A company challenges Oregon's ban on 'love letters' from home buyers

(NOVEMBER 26, 2021) Buying a house in Portland is difficult. Even small houses can be very expensive. There are more buyers than sellers. So there is a lot of competition. Buyers get into a "bidding war." They often offer more money than the seller asks.

In the past, buyers often added special notes to their offers. These notes were called "love letters." But they were not about love between people. They were about a buyer's love of a house. Buyers described themselves and their family. They explained why they loved the house and wanted to buy it. They tried to persuade the seller that they were the best choice.

Oregon made a law last year to stop these letters. The law was the first ban like this in the nation. Lawmakers thought these letters might reveal personal information about the buyer. They said that could lead to discrimination.

The National Association of Realtors agreed. These letters often reveal details about the buyer, such as race or religion. Sellers might use that information to make an illegal choice. For example, a seller might discriminate against a person of color.

Now a real estate company is asking the courts to change the law before it begins in 2022. The company says the state's ban is illegal. They say it stops free speech. They say there has not been a problem. And they say the ban hurts more than helps, especially people who are buying their first home.

Daniel Ortner is a lawyer. He talked to KGW News. "A lot of sellers want to make sure that their house is used and loved by someone who buys it. They don't care just about the dollars and cents. They care about the emotional aspect of selling the house they've lived in for years. They don't want to sell to an investment firm that's going to rent the house out or use it for an Airbnb. They want to sell it to someone who's going to live in the house."

For now, buyers must wait to hear what the state courts decide.