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Oregon Commercial Closing Customs


Oregon is customarily an escrow closing state. All documents required for closing are executed and recorded and funds are disbursed at the time of closing.  The seller brings clear title, the buyer brings money, and both leave the closing table with what the other party brought to the table.

Commercial transactions are closed in conformity with the requirements of a written agreement, generally a contract between the parties to the real estate transaction, accompanied by closing instructions prepared by the attorneys or brokers representing the parties.  Title Insurance and Escrow services are strictly regulated by the State of Oregon. Title Premiums are charged in accordance with filed rates that are preapproved by the state insurance commission.

A Title Commitment or Preliminary Title Report is prepared by the title company listing the requirements which must be met in order for the title insurer to issue a policy, as well as the exceptions from coverage.  Most transactions, and particularly commercial transactions, engage a representative of the title company (the “escrow officer”) to collect and record the documents of conveyance and documents securing the debt prepared by the attorneys for the parties and the lender or lender’s counsel.

Closing Documents

The following documents are typically prepared by the escrow officer:

  • W-9 or 1099 for Federal Taxes
  • Settlement Statement (or HUD-1 for residential transactions)
  • Owner’s Affidavit and Indemnity

Other documents should be prepared by the client or their respective attorneys, but the escrow officer may be asked to provide the form:

  • Real Property Transfer Tax Declaration Forms (required for Washington County only)
  • Conveyance Deed (the escrow officer, upon receipt of written instructions, may act as scrivener to prepare the deed)
  • Deed of Trust
  • Oregon FIRPTA forms (when required by state law)

Costs and Charges

The seller typically pays for the cost of the owner’s standard coverage title policy, while the buyer pays for any extended coverage lender’s policy, all endorsements required by the lender, and the costs of recording. The parties typically share the cost of escrow fees equally.

Closing costs are allocated between the parties to the transaction pursuant to the terms of the contract. The costs are typically split as follows:


Typically paid by

Owner’s Policy Seller
Owner’s Policy Endorsements Additional endorsements are the responsibility of the Buyer
Loan Policy and Endorsements Buyer or Borrower
Real Estate Taxes Pro-rated, current taxes are paid by Seller
Transfer Tax Shared equally by Seller and Buyer (applicable to Washington County only)
Water, sewer, association fee Pro-rated, current charges paid by Seller
Escrow Shared equally by Seller and Buyer
Recording Fees Buyer or Borrower


Time and Place of Closing

Most commercial transactions are concluded without the parties meeting together, generally requiring the escrow officer to coordinate receiving the documents from the parties and counsel and distributing and disbursing as necessary.  Documents are prepared, signed, and held in escrow by the title company until all requirements are completed and the requisite amount of funds  have been provided to the title company to be disbursed.

Recording Fees

Recording fees are generally $41.00 for the first page and $5 for each subsequent page of a document.  For example, a 2-page document would cost $46.00 to record ( An additional $5 fee per document will be charged for e-recording when that service is available. There are unique requirements as to the titles of documents that may be recorded and additional fees may apply. Please contact us for advice in this regard.

UCC’s may be recorded with the county Clerk and Recorder, and/or filed with the Secretary of State, depending on the personal property type.

Electronic recording is available, at an additional cost of $5 per document.

Post Closing

Post-closing escrows are commonly held by the title company pursuant to a written agreement among the parties and the title company.

The title policy is issued upon recordation of the documents and the satisfaction of all outstanding requirements.

Real Estate Taxes

The Real Property tax year runs from July 1 thru June 30.  Taxes are paid in three installments – due November 15th, February 15th, and May 15th.

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