portland defines a “Dwelling Unit” as “a single unit providing complete, independent living facilities for one or more persons, including permanent provisions for living, sleeping, cooking, eating, and sanitation.”  As a result of the differing definitions, your mileage may vary depending on your location.  A shop or outbuilding with running water and a hot plate would be considered a “dwelling” in many areas, but may not be considered a dwelling in others.  It’s also worth noting that most areas consider “dwelling units” without connection to the immediate usage – in other words, the question is not “are people presently and currently using the space as a living and cooking spot” but rather “could someone use this space for living and cooking.”  This distinction is most relevant in situations where a client wants to sell land with a decaying building.  Oftentimes, the seller will say “I’d rather not even say there’s a dwelling because I’d never stay in that building, so I don’t need to fill out disclosures for that structure, right?”  The answer is that a decrepit building will still be a “dwelling” until it loses its occupancy permits.  As long as it can be used for occupancy and still has water, electricity, and a roof, it’s going to require disclosures. 

Nonetheless, consult your local city/county for a more granular definition to apply in this circumstance.