90.297 Tenancy
deposit to secure rental agreement; limitations; tenant rejection; remedy. (1) Except as provided in ORS
90.295 and in this section, a landlord may not charge a deposit or fee, however
designated, to an applicant who has applied to a landlord to enter a rental
agreement for a dwelling unit.
(2) A landlord
may charge a deposit to an applicant for the purpose of securing the execution
of a rental agreement, only after approving the applicant’s application but
prior to entering into a rental agreement. Before receiving the deposit, the
landlord must give the applicant a written statement describing:
(a) The amount of
rent and the fees the landlord will charge and the deposits the landlord will
require;
(b) The terms of
the agreement to execute a rental agreement; and
(c) The
conditions for refunding or retaining the deposit.
(3) If a rental
agreement is executed, the landlord shall either apply the deposit toward the
moneys due to the landlord under the rental agreement or refund the deposit
immediately to the tenant.
(4) If a rental
agreement is not executed due to a failure by the applicant to comply with the
agreement to execute, the landlord may retain the deposit, unless the applicant
has rejected the agreement due to the discovery of material defects relating to
the premise’s habitability, as described in ORS 90.320 (1).