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Oregon Bulletin

January 1, 2011

 

Real Estate Agency
Chapter 863

Rule Caption: Property managers must provide owners certain information; principal broker exam valid for one yea; exam requirements.

Adm. Order No.: REA 2-2010

Filed with Sec. of State: 12-15-2010

Certified to be Effective: 1-1-11

Notice Publication Date: 11-1-2010

Rules Adopted: 863-025-0068

Rules Amended: 863-014-0020, 863-025-0065

Subject: The new rule, OAR 863-025-0068, requires property managers to provide, upon request, certain information to property owners on tenants and current rental or lease agreements. The amendment to OAR 863-025-0065 defines the term “deposit slip” in order to keep pace with changing banking terminology and technology. The amendments to OAR 863-14-0020 clarifies that a principal broker examination result is valid for one year and eliminates the requirement for certain licensees to take and pass both a real estate broker examination and a principal broker examination.

      The rule is also available on the Real Estate Agency website at www.rea.state.or.us.

Rules Coordinator: Laurie Skillman—(503) 378-4630

863-014-0020

Examinations

(1) In addition to any other licensing eligibility requirements, a real estate broker license applicant must pass a real estate broker examination, consisting of a state portion and a national portion, and that includes subject matter determined by the Board.

(2) Effective January 1, 2011, in addition to any other licensing eligibility requirements, a principal real estate broker license applicant must pass a principal real estate broker examination that includes subject matter determined by the Board.

(3) Effective January 1, 2011, in addition to any other licensing eligibility requirements, an individual licensed as a salesperson prior to July 1, 2002 who applies for a principal broker license is not required to take the real estate broker examination, but is required to take the principal broker examination.

(4) If an applicant for a principal real estate broker license passes an examination but is not issued a license within one year from the date of the examination:

(a) The applicant is no longer qualified for the license on the basis of the examination; and

(b) The applicant must reapply for the examination as required by this rule.

(5) A real estate broker applicant may apply for an examination whether or not the Agency has finished processing the applicant’s fingerprint card and background check or has received documentation on the applicant’s licensing educational courses. However, the Agency will not consider an applicant for a license until the Agency has completed such processing and review.

(6) A real estate licensee who was licensed as a salesperson before July 1, 2002 must apply for and pass a real estate broker examination and a principal real estate broker examination in order to be licensed as a principal real estate broker.

(7) An applicant must apply for an examination by submitting to the Agency:

(a) An Agency-approved license examination application form; and

(b) An examination application fee authorized by ORS 696.270.

(8) If a real estate broker or principal real estate broker license has not been active for two or more consecutive years, before applying to reactivate such license under OAR 863-014-0065, the licensee must apply for and pass a reactivation examination. To apply for the reactivation examination, the licensee must submit to the Agency:

(a) An Agency-approved license reactivation examination application form; and

(b) The examination application fee authorized by ORS 696.270.

(9) Examination fees are not refundable if an applicant:

(a) Fails to appear for a scheduled examination;

(b) Fails to cancel or reschedule an examination appointment at least two business days before the appointment; or

(c) Fails to pass an examination.

(10) If an applicant for a real estate broker license examination passes both the national and the state portions of an examination but is not issued a license within one year from the date of the examination:

(a) The applicant is no longer qualified for the license on the basis of the examination; and

(b) The applicant must reapply for the examination as required by this rule.

(11) An applicant who passes only one portion of a license examination must reapply for and pass the remaining portion within 12 months of the examination date of the passed portion in order to qualify for a license on the basis of the examination.

(12) In lieu of the national portion of the examination required in this rule, the Board may accept an applicant’s passing results of the national portion of a broker examination taken in another state if:

(a) The examination was taken after November 1, 1973 and the license issued as a result of that examination has not been expired for more than one year; or

(b) The examination was taken within the 12 months before the application date and the Agency has received the required forms and fees; and

(c) The applicant provides the Agency with the applicant’s certified license history from the state where such examination was taken.

Stat. Auth.: ORS 696.385 & 696.425

Stats. Implemented: ORS 696.020, 696.022 & 696.425

Hist.: REA 1-2002, f. 5-31-02, cert. ef. 7-1-02; REA 3-2004, f. 4-28-04, cert. ef. 5-3-04; REA 1-2005, f. 5-5-05, cert. ef. 5-6-05; REA 2-2005(Temp), f. 6-9-05, cert. ef. 7-1-05 thru 12-26-05; Administrative correction 1-20-06; REA 2-2007(Temp), f. & cert. ef. 3-21-07 thru 9-16-07; REA 4-2007, f. & cert. ef. 9-26-07; Renumbered from 863-015-0020, REA 5-2008, f. 12-15-08, cert. ef. 1-1-09; REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 2-2010, f. 12-15-10, cert. ef. 1-1-11

863-025-0065

Deposits and Funds Received

(1) All funds, whether in the form of money, checks, or money orders belonging to others and accepted by any property manager while engaged in property management activity, must be deposited prior to the close of business of the fifth banking day following the date of the receipt of the funds into a clients’ trust account or security deposits account as defined in OAR 863-025-0010 and established by the property manager under ORS 696.241. The property manager must account for all funds received.

(2) Any person employed by the property manager must promptly transmit to the property manager any money, checks, money orders, or other consideration and any documents received while engaged in property management activity.

(3) A property manager may not deposit any funds received on behalf of an owner in the property manager’s personal account or commingle any such funds received with personal funds of the property manager.

(4) Except for funds received pursuant to OAR 863-025-0050(3) and 863-025-0025(16), for each deposit made under ORS 696.241, a property manager must obtain a deposit slip and make a written notation of the owner’s identifying code assigned to the property management agreement on the deposit slip. As used in this rule, “deposit slip” means an independently verifiable third party document created by the third party at the time of the deposit.

(5) A property manager must maintain a complete record of all funds or other consideration received in the property manager’s property management activity. This record must show from whom the funds or other consideration was received, the date of the receipt, the place and date of deposit, and, the final disposition of the funds or other consideration.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.280 & 696.361

Hist.: REA 1-2002, f. 5-31-02, cert. ef. 7-1-02; REA 1-2003(Temp), f. 2-27-03, cert. ef. 2-28-03 thru 8-27-03; REA 3-2003, f. 7-28-03, cert. ef. 8-1-03; REA 1-2007, f. & cert. ef. 3-12-07; REA 8-2008, f.12-15-08, cert. ef. 1-1-09; REA 2-2010, f. 12-15-10, cert. ef. 1-1-11

863-025-0068

Owner Information Request

(1) Upon written request from a property owner, a property manager must deliver to the owner the information listed in subsections (a) through (e) of this section for each tenant within five business days of actually receiving the request for information, unless the owner and the manager agree to a different time period.

(a) The tenant’s name, mailing address, and phone number;

(b) The current rent amount and all scheduled tenant charges;

(c) An accounting of all security deposits and fees held for the tenant;

(d) The name of each utility provider and the account number for each provider; and

(e) The name of each fire and life safety service provider and the account number for each provider.

(2) Upon written request from a property owner, a property manager must deliver to the owner copies of the current rental or lease agreement, including all addenda and modifications, within five business days of the date of actually receiving the request for information, unless the owner and the manager agree to a different time period.

(3) For the purposes of this rule, to deliver information to the owner means delivering the information by U.S. Mail, by fax, or by sending it electronically to the owner at the address or number provided to the manager by the owner with the request for information. The information is considered delivered on the date it is mailed, faxed, or sent electronically.

(4) This rule is in addition to and does not replace OAR 863-025-0070 concerning the final accounting after termination of the property management agreement.

Stat. Auth.: ORS 696.385

Stats. Implemented.: ORS 696.280 & 606.381

Hist.: REA 2-2010, f. 12-15-10, cert. ef. 1-1-11

Notes
1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2010.

2.) Copyright 2011 Oregon Secretary of State: Terms and Conditions of Use

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