(1) The Sixty-second
Legislative Assembly recognizes that notwithstanding amendments made to
ORS chapter 696 by sections 9, 17, 19, 23, 25, 27 to 30, 32 and 40 to 43,
chapter 649, Oregon Laws 1977, section 40, chapter 617, Oregon Laws 1981,
and amendments made to ORS chapter 656 by chapter 864, Oregon Laws 1979,
section 1, chapter 725, Oregon Laws 1981, and section 4, chapter 854,
Oregon Laws 1981, agencies of this state are uncertain regarding
application to real estate licensees of statutes of this state relating
to employers and employees. This section and ORS 316.209 and 656.037 are
enacted to eliminate that uncertainty, to reaffirm the legislative intent
of the enactments cited in this section and to conform Oregon law to
parallel provisions of the Internal Revenue Code.
(2) Nothing in this section and ORS 316.209 and 656.037 shall be
construed to impair or invalidate any claim of refund or defense against
collection of any tax, which claim or defense is asserted by a taxpayer
who has services performed by an individual who does not meet the
requirements of ORS 316.209. [1983 c.597 §1]Note: 696.007 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 696 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.As used in ORS 696.010 to 696.495, 696.600 to
696.785, 696.800 to 696.870, 696.990 and 696.995, unless the context
requires otherwise:
(1) “Agency” means the Real Estate Agency.
(2) “Associated with” means to be employed, engaged or otherwise
supervised by, with respect to the relationship between a real estate
broker and a principal real estate broker.
(3) “Bank” includes any bank or trust company, savings bank, mutual
savings bank, savings and loan association or credit union that maintains
a head office or a branch in this state in the capacity of a bank or
trust company, savings bank, mutual savings bank, savings and loan
association or credit union.
(4)(a) “Branch office” means a business location other than the
main office designated under ORS 696.200 (1), where professional real
estate activity is regularly conducted or which is advertised to the
public as a place where such business may be regularly conducted.
(b) Model units or temporary structures used solely for the
dissemination of information and distribution of lawfully required public
reports shall not be considered branch offices. A model unit means a
permanent residential structure located in a subdivision or development
used for such distribution and dissemination, so long as the unit is at
all times available for sale, lease, lease option or exchange.
(5) “Commissioner” means the Real Estate Commissioner.
(6) “Compensation” means any fee, commission, salary, money or
valuable consideration for services rendered or to be rendered as well as
the promise thereof and whether contingent or otherwise.
(7) “Competitive market analysis” means a method or process used by
a real estate licensee in pursuing a listing agreement or in formulating
an offer to acquire real estate in a transaction for the sale, lease,
lease-option or exchange of real estate. The objective of competitive
market analysis is a recommended listing, selling or purchase price or a
lease or rental consideration. A competitive market analysis may be
expressed as an opinion of the value of the real estate in a contemplated
transaction. Competitive market analysis may include but is not limited
to an analysis of market conditions, public records, past transactions
and current listings of real estate.
(8) “Letter opinion” means a document that expresses a real estate
licensee’s conclusion regarding a recommended listing, selling or
purchase price or a rental or lease consideration of certain real estate
and that results from the licensee’s competitive market analysis. The
commissioner by rule shall specify the minimum contents of a letter
opinion, including but not limited to the distinction between a letter
opinion and a real estate appraisal.
(9) “Management of rental real estate” means:
(a) Representing the owner of real estate in the rental or lease of
the real estate and includes but is not limited to:
(A) Advertising the real estate for rent or lease;
(B) Procuring prospective tenants to rent or lease the real estate;
(C) Negotiating with prospective tenants;
(D) Accepting deposits from prospective tenants;
(E) Checking the qualifications and creditworthiness of prospective
tenants;
(F) Charging and collecting rent or lease payments;
(G) Representing the owner in inspection or repair of the real
estate;
(H) Contracting for repair or remodeling of the real estate;
(I) Holding trust funds or property received in managing the real
estate and accounting to the owner for the funds or property;
(J) Advising the owner regarding renting or leasing the real estate;
(K) Providing staff and services to accommodate the tax reporting
and other financial or accounting needs of the real estate;
(L) Providing copies of records of acts performed on behalf of the
owner of the real estate; and
(M) Offering or attempting to do any of the acts described in this
paragraph for the owner of the real estate; or
(b) Representing a tenant or prospective tenant when renting or
leasing real estate and includes but is not limited to:
(A) Consulting with tenants or prospective tenants about renting or
leasing real estate;
(B) Assisting prospective tenants in renting or leasing real estate;
(C) Assisting prospective tenants in qualifying for renting or
leasing real estate;
(D) Accepting deposits or other funds from prospective tenants for
renting or leasing real estate and holding the funds in trust for the
prospective tenants;
(E) Representing tenants or prospective tenants renting or leasing
real estate; and
(F) Offering or attempting to do any of the acts described in this
paragraph for a tenant or prospective tenant.
(10) “Principal real estate broker” means an individual who is
licensed as a principal real estate broker and who employs, engages or
supervises another real estate licensee.
(11) “Professional real estate activity” means any of the following
actions, when engaged in for another and for compensation or with the
intention or in the expectation or upon the promise of receiving or
collecting compensation, by any person who:
(a) Sells, exchanges, purchases, rents or leases real estate.
(b) Offers to sell, exchange, purchase, rent or lease real estate.
(c) Negotiates, offers, attempts or agrees to negotiate the sale,
exchange, purchase, rental or leasing of real estate.
(d) Lists, offers, attempts or agrees to list real estate for sale.
(e) Offers, attempts or agrees to perform or provide a competitive
market analysis or letter opinion, to represent a taxpayer under ORS
305.230 or 309.100 or to give an opinion in any administrative or
judicial proceeding regarding the value of real estate for taxation. Such
activity performed by a state certified appraiser or state licensed
appraiser is not professional real estate activity.
(f) Auctions, offers, attempts or agrees to auction real estate.
(g) Buys, sells, offers to buy or sell or otherwise deals in
options on real estate.
(h) Engages in management of rental real estate.
(i) Purports to be engaged in the business of buying, selling,
exchanging, renting or leasing real estate.
(j) Assists or directs in the procuring of prospects, calculated to
result in the sale, exchange, leasing or rental of real estate.
(k) Assists or directs in the negotiation or closing of any
transaction calculated or intended to result in the sale, exchange,
leasing or rental of real estate.
(L) Except as otherwise provided in ORS 696.030 (1)(L), advises,
counsels, consults or analyzes in connection with real estate values,
sales or dispositions, including dispositions through eminent domain
procedures.
(m) Advises, counsels, consults or analyzes in connection with the
acquisition or sale of real estate by an entity if the purpose of the
entity is investment in real estate.
(n) Performs real estate marketing activity as described in ORS
696.600.
(12) “Real estate” includes leaseholds and licenses to use
including, but not limited to, timeshare estates and timeshare licenses
as defined in ORS 94.803, as well as any and every interest or estate in
real property, whether corporeal or incorporeal, whether freehold or
nonfreehold, whether held separately or in common with others and whether
the real property is situated in this state or elsewhere.
(13) “Real estate broker” means a person who engages in
professional real estate activity and who is licensed as a real estate
broker.
(14) “Real estate licensee” means a real estate broker, principal
real estate broker or real estate property manager.
(15) “Real estate property manager” means a real estate licensee
who is authorized to engage in management of rental real estate.
(16) “Registered business name” means a name registered with the
Real Estate Agency under which the person registering the name engages in
professional real estate activity.
(17) “Sole practitioner” means a real estate broker conducting
professional real estate activity not in conjunction with other real
estate brokers or principal real estate brokers. [Amended by 1953 c.166
§5; 1955 c.322 §6; 1965 c.617 §1; 1973 c.416 §1; 1975 c.746 §1; 1977
c.649 §9; 1981 c.617 §2; 1985 c.589 §6; 1987 c.414 §37; 1987 c.468 §1;
1987 c.611 §12; 1989 c.724 §1; 1991 c.5 §26; 1995 c.217 §14; 1997 c.417
§5; 1999 c.488 §1; 2001 c.300 §10; 2003 c.347 §2; 2003 c.398 §6; 2005
c.116 §1] (1) The Legislative
Assembly finds the activity of persons seeking to assist others, for
compensation, to deal in real estate in this state to be a matter of
public concern. The provisions of ORS 696.010 to 696.495, 696.600 to
696.785, 696.800 to 696.870, 696.990 and 696.995 are enacted to assist in
creating for the public a healthy real estate market atmosphere and to
assure that professional real estate activity is conducted with high
fiduciary standards.
(2) ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to 696.870,
696.990 and 696.995 may be cited as the Oregon Real Estate License Law.
[1977 c.649 §2](Licensing)(1) No person shall engage in, carry on, advertise or
purport to engage in or carry on professional real estate activity, or
act in the capacity of, a real estate licensee within this state without
first obtaining a license as provided for in this chapter.
(2) A real estate licensee shall be bound by and subject to the
requirements of ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to
696.870, 696.990 and 696.995 in engaging in any professional real estate
activity or while acting in the licensee’s own behalf in the offer to,
negotiations for, or sale, exchange, lease option or purchase of real
estate. [Amended by 1969 c.674 §1; 1975 c.746 §1a; 1977 c.649 §10; 1981
c.617 §2a](1) The Real Estate Agency shall establish by rule a
system for licensing real estate brokers, principal real estate brokers
and real estate property managers. The system shall establish, at a
minimum:
(a) The form and content of applications for licensing under each
category of real estate professional licensed by the agency;
(b) A licensing examination for each category of license;
(c) Schedules and procedures for issuing and renewing licenses;
(d) The term of a license in each category; and
(e) Terms and conditions under which the license of a real estate
licensee must be returned or transferred to the Real Estate Commissioner
for purposes including, but not limited to, inactivation, suspension or
termination of the license.
(2)(a) A real estate broker may engage in all of the professional
activities of a real estate broker described in this chapter. A real
estate broker may not employ, engage or otherwise supervise the
professional real estate activities of another real estate broker or
principal real estate broker.
(b) In order to qualify for a real estate broker’s license, an
applicant must furnish proof satisfactory to the commissioner that the
applicant has successfully completed the basic real estate broker’s
educational courses and the examination required by rule of the agency.
Proof of completion of all required courses must be provided at the time
of applying for the license.
(c) A real estate broker may conduct professional real estate
activities as a sole practitioner after:
(A) The person has acquired three years of active experience as a
real estate broker; or
(B) The person has acquired three years of active experience as a
real estate salesperson as defined in ORS 696.025 (1999 Edition) and has
successfully completed the real estate broker’s examination required by
rule of the agency.
(3)(a) A principal real estate broker may engage in all of the
professional activities of a real estate broker described in this
chapter. A principal real estate broker may conduct professional real
estate activities in conjunction with other real estate brokers or
principal real estate brokers. In addition, a principal real estate
broker may employ, engage and otherwise supervise the professional real
estate activities of real estate brokers or principal real estate brokers.
(b) In order to qualify for a principal real estate broker’s
license, an applicant must meet the requirements of subsection (2)(b) of
this section and must furnish proof satisfactory to the commissioner that
the applicant has successfully completed the brokerage administration and
sales supervision course, as required by agency rule, and has:
(A) Three years of active experience as a licensed real estate
broker; or
(B) Three years of active experience as a real estate salesperson
as defined in ORS 696.025 (1999 Edition) and has successfully completed
the real estate broker’s examination required by rule of the agency.
(4) In order to qualify for a real estate property manager’s
license, an applicant must furnish proof satisfactory to the commissioner
that the applicant has successfully completed courses in the legal
aspects of real estate, real estate property management and accounting,
bookkeeping and trust accounting practices. The applicant also must have
successfully completed a real estate property manager’s license
examination prescribed by rule of the agency. Proof of completion of all
required courses must be provided at the time of applying for the license.
(5)(a) A license for a real estate broker, principal real estate
broker or real estate property manager shall be granted only to a person
who is trustworthy and competent to conduct professional real estate
activity in a manner that protects the public interest. As a condition of
licensing, the commissioner may require such proof of competence and
trustworthiness as the commissioner deems necessary to protect the public
interest.
(b) In implementing this subsection, the commissioner shall require
fingerprints and criminal offender information of an applicant for
initial licensing and may require fingerprints and criminal offender
information of an applicant for license renewal. Fingerprints acquired
under this subsection may be used for the purpose of requesting a state
or nationwide criminal records check under ORS 181.534.
(6) A license may be issued under this section only to persons who
are 18 years of age or older.
(7) In order to qualify for a real estate broker’s license, a real
estate salesperson licensed in another state or country must successfully
complete a course of study and pass a real estate broker’s license
examination, both as prescribed by agency rule.
(8) In order to satisfy the educational requirements under
subsections (2) to (4) and (7) of this section, a course must be approved
by the commissioner. The commissioner shall determine the final
examination score acceptable as evidence of successful completion for
each required course.
(9) The Real Estate Board may determine that an applicant for a
principal real estate broker’s license or a real estate broker’s license
has experience related to professional real estate activity that is
equivalent to the experience required under subsection (2) or (3) of this
section. [2001 c.300 §9; 2003 c.398 §7; 2005 c.116 §2; 2005 c.730 §37]Note: 696.022 to 696.028 were added to and made a part of the
Oregon Real Estate License Law by legislative action but were not added
to any smaller series therein. See Preface to Oregon Revised Statutes for
further explanation. To qualify
for a real estate license under ORS 696.022 or to renew an active or
inactive real estate license, the applicant must make full payment of any
unpaid moneys due and owing to the Real Estate Agency, including any
unpaid civil penalties assessed under a final order of the Real Estate
Commissioner. [2001 c.300 §15]Note: See note under 696.022.(1) A real estate
broker or principal real estate broker may conduct professional real
estate activity under the broker’s name, a registered business name or a
name prescribed by agency rule. The business name under which a broker
conducts professional real estate activity has no license standing
independent of the broker.
(2) The agency by rule shall adopt a registration system for
business names. The system shall allow the registration of any branch
office of either a sole practitioner or a principal real estate broker.
(3) A real estate broker or principal real estate broker operating
under a business name registered by the broker need not be an owner or
officer of any organization otherwise lawfully entitled to use the
registered business name or have an ownership interest in the registered
name. However, all professional real estate activity conducted by or on
behalf of the broker must be conducted under the business name registered
by the broker.
(4) A real estate broker or principal real estate broker may
register two or more business names if the business names are for
affiliated or subsidiary business organizations. If a real estate broker
or principal real estate broker registers the business names for two or
more affiliated or subsidiary business organizations, the broker may
conduct professional real estate activity separately under each business
name. A real estate broker or principal real estate broker must supervise
and control the professional real estate activity conducted under the
broker’s name or registered business name.
(5) A real estate broker employed, engaged or supervised by a
principal real estate broker for required training and supervision by the
principal real estate broker may have an ownership interest in any
business through which the principal broker conducts professional real
estate activity, but may not control or supervise the professional real
estate activity of the principal broker and may not interfere with or be
responsible for the training and supervision of any other broker.
(6) A nonlicensed person may have an ownership interest in any
business through which a real estate broker or principal real estate
broker engages in professional real estate activity, but may not control
or supervise the professional real estate activity of any real estate
broker or principal real estate broker licensed to control or supervise
the professional real estate activity of such business.
(7) Two or more real estate brokers operating under the same
registered business name who do not exercise any administrative or
supervisory control over one another are solely responsible for their own
professional real estate activity.
(8) Notwithstanding any other provision of ORS 696.010 to 696.495,
696.600 to 696.785, 696.800 to 696.870, 696.990 and 696.995, a broker
associated with a principal broker may create a corporation, limited
liability company, limited liability partnership or any other lawfully
constituted business organization for the purpose of receiving commission
payments from the principal broker. A business organization created under
this subsection may not be licensed under ORS 696.022 or conduct in its
own name professional real estate activity requiring a real estate
license. [2001 c.300 §8; 2005 c.116 §3; 2005 c.393 §1]Note: See note under 696.022. The Real Estate
Commissioner may prescribe by rule the terms and conditions for licensed
personal assistant agreements including, but not limited to, the duties
and responsibilities of, the limitations on the activities of, and the
nature and scope of the business relationship between a real estate
licensee and a licensed personal assistant. [2001 c.300 §30]Note: See note under 696.022.(1) ORS 696.010 to 696.375,
696.392, 696.395 to 696.430, 696.490, 696.600 to 696.785, 696.990 and
696.995 do not apply to, and the term “real estate licensee” does not
include:
(a) A nonlicensed regular full-time employee of a single owner of
real estate whose real estate activity involves the real estate of the
employer and:
(A) Is incidental to the employee’s normal, nonreal estate
activities; or
(B) Is the employee’s principal activity, but the employer’s
principal activity or business is not the sale, exchange, lease option or
acquisition of real estate.
(b) A nonlicensed person acting as attorney in fact under a duly
executed power of attorney from the owner or purchaser authorizing the
supervision of the closing of or supervision of the performance of a
contract for the sale, leasing or exchanging of real estate if the power
of attorney was executed prior to July 1, 2002, in compliance with the
requirements of law at the time of execution or if:
(A) The power of attorney is recorded in the office of the
recording officer for the county in which the real estate is located;
(B) The power of attorney specifically describes the real estate;
and
(C) The person does not use the power of attorney as a device to
engage in professional real estate activity without obtaining the
necessary real estate license.
(c) A nonlicensed person acting as attorney in fact under a duly
executed power of attorney in which the authorized agent is the spouse of
the principal, or the child, grandchild, parent, grandparent, sibling,
aunt, uncle, niece or nephew of the principal or of the spouse of the
principal, authorizing real estate activity if the power of attorney is
recorded in the office of the recording officer for the county in which
the real estate to be sold, leased or exchanged is located.
(d) An attorney at law rendering services in the performance of
duties as an attorney at law.
(e) A person acting in the person’s official capacity as a
receiver, a conservator, a trustee in bankruptcy, a personal
representative or a trustee, or a regular salaried employee of the
trustee, acting under a trust agreement, deed of trust or will.
(f) A person performing an act of professional real estate activity
under order of a court.
(g) A nonlicensed regular full-time employee of a single
nonlicensed corporation, partnership, association or individual owner of
real property acting for the corporation, partnership, association or
individual in the rental or management of the real property, but not in
the sale, exchange, lease option or purchase of the real property.
(h) A registered professional engineer or architect rendering
services in performance of duties as a professional engineer or architect.
(i) A nonlicensed individual employed by a real estate broker or
principal real estate broker and acting as a manager for real estate if
the real estate activity of the nonlicensed individual is limited to
negotiating rental or lease agreements, checking tenant and credit
references, physically maintaining the real estate, conducting tenant
relations, collecting the rent, supervising the premises’ managers and
discussing financial matters relating to management of the real estate
with the owner.
(j) A person, or an employee of the person, selling or leasing
cemetery lots, parcels or units while engaged in the disposition of human
bodies under ORS 97.010 to 97.040, 97.110 to 97.450, 97.510 to 97.730,
97.810 to 97.920 and 97.990.
(k) A salaried employee of the State of Oregon, or any of its
political subdivisions, engaging in professional real estate activity as
a part of such employment.
(L) A nonlicensed person, or a regular full-time employee of the
person, analyzing or advising of permissible land use alternatives,
environmental impact, building and use permit procedures or demographic
market studies. This exclusion does not apply to the handling of
transactional negotiations for transfer of an interest in real estate.
(m) A hotelkeeper or innkeeper as defined by ORS 699.005 arranging
the rental of transient lodging at a hotel or inn in the course of
business as a hotelkeeper or innkeeper.
(n) A travel agent arranging the rental of transient lodging at a
hotel or inn as defined in ORS 699.005 in the course of business as a
travel agent for compensation. For the purpose of this paragraph, “travel
agent” means a person, and employees of the person, regularly
representing and selling travel services to the public directly or
indirectly through other travel agents.
(o) A common carrier arranging the rental of transient lodging at a
hotel or inn as defined in ORS 699.005 in the course of business as a
common carrier. For the purpose of this paragraph, “common carrier” means
a person who transports or purports to be willing to transport persons
from place to place by rail, motor vehicle, boat or aircraft for hire,
compensation or consideration.
(p) A hotel representative arranging the rental of transient
lodging at a hotel or inn as defined in ORS 699.005 in the course of
business as a hotel representative. For the purpose of this paragraph,
“hotel representative” means a person who provides reservations or sale
services to independent hotels, airlines, steamship companies and
government tourist agencies.
(q) A nonlicensed person transferring or acquiring an interest in
real estate owned or to be owned by the person.
(r) A general partner for a domestic or foreign limited partnership
duly registered and operating within this state under ORS chapter 70
engaging in the sale of limited partnership interests and the
acquisition, sale, exchange, lease, transfer or management of the real
estate of the limited partnership.
(s) A membership camping contract broker or salesperson registered
with the Real Estate Agency selling membership camping contracts.
(t) A professional forester or farm manager engaging in property
management activity on forest or farm land when the activity is
incidental to the nonreal estate duties involving overall management of
forest or farm resources.
(u) A registered investment adviser under the Investment Advisers
Act of 1940, 15 U.S.C. §80b-1 et seq., rendering real estate investment
services for the office of the State Treasurer or the Oregon Investment
Council.
(v) A nonlicensed person referring a new tenant for compensation to
a real estate licensee acting as the property manager for a residential
building or facility while the person resides in the building or facility
or within six months after termination of the person’s tenancy.
(w) A nonlicensed person giving an opinion in an administrative or
judicial proceeding regarding the value of real estate for taxation or
representing a taxpayer under ORS 305.230 or 309.100.
(x) A nonlicensed person acting as a paid fiduciary whose real
estate activity is limited to negotiating or closing a transaction to
obtain the services of a real estate licensee.
(y) A nonlicensed person acting as a fiduciary under a court order,
without regard to whether the court order specifically authorizes real
estate activity.
(z) A financial institution or trust company, as those terms are
defined in ORS 706.008, acting as attorney in fact under a duly executed
power of attorney from the owner or purchaser authorizing real estate
activity, if the power of attorney is recorded in the office of the
county clerk for the county in which the real estate to be sold, leased
or exchanged is located.
(2) The vesting of title to real estate in more than one person by
tenancy by the entirety, tenancy in common or by survivorship shall be
construed as that of a single owner for the purposes of this section.
[Amended by 1955 c.322 §7; 1963 c.593 §1; 1967 c.277 §1; 1969 c.674 §2;
1975 c.746 §2; 1977 c.649 §11; 1979 c.125 §3; 1979 c.289 §1a; 1981 c.617
§4; 1985 c.639 §13; 1985 c.677 §64; 1991 c.5 §28; 1991 c.212 §1; 1993
c.18 §149; 1995 c.246 §1; 1997 c.307 §2; 1999 c.488 §2; 2001 c.300 §11;
2003 c.347 §1; 2005 c.116 §4]One act or transaction of professional real estate
activity is sufficient to constitute engaging in professional real estate
activity, within the meaning of this chapter. [Amended by 1955 c.322 §8;
1977 c.649 §12]
The provisions of ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to
696.870 and 696.995 shall be exclusive and no political subdivision or
agency of this state shall require or issue any license or charge any fee
for licensing or regulation of persons licensed under ORS 696.022.
Nothing in this section shall limit the authority of a county, city or
town to levy and collect a general and nondiscriminatory license fee upon
all businesses in the county, city or town or to levy a tax based upon
the business conducted by any licensee or firm within the county, city or
town. [Amended by 1955 c.322 §11; 1961 c.309 §3; 1965 c.617 §2; 1975
c.746 §1b; 2001 c.300 §12] (1) If the license of any real estate
broker or principal real estate broker is revoked by the Real Estate
Commissioner, the commissioner may not issue a new license until the
individual complies with the provisions of ORS 696.010 to 696.495,
696.600 to 696.785 and 696.800 to 696.870.
(2) Notwithstanding subsection (1) of this section, the
commissioner may issue the individual a limited license if, in the
discretion of the commissioner, it is in the public interest to do so.
The commissioner may limit a license issued under this subsection:
(a) By term;
(b) To acts subject to the supervision of a specific principal real
estate broker; or
(c) By conditions to be observed in the exercise and the privileges
granted.
(3) A limited license issued under this section does not confer any
property right in the privileges to be exercised thereunder, and the
holder of a limited license does not have the right to renewal of such
license. A limited license may be suspended or revoked, or the licensee
may be reprimanded, by the commissioner on the grounds set out in ORS
696.301. [Amended by 1955 c.322 §12; 1969 c.674 §4; 1973 c.416 §4; 1975
c.746 §6; 1977 c.191 §2; 1977 c.649 §19; 1981 c.617 §7; 1987 c.611 §15;
1991 c.5 §30; 2001 c.300 §13; 2003 c.398 §8] (1)
To qualify an active license for renewal, the real estate licensee must
present evidence of attendance during the preceding two license years at
30 clock-hours of real estate oriented continuing education courses, of
which a minimum of 15 clock-hours shall be in required course topics.
(2)(a) The Real Estate Commissioner, with advice from real estate
professionals, educators and the public, may accept a broad range of
topics for real estate oriented continuing education courses. Required
course topics shall be flexible so as to allow for changes in the real
estate profession.
(b) The minimum length of each course, required or elective, shall
be one hour. A standard form, created by the Real Estate Agency in
consultation with real estate professionals, shall be developed to ensure
that licensees have completed the required number of hours. Certification
of attendance by the principal real estate broker with whom the real
estate broker is associated, or self-certification if the licensee is a
sole practitioner, a principal real estate broker or a real estate
property manager, shall be considered evidence of attendance.
(3) The commissioner, with advice from real estate professionals,
educators and the public, shall prescribe rules for certifying continuing
education courses. The rules shall provide for correspondence courses and
other distance learning alternatives, including but not limited to rules
for minimum course length, comprehension of written materials and tests
for course completion. The rules shall also provide that continuing
education course topics contain an advanced course in real estate
practices that must be completed by a licensee prior to the licensee’s
first renewal of an active license.
(4) The commissioner may waive the continuing education
requirements of subsection (1) of this section for any licensee who
submits satisfactory evidence of inability to attend such courses because
of health or other circumstances beyond the licensee’s control. [1969
c.674 §11; 1973 c.416 §6; 1977 c.649 §25; 1981 c.617 §9; 1983 c.359 §1;
1987 c.611 §19; 1989 c.724 §6; 1991 c.5 §33; 1995 c.335 §1; 2001 c.300
§14](1) Except for
real estate brokers associated with a principal real estate broker, every
real estate broker and principal real estate broker shall maintain in
this state a place of business to be designated as the broker’s main
office and designate the place of business by a sign that contains the
name under which the broker is licensed.
(2) The place of business must be specified in the application for
a real estate license, and designated in the license. Prior to the change
of a business location, the broker shall notify the Real Estate
Commissioner in writing of the new location. The change of a business
location without notification to the commissioner is grounds for
revocation of licenses previously issued.
(3) A real estate broker or principal real estate broker may
establish one or more branch offices as separate business locations under
the management of the broker. A broker may conduct and supervise the
business of more than one office, whether main or branch. The broker
shall register each branch office with the commissioner and designate
each branch office by a sign that contains the name under which the
broker is licensed.
(4) Upon vacating any business location, the broker shall ensure
that the sign containing the broker’s name or the name under which the
broker has operated is removed from the location that the broker has
vacated. A broker may not display any name at the designated places of
business named in the broker’s license or licenses other than the name
under which the broker is licensed. [Amended by 1955 c.322 §14; 1961
c.471 §3; 1965 c.367 §1; 1973 c.416 §7; 1975 c.746 §14; 1977 c.649 §29;
1979 c.823 §1; 1981 c.617 §10; 1989 c.532 §7; 2001 c.300 §16; 2003 c.398
§9; 2005 c.116 §5](1) If a real estate licensee who is
a sole practitioner or who is the sole principal real estate broker of a
real estate business dies or becomes incapacitated, the Real Estate
Commissioner may issue a temporary license to the executor, administrator
or personal representative of the estate of the deceased real estate
licensee or to the court-appointed fiduciary of the incapacitated real
estate licensee, or to some other person designated by the commissioner,
in order to continue to transact the real estate business in the case of
the incapacitated real estate licensee or to wind up the affairs of the
deceased or incapacitated real estate licensee. The term of a temporary
license issued under this section may not exceed one year from the date
of issuance unless the commissioner, in the discretion of the
commissioner, extends the term of the temporary license based on
sufficient cause provided by the temporary licensee to the commissioner.
(2) The Real Estate Agency may adopt administrative rules to
administer this section or to authorize a person to transact or wind up
real estate business on behalf of the deceased or incapacitated real
estate licensee. [1975 c.746 §7; 2001 c.300 §17; 2005 c.116 §6](1) An employee or officer of the Real Estate
Agency licensed as a real estate licensee under this chapter shall return
the employee’s or officer’s license to the agency at the time of
commencing employment. The agency shall hold the license as an active
license held in suspense. At the termination of an employee’s or
officer’s employment, the license may be returned to the licensee as an
active or inactive license. The agency shall activate a license held in
suspense without payment of further fee, and the license expires on the
date on which it would have expired if the license had not been held in
suspense.
(2) Except as stated in subsection (1) of this section, the return
of the license to the licensee and all renewals are subject to the
provisions of ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to
696.870 and 696.995. [1975 c.746 §16; 1977 c.649 §35; 1983 c.258 §6; 2001
c.300 §63; 2005 c.116 §7](Client Trust Fund Accounts)(1) Each sole practitioner and each principal real
estate broker shall maintain in this state one or more separate bank
accounts that shall be designated a Clients’ Trust Account in which all
trust funds received or handled by the sole practitioner or broker and
the real estate licensees subject to the supervision of the broker on
behalf of any other person shall be deposited unless, pursuant to written
agreement of all parties having an interest in the trust funds, the trust
funds are immediately placed in a neutral escrow depository in this state.
(2) Each sole practitioner or principal real estate broker shall
file with the Real Estate Agency, on forms approved by the Real Estate
Commissioner, a statement identifying the name of the bank or banks,
account number or account numbers, and name of account or accounts for
each Clients’ Trust Account maintained.
(3) Each sole practitioner or principal real estate broker shall
authorize the agency, by a form approved by the commissioner, to examine
any Clients’ Trust Account, by a duly authorized representative of the
agency. The examination shall be made at such times as the commissioner
may direct.
(4) If a sole practitioner or principal real estate broker
maintains a separate Clients’ Trust Account in a branch office, a
separate bookkeeping system shall be maintained in the branch office,
provided a copy of the records required by the provisions of ORS 696.280
are maintained in the main office of the sole practitioner or broker.
(5) Trust funds received by a sole practitioner or principal real
estate broker may be placed by the sole practitioner or broker in a
federally insured interest-bearing bank account, designated a Clients’
Trust Account, but only with the prior written approval of all parties
having an interest in the trust funds. The earnings of such
interest-bearing account shall not inure to the benefit of the sole
practitioner or principal real estate broker unless expressly approved in
writing before deposit of the trust funds by all parties having an
interest in the trust funds.
(6) With prior written notice to all parties who have an interest
in the trust funds, a sole practitioner or principal real estate broker
may place trust funds received by the sole practitioner or principal real
estate broker in a federally insured interest-bearing bank account that
is designated a Clients’ Trust Account and the earnings of which inure to
the benefit of a public benefit corporation, as defined in ORS 65.001,
for distribution to organizations and individuals for first-time
homebuying assistance and for development of affordable housing. The sole
practitioner or principal real estate broker shall select a qualified
public benefit corporation to receive the interest earnings.
(7) A sole practitioner or principal real estate broker is not
entitled to any part of any interest earnings on trust funds deposited
under subsection (5) of this section or to any part of the earnest money
or other money paid to the sole practitioner or broker in connection with
any real estate transaction as part or all of the sole practitioner’s or
broker’s commission or fee until the transaction has been completed or
terminated. The question of the disposition of forfeited earnest money
shall be negotiated between the sole practitioner or principal real
estate broker and the seller at the time of executing any listing
agreement or earnest money agreement. The result of such negotiation
shall be filled in on the agreement form at the time of signing by the
seller and either separately initialed by the seller or placed
immediately above the signature of the seller.
(8) Clients’ Trust Account funds are not subject to execution or
attachment on any claim against a sole practitioner or principal real
estate broker.
(9) No person shall knowingly keep or cause to be kept any funds or
money in any bank under the heading of Clients’ Trust Account or any
other name designating such funds or money as belonging to the clients of
any sole practitioner or principal real estate broker, except actual
trust funds deposited with the sole practitioner or broker.
(10) The agency by rule shall establish a procedure for disbursal
of disputed funds from a Clients’ Trust Account to the person who
delivered the funds to the sole practitioner or principal real estate
broker. The procedure shall allow disbursal not more than 20 days after a
request is made for the disbursal. Any disbursal pursuant to the
procedure does not affect the claim of any other person to the funds.
(11) The agency may provide by rules for other records to be
maintained and for the manner in which trust funds are deposited, held
and disbursed. [1975 c.746 §18 (enacted in lieu of 696.240); 1977 c.649
§39; 1981 c.617 §11a; 1985 c.589 §4; 1991 c.5 §37; 2001 c.300 §21; 2003
c.224 §1; 2005 c.116 §18; 2005 c.393 §2a](1) Any real estate broker, principal real
estate broker, real estate property manager or escrow agent who is
required by the Real Estate Commissioner to maintain the canceled checks
used to disburse moneys from the licensee’s clients’ trust account may
substitute a copy of the original canceled check, if the copy is provided
by a bank and is produced by optical imaging or other process that
accurately reproduces the original or forms a durable medium for
reproducing the original, and the copy is at least 300 dots per inch in
quality.
(2) A real estate broker, principal real estate broker, real estate
property manager or escrow agent may use electronic fund transfers for
the deposit into or for withdrawal from a clients’ trust account
established under ORS 696.241 or 696.578, if the bank furnishes to the
licensee an accurate paper record of the deposits and withdrawals.
(3) As used in subsection (2) of this section, “electronic fund
transfer” has the meaning set forth in section 903 of the Electronic
Transfer Act (P.L. 90-321, 15 U.S.C. §1693a). [1995 c.760 §4; 2001 c.300
§22]Note: 696.243 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 696 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.
(1) Each sole practitioner and each principal real estate broker, at the
time a Clients’ Trust Account is opened under ORS 696.241, shall provide
the bank in which the account is opened with a notice in substantially
the following form:
___________________________________________________________________________
___NOTICE OF CLIENTS’ TRUST ACCOUNTTo: (name of bank) ________
Under the Oregon Real Estate License Law, I am the sole
practitioner, principal real estate broker or designated real estate
appraiser for (licensed name of broker or business)____________.
Further, under ORS 696.241, I am required to maintain in Oregon a
Clients’ Trust Account for the purpose of holding funds belonging to
others.
With regard to the account(s) numbered _________ which is/are
designated as a Clients’ Trust Account, the account(s) is/are maintained
with you as a depository for money belonging to persons other than myself
and in my fiduciary capacity as a sole practitioner or principal real
estate broker established by client agreements in separate documents.Dated: (insert date)__________________
(signature of broker)ACKNOWLEDGMENT OF RECEIPTI, __________________, a duly authorized representative of
(bank)__________________, do hereby acknowledge receipt of the above
NOTICE OF CLIENTS’ TRUST ACCOUNT on (date)______.__________________
(signature)__________________
(title)
___________________________________________________________________________
___
(2) The acknowledged copy of the notice described in subsection (1)
of this section shall be retained by the sole practitioner or principal
real estate broker as provided in ORS 696.241 for the retention of trust
account records, subject to inspection by the Real Estate Commissioner or
the commissioner’s authorized representative. [1985 c.589 §2; 1991 c.5
§38; 2001 c.300 §23; 2005 c.116 §19]Note: 696.245 was added to and made a part of ORS 696.010 to
696.495 by legislative action but was not added to any smaller series
therein. See Preface to Oregon Revised Statutes for further explanation.(Nonresident and Reciprocal Real Estate Broker and Salesperson Licensing)(1) The acceptance by a nonresident of a real estate license shall
be considered equivalent to an appointment by the nonresident of the Real
Estate Commissioner as the nonresident licensee’s true and lawful
attorney, upon whom may be served any lawful summons, process or pleading
in any action or suit against the nonresident licensee in any court of
this state, arising out of any business done by the nonresident licensee
as a real estate licensee in this state. The acceptance shall be
considered equivalent to an agreement by the nonresident licensee that
any summons, process or pleading so served shall be of the same legal
force and validity as if served on the nonresident licensee personally in
this state.
(2) If it appears by the certificate of the sheriff of the county
in which an action or suit has been filed against a nonresident licensee,
that the defendant cannot be found in this state, service of any summons,
process or pleading in the action or suit may be made by leaving a copy
thereof, with a fee of $2, in the hands of the commissioner or in the
commissioner’s office. Such service shall be sufficient and valid
personal service upon the defendant; provided that:
(a) Notice of the service and copy of the summons, process or
pleading is sent forthwith by registered mail or by certified mail with
return receipt by the plaintiff or the plaintiff’s attorney to the
defendant, at the most recent address furnished to the commissioner by
the nonresident licensee or to the nonresident licensee’s last-known
address; and
(b) The affidavit of the plaintiff or the plaintiff’s attorney of
the mailing is appended to the summons, process or pleading and entered
as a part of the return thereof.
(3) Notwithstanding any other provision of this section, personal
service outside of the state in accordance with the statutes relating to
personal service of summons outside of the state shall relieve the
plaintiff from the mailing requirement under this section.
(4) Any summons served as provided in this section shall require
the defendant to appear and answer the complaint within four weeks after
receipt thereof by the commissioner.
(5) The fee of $2 paid by the plaintiff to the commissioner shall
be taxed as costs in favor of the plaintiff if the plaintiff prevails in
the action.
(6) The commissioner shall keep a record of each summons, process
or pleading served upon the commissioner under this section, showing the
day and hour of service. [1981 c.617 §12a; 1989 c.532 §9; 1991 c.249 §62]
Notwithstanding ORS 696.040 to 696.232 and 696.255, the Real Estate
Commissioner may prescribe by rule the terms and conditions for license
recognition of a nonresident real estate broker or salesperson and for
reciprocity agreements with other states and countries, including but not
limited to application procedures, license qualifications, license
maintenance, limitations on activities and license renewal requirements.
[1989 c.532 §4; 1999 c.470 §3; 2001 c.300 §24]Note: 696.265 was added to and made a part of 696.010 to 696.495 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation.(Miscellaneous) The maximum fees described in this section may be
charged by and paid to the Real Estate Agency. Actual fees shall be
prescribed by the Real Estate Commissioner with approval of the Oregon
Department of Administrative Services. This section applies to the
following fees:
(1) For each licensing examination applied for, $75.
(2) For each real estate broker’s, principal real estate broker’s
or real estate property manager’s license, $230.
(3) For each renewal of a real estate broker’s, principal real
estate broker’s or real estate property manager’s license, $230.
(4) For each notification of the opening or closing of a registered
branch office of a real estate broker or principal real estate broker, at
times other than the time of issuing or renewing the broker’s license,
$10.
(5) For each change of name or address of a broker on the records
of the agency, $10.
(6) For each duplicate license, when the original license is lost
or destroyed and affidavit made thereof, $20.
(7) For each transfer of a real estate broker’s, principal real
estate broker’s or real estate property manager’s license within the same
license category, $10.
(8) For the renewal of a real estate broker’s, principal real
estate broker’s or real estate property manager’s inactive license, $110.
(9) For the reactivation of a real estate broker’s, principal real
estate broker’s or real estate property manager’s inactive license, $75.
(10) In addition to the renewal fee, for late renewal, $30.
(11) For a temporary license issued under ORS 696.205, $40, and for
an extension thereof, $40.
(12) For initial registration of a business name, $230. [Amended by
1953 c.166 §5; 1955 c.457 §1; subsections (13), (14), (15) enacted as
1955 c.322 §3; 1957 c.383 §2; 1961 c.670 §1; 1965 c.617 §3; 1969 c.674
§15; 1971 c.293 §1; 1975 c.746 §20; 1977 c.191 §3; 1977 c.649 §52; 1981
c.566 §4; 1987 c.58 §13; 1987 c.158 §146; 1987 c.611 §20; 1989 c.724 §8;
1991 c.5 §39; 1991 c.462 §3; 1997 c.451 §1; 2001 c.300 §25; 2003 c.398
§10; 2005 c.116 §20] (1) A real estate
broker or principal real estate broker shall maintain within this state
complete and adequate records of all professional real estate activity
conducted by or through the broker. The Real Estate Agency shall specify
by rule the records required to establish complete and adequate records
of a broker’s professional real estate activity. The only documents the
agency may require by rule a real estate broker or principal real estate
broker to use or generate are documents that are otherwise required by
law or are voluntarily generated during a real estate transaction.
(2)(a) The records of a principal real estate broker or a sole
practitioner shall include records of attendance in continuing education
courses by the sole practitioner or broker. The records of attendance
shall state the name of the sole practitioner or broker and the date of
the sole practitioner’s or broker’s attendance, and shall be the basis
for self-certification under ORS 696.174.
(b) A principal real estate broker’s records shall include records
of attendance in continuing education courses by licensees associated
with the principal broker. The record of attendance shall state the name
of the licensee and the date of the licensee’s attendance, and shall be
the basis for the certificate of attendance submitted under ORS 696.174.
(3) The records shall at all times be open for inspection by the
Real Estate Commissioner or the commissioner’s authorized
representatives. The records of each transaction shall be maintained by
the licensee for a period of not less than six years after the date the
transaction closed or failed. The records may be maintained in any format
that allows for inspection and copying by the commissioner or the
commissioner’s representatives, as determined by the commissioner by
rule. [Amended by 1977 c.649 §38; 1981 c.617 §12b; 1983 c.258 §7; 1983
c.359 §2; 1991 c.5 §40; 1995 c.335 §3; 2001 c.300 §26; 2005 c.116 §21](1) A real estate licensee
shall not offer, promise, allow, give, pay or rebate, directly or
indirectly, any part or share of the licensee’s commission or
compensation arising or accruing from any real estate transaction or pay
a finder’s fee to any person who is not a real estate licensee licensed
under ORS 696.022. However, a real estate broker or principal real estate
broker may pay a finder’s fee or a share of the commission on a
cooperative sale where such payment is made to a licensed real estate
broker in another state or country provided that the state or country in
which that broker is licensed has a law permitting real estate brokers to
cooperate with real estate brokers or principal real estate brokers in
this state and that such nonresident real estate broker does not conduct
in this state any acts constituting professional real estate activity and
for which compensation is paid. If a country does not license real estate
brokers, the payee must be a citizen or resident of the country and
represent that the payee is in the business of real estate brokerage in
the other country. A real estate broker associated with a principal real
estate broker shall not accept compensation from any person other than
the principal real estate broker with whom the real estate broker is
associated at the time. A principal real estate broker shall not make
payment to the real estate broker of another principal real estate broker
except through the principal real estate broker with whom the real estate
broker is associated. Nothing in this section prevents payment of a
commission or fee earned by a real estate broker or principal real estate
broker while licensed, because of change of affiliation or inactivation
of the broker’s license.
(2) Nothing in subsection (1) of this section is intended to
prohibit a real estate licensee who has a written property management
agreement with the owner of a residential building or facility from
authorizing the payment of a referral fee, rent credit or other
compensation to an existing tenant of the owner or licensee, or a former
tenant if the former tenant resided in the building or facility within
the previous six months, as compensation for referring new tenants to the
licensee.
(3) Nothing in subsection (1) of this section is intended to
prevent an Oregon real estate broker or principal real estate broker from
sharing a commission on a cooperative nonresidential real estate
transaction with a person who holds an active real estate license in
another state or country, provided:
(a) Before the out-of-state real estate licensee performs any act
in this state that constitutes professional real estate activity, the
licensee and the cooperating Oregon real estate broker or principal real
estate broker agree in writing that the acts constituting professional
real estate activity conducted in this state will be under the
supervision and control of the cooperating Oregon broker and will comply
with all applicable Oregon laws;
(b) The cooperating Oregon real estate broker or principal real
estate broker accompanies the out-of-state real estate licensee and the
client during any property showings or negotiations conducted in this
state; and
(c) All property showings and negotiations regarding nonresidential
real estate located in this state are conducted under the supervision and
control of the cooperating Oregon real estate broker or principal real
estate broker.
(4) Nothing in subsection (1) of this section is intended to
prohibit a real estate licensee from directly compensating a licensed
personal assistant if permitted by the terms, conditions and requirements
of a licensed personal assistant agreement under ORS 696.028.
(5) As used in subsection (3) of this section, “nonresidential real
estate” means any real property that is improved or available for
improvement by commercial structures or five or more residential dwelling
units. [Amended by 1953 c.42 §2; 1961 c.670 §2; 1969 c.674 §16; 1975
c.746 §21; 1977 c.649 §40; 1981 c.617 §13; 1989 c.724 §9; 1997 c.307 §1;
1999 c.470 §1; 2001 c.300 §27]Subject to ORS 696.396, the Real
Estate Commissioner may suspend or revoke the real estate license of any
real estate licensee, reprimand any licensee or deny the issuance or
renewal of a license to an applicant who has done any of the following:
(1) Created a reasonable probability of damage or injury to a
person by making one or more material misrepresentations or false
promises in a matter related to professional real estate activity.
(2) Represented, attempted to represent or accepted a commission or
other compensation from a principal real estate broker other than the
principal real estate broker with whom the real estate broker is
associated.
(3) Disregarded or violated any provision of ORS 659A.421, 696.010
to 696.495, 696.600 to 696.785 and 696.800 to 696.870 or any rule of the
Real Estate Agency.
(4) Knowingly or recklessly published materially misleading or
untruthful advertising.
(5) Acted as an agent and an undisclosed principal in any
transaction.
(6) Intentionally interfered with the contractual relations of
others concerning real estate or professional real estate activity.
(7) Intentionally interfered with the exclusive representation or
exclusive brokerage relationship of another licensee.
(8) Accepted employment or compensation for the preparation of a
competitive market analysis or letter opinion that is contingent upon
reporting a predetermined value or for real estate in which the licensee
had an undisclosed interest.
(9) Represented a taxpayer as described in ORS 305.230 or 309.100,
contingent upon reporting a predetermined value or for real estate in
which the licensee had an undisclosed interest.
(10) Failed to ensure, in any real estate transaction in which the
licensee performed the closing, that the buyer and seller received a
complete detailed closing statement showing the amount and purpose of all
receipts, adjustments and disbursements.
(11) Has been convicted of a felony or misdemeanor substantially
related to the licensee’s trustworthiness or competence to engage in
professional real estate activity.
(12) Demonstrated incompetence or untrustworthiness in performing
any act for which the licensee is required to hold a license.
(13) Violated a term, condition, restriction or limitation
contained in an order issued by the commissioner.
(14) Committed an act of fraud or engaged in dishonest conduct
substantially related to the fitness of the applicant or licensee to
conduct professional real estate activity, without regard to whether the
act or conduct occurred in the course of professional real estate
activity.
(15) Engaged in any conduct that is below the standard of care for
the practice of professional real estate activity in Oregon as
established by the community of persons engaged in the practice of
professional real estate activity in Oregon. [1975 c.746 §23 (enacted in
lieu of 696.300); 1977 c.649 §41; 1981 c.617 §14; 1989 c.532 §8; 1991 c.5
§41; 1993 c.547 §9; 1993 c.570 §13; 1999 c.470 §2; 2001 c.300 §28; 2003
c.398 §10a; 2005 c.116 §22; 2005 c.393 §3](1) If two or more principal real estate brokers
are in business together, the brokers may have equal supervisory control
over and shall be equally responsible for the conduct of other principal
real estate brokers or real estate brokers associated with the principal
real estate brokers, or other employees employed by the principal real
estate brokers. The principal real estate brokers shall execute a written
agreement between them and establish office policies specifying the
supervisory control and responsibility for each principal real estate
broker who is a party to the agreement.
(2) An act constituting a violation of any of the provisions of ORS
696.010 to 696.495, 696.600 to 696.785, 696.800 to 696.870 and 696.995 or
of any rule adopted thereunder by any licensee is not cause for the
suspension or revocation of a license of any real estate licensee
associated with or engaged by such licensee, unless it appears to the
satisfaction of the Real Estate Commissioner that such associated or
engaged real estate licensee had guilty knowledge of the act. A course of
dealing shown to have been persistently and consistently followed by any
real estate licensee shall constitute prima facie evidence of such
knowledge upon the part of any real estate licensee associated with or
engaged by that licensee. [Amended by 1977 c.649 §42; 1981 c.617 §15;
2001 c.300 §31]No real
estate licensee shall knowingly permit any person whose license has been
revoked or suspended to engage in professional real estate activity, with
or on behalf of the licensee. [1977 c.649 §7; 1981 c.617 §15a]The suspension or revocation of a
principal real estate broker’s license renders inactive every license of
the real estate brokers engaged by the principal real estate broker
pending a transfer of the license. The Real Estate Agency shall transfer
a license rendered inactive under this section if the real estate
licensee requests a transfer within 30 days after the effective date of
the suspension or revocation of the principal real estate broker’s
license and pays a transfer fee. [Amended by 1969 c.674 §18; 1975 c.746
§24; 1977 c.649 §43; 1981 c.617 §15b; 1989 c.724 §10; 2001 c.300 §32;
2005 c.116 §9] A real estate
property manager is regulated and bound as a real estate broker and as a
principal real estate broker. [1987 c.611 §18; 1989 c.724 §17; 1991 c.5
§43; 2001 c.300 §33]Nothing contained in ORS 696.010 to 696.495,
696.600 to 696.785, 696.800 to 696.870, 696.990 and 696.995 prevents the
establishment of an independent contractor relationship between real
estate licensees or requires the establishment of an employer-employee
relationship. [1981 c.617 §40] (1) A city or county
shall not impose or collect a business license tax from a person licensed
as a real estate broker who engages in professional real estate activity
only as an agent of a principal real estate broker.
(2) As used in this section, “business license tax” has the meaning
given that term in ORS 701.015. [1987 c.581 §4; 2001 c.300 §78]Note: 696.365 was added to and made a part of ORS 696.010 to
696.495 but was not added to any smaller series therein by legislative
action. See Preface to Oregon Revised Statutes for further explanation.(Administration)(1) The Real Estate Agency is
established.
(2) The Real Estate Agency shall be under the supervision and
control of an administrator who shall be known as the Real Estate
Commissioner. The Governor shall appoint the Real Estate Commissioner who
shall have been, before the date of appointment, for five years a real
estate broker or principal real estate broker actively engaged in
business as such in this state. The Governor also may appoint a person
who has been actively connected with the administration of the agency for
at least one year as acting or temporary commissioner. The commissioner
shall hold office at the pleasure of the Governor and shall be
responsible for the performance of the duties imposed upon the agency.
The Real Estate Commissioner shall receive such salary as may be provided
by law.
(3) The appointment of the commissioner is subject to confirmation
by the Senate in the manner prescribed in ORS 171.562 and 171.565.
(4) Before entering upon the duties of office the commissioner
shall give to the state a fidelity bond with one or more corporate
sureties authorized to do business in this state, or an irrevocable
letter of credit issued by an insured institution, as defined in ORS
706.008, in either case in the sum fixed by the Governor. The premium for
the bond or the fee for the letter of credit shall be paid by the agency.
[1963 c.580 §§40,41; 1974 c.25 §1; 1975 c.746 §25; 1987 c.414 §38; 1991
c.331 §104; 1995 c.674 §1; 1997 c.631 §523; 2001 c.300 §34] The Real Estate
Agency shall have the power to:
(1) Adopt a seal by which it shall authenticate its proceedings.
(2) From time to time, prepare and cause to be printed and
circulated among the real estate licensees of Oregon such printed matter
as it may deem helpful or educational or proper for the guidance and
welfare of such licensees.
(3) Make and enforce any and all such reasonable rules as shall be
deemed necessary to administer and enforce the provisions of, and enforce
and discharge the duties defined in, any law with the administration or
enforcement of which the agency is charged.
(4) Except as provided in subsection (5) of this section, when the
agency proposes to adopt, amend or repeal a rule concerning real estate
licensees, the agency shall:
(a) Submit a copy of the proposed rule to the Real Estate Board at
least 45 days prior to publication of the notice of intended action
required under ORS 183.335 for the rule.
(b) Consider any recommendations that the board, by majority vote,
makes concerning the proposed rule.
(c) Publish as part of the statement of need in the matters any
written comments submitted by the board for publication under paragraph
(b) of this subsection.
(5) Subsection (4) of this section does not apply to a temporary
rule that is adopted, amended or suspended pursuant to ORS 183.335 (5).
However, the agency shall submit to the board a copy of any proposed
temporary rule as soon as practicable and, to the extent possible under
the circumstances, consider any recommendations that the board may make
by majority vote regarding the temporary rule. [1963 c.580 §48; 1965
c.617 §5; 1981 c.617 §16; 1985 c.565 §116](1) The Real Estate Commissioner may administer
oaths, take depositions and issue subpoenas to compel the attendance of
witnesses and the production of books, papers, records, memoranda or
other information necessary to the carrying out of the laws the
commissioner is charged with administering.
(2) If any person fails to comply with a subpoena issued under this
section or refuses to testify on any matters on which the person may be
lawfully interrogated, the procedure provided in ORS 183.440 shall be
followed to compel obedience. [1995 c.217 §13] The Real Estate Commissioner shall
have the power to:
(1) For the purpose of administration, organize and reorganize, as
necessary, the Real Estate Agency in the manner that the commissioner
deems necessary to properly conduct the work of the agency.
(2) Appoint all subordinate officers and employees of the agency,
or such other agents or representatives, and prescribe their duties and
fix their compensation, subject to the applicable provisions of the State
Personnel Relations Law. Subject to any other applicable law regulating
travel expenses, the officers, employees, agents or representatives of
the agency shall be allowed such reasonable and necessary travel and
other expenses as may be incurred in the performance of their duties.
(3) Require a fidelity bond or an irrevocable letter of credit
issued by an insured institution as defined in ORS 706.008 of any officer
or employee of the agency who has charge of, handles or has access to any
state money or property, and who is not otherwise required by law to give
a bond or letter of credit. The amounts of the bonds or letters of credit
shall be fixed by the commissioner, except as otherwise provided by law,
and the sureties or letter of credit issuers shall be approved by the
commissioner. The agency shall pay the premium on the bonds and the fees
for the letters of credit. [1963 c.580 §42; 1977 c.649 §45; 1987 c.414
§38a; 1991 c.331 §105; 1997 c.631 §524](1) The Real Estate Commissioner shall provide by rule for the
progressive discipline of real estate licensees and an objective method
for investigation of complaints alleging grounds for discipline under ORS
696.301.
(2) The rules adopted by the commissioner under this section:
(a) Must establish procedures for the discovery of material facts
relevant to an investigation and for the reporting of those facts without
conclusions of violation or grounds for discipline to the commissioner or
the commissioner’s designee by the individual assigned to investigate the
complaint.
(b) Must provide for progressive discipline designed and
implemented to correct inappropriate behavior.
(c) May not authorize imposition of a suspension or a revocation of
a real estate license unless the material facts establish a violation of
a ground for discipline under ORS 696.301 that:
(A) Results in significant damage or injury;
(B) Exhibits incompetence in the performance of professional real
estate activity;
(C) Exhibits dishonesty or fraudulent conduct; or
(D) Repeats conduct or an act that is substantially similar to
conduct or an act for which the real estate licensee was disciplined
previously. [2005 c.393 §5] (1)
The Real Estate Commissioner may delegate to any of the officers and
employees of the Real Estate Agency to exercise or discharge in the
commissioner’s name any power, duty or function vested in or imposed upon
the commissioner under this chapter. The power to administer oaths and
affirmations, subpoena witnesses, take evidence and require the
production of books, papers, correspondence, memoranda, agreements or
other documents or records, and to sign notices and orders may be
exercised by an officer or employee of the agency only when specified in
writing by the commissioner and filed in the records of the Real Estate
Agency.
(2) An official act of a person acting in the commissioner’s name
and by authority of the commissioner shall be deemed to be an official
act of the commissioner. [1975 c.746 §26](1) The Real Estate Board is established within
the Real Estate Agency. The board shall consist of nine members appointed
by the Governor to hold office for a period of four years, but to serve
at the pleasure of the Governor. Seven members of the board appointed by
the Governor must have been, before the date of their appointment, real
estate licensees actively engaged for five years in professional real
estate activity in this state. Two members to be appointed by the
Governor shall not be real estate licensees or have been connected with,
or employed by, the Real Estate Agency or a predecessor thereof. In case
of a vacancy for any cause, the Governor shall make an appointment to
become immediately effective for the unexpired term.
(2) A member of the board is entitled to compensation or expenses
as provided in ORS 292.495. [1963 c.580 §43; 1969 c.314 §97; 1975 c.746
§27; 1977 c.649 §46; 1981 c.617 §17; 1987 c.414 §39; 1993 c.744 §250] (1) The Real Estate Board shall
annually select one of its members as chairperson, who shall preside at
the meetings of the board. In the absence of the chairperson some other
member of the board may serve as chairperson. The board shall meet at
such times and places as determined by the board and may also meet upon
call of the chairperson.
(2) A majority of the board shall constitute a quorum for the
transaction of business. A vacancy on the board shall not impair the
right of the remaining members to perform all the duties and exercise all
the functions and authority of the board. [1963 c.580 §45] (1) The Real Estate
Board is authorized to inquire into the needs of the real estate
licensees of Oregon, the functions of the Real Estate Agency and the
matter of the business policy thereof, to confer with and advise the
Governor as to how the agency may best serve the state and the licensees,
and to make recommendations and suggestions of policy to the agency as
the board may deem beneficial and proper for the welfare and progress of
the licensees and of the public and of the real estate business in Oregon.
(2) The board shall conduct all examinations for applicants for
real estate licenses, prepare or cause to be prepared the questions to be
asked in the examinations and grade or cause to be graded the papers of
each applicant after the completion of the examination and file a written
report with the agency as to applicants taking the examination who have
passed and who have failed to pass the examination. The board shall
provide the manner and methods for conducting examinations.
(3) The expenses of the board shall be paid from moneys available
to the agency for payment of administrative expenses relating to the real
estate activities of the agency. [1963 c.580 §46; 1969 c.674 §19; 1977
c.649 §47; 1981 c.617 §18; 1987 c.414 §39a; 1993 c.744 §179]Copies of all records and papers in the office of the Real
Estate Commissioner duly certified and authenticated by the seal of the
commissioner shall be received in evidence in all courts equally and with
like effect as the original. Except for records of open investigations,
all records kept in the office of the commissioner under authority of ORS
696.010 to 696.495, 696.600 to 696.785, 696.800 to 696.870 and 696.995
shall be open to public inspection under such reasonable rules and
regulations as shall be prescribed by the commissioner. [Amended by 2001
c.300 §35](1) Pursuant to ORS
696.385 (2), the Real Estate Agency shall provide for the advancement of
education and research in connection with the educational requirements
for the securing of licenses for real estate licensees under ORS 696.010
to 696.495, 696.600 to 696.785, 696.800 to 696.870 and 696.995.
(2) The Real Estate Commissioner may assign and reassign staff in
the agency to perform such duties as the commissioner considers necessary
to carry out subsection (1) of this section, including but not limited to
the preparation and distribution of a periodic publication to be known as
the Oregon Real Estate News Journal and the preparation and publication
of other printed matter of an educational nature for the benefit of real
estate licensees.
(3) The commissioner shall publish in the Oregon Real Estate News
Journal the names and addresses of all applicants for real estate or
escrow licenses whose licenses have been refused, of real estate
licensees who have been reprimanded, of real estate and escrow licensees
whose licenses have been suspended or revoked and of real estate and
escrow licensees who have been assessed civil penalties. Each such
publication shall include a brief description of the situation involved
and the grounds for the commissioner’s action. [1974 s.s. c.26 §5; 1975
c.746 §28; 1977 c.649 §48; 1981 c.617 §19; 1983 c.258 §8; 2001 c.300 §64] (1) There is
established in the General Fund of the State Treasury the Real Estate
Account. All moneys, fees and charges collected or received by the Real
Estate Agency shall be deposited in the account.
(2) The moneys in the Real Estate Account are continuously
appropriated for the payment of the expenses of the agency in carrying
out the provisions of ORS 92.305 to 92.495, 94.803, 94.807 to 94.945,
100.005 to 100.910, 100.990, 696.010 to 696.785, 696.800 to 696.870 and
696.995. [Amended by 1955 c.457 §2; 1961 c.309 §4; 1963 c.440 §16; 1963
c.580 §50; 1965 c.617 §7; 1971 c.293 §2; 1974 c.26 §1; 1977 c.41 §2; 1981
c.85 §11; 1983 c.17 §30; 1983 c.530 §53; 1985 c.565 §117] (1)
Upon written request by the Real Estate Agency, the Oregon Department of
Administrative Services shall draw a warrant on the Real Estate Account,
established by ORS 696.490, for use as a revolving fund. Warrants drawn
to establish or increase the revolving fund, rather than to reimburse the
revolving fund, may not exceed the aggregate sum of $1,500. The State
Treasurer shall hold the revolving fund in a special account against
which the Real Estate Agency may draw checks.
(2) The Real Estate Agency may use the revolving fund for the
purpose of paying witness fees and other administrative expenses.
(3) All claims for reimbursement of moneys paid from the revolving
fund are subject to approval by the Director of the Oregon Department of
Administrative Services and by the Real Estate Commissioner. When such
claims have been approved, a warrant covering them shall be drawn in
favor of the Real Estate Agency and used to reimburse the revolving fund.
Such warrants shall be charged against the Real Estate Account
established by ORS 696.490. [1974 c.26 §3; 1977 c.41 §3]ESCROWS AND ESCROW AGENTS(Generally) As used in ORS
696.505 to 696.590, unless the context requires otherwise:
(1) “Collection escrow” means an escrow in which the escrow agent:
(a) Receives:
(A) Installment payments;
(B) Instruments evidencing or securing an obligation; or
(C) Instruments discharging the security interest; and
(b) Disburses the payments or delivers the instruments upon
specified conditions pursuant to the written instructions of an obligor
and obligee.
(2) “Commissioner” means the Real Estate Commissioner.
(3) “Escrow” means any transaction wherein any written instrument,
money, evidence of title to real or personal property or other thing of
value is delivered, for the purpose of paying an obligation or effecting
the sale, transfer, encumbrance or lease of real or personal property, to
a person not otherwise having any right, title or interest therein, to be
held by that person as a neutral third party until the happening of a
specified event or the performance of a prescribed condition, when it is
then to be delivered by the neutral third party to a grantee, grantor,
promisee, promisor, obligee, obligor, bailee, bailor or any agent or
employee of any of them pursuant to the written instructions of the
principals to the transaction.
(4) “Escrow agent” means any person who engages in the business of
receiving escrows for deposit or delivery and who receives or is promised
any fee, commission, salary or other valuable consideration, whether
contingent or otherwise, for or in anticipation of performance.
(5) “Principal” means:
(a) The buyer and seller, lessor and lessee and the exchanging
parties in an escrow transaction involving the sale, lease, lease-option
or exchange of real property or personal property; and
(b) The borrower in an escrow transaction involving the refinancing
of real or personal property, including but not limited to the
refinancing of an obligation secured by a land sale contract requiring a
deed to be delivered as part of such refinancing.
(6) “Real estate closing escrow” means an escrow where the escrow
fee is paid in whole or in part by the principals to a real estate
transaction and wherein the unpaid purchase price is delivered to an
escrow agent for disbursal pursuant to the written instructions of the
principals to the transaction simultaneously on the transfer of specified
title to the real property.
(7) “Subservicer” means an escrow agent, a financial institution or
a trust company, as those terms are defined in ORS 706.008, or a
collection agency registered under ORS 697.015 when providing, pursuant
to written instructions, a portion of the escrow services for an escrow
to an escrow agent, or a person in the business of receiving escrows
under the laws of another state, that would otherwise provide the escrow
services directly to the principals. [1963 c.440 §1; 1977 c.351 §4; 1981
c.617 §20; 1991 c.874 §1; 1993 c.18 §150; 2003 c.427 §4; 2005 c.116 §23] (1) The Legislative
Assembly finds the activity of escrow agents in handling large sums of
money and important rights of clients to be of public concern. In order
to permit uniform and equitable regulation of all escrow agents and to
improve the standards of escrow conduct, the provisions of ORS 696.505 to
696.590 shall be construed to grant the Real Estate Commissioner
authority to protect the public.
(2) ORS 696.505 to 696.590 may be cited as the Oregon Escrow Law.
[1977 c.351 §2](Licensing)(1) A person may not directly or indirectly engage in or carry
on, or purport to engage in or carry on, the business of an escrow agent
or act in the capacity of an escrow agent without first obtaining a
license as an escrow agent under the provisions of ORS 696.505 to 696.590.
(2)(a) Every escrow agent before engaging in the escrow business
shall file in the office of the Real Estate Commissioner an application
for a license, in writing, verified by the applicant and in the form
prescribed by the commissioner. The application must include the location
of the agent’s main office and all branch offices in this state, the name
or style of doing business, the names, resident and business addresses of
all persons interested in the business as principals, partners, elected
officers, trustees and directors, specifying as to each the person’s
capacity and title, the general plan and character of business and the
length of time the agent has been engaged in business. Notification of
changes in the information contained in the application or in the
ownership of the business must be immediately filed with the commissioner.
(b) If the applicant is an individual, the applicant must be 18
years of age or older.
(3) For the initial license of an escrow agent, the commissioner
may require information and evidence the commissioner considers necessary
to demonstrate the applicant’s qualifications to transact escrow business
including, but not limited to, information regarding the applicant’s
financial resources, the applicant’s escrow business in another state or
the experience or training of employees in escrow business, or a
testimonial of an escrow agent licensed in this state. Subject to
subsection (4) of this section, an applicant:
(a) Who is an individual must demonstrate a minimum of three years
of experience in the administration of escrows within Oregon or a state
with comparable escrow laws; or
(b) Who is not an individual must demonstrate a minimum collective
experience among its personnel of three years in the administration of
escrows within Oregon or a state with comparable escrow laws.
(4) The commissioner may waive the three-year experience
requirement in subsection (3) of this section for an applicant who
demonstrates other qualifications sufficient to ensure the protection of
the public.
(5) For the initial license or license renewal of an escrow agent,
the commissioner shall require fingerprints and a state or nationwide
criminal records check under ORS 181.534 of an applicant for an initial
license and may require fingerprints and a state or nationwide criminal
records check under ORS 181.534 of an applicant for license renewal. The
commissioner may require additional information for an initial license or
license renewal under this subsection that the commissioner considers
necessary for protecting the public. For purposes of requiring
fingerprints and a criminal records check, “applicant” means a person who
has more than five percent ownership interest in the escrow agency and
the corporate officers in direct control of escrow operations.
(6) For license renewal, an escrow agent shall provide:
(a) A certification of training, by which the applicant certifies
that the applicant provides escrow agency staff within Oregon with an
average of six hours or more of training per year per permanent,
full-time employee in subjects that bear directly on the administration
of escrows; and
(b) A statement identifying by name, address and telephone number
one or more individuals who can respond to the inquiries of or referrals
by the commissioner or the commissioner’s authorized representative
regarding the applicant’s escrow business.
(7) The commissioner, if satisfied that the applicant should not be
refused a license under ORS 696.535, shall issue or renew an escrow agent
license for an applicant that complies with the requirements of ORS
696.505 to 696.590.
(8) To qualify for issuance or renewal of an escrow agent license,
an applicant shall pay any outstanding civil penalties or other moneys
due and owing to the Real Estate Agency except civil penalties or other
moneys due that are the subject of judicial or administrative review on
the date of the application for license or license renewal. [1963 c.440
§§4,17; 1975 c.746 §29; 1977 c.351 §5; 1981 c.617 §21; 1991 c.874 §2;
2001 c.300 §36; 2003 c.427 §5; 2005 c.730 §§38,86] The provisions of
ORS 696.505 to 696.590 do not apply to and the term “escrow agent” does
not include:
(1) Any person doing business under the laws of this state or the
United States relating to banks, mutual savings banks, trust companies,
savings and loan associations, consumer finance companies, or insurance
companies except to the extent that the person provides real estate
closing escrow services other than those permitted under subsection (3)
of this section.
(2) An attorney at law rendering services in the performance of
duties as attorney at law.
(3) Any firm or corporation lending money on real or personal
property and which firm or corporation is subject to licensing,
supervision or auditing by a federal or state agency but only to the
extent of closing a loan transaction between such firm or corporation and
a borrower, and seller, if a fee for escrow services is not charged to
the seller.
(4) Any person doing any of the acts specified in ORS 696.505 (3)
under order of any court.
(5) Any real estate broker or principal real estate broker licensed
under ORS 696.022 who performs the closing for the principals in a real
estate transaction handled by the broker, if the principals are not
charged a separate fee for escrow services.
(6) Any collection agency registered under ORS 697.015 that is
engaged in any collection or billing activity without holding documents
relating to the debt. [1963 c.440 §2; 1967 c.359 §701; 1971 c.398 §1;
1977 c.351 §6; 1981 c.617 §22; 1991 c.874 §3; 2001 c.300 §37; 2003 c.427
§6]The provisions of ORS 696.505 to 696.590 apply to those
escrow activities of a title insurance company, or an insurance producer
of a title insurance company which prepares abstracts or makes searches
of title which are used as a basis for the insurance of titles by a title
insurance company. [1971 c.398 §3; 1977 c.351 §7; 2003 c.364 §55] (1) At the time of filing an
application for an escrow agent license, the applicant shall deposit with
the Real Estate Commissioner a corporate surety bond running to the State
of Oregon, executed by a surety company satisfactory to the commissioner,
in the amount required by this section.
(2) If the total annual receipts of client trust funds, as reported
in the required annual report of the escrow agent, are:
(a) Less than $30 million, the bond or deposit must be $50,000.
(b) $30 million or more, but less than $60 million, the bond or
deposit must be $125,000.
(c) $60 million or more, but less than $100 million, the bond or
deposit must be $250,000.
(d) $100 million or more, but less than $300 million, the bond or
deposit must be $375,000.
(e) $300 million or more, the bond or deposit must be $500,000.
(3) The provisions of the corporate surety bond must be in the form
substantially as follows:
___________________________________________________________________________
___
Know All Persons by These Presents, That we, ______as principal,
and______, a corporation, qualified and authorized to do business in the
State of Oregon as surety, are held and firmly bound unto the State of
Oregon for the use and benefit of any interested person, in the sum of
$______, lawful money of the United States of America, to be paid to the
State of Oregon for the use and benefit aforesaid, for which payment well
and truly to be made, we bind ourselves, our heirs, executors,
administrators, successors, and assigns, jointly and severally, firmly by
these presents.
The condition of the above obligation is such that: Whereas the
above-named principal has made application for registration as an escrow
agent within the meaning of ORS 696.505 to 696.590 and is required by the
provisions of ORS 696.505 to 696.590 to furnish a bond in the sum above
named, conditioned as herein set forth:
Now, therefore, if the principal, the principal’s agents and
employees, shall strictly, honestly and faithfully comply with the
provisions of ORS 696.505 to 696.590, and shall pay all actual damages
suffered by any person by reason of the violation of any of the
provisions of ORS 696.505 to 696.590, now or hereafter enacted, or by
reason of any fraud, dishonesty, misrepresentation or concealment of
material facts growing out of any transaction governed by the provisions
of ORS 696.505 to 696.590, then this obligation shall be void; otherwise
to remain in full force and effect.
This bond shall become effective on the ___ day of______, 2__, and
shall remain in force until the surety is released from liability by the
commissioner, or until this bond is canceled by the surety. The surety
may cancel this bond and be relieved of further liability hereunder by
giving 30 days’ written notice to the principal and to the commissioner.
This bond shall be one continuing obligation, and the liability of
the surety for the aggregate of any and all claims which may arise
hereunder shall in no event exceed the amount of the penalty hereof.
In witness whereof, the seal and signature of the principal hereto
is affixed, and the corporate seal and the name of the surety hereto is
affixed and attested by its duly authorized officers at___________,
Oregon, this ___ day of_________, 2___.
__________________(Seal)
Principal
__________________(Seal)
Surety
By __________________
___________________________________________________________________________
___[1963 c.440 §5; 1971 c.398 §4; 1977 c.351 §8; 1981 c.617 §23; 1983 c.258
§9; 1991 c.874 §4; 2001 c.300 §72; 2003 c.427 §7] (1)
Any escrow agent may satisfy the requirements of ORS 696.525 by
depositing with the State Treasurer, in an amount equal to the surety
bond required, a deposit consisting only of the following:
(a) Cash;
(b) Ample secured obligations of the United States, a state or a
political subdivision thereof;
(c) Certificates of deposit or other investments described in ORS
733.650 (4), to the extent that such investments are insured by the
Federal Deposit Insurance Corporation; or
(d) Any combination of paragraphs (a), (b) or (c) of this
subsection.
(2) The State Treasurer shall accept and hold the deposit for the
faithful performance of escrow activity by the escrow agent. No claimant
or judgment creditor or the escrow agent shall have the right to attach
or levy upon any of the assets or securities held on deposit.
(3) The Real Estate Commissioner, by order, may authorize the State
Treasurer to use such deposit, as follows:
(a) To satisfy any final judgment entered against the escrow agent
for actual damages suffered by any person by reason of the violation of
any of the provisions of ORS 696.505 to 696.590, now or hereafter
enacted, or by reason of any fraud, dishonesty, misrepresentation or
concealment of material fact growing out of any escrow transaction;
(b) For use in the liquidation of the escrow agent under the
provisions of ORS 696.555; or
(c) To release any or all of such deposit to the escrow agent when,
in the opinion of the commissioner, such deposit is no longer necessary
to protect the public.
(4) The commissioner may waive the requirement of the surety bond
or deposit for any escrow agent that:
(a) Demonstrates to the commissioner’s satisfaction that the
capital and surplus or net worth, of such escrow agent as of the end of
the previous business accounting year of the agent is equal to, or
greater than, the average month-end balance of custodial funds held by
such agent during the previous business accounting year;
(b) Provides a certified, annually renewable letter of credit
executed by a financial institution and satisfactory to the commissioner
in the amount of the surety bond required by ORS 696.525; or
(c) Provides a certified, personal guarantee executed by one or
more owners of the escrow agency and satisfactory to the commissioner in
the amount of the surety bond required by ORS 696.525.
(5) All other claims against the bond or deposit of an escrow agent
must be paid by the commissioner only upon the receipt of a final court
judgment against the escrow agent and only in the amount of actual
damages as ordered by the court. [1977 c.351 §3; 1981 c.617 §24; 1991
c.874 §5; 1999 c.107 §11; 2003 c.427 §8] (1) The license of
an escrow agent expires June 30 next after the date of issuance if it is
not renewed by July 1 of such year. A license may be renewed by filing a
renewal application in writing, verified by the applicant and in the form
prescribed by the Real Estate Commissioner, and paying the annual license
fee for the next succeeding fiscal year.
(2) The filing fees are:
(a) For filing an original or a renewal application, $300 for the
main office and $150 for each branch office.
(b) For filing an application for a duplicate copy of a license,
upon satisfactory showing of loss of the license, the sum of $20.
(c) For a name change or a change of address of an escrow agent,
$10 for the main office plus $10 for each affected branch office. [1963
c.440 §6; 1977 c.351 §9; 1977 c.873 §19; 1981 c.617 §25; 1991 c.874 §14;
1997 c.451 §2; 2003 c.427 §9; 2005 c.116 §11] (1) The Real Estate Commissioner may issue
or renew a limited escrow agent license if:
(a) An applicant elects not to apply for an escrow agent license; or
(b) An applicant does not qualify for an escrow agent license.
(2) The commissioner may limit a license issued under this section:
(a) By term;
(b) To activities subject to supervision by a specific escrow agent;
(c) By conditions to be observed in the exercise of the privileges
granted; or
(d) In other ways determined by the commissioner as necessary or
appropriate to protect the public.
(3) A limited licensee shall comply with the requirements of ORS
696.505 to 696.590 and shall:
(a) Restrict the escrow business of the licensee to those escrows
specified in the application; or
(b) Limit its escrow business to collection escrows. [2003 c.427 §2]Note: 696.532 and 696.534 were added to and made a part of 696.505
to 696.590 by legislative action but were not added to any smaller series
therein. See Preface to Oregon Revised Statutes for further explanation. (1) An escrow agent shall keep
and maintain at all times in the licensed office of the agent, complete
and suitable records of escrow transactions made by the agent and of the
business of the agent including, but not limited to, books, papers and
data clearly reflecting the financial condition of the business of the
agent. The records must be open for inspection by the Real Estate
Commissioner or the commissioner’s authorized representatives at all
times. An escrow agent shall keep escrow records for a period of six
years from the date the escrow closes or is terminated. An escrow agent
may maintain the records in any format, as determined by the commissioner
by rule, that allows for inspection and copying by the commissioner or
the commissioner’s representatives. When an escrow agent acts as a
subservicer for another escrow agent, the subservicer shall keep its
records in the manner required for an escrow agent under this section.
(2) Notwithstanding the requirement of subsection (1) of this
section that an escrow agent maintain escrow records in the agent’s
licensed office, an escrow agent shall keep escrow records in the office
in which the transaction occurred for one year from the date the escrow
closes or is terminated.
(3) Notwithstanding the requirements of subsections (1) and (2) of
this section to maintain escrow records in specified locations, an escrow
agent may maintain escrow records at another location satisfactory to the
commissioner if the escrow agent provides the commissioner with prior
written notice of the proposed location. [2003 c.427 §3]Note: See note under 696.532. (1)
The Real Estate Commissioner may refuse to issue or may suspend or revoke
any license by entering an order to that effect with the commissioner’s
findings in respect thereto if, upon examination into the affairs of the
applicant or licensee in the performance of routine duties, upon field
examination or upon hearing, the commissioner determines that the
applicant or licensee:
(a) Has, under generally accepted accounting principles, a deficit
net worth;
(b) Has demonstrated unworthiness to transact the business of an
escrow agent;
(c) Does not conduct business in accordance with law or has
violated any provisions of ORS 696.505 to 696.590;
(d) Has committed fraud in connection with any transaction governed
by ORS 696.505 to 696.590;
(e) Has made any misrepresentations or false statement of an
essential or material fact to, or concealed any essential or material
fact from, any person in the course of the escrow business;
(f) Has knowingly made or caused to be made to the commissioner any
false representation of a material fact, or has suppressed or withheld
from the commissioner any information the applicant or licensee possesses
that, if submitted, would have disqualified the applicant or licensee
from original or renewed licensing under ORS 696.505 to 696.590;
(g) Has failed to account to the principals or persons entitled
thereto in a real estate transaction for the moneys, documents or other
things of value received in the transaction;
(h) Has not delivered, after a reasonable time, to persons entitled
thereto, moneys, documents or other things of value held or agreed to be
delivered by the licensee, as and when paid for and due to be delivered;
(i) Has caused uncompensated material loss to principals by
engaging in a pattern of failures to act with neutrality between
principals in multiple escrows;
(j) Has refused to permit an examination by the commissioner of the
escrow agent’s books and affairs, or has refused or failed, within a
reasonable time, to furnish any information, records or files or make any
report that may be required by the commissioner under the provisions of
ORS 696.505 to 696.590; or
(k) Has been convicted of a felony or any misdemeanor that is
substantially related to the escrow agent’s competency or trustworthiness
to engage in the business of an escrow agent.
(2) It is sufficient cause for refusal or revocation of a license
in case of a partnership or corporation or any unincorporated
association, if any member of a partnership or any officer or director of
the corporation or association has been guilty of any act or omission
which would be cause for refusing or revoking the registration of an
individual agent. [1963 c.440 §7; 1971 c.734 §159; 1977 c.351 §10; 1981
c.617 §26; 1985 c.399 §3; 1991 c.874 §6; 1995 c.760 §5; 1997 c.812 §1;
2001 c.300 §38; 2003 c.427 §10] (1)
The Real Estate Commissioner shall have general supervision and control
over all escrow agents doing business in this state. Subject to ORS
chapter 183, the commissioner may adopt such rules as reasonably
necessary for the administration and enforcement of ORS 696.505 to
696.590.
(2) All escrow agents are subject to audits or examinations by the
commissioner, or the commissioner’s authorized representatives at any
time the commissioner considers advisable. The commissioner may collect
from each escrow agent the reasonable expenses of such audit or
examination including but not limited to any administrative expense for
travel.
(3) The provisions of this section and of any other section
relating to the examination of the affairs of an escrow agent shall
extend to an escrow agent whose license has expired or been revoked or
suspended, if in the judgment of the commissioner, such agent has
violated any provisions of ORS 696.505 to 696.590. [1977 c.351 §12
(enacted in lieu of 696.540); 1981 c.617 §27; 1985 c.399 §4; 1991 c.874
§7; 2001 c.300 §39; 2003 c.427 §11](Enforcement) (1) The Real
Estate Commissioner may investigate either upon complaint or otherwise
whenever it appears that an escrow agent has violated ORS 696.505 to
696.590 or that any person is engaging in the escrow business without
being licensed under the provisions of ORS 696.505 to 696.590.
(2) If upon investigation it appears that such agent is so
conducting business the commissioner may, in addition to any other
remedies, bring action in the name and on behalf of the State of Oregon
against such person and any other person acting in violation of ORS
696.505 to 696.590, to enjoin such person and such other person from
continuing any act in violation of ORS 696.505 to 696.590.
(3) The circuit court of any county of this state is vested with
jurisdiction to restrain illegal practices or transactions and may grant
injunctions to prevent and restrain such illegal practices or
transactions, in addition to the penalties and other remedies provided in
ORS 696.505 to 696.590. The court shall have power, during the pendency
of the proceedings before it to issue such preliminary restraining orders
as may appear to be just and proper; and the findings of the commissioner
shall be deemed to be prima facie evidence and sufficient ground, in the
discretion of the court, for the issue ex parte of a preliminary
restraining order.
(4) In any such court proceedings the commissioner may apply for
and on due showing be entitled to have issued the court’s subpoena
requiring forthwith the appearance of any defendant and employees of the
defendant and the production of documents, books and records as may
appear necessary for the hearing of such petition, to testify and give
evidence concerning the acts or conduct or things complained of in such
application for injunction. [1963 c.440 §9; 1979 c.284 §194; 1981 c.617
§28; 1991 c.874 §8](1) When the Real Estate Commissioner ascertains by examination or
otherwise that the assets or capital of any agent are impaired, as
described in ORS 696.535 (1)(a), the commissioner may immediately take
possession of all the property, business and assets of the agent which
are located in this state and retain possession of them pending the
further proceedings specified in this section.
(2) Pursuant to subsection (1) of this section, the commissioner
may apply to the circuit court of the county in which the agent’s
principal place of business is located for an order directing the agent
to show cause why a receiver should not be appointed to take charge of
and manage or liquidate if necessary the assets of the agent utilized in
professional escrow activity in such a manner as to prevent or minimize
such financial loss to others.
(3) If the court is satisfied from reading the commissioner’s
petition that the facts therein alleged, if established, warrant such
receivership action, the court shall issue such order to show cause. The
court may at such time, without notice, issue a temporary injunction
restraining such agent, or any of the agent’s officers, directors,
stockholders, members, agents or employees, from the transaction of any
professional escrow activity, or the waste or disposition of any such
assets until further order of the court. Should such an injunction be
issued, a hearing on whether the injunction shall be continued shall be
held within five business days of its service.
(4) On return of the order to show cause, and after a full hearing,
the court shall either deny the application or grant the same, together
with such other relief as the court may deem necessary.
(5) Notwithstanding any other provision of law, no bond shall be
required of the commissioner or the commissioner’s authorized
representatives as a prerequisite for the issuance of any injunction or
other order pursuant to this section.
(6) At any time during such proceedings, the agent may satisfy the
court that the activity which prompted such proceedings has been
rectified or that financial loss to others no longer will likely occur,
in which case the court may dismiss such proceedings.
(7) The expenses of the receiver, compensation of the legal counsel
of the receiver, as well as all expenditures of the receiver required in
such proceedings shall be fixed by the court and shall be paid out of
funds in the hands of the receiver or entered as a judgment against such
licensee. [1963 c.440 §10(3), (4); 1975 c.746 §30; 1981 c.617 §29; 1991
c.874 §9; 2001 c.300 §40]
(1) All hearings before the Real Estate Commissioner or the
commissioner’s authorized representative conducted under the authority of
ORS 696.505 to 696.590 shall be conducted in accordance with the
provisions of ORS chapter 183.
(2) The commissioner, or anyone authorized by the commissioner,
shall have the power to subpoena witnesses and administer oaths in
connection with hearings in the enforcement of ORS 696.505 to 696.590.
[1963 c.440 §13; 1981 c.617 §30a]Nothing in ORS 696.505 to 696.590 shall limit any statutory or
common law right of any person to bring any action in any court for any
act involved in the transaction of the escrow business or the right of
the state to punish any person for any violation of any law. [1963 c.440
§14] Whenever the
Real Estate Commissioner finds that any person is offering to engage in
or engaging in the business of an escrow agent without a license as an
escrow agent as required under ORS 696.505 to 696.590, the commissioner
may order the person to cease and desist from offering to engage in or
engaging in the business of an escrow agent. Any proceeding under this
section is subject to the requirements of ORS chapter 183. [1981 c.617
§36](Escrow Property)(1) All money deposited in escrow
to be delivered upon the close of the escrow or upon any other
contingency shall be deposited and maintained in a bank authorized to do
business within this state and kept separate, distinct and apart from
funds belonging to the escrow agent. Such funds, when deposited, are to
be designated as trust funds, escrow accounts, or under some other
appropriate name indicating that the funds are not the funds of the
escrow agent.
(2) Trust funds received by an escrow agent may be placed by the
agent in a federally insured interest-bearing bank account, designated a
clients’ trust account, but only with the prior written approval of all
parties having an interest in the trust funds. The earnings of such
interest-bearing account may inure to the benefit of the escrow agent if
expressly approved in writing before deposit of the trust funds by all
parties having an interest in the trust funds.
(3) With prior written notice to all parties who have an interest
in the trust funds, an escrow agent may place trust funds received by the
escrow agent in a federally insured interest-bearing bank account that is
designated a clients’ trust account and the earnings of which inure to
the benefit of a public benefit corporation, as defined in ORS 65.001,
for distribution to organizations and individuals for first-time
homebuying assistance and for development of affordable housing. The
escrow agent shall select a qualified public benefit corporation to
receive the interest earnings.
(4) Any bank services, as defined by rule by the Real Estate
Commissioner, provided to the escrow agent shall not be considered to
affect the impartiality or neutrality of the escrow agent. Such services
are permitted with approval in the written closing instructions of the
principals.
(5) Clients’ trust funds may be invested in secured obligations of
the United States, if:
(a) The depositing principal gives prior written approval to the
escrow agent for such investment after receiving written disclosure as
may be required by rule adopted by the commissioner;
(b) The depositing principal releases the escrow agent from any
liability for loss of such funds;
(c) The depositing principal agrees that any loss of funds shall
not be a claim against the bond, deposit, letter of credit or personal
guarantee of the agent under ORS 696.525 and 696.527; and
(d) The escrow agent does not have any interest in the investment
or earnings from the investment.
(6) If the funds to be invested represent earnest money in a
transaction, both principals in the transaction must give prior written
approval for the investment and are both considered depositing
principals. [Formerly 696.560; 1991 c.874 §10; 2003 c.224 §2; 2003 c.427
§12](1) Escrow or trust funds are not subject to execution or
attachment on any claim against the escrow agent.
(2) No person shall knowingly keep or cause to be kept any funds or
money in any bank under the heading of “trust funds” or “escrow accounts”
or any other name designating such funds or money as belonging to the
clients of any escrow agency, except actual escrow or trust funds
deposited with such agency. [Formerly 696.565](1) An escrow agent may not accept funds, property or documents in any
escrow transaction without dated, written escrow instructions from the
principals to the transaction or a dated executed agreement in writing
between the principals to the transaction.
(2) An escrow agent may not close an escrow or disburse any funds
or property in an escrow without obtaining dated, separate escrow
instructions in writing from the principals to the transaction adequate
to administer and close the transaction or, in the case of disbursement,
to disburse the funds and property.
(3) The following statement or its substantial equivalent shall
appear on or be attached to all written escrow instructions prepared by
an escrow agent for signature of the principals to a transaction. The
statement shall be in at least 10-point bold type. The statement shall
either appear immediately above the signatures of the principals or be
separately initialed by the principals:
___________________________________________________________________________
___It is understood by the parties signing the above or attached
instructions that the instructions are the complete instructions between
this firm as an escrow agent and you as a principal to the escrow
transaction. These instructions may not include all the terms of the
agreement which is the subject of this escrow. Read these instructions
carefully, and do not sign them unless they are acceptable to you.
___________________________________________________________________________
___
(4) An escrow agent may not solicit or accept any original, amended
or supplemental escrow instructions containing any blank to be filled in
after signing. An escrow agent shall not allow any alteration of
original, amended or supplemental escrow instructions, unless the
alteration is signed or initialed by all principals who signed or
initialed the instructions before the alteration.
(5) An escrow agent may accept client funds, in excess of earnest
money required in transaction documents to be held, as individual funds
of the principal who has paid them into escrow. Such individual funds may
be disbursed with only the separate written instructions of the principal
who deposited the funds into escrow.
(6) An escrow agent may open a one-sided escrow, as defined by rule
by the Real Estate Commissioner. Such escrow funds may be disbursed with
only the separate written instructions of the principal who deposited the
funds into escrow. [1985 c.399 §2; 1991 c.874 §11](1)
An escrow agent shall hold, as provided in subsection (3) of this
section, the amount of money or other property agreed to as a commission
in a written real estate broker’s or principal real estate broker’s
commission agreement, if the escrow agent has at the office at which the
escrow is being closed, before the date of closing:
(a) A written notice of demand, signed by the real estate broker or
principal real estate broker who is authorized under rules adopted by the
Real Estate Commissioner to enter into the commission agreement and sign
the written notice of demand, in substantially the form set out in
subsection (2) of this section; and
(b) The written closing instructions of the principals which do not
honor the amount and terms of payment in the notice of demand.
(2) The notice of demand required by subsection (1) of this section
may not be incorporated into any document of agreement between the
principals or between the broker and a principal, and shall be in
substantially the following form:
___________________________________________________________________________
___
Notice of Demand for
Real Estate Commission
To: ____________
(Name of Escrow Company)
Re: ____________
(Names of Principals to
Transaction)
Your Escrow Number: ______The undersigned real estate broker or principal real estate broker
states that such broker has a valid written commission agreement with
______ (Name of Principal), one of the principals to the transaction
referred to above, and that such principal is obligated to pay the broker
the commission on account of that transaction. The commission amount is
$_____ and is to be paid on the following terms:_________. Demand is
hereby made that the commission be paid in that amount and on those
terms, out of escrow and as a part of your closing of that transaction.
__________________
(Name and Signature of Real Estate Broker or Principal Real Estate Broker)
___________________________________________________________________________
___
(3) An escrow agent in a transaction described in subsection (1) of
this section may only disburse the moneys or other property to:
(a) The broker and principal, based upon a written agreement
between those parties and directed to the escrow agent as disbursement
instructions;
(b) Any persons, as directed by order of a court of competent
jurisdiction; or
(c) The court, upon filing by the escrow agent of an interpleader
action for the moneys or property.
(4) At the time of filing a notice of demand with an escrow agent
under subsection (1) of this section, the real estate broker or principal
real estate broker filing the notice shall deliver a copy of the notice
to the principal identified in the notice. [1985 c.449 §2; 2001 c.300 §41](Civil Penalties) (1) Any person who violates any provision
of ORS 696.505 to 696.545, or any lawful rule or final order of the Real
Estate Commissioner or any final judgment made by any court upon
application of the commissioner, may be required to forfeit and pay to
the General Fund of the State Treasury, a civil penalty in an amount
determined by the commissioner of not more than $3,000 for each offense.
Each violation shall be deemed a separate offense.
(2) In addition to the civil penalty set forth in subsection (1) of
this section, any person who violates any provision of ORS 696.505 to
696.590, any lawful rule or final order of the commissioner or any final
judgment made by a court upon application to the commissioner, may be
required to forfeit and pay to the General Fund of the State Treasury, a
civil penalty in an amount determined by the commissioner but not to
exceed the amount by which such person profited in any transaction which
violates any such provision, rule, order or judgment.
(3) Civil penalties under this section are imposed as provided in
ORS 183.745.
(4) The provisions of this section are in addition to and not in
lieu of any other enforcement provision contained in ORS 696.505 to
696.590. [1975 c.746 §32; 1981 c.617 §31; 1983 c.696 §26a; 1989 c.706
§24; 1991 c.734 §85; 1991 c.874 §12; 2003 c.427 §13; 2003 c.576 §544](1) Any person who violates ORS 696.511
(1) may be required by the Real Estate Commissioner to forfeit and pay to
the General Fund of the State Treasury a civil penalty in an amount
determined by the commissioner of:
(a) Not less than $500 nor more than $1,000 for the first offense
of unlicensed professional escrow activity; and
(b) Not less than $1,000 nor more than $3,000 for the second and
subsequent offenses of unlicensed professional escrow activity.
(2) In addition to the civil penalty set forth in subsection (1) of
this section, any person who violates ORS 696.511 may be required by the
commissioner to forfeit and pay to the General Fund of the State Treasury
a civil penalty in an amount determined by the commissioner but not to
exceed the amount by which such person profited in any transaction which
violates ORS 696.511.
(3) Civil penalties under this section must be imposed in the
manner provided in ORS 183.745.
(4) The civil penalty provisions of subsections (1) and (2) of this
section are in addition to and not in lieu of the criminal penalties for
unlicensed professional escrow activity in ORS 696.990 (1) and (2). [1991
c.874 §17; 2003 c.427 §14]REAL ESTATE MARKETING
(1) “Employee” includes an individual who has an independent
contractual relationship with a real estate marketing organization and
performs real estate marketing activity.
(2) “Real estate marketing activity” means procuring or offering to
procure prospects to purchase, sell, lease or rent real estate by
telemarketing, mail or otherwise.
(3) “Real estate marketing organization” means any person,
including a partnership, association, corporation, limited liability
company or other organization, other than a real estate marketing
employee, that engages in real estate marketing activity and is licensed
under ORS 696.606.
(4)(a) “Real estate marketing employee” means an individual who
receives compensation from a real estate marketing organization for
performing real estate marketing activity.
(b) “Real estate marketing employee” does not include a person
licensed under ORS 696.022. [1995 c.217 §2; 2001 c.300 §65](1) A person may not engage in real estate
marketing activity unless that person is:
(a) Licensed under ORS 696.606;
(b) Licensed under ORS 696.022; or
(c) Registered by a person licensed under ORS 696.606.
(2) No person may employ an individual as a real estate marketing
employee unless the person registers the individual with the Real Estate
Commissioner as the employee of the real estate marketing organization
before the individual commences real estate marketing activity.
(3) This section applies to persons who:
(a) Initiate real estate marketing activity in this state; or
(b) Initiate real estate marketing activity in another state that
includes contacting persons in this state.
(4) One act or transaction of real estate marketing activity is
sufficient to constitute engaging in real estate marketing activity
within the meaning of this section. [1995 c.217 §3; 2001 c.300 §66](1) In accordance with
any applicable provisions of ORS chapter 183, the Real Estate
Commissioner shall establish by rule a system to license real estate
marketing organizations. Such a system shall include but need not be
limited to prescribing:
(a) The form and content of and the times and procedures for
submitting an application for the issuance or renewal of a license.
(b) The term of the license and the fee for the original issue and
renewal in an amount that does not exceed the cost of administering the
licensing system.
(c) The requirements and procedures to register the names of and
other information regarding the real estate marketing employees employed
by applicants or licensees.
(d) Those actions or circumstances that constitute failure to
achieve or maintain licensing or competency or that otherwise constitute
a danger to the public interest and for which the commissioner may refuse
to issue or renew or may suspend or revoke a license or registration or
may impose a penalty.
(e) Those activities of principals of the organization that
constitute a danger to the public interest and for which the commissioner
may refuse to issue or renew or may suspend or revoke a registration or
may impose a penalty. For purposes of this section, “principal” means a
person who has permitted or directed another to act for the person’s
benefit with respect to a real estate marketing organization.
(2) Licenses for real estate marketing organizations shall be
granted only if the principal persons of the organization are trustworthy
and competent to conduct real estate marketing activity in such manner as
to safeguard the interests of the public and only after satisfactory
proof has been presented to the commissioner. As used in this subsection,
“satisfactory proof” includes but is not limited to the fingerprints and
a criminal records check of the applicant. For the purpose of requesting
a state or nationwide criminal records check under ORS 181.534, the
commissioner may require the fingerprints of the applicant.
(3) At the time of filing an application for a license as a real
estate marketing organization, the applicant shall deposit with the
commissioner a corporate surety bond running to the State of Oregon,
executed by a surety company satisfactory to the commissioner, in the
amount of $35,000 in a form and under terms and conditions established by
the commissioner.
(4) Any real estate marketing organization may satisfy the
requirements of subsection (3) of this section by depositing with the
commissioner, in an amount equal to the surety bond required, a deposit
consisting of any of the following:
(a) Cash;
(b) Ample secured obligations of the United States, a state or a
political subdivision thereof;
(c) Certificates of deposit or other investments described in ORS
733.650 (4) to the extent that such investments are insured by the
Federal Deposit Insurance Corporation; or
(d) Any combination of paragraphs (a), (b) and (c) of this
subsection.
(5) Any real estate marketing organization making a deposit with
the commissioner shall assign in trust, to the Real Estate Commissioner,
and the commissioner’s successors in office, all cash certificates or
securities deposited in accordance with this section.
(6) The deposit shall be accepted and held by the commissioner for
the faithful performance of real estate marketing activity by the real
estate marketing organization. No claimant or judgment creditor of the
real estate marketing organization shall have the right to attach or levy
upon any of the assets or securities held on deposit.
(7) The commissioner, by order, may use such deposit under
subsection (3) or (4) of this section, as follows:
(a) To satisfy any final judgment entered against the real estate
marketing organization for actual damages suffered by any person by
reason of the violation of ORS 696.603, 696.606 or 696.612 or a rule
adopted pursuant thereto, or by reason of any fraud, dishonesty,
misrepresentation or concealment of material fact growing out of any real
estate marketing activity.
(b) To satisfy an order of the commissioner if the commissioner
determines that a violation of ORS 696.603, 696.606 or 696.612 or a rule
adopted pursuant thereto has occurred and directs the payment of a claim
from the deposit provided the following conditions have been met:
(A) The amount of actual damages claimed, excluding attorney fees,
by the consumer is $1,000 or less.
(B) The consumer has first contacted the real estate marketing
organization involved and, in writing, has made demand for payment of
actual damages.
(C) The real estate marketing organization has had 30 calendar days
from the date of the consumer’s written demand to deal with the demand.
(D) The claim is only for actual damages sustained by the consumer.
(8) All claims against the deposit under subsection (3) or (4) of
this section of a real estate marketing organization, other than those
described in subsection (7) of this section, must be paid by the
commissioner only upon the receipt of a final court judgment against the
real estate marketing organization and only in the amount of actual
damages as ordered by the court. [1995 c.217 §4; 1999 c.107 §12; 2005
c.730 §39]ORS 696.392, 696.600 to 696.785 and 696.995 do not
apply to a person licensed under ORS 696.022 or to those persons exempt
under ORS 696.030 from licensing under ORS 696.020. [1995 c.217 §5; 2001
c.300 §42] The Real Estate
Commissioner may suspend or revoke the license of any real estate
marketing organization or reprimand any licensee, or may deny the
issuance or renewal of a license to an applicant who has done any of the
following:
(1) Knowingly or negligently pursued a course of material
misrepresentation in matters related to real estate marketing activity,
whether or not damage or injury resulted, or knowingly or negligently
made any material misrepresentation or material false promise in a matter
related to real estate marketing activity if the material
misrepresentation or material false promise created a reasonable
probability of damage or injury, whether or not damage or injury actually
resulted.
(2) Failed, within a reasonable time, to account for or to remit
any moneys or to surrender to the rightful owner any documents or other
valuable property coming into the possession of the real estate marketing
organization that belongs to others.
(3) Disregarded or violated any provision of this section, ORS
696.603 or 696.606 or any rule adopted pursuant thereto.
(4) Guaranteed, authorized or permitted any person to guarantee
future profits that may result from the resale of real property.
(5) Failed or refused upon demand to produce or to supply true
copies of any document, book or record in the possession or control of
the real estate marketing organization for inspection by the commissioner
or the commissioner’s authorized representative.
(6) Failed to register and maintain the current and accurate names
of, and information regarding, each real estate marketing employee of the
real estate marketing organization.
(7) Procured or attempted to procure a real estate marketing
license by fraud, misrepresentation or deceit or by making any material
misstatement of fact in an application for a real estate marketing
license.
(8) Failed to exercise supervision over the activities of real
estate marketing employees. For the purposes of this subsection,
“supervision” means that management by an organization that is reasonably
designed and implemented to result in compliance by the employees of the
organization with this section, ORS 696.603 or 696.606 or any rule
adopted pursuant thereto.
(9) Engaged in any act or conduct, whether of the same or of a
different character specified in this subsection, that constitutes or
demonstrates bad faith, incompetence, untrustworthiness or dishonest,
fraudulent or improper dealings.
(10) Failed to meet or maintain the deposit requirements of ORS
696.606 (3) or (4).
(11) Failed to pay in full any final judgment on claims adjudged by
the commissioner or by a court of competent jurisdiction.
(12) Violated ORS 646.608. [1995 c.217 §6] The Real
Estate Commissioner shall publish information in local newspapers
pertaining to sanctions imposed for violations of ORS 696.603, 696.606 or
696.612 in a manner allowed under ORS 696.430 and 696.445 (3). [1995
c.217 §7]No person carrying on, conducting or transacting
any real estate marketing activity may maintain any suit or action in any
of the courts of this state to enforce any claim arising out of real
estate marketing activity without alleging and proving that the person
was licensed under ORS 696.606 at the time of performing such activities.
[1995 c.217 §8] The Real Estate Marketing
Account is established as an account in the General Fund of the State
Treasury. All moneys received by the Real Estate Agency pursuant to ORS
696.392, 696.600 to 696.785 and 696.995 shall be paid into the State
Treasury and credited to the account. All moneys in the account are
appropriated continuously to the Real Estate Agency to carry out the
provisions of ORS 696.392, 696.600 to 696.785 and 696.995. [1995 c.217
§9; 2001 c.300 §67](1) Every nonresident real
estate marketing organization, at the time of licensing, shall file with
the Real Estate Commissioner an irrevocable consent that if, in any suit
or action commenced against the nonresident organization in this state
arising out of a violation of any provision of ORS 696.603, 696.606 or
696.612, personal service of summons or process upon the nonresident
organization cannot be made in this state after the exercise of due
diligence, a valid service may be made upon the nonresident organization
by service on the commissioner.
(2) The consent shall be in writing, executed and verified by an
officer of the real estate marketing organization and shall set forth:
(a) The name of the real estate marketing organization.
(b) The address to which documents served upon the commissioner are
to be forwarded.
(c) If the real estate marketing organization is a corporation or
unincorporated association, that the consent signed by such officer was
authorized by resolution duly adopted by the board of directors.
(3) The address for forwarding documents served under this section
may be changed by filing a new consent in the form prescribed in
subsection (2) of this section.
(4) Service on the commissioner of any summons or process shall be
made by delivery to the commissioner or a clerk on duty in any office of
the commissioner, and shall include duplicate copies of such summons or
process, together with duplicate copies of any papers required by law to
be delivered in connection with such service.
(5) When the commissioner is served with any such summons or
process, the commissioner shall immediately cause one of the copies
thereof, with any accompanying papers, to be forwarded by registered or
certified mail, return receipt requested, to the real estate marketing
organization at the address set forth in the consent.
(6) The commissioner shall keep a record of all summonses and
processes, notices and demands served upon the commissioner under this
section, and shall record therein the time of such service and the action
with reference thereto. [1995 c.217 §11] (1) The Real Estate
Commissioner may make an on-site inspection of any real estate marketing
organization.
(2) When an on-site inspection under subsection (1) of this section
is to be made, the commissioner may require the organization to advance a
deposit not to exceed $200 per day, in addition to any other fee, for
making the on-site inspection. Any unexpended portion of the deposit
shall be refunded to the organization. [1995 c.217 §12]ACTIONS AND REMEDIES(1) A person engaged in the business of, or acting in the
capacity of, a real estate broker or principal real estate broker within
this state shall not bring or maintain any action in the courts for the
collection of compensation without alleging and proving that the person
was a licensed broker at the time the alleged cause of action arose.
(2) An action in the courts for collection of compensation for an
individual engaged in the business of, or acting in the capacity of a
real estate broker associated with a principal real estate broker may not
be brought or maintained except by the principal real estate broker with
whom the real estate broker was associated at the time the alleged cause
of action arose. [Amended by 1981 c.617 §32; 1991 c.5 §44; 2001 c.300 §43] The remedies provided for in ORS
696.010 to 696.495, 696.600 to 696.785, 696.800 to 696.870 and 696.995
are in addition to and not exclusive of any other remedies provided by
law.Any court of competent
jurisdiction, including a justice court, has full power to hear any
violation of ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to
696.870 and 696.995 by persons licensed under ORS 696.022, and, upon
finding such violation, the court may, at its discretion and in addition
to the other penalties imposed, revoke the license of the person or
persons found to have violated any provision of ORS 696.010 to 696.495,
696.600 to 696.785, 696.800 to 696.870 and 696.995. The clerk of the
court shall forward a copy of any order revoking a real estate license to
the Real Estate Commissioner. [Amended by 1987 c.468 §5; 2001 c.300 §79]The lapsing or suspension of a license, whether by operation
of law, order of the Real Estate Commissioner, decision of a court of
law, inactive status of the license or voluntary surrender of the license
by the licensee, does not deprive the commissioner of jurisdiction to:
(1) Proceed with an investigation of the licensee;
(2) Conduct disciplinary proceedings relating to the licensee;
(3) Take action against a licensee, including assessment of a civil
penalty against the licensee for a violation of ORS 696.020 (1); or
(4) Revise or render null and void an order suspending or revoking
a license. [1977 c.649 §3; 1981 c.617 §32a; 2005 c.116 §12](1) When the Real Estate Commissioner
ascertains by audit, investigation or otherwise that a real estate
licensee has commingled trust funds with personal funds or has embezzled
trust funds and that such activity is likely to cause significant
financial loss to others as a result of professional real estate activity
engaged in by such licensee, the commissioner may communicate such fact
to the Attorney General, whereupon it shall become the duty of the
Attorney General to forthwith assist the commissioner in instituting such
proceedings as may be necessary to carry out the purposes of this section.
(2) Pursuant to subsection (1) of this section, the commissioner
may apply to the circuit court of the county in which the licensee’s
principal place of business is located for an order directing the
licensee to show cause why a receiver should not be appointed to take
charge of and manage or liquidate if necessary the assets of the licensee
utilized in professional real estate activity in such a manner as to
prevent or minimize such financial loss to others.
(3) If the court is satisfied from reading the commissioner’s
petition that the facts therein alleged, if established, warrant such
receivership action, the court shall issue such order to show cause. The
court may at such time, without notice, issue a temporary injunction
restraining such licensee, or any of the licensee’s officers, directors,
stockholders, members, agents or employees, from the transaction of any
professional real estate activity, or the waste or disposition of any
such assets until further order of the court. Should such an injunction
be issued, a hearing on whether the injunction shall be continued shall
be held within five business days of its service.
(4) On return of the order to show cause, and after a full hearing,
the court shall either deny the application or grant the same, together
with such other relief as the court may deem necessary.
(5) Notwithstanding any other provision of law, no bond shall be
required of the commissioner or the commissioner’s authorized
representatives as a prerequisite for the issuance of any injunction or
other order pursuant to this section.
(6) At any time during such proceedings, the licensee may satisfy
the court that the activity which prompted such proceedings has been
rectified or that financial loss to others no longer will likely occur,
in which case the court may dismiss such proceedings.
(7) The expenses of the receiver, compensation of the legal counsel
of the receiver, as well as all expenditures of the receiver required in
such proceedings shall be fixed by the court and shall be paid out of
funds in the hands of the receiver or entered as a judgment against such
licensee. [1977 c.649 §8; 1981 c.617 §33]MISCELLANEOUS For the
purpose of requesting a state or nationwide criminal records check under
ORS 181.534, the Real Estate Commissioner may require any applicant or
licensee regulated under this chapter to provide fingerprints. [1989
c.724 §14; 2005 c.730 §40](1) For the purpose of an investigation or proceeding under
this chapter, the commissioner may administer oaths and affirmations,
subpoena witnesses, compel their attendance, take evidence and require
the production of books, papers, correspondence, memoranda, agreements or
other documents or records which the commissioner deems relevant or
material to the inquiry. Each witness who appears before the commissioner
under a subpoena shall receive the fees and mileage provided for
witnesses in civil cases.
(2) If a person fails to comply with a subpoena so issued or a
party or witness refuses to testify on any matters, the judge of the
circuit court or of any county, on the application of the commissioner,
shall compel obedience by proceedings for contempt as in the case of
disobedience of the requirements of a subpoena issued from such court or
a refusal to testify therein. [1989 c.724 §16]AGENTS’ OBLIGATIONSAs used in ORS 696.392, 696.600 to 696.785,
696.800 to 696.870 and 696.995, unless the context requires otherwise:
(1) “Agent” means:
(a) A real estate broker or principal real estate broker who has
entered into:
(A) A listing agreement with a seller;
(B) A service contract with a buyer to represent the buyer; or
(C) A disclosed limited agency agreement; or
(b) A person licensed under ORS 696.022 who has entered into a
written contract with a real estate broker or principal real estate
broker to act as the broker’s agent in connection with acts requiring a
real estate license and to function under the broker’s supervision.
(2) “Buyer” means a potential transferee in a real property
transaction, and includes a person who:
(a) Executes an offer to purchase real property from a seller
through an agent; or
(b) Enters into an exclusive representation contract or buyer’s
service agreement with a real estate broker or principal real estate
broker, whether or not a sale or transfer of property results.
(3) “Confidential information” means information communicated to a
real estate licensee or the licensee’s agent by the buyer or seller of
one to four residential units regarding the real property transaction,
including but not limited to price, terms, financial qualifications or
motivation to buy or sell. “Confidential information” does not mean
information that:
(a) The buyer instructs the licensee or the licensee’s agent to
disclose about the buyer to the seller or the seller instructs the
licensee or the licensee’ agent to disclose about the seller to the
buyer; and
(b) The licensee or the licensee’s agent knows or should know
failure to disclose would constitute fraudulent representation.
(4) “Disclosed limited agency” means a real property transaction in
which the representation of a buyer and seller or the representation of
two or more buyers occurs within the same real estate business.
(5) “Listing agreement” means a contract between a seller of real
property and a real estate broker or principal real estate broker by
which the broker has been authorized to act as an agent of the seller for
compensation to offer the real property for sale or to find and obtain a
buyer.
(6) “Listing price” means the amount expressed in dollars,
specified in the listing agreement, for which the seller is willing to
sell the real property through the listing agent.
(7) “Offer” means a written proposal executed by a buyer for the
sale or lease of real property.
(8) “Offering price” is the amount expressed in dollars specified
in an offer to purchase for which the buyer is willing to buy the real
property.
(9) “Principal” means the person who has permitted or directed an
agent to act on the principal’s behalf. In a real property transaction,
this generally means the buyer or the seller.
(10) “Real property” means any estate in real property, including a
condominium as defined in ORS 100.005, a timeshare property as defined in
ORS 94.803 and the granting of an option or right of first refusal. “Real
property” also includes a manufactured structure, as defined in ORS
446.561, owned by the same person who owns the land upon which the
manufactured structure is situated. “Real property” does not include a
leasehold in real property.
(11) “Real property transaction” means a transaction regarding real
property in which an agent is employed by one or more of the principals
to act in that transaction and includes but is not limited to listing
agreements, buyer’s service agreements, exclusive representation
contracts and offers to purchase.
(12) “Sale” or “sold” refers to a transaction for the transfer of
real property from the seller to the buyer and includes:
(a) Exchanges of real property between the seller and the buyer and
third parties; and
(b) Land sales contracts.
(13) “Seller” means a potential transferor in a real property
transaction and includes an owner:
(a) Who enters into a listing agreement with a real estate broker
or principal real estate broker, whether or not a transfer results; or
(b) Who receives an offer to purchase real property, of which the
seller is the owner, from an agent acting on behalf of a buyer. [1993
c.570 §2; 2001 c.300 §44; 2003 c.655 §84; 2005 c.116 §§13,14]Note: Section 351, chapter 79, Oregon Laws 1995, provides:
Sec. 351. The provisions of ORS 696.800 to 696.855 [series became
696.800 to 696.870] apply to ORS 696.010 to 696.495. [1995 c.79 §351] (1) A
real estate licensee who acts under a listing agreement with the seller
acts as the seller’s agent only.
(2) A seller’s agent owes the seller, other principals and the
principals’ agents involved in a real estate transaction the following
affirmative duties:
(a) To deal honestly and in good faith;
(b) To present all written offers, written notices and other
written communications to and from the parties in a timely manner without
regard to whether the property is subject to a contract for sale or the
buyer is already a party to a contract to purchase; and
(c) To disclose material facts known by the seller’s agent and not
apparent or readily ascertainable to a party.
(3) A seller’s agent owes the seller involved in a real estate
transaction the following affirmative duties:
(a) To exercise reasonable care and diligence;
(b) To account in a timely manner for money and property received
from or on behalf of the seller;
(c) To be loyal to the seller by not taking action that is adverse
or detrimental to the seller’s interest in a transaction;
(d) To disclose in a timely manner to the seller any conflict of
interest, existing or contemplated;
(e) To advise the seller to seek expert advice on matters related
to the transaction that are beyond the agent’s expertise;
(f) To maintain confidential information from or about the seller
except under subpoena or court order, even after termination of the
agency relationship; and
(g) Unless agreed otherwise in writing, to make a continuous, good
faith effort to find a buyer for the property, except that a seller’s
agent is not required to seek additional offers to purchase the property
while the property is subject to a contract for sale.
(4) A seller’s agent may show properties owned by another seller to
a prospective buyer and may list competing properties for sale without
breaching any affirmative duty to the seller.
(5) Except as provided in subsection (3)(g) of this section, an
affirmative duty may not be waived.
(6) Nothing in this section implies a duty to investigate matters
that are outside the scope of the real estate licensee’s expertise,
including but not limited to investigation of the condition of property,
the legal status of the title or the owner’s past conformance with law,
unless the licensee or the licensee’s agent agrees in writing to
investigate a matter. [1993 c.570 §3; 2001 c.300 §45; 2003 c.398 §11;
2005 c.393 §6]Note: See note under 696.800. (1) A
real estate licensee other than the seller’s agent may agree with the
buyer to act as the buyer’s agent only. The buyer’s agent is not
representing the seller, even if the buyer’s agent is receiving
compensation for services rendered, either in full or in part, from the
seller or through the seller’s agent.
(2) A buyer’s agent owes the buyer, other principals and the
principals’ agents involved in a real estate transaction the following
affirmative duties:
(a) To deal honestly and in good faith;
(b) To present all written offers, written notices and other
written communications to and from the parties in a timely manner without
regard to whether the property is subject to a contract for sale or the
buyer is already a party to a contract to purchase; and
(c) To disclose material facts known by the buyer’s agent and not
apparent or readily ascertainable to a party.
(3) A buyer’s agent owes the buyer involved in a real estate
transaction the following affirmative duties:
(a) To exercise reasonable care and diligence;
(b) To account in a timely manner for money and property received
from or on behalf of the buyer;
(c) To be loyal to the buyer by not taking action that is adverse
or detrimental to the buyer’s interest in a transaction;
(d) To disclose in a timely manner to the buyer any conflict of
interest, existing or contemplated;
(e) To advise the buyer to seek expert advice on matters related to
the transaction that are beyond the agent’s expertise;
(f) To maintain confidential information from or about the buyer
except under subpoena or court order, even after termination of the
agency relationship; and
(g) Unless agreed otherwise in writing, to make a continuous, good
faith effort to find property for the buyer, except that a buyer’s agent
is not required to seek additional properties for the buyer while the
buyer is subject to a contract for purchase or to show properties for
which there is no written agreement to pay compensation to the buyer’s
agent.
(4) A buyer’s agent may show properties in which the buyer is
interested to other prospective buyers without breaching an affirmative
duty to the buyer.
(5) Except as provided in subsection (3)(g) of this section, an
affirmative duty may not be waived.
(6) Nothing in this section implies a duty to investigate matters
that are outside the scope of the real estate licensee’s expertise,
including but not limited to investigation of the condition of property,
the legal status of the title or the owner’s past conformance with law,
unless the licensee or the licensee’s agent agrees in writing to
investigate a matter. [1993 c.570 §4; 2001 c.300 §46; 2003 c.398 §12;
2005 c.393 §7]Note: See note under 696.800. (1) A
real estate licensee may represent both the seller and the buyer in a
real estate transaction under a disclosed limited agency agreement, with
full disclosure of the relationship under the agreement.
(2) A real estate licensee acting pursuant to a disclosed limited
agency agreement has the following duties and obligations:
(a) To the seller, the duties under ORS 696.805;
(b) To the buyer, the duties under ORS 696.810; and
(c) To both seller and buyer, except with express written
permission of the respective person, the duty not to disclose to the
other person:
(A) That the seller will accept a price lower or terms less
favorable than the listing price or terms;
(B) That the buyer will pay a price greater or terms more favorable
than the offering price or terms; or
(C) Specific confidential information as defined in ORS 696.800 (3).
(3) Nothing in this section implies a duty to investigate matters
that are outside the scope of the real estate licensee’s expertise unless
the licensee agrees in writing to investigate a matter.
(4) In a real estate transaction in which different real estate
brokers associated with the same principal real estate broker establish
agency relationships with different parties to the real estate
transaction, the principal real estate broker shall be the only broker
acting as a disclosed limited agent representing both seller and buyer.
Other brokers shall continue to represent only the party with whom the
broker has an agency relationship unless all parties agree otherwise in
writing.
(5) The principal real estate broker and the real estate licensees
representing either seller or buyer shall owe the following duties to the
seller and buyer:
(a) To disclose a conflict of interest in writing to all parties;
(b) To take no action that is adverse or detrimental to either
party’s interest in the transaction; and
(c) To obey the lawful instructions of both parties. [1993 c.570
§5; 2001 c.300 §47]Note: See note under 696.800. (1) The Real Estate
Commissioner shall prescribe by rule the format and content of an initial
agency disclosure pamphlet. The rules must provide that the initial
agency disclosure pamphlet is informational only and may not be construed
to be evidence of intent to create an agency relationship.
(2) An agent shall provide a copy of the initial agency disclosure
pamphlet at the first contact with each party to a real property
transaction, including but not limited to contacts in person, by
telephone, over the Internet or the World Wide Web, or by electronic
mail, electronic bulletin board or a similar electronic method. [1993
c.570 §6; 2001 c.300 §48; 2005 c.116 §15]Note: See note under 696.800.(1) A principal is not liable for an act, error or omission
by an agent or subagent of the principal arising out of an agency
relationship established under ORS 696.805, 696.810, 696.815 or 696.820:
(a) Unless the principal participates in or authorizes the act,
error or omission; and
(b) Only to the extent that:
(A) The principal benefited from the act, error or omission; and
(B) A court or arbitrator determines that it is highly probable
that the claimant would be unable to enforce a judgment against the agent
or subagent of the principal.
(2) A real estate licensee is not liable for an act, error or
omission by a principal or an agent of a principal that is not related to
the licensee unless the licensee participates in or authorizes the act,
error or omission. This subsection does not limit the liability of a
principal real estate broker for an act, error or omission by a real
estate licensee under the principal broker’s supervision.
(3) Unless acknowledged by a principal in writing, facts known by
an agent or subagent of the principal may not be imputed to the principal
if the principal does not have actual knowledge.
(4) Unless acknowledged by a real estate licensee in writing, facts
known by a principal or an agent of the principal may not be imputed to
the licensee if the licensee does not have actual knowledge. This
subsection does not limit the knowledge imputed to a principal real
estate broker of facts known by a real estate licensee under the
supervision of the principal real estate broker. [2001 c.300 §52]Note: See note under 696.800. None of the affirmative
obligations of a real estate licensee or agent in a real estate
transaction under ORS 696.805, 696.810 or 696.815 relieves a seller or a
buyer from the responsibility to protect the seller’s or buyer’s own
interests respectively. [1993 c.570 §9]Note: See note under 696.800. The payment of
compensation or the obligation to pay compensation to a real estate
licensee by the seller or the buyer is not necessarily determinative of a
particular agency relationship between a real estate licensee and the
seller or the buyer. After full disclosure of agency relationships, a
listing agent, a selling agent or a real estate licensee or any
combination of the three may agree to share any compensation or
commission paid, or any right to any compensation or commission for which
an obligation arises as the result of a real property transaction, and
the terms of the agreement shall not necessarily be determinative of a
particular relationship. Nothing in this section shall prevent the
parties from selecting a relationship not specifically prohibited by ORS
696.301, 696.392, 696.600 to 696.785, 696.800 to 696.870 and 696.995.
[1993 c.570 §10]Note: See note under 696.800.When signing an offer to purchase, each buyer shall acknowledge
the existing agency relationships, if any. When a seller accepts or
rejects an offer to purchase in writing, each seller shall acknowledge
the existing agency relationships, if any. An agent to the real property
transaction shall obtain the signatures of the buyers and the sellers to
the acknowledgment, which shall be incorporated into or attached as an
addendum to the offer to purchase or to the acceptance. The Real Estate
Agency shall prescribe by rule the form and content of the acknowledgment
of existing agency relationships. [1993 c.570 §11; 2001 c.300 §49; 2003
c.398 §13; 2005 c.116 §16]Note: See note under 696.800.(1) ORS 696.301, 696.392, 696.600 to 696.785 and 696.995 do not
directly, indirectly or by implication limit or alter any preexisting
common law or statutory right or remedy including actions for fraud,
negligence or equitable relief.
(2) The terms “loyalty,” “obedience,” “disclosure,”
“confidentiality,” “reasonable care and diligence” and “accounting in
dealings” shall be interpreted under the common law of agency.
(3) Common law and statutory remedies are not affected by ORS
696.301, 696.392, 696.600 to 696.785 and 696.995. [1993 c.570 §12; 2001
c.300 §49a]Note: See note under 696.800.(1)(a) A real estate licensee representing
a seller of real property has a duty to inform each represented seller of
the seller’s duties created by this section and ORS 105.462 to 105.490
and 696.301.
(b) A real estate licensee representing a buyer of real property
has a duty to inform each represented buyer of the buyer’s rights under
this section and ORS 105.462 to 105.490 and 696.301.
(2) If a real estate licensee performs the duties set forth in
subsection (1) of this section, the real estate licensee shall have no
further duties under this section.
(3) Notwithstanding subsections (1) and (2) of this section, for
the purposes of ORS 696.301, a real estate licensee:
(a) Representing a seller by written agreement or course of conduct
is bound by the standards of conduct and duties created under ORS 696.805;
(b) Representing a buyer by written agreement or course of conduct
is bound by the standards of conduct and duties created under ORS
696.810; and
(c) Acting as a disclosed limited agent by a written agreement or
course of conduct is bound by the standards of conduct and duties created
under ORS 696.815. [1993 c.547 §6; 2001 c.300 §50]Note: See note under 696.800.Nothing in ORS 181.586, 181.587, 181.588, 181.589, 696.301,
696.805, 696.810, 696.815 or 696.855 creates an obligation on the part of
a person licensed under this chapter to disclose to a potential purchaser
of residential property that a convicted sex offender registered under
ORS 181.595, 181.596 or 181.597 resides in the area. [1999 c.732 §2; 2001
c.300 §73]Note: 696.880 was added to and made a part of ORS chapter 696 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation.PENALTIES(1) Violation of any provision of ORS 696.010 to
696.130, 696.200, 696.205, 696.241 to 696.375, 696.392, 696.395 to
696.430, 696.490, 696.600 to 696.785 and 696.995 is a Class A misdemeanor.
(2) Any officer, director or shareholder or agent of a corporation,
or member or agent of a partnership or association, who personally
participates in or is an accessory to any violation of ORS 696.010 to
696.130, 696.200, 696.205, 696.241 to 696.375, 696.392, 696.395 to
696.430, 696.490, 696.600 to 696.785 and 696.995 by the partnership,
association or corporation, is subject to the penalties prescribed in
subsection (1) of this section.
(3) A violation of any one of the provisions of ORS 696.505 to
696.590 is a Class A misdemeanor.
(4) Any person who violates ORS 696.020 (1) may be required by the
Real Estate Commissioner to forfeit and pay to the General Fund of the
State Treasury a civil penalty in an amount determined by the
commissioner of:
(a) Not less than $100 nor more than $500 for the first offense of
unlicensed professional real estate activity; and
(b) Not less than $500 nor more than $1,000 for the second and
subsequent offenses of unlicensed professional real estate activity.
(5) In addition to the civil penalty set forth in subsection (4) of
this section, any person who violates ORS 696.020 may be required by the
commissioner to forfeit and pay to the General Fund of the State Treasury
a civil penalty in an amount determined by the commissioner but not to
exceed the amount by which such person profited in any transaction which
violates ORS 696.020.
(6) Civil penalties under this section shall be imposed as provided
in ORS 183.745.
(7) The civil penalty provisions of subsections (4) and (5) of this
section are in addition to and not in lieu of the criminal penalties for
unlicensed professional real estate activity in subsections (1) and (2)
of this section.
(8) For the purposes of subsection (4) of this section, any
violation of ORS 696.020 (1) that results from a failure of a real estate
licensee to renew a license within the time allowed by law constitutes a
single offense of unlicensed professional real estate activity for each
30-day period after expiration of the license during which the person
engages in professional real estate activities. A civil penalty imposed
for a violation of ORS 696.020 (1) that results from a failure of a real
estate licensee to renew a license within the time allowed by law is not
subject to the minimum dollar amounts specified in subsection (4) of this
section.
(9) Subsection (5) of this section does not apply to a violation of
ORS 696.020 (1) that results from a failure of a real estate licensee to
renew a license within the time allowed by law. [Subsection (3) enacted
as 1963 c.440 §18; 1977 c.649 §50; 1981 c.617 §34; 1989 c.724 §11; 1991
c.734 §86; 2001 c.300 §68; 2005 c.116 §17; 2005 c.393 §8](1) Any person who violates ORS 696.603, 696.606 or 696.612 may
be required by the Real Estate Commissioner to forfeit and pay to the
General Fund of the State Treasury a civil penalty in an amount
determined by the commissioner of:
(a) Not less than $100 nor more than $500 for the first violation
of ORS 696.603, 696.606 or 696.612 or a rule adopted pursuant thereto; or
(b) Not less than $500 nor more than $1,000 for the second and
subsequent violations of ORS 696.603, 696.606 or 696.612 or a rule
adopted pursuant thereto.
(2) In addition to the civil penalty set forth in subsection (1) of
this section, any person who violates ORS 696.603 may be required by the
commissioner to forfeit and pay to the General Fund of the State Treasury
a civil penalty in an amount determined by the commissioner but not to
exceed the amount by which such person profited from the transaction in
violation of ORS 696.603.
(3) Civil penalties under this section shall be imposed as provided
in ORS 183.745.
(4) The civil penalty provisions of this section are in addition to
and not in lieu of other administrative sanctions. [1995 c.217 §10]_______________
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