Blog - Sean Besso Realty

Portland’s Sullivan’s Gulch Neighborhood

architectural heritage center walking tour — 1913 – Graham Woodlaw house. He was a theater owner who owned the Bagdad Theater, along with many other old theaters in Portland.

On this Architectural Heritage Center’s Walking Tour, Jim and Robert lead us through Portland’s Sullivan’s Gulch neighborhood. Tucked in between the Irvington neighborhood (which is north of Northeast Broadway) and I-84 in Northeast Portland, Sullivan’s Gulch is named for Thomas Sullivan. Sullivan received the land as a donation land claim in the 1860’s and had a cabin on the edge of the Gulch. When Sullivan died, he left all of his land to his daughter, who became a nun and donated the 360-acre parcel to Sisters of Providence Church.

Holladay’s Addition

Ben Holladay bought land and started to develop it, with the first house having been built in 1871. About 500 homes were built in total. Holladay Park was a town square for Victorian colonial mansions, a major part of the development of the train going south from Portland and the bridge going across the river from downtown. Irvington Street car and Broadway Street car came to the Addition from what was the first Morrison Bridge street car and the river ferry from Portland.

By 1920, many of the former owners had moved to places like Dunthorpe neighborhood, so there was a question of what to do with hundreds of these large, swanky homes. Holladay had gone bankrupt with railroad development, so portions of Holladay’s Addition were sold off. Ralph Lloyd ended up buying all the land and tore down 500 homes in the area for commercial development. The area had been cleared of the homes by the 1940s. Lloyd Center was built in the area in 1960.

Planning and Liveability

One of the interesting planning features is the use of cul de sacs. Between Northeast 21st and Northeast 28th Avenues, there are no outlets, except to either Northeast 21st, NE Weidler or NE Broadway. This intentional feature greatly reduces vehicle through-traffic and associated noise.

If you’re ever at Hollywood Fred Meyer, you’ll see enlarged historic photos of Sullivan’s Gulch in the entryway and throughout the store. The area continues to evolve as new residential and commercial buildings are constructed. Contact me if you’re interested in seeing what is for sale in this neighborhood. For more information about the Architectural Heritage Center, please visit their website.

What does Oregon’s SB608 mean for investment property owners?

If you are a residential landlord in Oregon, and Portland specifically, SB608 is the newly enacted law regarding no-cause evictions. While I cannot provide legal advice, I wanted to share highlights of the new law, recently presented by Leah Sykes, Attorney, Greenspoon Marder LLP. The law is in effect as of February 28, 2019.

There are four different kinds of notices, depending on the length and term of tenancy:

End of Tenancy Notice
- Usually after one year
- Applies to month-to-month leases
- 90 days’ notice in Portland
Termination Without Cause
- After one year of occupancy, landlord must give 60 days
- If landlord is planning to sell unit, other provisions and timelines apply
- Applies to landlords if primary residence is a duplex or smaller
- If lease is a fixed term after the first year of occupancy, landlord must give 30 days’ notice prior to end of fixed term or 30 days prior to specified ending date, whichever is later.
90-Day Termination For Cause Qualifying Owner Reason
- Specify reason and supporting evidence/facts.
- Include payment with notice to tenant in the amount equal to one month’s rent
- Reasons include: owner intends to demolish or convert unit to use other than residential; owner intends to undertake repairs or renovations to the dwelling unit and either: 1) premises are unsafe or unfit for occupancy or 2) unit will be unsafe or unfit for occupancy during repairs or renovations.
- Owner intends to occupy unit as primary residence.
- Owner has accepted an offer to purchase unit from someone who intends in good faith to occupy the unit as their primary residence.
Termination For Cause
- Tenant violates terms of rental agreement three times within twelve months.
- 90 days’ notice required.
- Landlord will need to follow the guidelines for communicating violations to ensure termination is successful.

Rent Control (Portland)

Landlords may increase rent after one year of tenancy at an increase of maximum 7% plus Consumer Price Index (CPI) as published by the Bureau of Labor and Statistics in September of the prior calendar year. As of 2019, the total cap is 10.3%. Rent may not be increased by more than 7% plus CPI when next tenant moves in, if prior tenant was evicted without cause.

Penalties

According to City of Portland’s Charter, Code, and Policies 30.01.085:

“A Landlord that fails to comply with any of the requirements set forth…shall be liable to the Tenant for an amount up to 3 times the monthly Rent as well as actual damages, Relocation Assistance, reasonable attorney fees and costs (collectively, ‘Damages.’)”

Bear in mind, there are always caveats and exceptions, so if you have further questions, please contact me for a referral to an attorney.

Meet Your Oregon Real Estate Broker, Sean Besso

Sean Besso, Managing Principal Broker, Oregon Realty Co.

Sean Besso first became an Oregon resident in 1985 and a Portland homeowner in 1996. His father’s work in food service management lead his family to vastly different areas of the country: Oahu, North Carolina, Montana, and Tillamook, Oregon. His first job was in the family restaurant at the Crust and Kettle in Montana. When the recession hit in 1985, the family moved to Tillamook, where his father opened the first Edward Jones office. Sean moved to Eugene after high school to attend the University of Oregon, where he majored in Sociology and Political Science, with a minor in Japanese studies. University of Oregon is also a significant stop in Sean’s life, where he met his wife, now a Portland school teacher.

Other work experience includes: Enterprise Rent-A-Car in San Francisco, West Coast Event Productions as an event manager, American Show Management producing IT trade shows in California and the southwest, and Contractor Project Manager for Phoenix Redevelopment. This job was his first exposure to real estate. He learned valuable lessons about buying homes, fixing them up, reselling them, and contractor dos and don’ts.

Why Real Estate?

A conversation with his father-in-law inspired Sean to become a real estate broker. He counted working for himself as a plus. And after all, his mother had been a broker in Billings, so he was familiar with the work ethics of unconventional hours, navigating a competitive climate, and importance of client care. In the meantime, he attended classes at Portland State University in the Urban and Regional Planning School. Bartending during the day, he took classes at night to obtain his real estate license.

Once he obtained his broker’s license, he sought out a company that was not of the traditional “hard sell” school of sales. ABC is more about “Always Be Caring” than “Always Be Closing” for Sean. He counts having the experience with the development group and buying his first home as pivotal learning points. He knows from personal experience how important it is to have a broker who is your advocate, is knowledgeable, and is not going to be that slimy, unqualified salesperson pushing a quota agenda.

Personal Real Estate Experience

His former landlord, who had recently gotten his real estate license, sold them their first house. It was his landlord’s first and last real estate transaction. A few years after the sale, Sean discovered the roof had multiple layers, where only two layers are allowed. In fact, the fascia popped off when the roof was replaced, because the weight of all the roofing layers had been lifted. They experienced a sewer line and furnace failure within the first two years of ownership. These were not just nightmares, but real circumstances they could have planned for or even negotiated, had they had competent representation. Sean shares these experiences to help clients understand the importance of advocacy and guide them through the inspection process.

Credentials and Continuing Education

As the market changes, it is crucial to stay on top of rules and regulations, while keeping current with continuing education. See the blog post about 2019 real estate contract changes. Thirty-three credits of continuing education are required every two years for brokers. From 2017-2018, Sean achieved 86 credits, including obtaining his Principal Broker’s License. Other certifications include:

Graduate, REALTOR® Institute (GRI), which includes additional ethics and advocacy training
ABR® – Accredited Buyer’s Representative
SRS – Seller Representative Specialist
Short Sales and Foreclosure Resource (SFR®)
Earth Advantage Broker
ADU Specialist (Earth Advantage)

Community Involvement

Sean’s volunteer activities include:

Neighborhood Emergency Team
Kiwanis Doernbecher Children’s Cancer Program Golf Tournament Volunteer Board
Surfrider Foundation
Oregon Food Bank
SOLVE Beach Cleanups

Man at beach cleanup in Oregon — At Nye Beach for SOLVE

Two men in a warehouse facility wearing hair nets — At Oregon Food Bank with Mark Aalto

Books, Movies, Life

Sean’s favorite books and movies are:

Jonathan Livingston Seagull
Adventures of a Reluctant Messiah
The Hobbit
Razor’s Edge
Great Waldo Pepper
Seven Samurai
Jeremiah Johnson

The story of Jeremiah Johnson is especially poignant for Sean. Ask about how his grandfather knew him in “The Old West” of Montana.

The best advice he’s received? Do unto others as you would have them do unto you.

Next travel destination? Italy or Japan. He’d love to learn more about the Italian side of his family. He is drawn to Japan to embark upon a Shinto pilgrimage. He has always felt an inexplicably close connection with Japanese culture.

5 Oregon Real Estate Contract Changes You Need to Know Now

One of the many things I respect about Oregon Realty Company, our brokerage, is that management makes every effort to protect our clients. One of the ways they do this is by conducting an annual forms review training session with our brokers. Laws and regulations, like in any industry, are always subject to change. As concerns arise, the regulations evolve. This year’s Annual Forms Review was presented by Richard Mario of Buckley Law P.C. Mr. Mario has been with Buckley Law since 1989. Admitted to both state of Arizona and Oregon State Bars, he practices from his Lake Oswego office. If anyone knows real estate disputes, it’s Richard Mario.

If you’ve ever purchased a home, you know there is an extensive, detailed, 11-page sales contract. With my track record of almost 15 years of real estate experience, I have helped clients navigate the wordy waters of contracts. Most recently, I had a situation where a buyer made an offer, then withdrew it, and because the buying party’s broker (not affiliated with my company) was not up to speed on latest contract laws, the buyers lost their earnest money when a deadline was not met. I encouraged the other agent to provide a timely response, but I discovered the agent was not aware of the new law. We all want sales and purchases to happen seamlessly, so it is in everyone’s interests to work cooperatively.

1. OREF 093 FIRPTA

One example of a recent law change pertains to FIRPTA. The Foreign Investment in Real Property Tax Act of 1980 is a tax law that imposes a 10-15% gross sales tax on foreign persons disposing of US real property interests. For instance, if you’re my client, and regardless of whether you are an American citizen or not, and you are selling the property you own, you would need to fill out the form and submit it to a title company. The law states I can only provide you with the form, but not help fill it out. My next step is to confirm the form has been submitted to the title company, so that the buyer may proceed with writing an offer. Two additional documents are required for submittal to be compliant with federal law.

2. OREF 011 Condo Sale Agreement

There is now a hard date for the delivery and review period for buyers and sellers. Previously, there was a flexible deadline. Extensions to the review period must be written and agreed to. Condo documents should be gathered by the seller prior to the agreement to maximize the time for review. If the buyer does not have ample time to review documents, the sale could be postponed and then the process would need to start all over again. It is recommended to state which documents were provided and that no other documents are available. When a hard deadline is set and the deadline is missed, your broker will need to submit a new offer. This is reflected due to a change in 2018 with regards to the offer deadlines as stated in OREF 001 Residential Sale Agreement.

3. OREF 083 Contingent Right to Purchase

“…buyer may not accept an offer contingent on the sale of the Offeror’s property without written permission of the Seller”
This wording in the agreement prevents contingency chains of sale. Previously, for example, Bob could sell his home to Sally, as long as Sally could sell her home to Joe, as long as Joe could sell his home to Alicia, and so on. The new language prevents this situation from happening.

4. OREF 070 Investment Property Addendum

A few lines were reformatted for readability and ease of understanding. Three sections were removed and combined in the Document Review period (note the hard date where a written extension is required).

5. OREF 007 Commercial Sales Agreement

There are numerous nuanced changes in this section, but perhaps most notable is the section where personal property transfers require the use of a Bill of Sale. There are tax implications. For example, if you were to buy a fully-stocked grocery store, you would need a Bill of Sale to transfer the contents of the store to your ownership. Otherwise, you only own the building.

These changes are five of over 25 sections we learned about. I am not a real estate attorney, so I cannot provide legal advice. However, I have the resources to call upon the experts whenever a situation may be in question. I advocate for you, so you may focus on enjoying your new home and prosper.

Photo: JESHOOTS.COM