Warning on withholding of funds at closing
This is an update on the Oregon Law (HB2592) that will require an closing agent to withhold funds from seller’s proceeds at the closing of non-Oregon residents or those that will not remain an Oregon resident after closing. Most title companies will provide Oregon Department of Revenue forms, shortly after opening of escrow that must be returned in advance of closing by the seller. If they do not, the closing agency may retain up to 4% of the sales price of the home. If the ODR forms are returned, the withholding may be 4% of the seller’s proceeds. There are potential delays i f forms are not returned or if there is a lack of proceeds to cover the withholding. This information was provided by a title company.