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Oregon Bulletin

May 1, 2014

Real Estate Agency, Chapter 863

Rule Caption: Changes the renewal process for continuing education providers in rule.

Adm. Order No.: REA 1-2014

Filed with Sec. of State: 4-14-2014

Certified to be Effective: 4-28-14

Notice Publication Date: 3-1-2014

Rules Amended: 863-020-0030

Subject: The amendments to the rule specify the online renewal process for a continuing education provider. These changes also remove the requirement that the renewal needs to be submitted at least 60 days before the certification expires.

Rules Coordinator: Erica Kleiner—(503) 378-4409

863-020-0030

Application for Continuing Education Provider Certification and Renewal

(1) An applicant for certification as a continuing education provider must submit to the Agency an application on an Agency-approved form containing the following information. No application fee is required.

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

(b) The date of the application;

(c) The applicable qualification listed in OAR 863-020-0020(1) and, if the Real Estate Board approved the applicant’s qualifications under 863-020-0025, the applicant must also submit the Agency’s confirmation letter;

(d) The name and signature of the individual authorized by the applicant to submit the application;

(e) The applicant’s authorized contact person, title, phone number, and e-mail address;

(f) The applicant’s website address;

(g) Information concerning the course presentation formats, such as classroom instruction, online, etc.; and

(h) An affirmation that the applicant:

(A) Will comply with the statutory and administrative rule provisions applicable to continuing education providers, and

(B) Understands that the continuing education provider certification does not authorize the provider to offer an advanced course in real estate practices, the property manager advanced practices course, or the brokerage administration sales and supervision course. If the provider wishes to offer those courses, the provider may seek separate approval of the course under OAR chapter 863, division 22.

(2) The Agency will assign a provider number and mail a confirmation of certification to the applicant after review and approval of an application.

(3) The Agency will publish on its website and have available at the Agency a list of certified course providers and include the following information:

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

(b) The provider’s authorized contact person, title, phone number, and e-mail address;

(c) The provider’s website address;

(d) The course presentation formats offered by the provider, such as classroom instruction, online, etc.; and

(e) The date of certification and provider number.

(4) Once certified, the continuing education provider must submit on an Agency-approved form any changes in the information provided on the application.

(5) If a provider no longer wishes to be certified or no longer meets the qualifications contained in OAR 863-020-0020, it must inform the Agency in writing within five business days.

(6) A continuing education provider certification expires on December 31, 2013, and annually thereafter on December 31 of each year. Effective November 1, 2013, continuing education providers must submit an application for renewal, prior to expiration, using an online renewal process that is available through the Agency’s website.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.182

Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert. ef. 8-15-12 thru 2-1-13; REA 1-2013, f. 1-14-13, cert. ef. 2-1-13; REA 6-2013(Temp), f. 10-31-13, cert. ef. 11-1-13 thru 4-29-14; REA 1-2014, f. 4-14-14, cert. ef. 4-28-14


Rule Caption: Removes waiver for national portion of the real estate examination for out-of-state applicants.

Adm. Order No.: REA 2-2014

Filed with Sec. of State: 4-14-2014

Certified to be Effective: 4-28-14

Notice Publication Date: 3-1-2014

Rules Amended: 863-014-0020

Subject: The rule was modified to remove the ability for the Real Estate Board to accept an applicant’s passing results of the national portion of a broker examination taken in another state.

Rules Coordinator: Erica Kleiner—(503) 378-4409

863-014-0020

Examinations

(1) For purposes of this rule, “examination provider” means the vendor, under a contract with the Agency, which provides licensing examination services and collects the fee for such services directly from a license applicant.

(2) In addition to any other licensing eligibility requirements:

(a) A real estate broker license applicant must pass a real estate broker examination, consisting of a state portion and a national portion.

(b) A principal broker license applicant must pass a principal real estate broker examination.

(c) A principal broker license applicant who was licensed in Oregon as a salesperson prior to July 1, 2002 is not required to take the real estate broker examination, but must pass the principal broker examination.

(d) A real estate broker or principal broker who has not held an active license for two or more consecutive years must pass a reactivation examination.

(3) To be eligible to take an examination:

(a) A license applicant must have submitted a license application and fee to the Agency required under OAR 863-014-0010 or a license reactivation application and fee required under OAR 863-014-0065;

(b) A real estate broker license applicant must have successfully completed the required courses of study for a real estate broker license under OAR 863-022-0010 from an approved school(s);

(c) A principal broker license applicant, who has never held an Oregon real estate broker license and who has not completed the required courses of study for a real estate broker license, must have successfully completed the required courses of study for a real estate broker license under OAR 863-022-0010 from an approved school(s);

(d) A principal real estate broker license applicant must have successfully completed the brokerage administration and sales supervision course required under OAR 863-022-0025 from an approved school; and

(e) The school providing the course(s) under (b), (c) or (d) of this section, must have certified to the examination provider that the applicant completed the course(s) as provided in OAR 863-022-0060.

(4) To be admitted to an examination site:

(a) A license applicant must be eligible to take an examination under section (3) of this rule;

(b) The applicant must register with the examination provider in advance of the examination and comply with the provider’s requirements and instructions; and

(c) The examination provider will collect the examination fee under ORS 696.270 directly from the applicant.

(5) An applicant must pay a separate examination fee for each examination.

(6) 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 retake and pass the examination as required by this rule.

(7) If an applicant for a real estate broker license 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 retake and pass the examination as required by this rule.

(8) A real estate broker license applicant who passes only one portion of a license examination (state or national portion) must pass the remaining portion within one year from the examination date of the passed portion in order to qualify for a license on the basis of the examination.

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; REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 5-2013(Temp), f. 10-31-13, cert. ef. 11-1-13 thru 4-29-14; REA 2-2014, f. 4-14-14, cert. ef. 4-28-14


Rule Caption: Adds in 12 month expiration period for a background check for licensing purposes.

Adm. Order No.: REA 3-2014

Filed with Sec. of State: 4-14-2014

Certified to be Effective: 4-28-14

Notice Publication Date: 3-1-2014

Rules Amended: 863-014-0015, 863-024-0015

Subject: The added language to the rule requires a broker, principal broker, or property manager license applicant to successfully complete the Agency’s licensing process within the twelve months following a successfully completed background check. Language is also added to the rule to specify that an applicant must resubmit for a background check review, including submitting for fingerprints, if the licensing requirements aren’t met within the twelve months.

Rules Coordinator: Erica Kleiner—(503) 378-4409

863-014-0015

Background Check Application and Fingerprint

(1) An applicant for real estate broker or principal real estate broker license must submit to a background check, except an applicant who is currently licensed as a real estate broker, principal real estate broker, or real estate property manager or who is eligible for renewal of such licenses.

(2) The background check includes a criminal background check as provided in OAR chapter 863, division 005, which requires the applicant to provide fingerprints.

(3) Effective July 1, 2011, the Agency and a vendor for fingerprinting services (“fingerprint service provider”) have contractually agreed that:

(a) The fingerprint service provider will provide fingerprint services to license applicants and submit the fingerprints to the Oregon State Police for Oregon and nationwide criminal history checks.

(b) A license applicant may only submit fingerprints required by the Agency through the fingerprint services provider.

(c) A license applicant must pay the fee for fingerprinting, authorized under ORS 696.270, directly to the fingerprint services provider.

(d) A license applicant must provide fingerprints according to the requirements and instructions of the fingerprint services provider.

(e) A license applicant must have submitted a license application to the Agency before providing fingerprints.

(4) As provided in ORS 181.540, all fingerprint cards, photographs, records, reports, and criminal offender information obtained or compiled by the Agency are confidential and exempt from public inspection. The commissioner will keep such information segregated from other information on the applicant or licensee and maintain such information in a secure place.

(5) If the Agency determines that additional information is necessary to conduct a background check, the Agency may request such information in writing, and the applicant must provide the requested information. If the applicant fails to provide the requested information, the Agency may determine that the license application is incomplete and terminate the application.

(6) A license applicant must successfully complete the remaining portions of the licensing process required by OAR 863-014-0035 or 863-014-0040 within the 12 months from the date of the successfully completed background check process and review. If the applicant does not meet the licensing requirement within the 12 months, the background check review is no longer valid and the applicant must submit to another background check, including fingerprints as described in this rule.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.020 & 696.022

Hist.: REA 1-2002, f. 5-31-02, cert. ef. 7-1-02; REA 3-2003, f. 7-28-03, cert. ef. 8-1-03; REA 4-2003(Temp), f. 12-18-03, cert. ef. 1-1-04 thru 6-29-04; REA 3-2004, f. 4-28-04 cert. ef. 5-3-04; REA 1-2005, f. 5-5-05, cert. ef. 5-6-05; Renumbered from 863-015-0015, REA 5-2008, f. 12-15-08, cert. ef. 1-1-09; REA 1-2009, f. 12-15-09, cert. ef. 1-1-10; REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 4-2013(Temp), f.10-31-13, cert. ef. 11-1-13 thru 4-29-14; REA 3-2014, f. 4-14-14, cert. ef. 4-28-14

863-024-0015

Background Check and Fingerprint Requirements

(1) An applicant for a property manager license must submit to a background check, except an applicant who is currently licensed as a real estate broker or principal real estate broker or who is eligible for renewal of such licenses.

(2) The background check includes a criminal background check as provided in OAR chapter 863, division 005, which requires the applicant to provide fingerprints.

(3) Effective July 1, 2011, the Agency and a vendor for fingerprinting services (“fingerprint service provider”) have contractually agreed that:

(a) The fingerprint service provider will provide fingerprint services to license applicants and submit the fingerprints to the Oregon State Police for Oregon and nationwide criminal history checks.

(b) A license applicant may only submit fingerprints required by the Agency through the fingerprint services provider.

(c) A license applicant must pay the fee for fingerprinting, authorized under ORS 696.270, directly to the fingerprint services provider.

(d) A license applicant must provide fingerprints according to the requirements and instructions of the fingerprint services provider.

(e) A license applicant must have submitted a license application to the Agency before providing fingerprints.

(4) As provided in ORS 181.540, all fingerprint cards, photographs, records, reports, and criminal offender information obtained or compiled by the Agency are confidential and exempt from public inspection. The commissioner will keep such information segregated from other information on the applicant or licensee and maintain such information in a secure place.

(5) If the Agency determines that additional information is necessary in order to conduct a background check, the Agency may request such information in writing, and the applicant must provide the requested information. If the applicant fails to provide the requested information, the Agency may determine that the license application is incomplete and terminate the application.

(6) A license applicant must successfully complete the remaining portions of the licensing process required by 863-024-0045 within the 12 months from the date of the successfully completed background check process and review. If the applicant does not meet all licensing requirement within the 12 months, the background check review is no longer valid and the applicant must submit to another background check, including fingerprints as described in this rule.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.020 & 696.022

Hist.: REA 7-2008, f. 12-15-08, cert. ef. 1-1-09; REA 1-2009, f. 12-15-09, cert. ef. 1-1-10; REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 4-2013(Temp), f.10-31-13, cert. ef. 11-1-13 thru 4-29-14; REA 3-2014, f. 4-14-14, cert. ef. 4-28-14


Rule Caption: Align licensing rules with the processes associated with the Agency’s eLicense system and general clean-up.

Adm. Order No.: REA 4-2014

Filed with Sec. of State: 4-14-2014

Certified to be Effective: 4-28-14

Notice Publication Date: 3-1-2014

Rules Amended: 863-014-0003, 863-014-0010, 863-014-0015, 863-014-0035, 863-014-0040, 863-014-0050, 863-014-0062, 863-014-0063, 863-014-0065, 863-014-0066, 863-014-0095, 863-014-0100

Subject: OAR 863-014-0003 Definitions

   Added the definition for “Principal Broker Licensed Name (PBLN)”.

   Deleted references to definitions that aren’t found in ORS 696.010. Included references to relevant statutes for “Agency” and “Commissioner” definitions.

   OAR 863-014-0010 License Application Form and Content

   Remove reference to broker’s certified license history as examination qualification.

   Add Individual Taxpayer Id Number as option on license application.

   OAR 863-014-0040 Principal Real Estate Broker Licensing Requirements

   Added reference to PBLN and PMLN.

   OAR 863-014-0010 License Application Form and Content, 863-014-0035 Real Estate Broker Licensing Requirements, OAR 863-014-0040 Principal Real Estate Broker Licensing Requirements, OAR 863-014-0063 Real Estate License Transfers, Principal Broker’s Responsibilities, Authority to Use Registered Business Name, OAR 863-014-0066 Licensee Name Change, OAR 863-014-0095 Business Name Registration, OAR 863-014-0100 Branch Office Registration

   Replaced a paper form/application reference with the current online application

   OAR 863-014-0015 Background Check Application and Fingerprint, OAR 863-014-0035 Real Estate Broker Licensing Requirements, 863-014-0040 Principal Real Estate Broker Licensing Requirements, 863-014-0050 License Renewal, 863-014-0062 Mailing Address, Email Address, Address Change, Service of Notice.

   Removal of past effective dates.

   OAR 863-014-0035 Real Estate Broker Licensing Requirements, OAR 863-014-0040 Principal Real Estate Broker Licensing Requirements, 863-014-0063 Real Estate License Transfers, Principal Brokers’ Responsibilities, Authority to Use Registered Business Name

   Added a description of the current online association (license transfer) process

   OAR 863-014-0065 Inactive License, Change License Status to Active, Change License Category, License Reactivation.

   Replaced former paper license inactivation, transfer, and reactivation form processes with the current online inactivation, transfer, and reactivation application processes.

   Also removes references to “changing license category”.

   OAR 863-014-0095 Business Name Registration

   Added a complete description of registering a PBLN or PMLN.

Rules Coordinator: Erica Kleiner—(503) 378-4409

863-014-0003

Definitions

As used in this division, unless the context requires otherwise, the following definitions apply:

(1) “Agency” means the Real Estate Agency with powers pursuant to ORS 696.385.

(2) “Agency-approved form” means an electronic or paper form approved by the Real Estate Agency.

(3) “Board” means the Real Estate Board established pursuant to ORS 696.405.

(4) “Branch office” is defined in ORS 696.010.

(5) “Commissioner” means the Real Estate Commissioner described in ORS 696.375.

(6) “Incapacitated” means the physical or mental inability to perform the professional real estate activities described in ORS 696.010.

(7) “Legal name” means the first name, middle name and last or surname, without the use of initials or nicknames and is the name given at birth or subsequently acquired through marriage, court order or adoption.

(8) “Licensed Name” means the name of a real estate licensee as it appears on the current, valid real estate license issued to the licensee pursuant to ORS 696.020.

(9) “Principal broker” means “principal real estate broker,” as defined in ORS 696.010.

(10) “Principal Broker Licensed Name” means the licensed name of a principal broker under which the licensee will conduct professional real estate activity. The principal broker’s licensed name must be the principal broker’s legal name as displayed on the licensee’s license.

(11) “Real estate activity,” “professional real estate activity,” and “real estate business” mean “professional real estate activity” as defined in ORS 696.010.

(12) “Real estate broker” is defined in ORS 696.010 and includes a principal real estate broker, as that term is defined in ORS 696.010, unless the context requires otherwise.

(13) “Real estate licensee” and “licensee” mean a “real estate licensee” as defined in ORS 696.010, unless the context requires otherwise.

(14) “Registered business name” is defined in ORS 696.010.

(15) “Signed” or “Signature” means original or electronic signature as provided by OAR 863-014-0076.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.020 & 696.022

Hist.: REA 5-2008, f. 12-15-08, cert. ef. 1-1-09; REA 1-2009, f. 12-15-09, cert. ef. 1-1-10; REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 4-2014, f. 4-14-14, cert. ef. 4-28-14

863-014-0010

License Application Form and Content

(1) Effective July 1, 2011, before the Agency will accept any documents or information relating to an applicant’s qualifications, an applicant for a real estate broker or principal broker license must submit an online application and fee required under this rule.

(2) Effective September 15, 2011, before the Agency will accept any documents or information relating to an applicant’s qualifications, an applicant for a real estate broker license or principal broker license must submit an application and pay the fee required under this rule using an online application process that is available through the Agency’s website.

(3) The license application includes:

(a) The applicant’s legal name as defined in OAR 863-014-0003, mailing address, email address and phone number.

(b) The applicant’s date and place of birth.

(c) The applicant’s Social Security Number or Individual Taxpayer Identification Number.

(d) Certification by the applicant that the applicant has a high school diploma, General Educational Development (GED) certificate or the international equivalent.

(e) Certification by the applicant that the applicant is at least 18 years of age.

(f) For a real estate broker license applicant or a principal broker license applicant, who is not an active or inactive Oregon real estate licensee, whether the applicant:

(A) Has ever been convicted of or is under arrest, investigation, or indictment for a felony or misdemeanor;

(B) Has ever been refused a real estate license or any other occupational or professional license in any other state or country;

(C) Has ever had any real estate license or other occupational or professional license revoked or suspended; or

(D) Has ever been fined or reprimanded as such a licensee.

(g) Any other information the commissioner considers necessary to evaluate the applicant’s trustworthiness and competency to engage in professional real estate activity in a manner that protects the public interest.

(h) Certification by the applicant that all information provided by the applicant is true and correct.

(4) In addition to the requirements in (3) of this rule, a principal broker license applicant must provide proof that the applicant has three years of active real estate experience.

(5) Every license application must be accompanied by the license fee authorized by ORS 696.270. At all periods of the year, the fee for all licenses issued is as authorized by 696.270. That is, the Agency does not pro-rate license fees.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.020 & 696.022

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; Renumbered from 863-015-0010, REA 5-2008, f. 12-15-08, cert. ef. 1-1-09; REA 1-2009, f. 12-15-09, cert. ef. 1-1-10; REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 4-2014, f. 4-14-14, cert. ef. 4-28-14

863-014-0015

Background Check Application and Fingerprint

(1) An applicant for real estate broker or principal real estate broker license must submit to a background check, except an applicant who is currently licensed as a real estate broker, principal real estate broker, or real estate property manager or who is eligible for renewal of such licenses.

(2) The background check includes a criminal background check as provided in OAR chapter 863, division 005, which requires the applicant to provide fingerprints.

(3) The Agency and a vendor for fingerprinting services (“fingerprint service provider”) have contractually agreed that:

(a) The fingerprint service provider will provide fingerprint services to license applicants and submit the fingerprints to the Oregon State Police for Oregon and nationwide criminal history checks.

(b) A license applicant may only submit fingerprints required by the Agency through the fingerprint services provider.

(c) A license applicant must pay the fee for fingerprinting, authorized under ORS 696.270, directly to the fingerprint services provider.

(d) A license applicant must provide fingerprints according to the requirements and instructions of the fingerprint services provider.

(e) A license applicant must have submitted a license application to the Agency before providing fingerprints.

(4) As provided in ORS 181.540, all fingerprint cards, photographs, records, reports, and criminal offender information obtained or compiled by the Agency are confidential and exempt from public inspection. The commissioner will keep such information segregated from other information on the applicant or licensee and maintain such information in a secure place.

(5) If the Agency determines that additional information is necessary to conduct a background check, the Agency may request such information in writing, and the applicant must provide the requested information. If the applicant fails to provide the requested information, the Agency may determine that the license application is incomplete and terminate the application.

(6) A license applicant must successfully complete the remaining portions of the licensing process required by OAR 863-014-0035 or 863-014-0040 within the 12 months from the date of the successfully completed background check process and review. If the applicant does not meet the licensing requirement within the 12 months, the background check review is no longer valid and the applicant must submit to another background check, including fingerprints as described in this rule.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.020 & 696.022

Hist.: REA 1-2002, f. 5-31-02, cert. ef. 7-1-02; REA 3-2003, f. 7-28-03, cert. ef. 8-1-03; REA 4-2003(Temp), f. 12-18-03, cert. ef. 1-1-04 thru 6-29-04; REA 3-2004, f. 4-28-04 cert. ef. 5-3-04; REA 1-2005, f. 5-5-05, cert. ef. 5-6-05; Renumbered from 863-015-0015, REA 5-2008, f. 12-15-08, cert. ef. 1-1-09; REA 1-2009, f. 12-15-09, cert. ef. 1-1-10; REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 4-2013(Temp), f.10-31-13, cert. ef. 11-1-13 thru 4-29-14; REA 3-2014, f. 4-14-14, cert. ef. 4-28-14; REA 4-2014, f. 4-14-14, cert. ef. 4-28-14

863-014-0035

Real Estate Broker Licensing Requirements

(1) Effective July 1, 2011, to be eligible for a real estate broker’s license, an individual must complete the following steps in the order listed:

(a) Submit an online license application and pay the fee to the Agency required by OAR 863-014-0010.

(b) Successfully complete the required courses of study for a real estate broker license required by OAR 863-022-0010.

(c) Ensure that the school providing the required course of study certifies to the examination provider that the applicant completed the course as required by OAR 863-014-0020.

(d) Pass the real estate broker licensing examination and pay the fee to the examination provider as required by OAR 863-014-0020.

(e) Provide fingerprints for a criminal background check and pay the fee to the fingerprint services provider as required by OAR 863-0014-0015.

(2) If the applicant’s qualifications for the required examination under (1) of this rule are based upon an active real estate license held in another state, the applicant must furnish a certificate of active license history from the other state.

(3) After the applicant meets the requirements under (1) and (2) of this rule, the Agency will complete a background check on the applicant, which includes a criminal background check under OAR 863-014-0015.

(4) A real estate broker must be associated with a principal broker. Using an online application available through the Agency’s website, the principal broker must associate the broker to the registered business name or principal broker’s licensed name.

(5) A currently licensed principal broker who wishes to be licensed as a real estate broker must submit a license application and pay the fee to the Agency required by OAR 863-014-0010.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.020 & 696.022

Hist.: REA 1-2002, f. 5-31-02, cert. ef. 7-1-02; REA 1-2005, f. 5-5-05, cert. ef. 5-6-05; Renumbered from 863-015-0035, 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 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 4-2014, f. 4-14-14, cert. ef. 4-28-14

863-014-0040

Principal Real Estate Broker Licensing Requirements

(1) To be eligible for a principal real estate broker’s license, an individual must complete the following steps in the order listed:

(a) Submit a license application and pay the fee to the Agency required by OAR 863-014-0010. The license application includes proof satisfactory to the Agency that the applicant has three years of active real estate experience.

(b) If the applicant has never held an Oregon real estate broker license and has not completed the required courses of study for a real estate broker license, the applicant must complete such required courses under OAR 863-022-0010 from an approved school(s).

(c) Ensure that the school providing the courses of study for a real estate broker license under (b) of this section, certifies to the examination provider that the applicant completed the course as required by OAR 863-014-0020.

(d) Successfully complete the brokerage administration and sales supervision course required by OAR 863-022-0025.

(e) Ensure that the school providing the brokerage administration and sales supervision course certifies to the examination provider that the applicant completed the course as required by OAR 863-014-0020.

(f) Pass the principal broker licensing examination and pay the fee to the examination provider required by OAR 863-014-0020.

(g) If the applicant is not an active or inactive Oregon real estate licensee, provide fingerprints for a criminal background check and pay the fee to the fingerprint services provider as required by OAR 863-0014-0015.

(2) If the applicant is required to submit fingerprints under (1) of this rule, the Agency will complete a background check on the applicant, which includes a criminal background check, as required by OAR 863-014-0015.

(3) After the requirements in (1) and (2) of this rule are met:

(a) Using an online application through the Agency’s website, the applicant must specify that the applicant will be conducting professional real estate activity under the applicant’s licensed name as provided in (4) of this rule or is registering a business name as provided in (5) of this rule; or

(b) Using an online application available through the Agency’s website, a principal broker must associate the applicant to the principal broker’s registered business name or the principal broker’s licensed name.

(4) If an applicant wishes to conduct professional real estate activity under the applicant’s licensed name, the applicant must first obtain the principal broker license and then complete the Principal Broker Licensed Name application available online through the Agency’s website.

(5) If an applicant wishes to conduct professional real estate activity under a registered business name registered by the applicant, the applicant must first obtain the principal broker license and then register a business name under OAR 863-014-0095.

(6) If the applicant’s qualifications for three years of active experience are based wholly or partially upon an active real estate license held in another state, the applicant must furnish with the application a certificate of active license history from the other state.

(7) A currently licensed real estate broker who has held a principal broker license and who wishes to be licensed as a principal broker must apply for a principal broker license, pay the required fee and meet all the qualifications for a principal broker license under this rule.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.020 & 696.022

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 2-2005(Temp), f. 6-9-05, cert. ef. 7-1-05 thru 12-26-05; Administrative correction 1-20-06; Renumbered from 863-015-0040, 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 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 4-2014, f. 4-14-14, cert. ef. 4-28-14

863-014-0050

License Renewal

(1) A licensee may only submit a license renewal application and pay the fee using an online application process, which will be available through the Agency’s website.

(2) For purposes of this rule, “received by the Agency” means the date a licensee completed the online renewal process and paid the fee required under ORS 696.270.

(3) A real estate broker or principal broker license expires if a licensee fails to renew the license on or before the license expiration date. A real estate licensee may not engage in any professional real estate activity after a license expires. A real estate licensee may renew an expired license as provided in this rule.

(4) The Agency will renew an active real estate license to active status for the term prescribed in OAR 863-014-0030 when the Agency has received the following:

(a) The renewal fee authorized by ORS 696.270; and

(b) An active renewal application that includes certification by the licensee that the licensee has met the continuing education renewal requirements under section OAR 863-020-0010.

(5) The Agency will renew an active real estate license to inactive status for the term prescribed in OAR 863-014-0030, when the Agency has received the following:

(a) The renewal fee authorized by ORS 696.270; and

(b) An inactive renewal application.

(6) The Agency will renew an inactive real estate license to inactive status for the term prescribed in OAR 863-014-0030, when the Agency has received the following:

(a) The renewal fee authorized by ORS 696.270; and

(b) An inactive renewal application.

(7) The Agency will renew an inactive real estate license to active status for the term prescribed in OAR 863-014-0030, when the Agency has received the following:

(a) The renewal fee authorized by ORS 696.270; and

(b) An Agency-approved active renewal application form that includes certification by the licensee that the licensee has met the real estate continuing education renewal requirements under OAR 863-020-0010.

(8) The Agency will renew an expired real estate license to active status when the Agency receives, within one year of the date the license expired, the following:

(a) The renewal fee and a late fee authorized by ORS 696.270; and

(b) An Agency-approved active renewal application form that includes certification by the licensee that the licensee met the real estate continuing education renewal requirements under OAR 863-020-0010.

(9) The Agency will renew an expired real estate license to inactive license status when the Agency receives, within one year of the date the license expired, the following:

(a) The renewal fee and a late fee authorized by ORS 696.270; and

(b) An Agency-approved inactive renewal application form.

(10) When the Agency renews an expired license, the renewed license is effective the date the renewal requirements are met. The renewal is not retroactive to the date the license expired and an expired license retains the status of expired during the expiration period.

(11) A license renewed under this rule expires two years from the date of the original expiration date.

(12) A real estate license that has expired for more than one year is lapsed, as defined in ORS 696.010.

(13) A license may not be renewed if it is lapsed, surrendered, suspended, or revoked. Except as provided in 863-014-0075, the former licensee must reapply and meet all the licensing qualifications required of new license applicants.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.020 & 696.022

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 2-2007(Temp), f. & cert. ef. 3-21-07 thru 9-16-07; REA 4-2007, f. & cert. ef. 9-26-07; Renumbered from 863-015-0050, 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 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 4-2014, f. 4-14-14, cert. ef. 4-28-14

863-014-0062

Mailing Address, Email Address, Address Change, Service of Notice

(1) Each active, inactive and expired real estate licensee must maintain on file with the Agency a current mailing address and email address and notify the Agency within 10 calendar days of a change to a mailing or email address.

(2) A forwarding address is effective as a “current mailing address” when the Agency receives notice of the forwarding address by the United States Postal Service.

(3) Agency notice by mail, whether registered, certified, or regular, to the real estate licensee’s current mailing address on file with the Agency constitutes service on the licensee.

(4) The Agency is not required by law to send notification or correspondence by regular mail to a licensee or license applicant regarding license or application status. The Agency may send notification or correspondence to a licensee or license applicant to the email address of the licensee or applicant on file with the Agency. Failure by a licensee or applicant to receive notification or correspondence provided via email does not relieve the licensee or applicant of the responsibility to maintain a current license or complete an application process.

(5) The Agency’s primary and preferred method of notification and correspondence is to the licensee or license applicant’s email address.

(6) For purposes of this rule, “notification or correspondence” in (4) and (5) of this rule means:

(a) Notification, correspondence or confirmation to licensees about license renewal, change of license status to active or inactive, license transfers, registered business name, branch office registration, license reactivation, license expiration, and name and address changes.

(b) Notification, correspondence or confirmation to license applicants about license application status, receipt of documents or information from third parties on license qualifications, and license issuance.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.020 & 696.022

Hist.: REA 1-2005, f. 5-5-05, cert. ef. 5-6-05; Renumbered from 863-015-0062, REA 5-2008, f. 12-15-08, cert. ef. 1-1-09; REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 4-2014, f. 4-14-14, cert. ef. 4-28-14

863-014-0063

Real Estate License Transfers, Principal Brokers’ Responsibilities, Authority to Use Registered Business Name

(1) As used in this rule:

(a) “Authorized licensee” means a principal broker who has authority and is responsible for a registered business name;

(b) “License transfer application” means a completed and signed online application that does one of the following:

(A) Transfers a real estate broker license to a receiving principal broker in order to become associated with the receiving principal broker, or

(B) Authorizes a real estate licensee to use a registered business name to conduct professional real estate activity.

(c) “Sending principal broker” means the authorized licensee or principal broker with whom an active real estate broker is associated before the license transfer;

(d) “Receiving principal broker” means the authorized licensee or principal broker with whom an active real estate broker will be associated after the license transfer.

(2) An online license transfer application, available through the Agency’s website, includes:

(a) The name of the licensee, email address and license number of the licensee who is being transferred;

(b) The receiving broker’s or authorized licensee’s name, license number, date, signature, and attestation or the authorized use of the registered business name.

(3) A principal real estate broker with whom a licensee is associated remains responsible for the licensee’s professional real estate activity until the Agency receives one of the following:

(a) An online inactivation application available through the Agency’s website; or

(b) An online license transfer form and fee.

(4) If a principal real estate broker with whom a real estate broker is associated, or an individual real estate broker, doesn’t complete the online inactivation process, the principal real estate broker remains responsible for the licensee’s subsequent professional real estate activity until the Agency receives one of the following:

(a) An online inactivation application; or

(b) An online license transfer application and fee.

(5) The Agency will document the registered business name under which a real estate licensee is authorized to conduct professional real estate activity when the Agency receives an online license transfer application and the transfer fee authorized by ORS 696.270.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.020 & 696.022

Hist.: REA 4-2007, f. & cert. ef. 9-26-07; Renumbered from 863-015-0063, REA 5-2008, f. 12-15-08, cert. ef. 1-1-09; REA 1-2009, f. 12-15-09, cert. ef. 1-1-10; REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 4-2014, f. 4-14-14, cert. ef. 4-28-14

863-014-0065

Inactive License, Change License Status to Active, Change License Category, License Reactivation

(1) A real estate licensee whose license is on inactive status may not engage in professional real estate activity.

(2) The commissioner may reprimand, suspend, revoke, or impose a civil penalty against an inactive licensee under ORS 696.301.

(3) The Agency will change an active real estate license to inactive license status when the Agency actually receives the following:

(a) An online inactivation application available through the Agency’s website completed by the licensee to change the license status to inactive; or

(b) An online inactivation application available through the Agency’s website completed by the licensee’s principal broker to change the license status of the licensee to inactive.

(4) An inactive real estate licensee may be renewed under OAR 863-014-0050.

(5) For a period of 30 days after a real estate broker license becomes inactive, the licensee may change such license status from inactive to active and be transferred by a principal real estate broker under OAR 863-014-0063.

(6) Except as provided in section (7) of this rule, for a period of 30 days after the real estate license becomes inactive, the licensee may become licensed as an active principal real estate broker only if:

(a) The licensee is qualified for such license and

(b) The licensee submits to the Agency:

(A) An Agency-approved application, and

(B) Payment of the fee authorized by ORS 696.270.

(7) If a license has not been on active status for two or more consecutive years, the licensee must complete the following steps in the order listed to reactivate the license:

(a) Submit an online reactivation application available through the Agency’s website and pay the fee to the Agency required under ORS 696.270.

(b) Pass the real estate reactivation examination and pay the fee to the examination provider as required by OAR 863-014-0020.

(8) After the 30-day period specified in sections (5) and (6) of this rule, and subject to the examination requirements in section (9) of this rule, a licensee may change the license status from inactive to active only by submitting to the Agency:

(a) An online application for license reactivation; and

(b) Payment of the reactivation fee authorized by ORS 696.270.

(9) Subject to the examination requirements in section (9) of this rule, if an inactive licensee renews a license and maintains inactive status under section (5) of this rule, the licensee may, within 60 days of the date of renewal, change the license status to active by submitting to the Agency:

(a) An online application for license reactivation that includes certification that the licensee met the real estate continuing education renewal requirements under OAR 863-020-0008 or 863-020-0010; and

(b) Payment of the active renewal fee authorized by ORS 696.270, less the amount of the inactive renewal fee already paid by the licensee.

(10) The change of license status, transfer, or the reactivation of a license is effective when the Agency actually receives all required applications and fees.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.020 & 696.022

Hist.: REA 1-1991, f. & cert. ef. 11-4-91; REA 1-2002, f. 5-31-02, cert. ef. 7-1-02, Renumbered from 863-010-0081; 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 3-2004, f. 4-28-04 cert. ef. 5-3-04; REA 1-2005, f. 5-5-05, cert. ef. 5-6-05; REA 2-2007(Temp), f. & cert. ef. 3-21-07 thru 9-16-07; REA 4-2007, f. & cert. ef. 9-26-07; Renumbered from 863-015-0065, REA 5-2008, f. 12-15-08, cert. ef. 1-1-09; REA 1-2009, f. 12-15-09, cert. ef. 1-1-10; REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 4-2014, f. 4-14-14, cert. ef. 4-28-14

863-014-0066

Licensee Name Change

A licensee may apply for a name change by submitting to the Agency:

(1) An online name change application available through the Agency’s website and payment of the fee authorized under ORS 696.270; and

(2) Legal proof of the name change, which must be in the form of an official record such as a marriage certificate, divorce certificate, or a court order/decree.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.020 & 696.022

Hist.: REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 4-2014, f. 4-14-14, cert. ef. 4-28-14

863-014-0095

Business Name Registration, Principal Broker Licensed Name Registration, and Property Manager Licensed Registration

(1) If a principal real estate broker or property manager wishes to conduct real estate business in a name other than the licensee’s legal name, the principal broker or property manager must first register the business name with the Agency using an online application process available through the Agency’s website. For the purposes of this rule, “business name” means an assumed name or the name of a business entity, such as a corporation, partnership, limited liability company, or other business entity recognized by law. A licensee must maintain the registered business name in active status with the Oregon Secretary of State’s Corporation Division.

(2) To register a business name, the principal broker must submit to the Agency on an Agency-approved form using an online application, the following:

(a) The business name in which the licensee wishes to conduct real estate business, which must be the exact name on file with the Oregon Secretary of State.

(b) Written authority to register the business name;

(c) A copy of the registration on file with the Oregon Secretary of State Business Registry showing the business name is active; and

(d) The fee authorized by ORS 696.270.

(3) A licensee who wishes to use a registered business name must submit to the Agency the following:

(a) The registered business name the licensee wishes to use; and

(b) Authorization from the principal broker who is responsible for the registered business name on the records of the Agency to use the name.

(4) Business names registered with the Agency do not expire and need not be renewed by the licensee. Any change in the business name registered with the Agency will be treated as the registration of a new business name, and an application for the change in business name must be submitted to the Agency together with the fee authorized by ORS 696.270.

(5) If a principal broker wishes to transfer the right to use and the responsibility for a business name that is registered with the Agency, the principal broker acquiring the right to use the name must file a change of business name registration with the Agency together with the fee authorized by ORS 696.270. A licensee must notify the Agency in writing if the licensee terminates its use of a business name.

(6) A business name registration becomes void when the Agency receives notice of termination of the use of a business name. A business name registration becomes void when no licensees are affiliated with the registered business name. A business name registration may be reactivated within one year from the voiding of a registration, unless a new user has registered the business name, without paying the fee authorized by ORS 696.270.

(7) Except as provided in OAR 863-014-0085 and this section, no real estate broker or principal broker may engage in professional real estate activities under more than one registered business name. A principal broker may engage in professional real estate activities under more than one registered business name if the business entity is an affiliated or subsidiary organization as described in OAR 863-014-0061.

(8) If a principal broker or property manager wishes to conduct real estate business in the licensee’s legal name, the principal broker or property manager must first register the principal broker’s licensed name or property manager’s licensed name with the Agency using an online application process available through the Agency’s website.

(9) To register a principal broker’s licensed name or property manager’s licensed name, the principal broker or property manager must submit to the Agency using an online application, the following:

(a) The licensee’s licensed name.

(b) The fee authorized by ORS 696.270.

(c) Authorization from the principal broker or property manager who is responsible for the principal broker’s licensed name or property manager’s licensed name on record with the Agency to use the name.

(10) Principal broker licensed name and property manager licensed name registrations do not expire and need not be renewed by the licensee. Any change in the principal broker’s licensed name or property manager’s licensed name registration with the Agency will be treated as the registration of a new business name, and an application for the change in business name must be submitted to the Agency together with the fee authorized in ORS 696.270.

(11) A principal broker’s licensed name or property manager’s licensed name registration becomes void when the Agency receives notice of termination.

(12) Except as provided in OAR 863-014-0085 and this section, no real estate broker, principal broker or property manager may engage in professional real estate activities under more than one registered business name, principal broker’s licensed name registration or property manager’s licensed name registration. A principal broker or property manager may engage in professional real estate activities under more than one registered business name, principal broker’s licensed name registration or property manager’s licensed name registration, if the business entity is an affiliated or subsidiary organization as described in OAR 863-014-0061.

Stat. Auth.: ORS 696.026 & 696.385

Stats. Implemented: ORS 696.026

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; Renumbered from 863-015-0095, REA 5-2008, f. 12-15-08, cert. ef. 1-1-09; REA 1-2009, f. 12-15-09, cert. ef. 1-1-10; REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 4-2014, f. 4-14-14, cert. ef. 4-28-14

863-014-0100

Branch Office Registration

(1) Before engaging in professional real estate activity from a branch office, a principal real estate broker must provide to the commissioner on an online application available through the Agency’s website, the branch office street and mailing addresses and the fee authorized by ORS 696.270.

(2) For the purposes of ORS 696.270, a branch office registration does not require renewal.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.026 & 696.200

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; Renumbered from 863-015-0100, REA 5-2008, f. 12-15-08, cert. ef. 1-1-09; REA 1-2009, f. 12-15-09, cert. ef. 1-1-10; REA 4-2014, f. 4-14-14, cert. ef. 4-28-14


Rule Caption: Align property manager licensing rules with the Agency’s electronic processes and general clean-up.

Adm. Order No.: REA 5-2014

Filed with Sec. of State: 4-14-2014

Certified to be Effective: 4-28-14

Notice Publication Date: 3-1-2014

Rules Amended: 863-024-0003, 863-024-0015, 863-024-0045, 863-024-0050, 863-024-0062, 863-024-0063, 863-024-0065, 863-024-0066, 863-024-0095, 863-024-0100

Subject: OAR 863-024-0003 Definitions

   Added the definition for “Property Manager Licensed Name (PMLN)”.

   Deleted references to definitions that aren’t found in ORS 696.010. Included references to relevant statutes for “Agency” and “Commissioner” definitions.

   OAR 863-024-0045 Property Manager Licensing Requirements

   Added reference to PBLN and PMLN.

   OAR 863-024-0045 Property Manager Licensing Requirements, OAR 863-024-0050 License Renewal, OAR 863-024-0063 Property Manager License Transfers, Principal Brokers’ Responsibilities, Authority to Use Registered Business Name, OAR 863-024-0066 Licensee Name Change, OAR 863-024-0100 Branch Office Registration

   Replaced a paper form/application reference with the current online application.

   OAR 863-024-0015 Background Check and Fingerprint Requirements, 863-024-0045 Property Manager Licensing Requirements, OAR 863-024-0050 License Renewal, OAR 863-024-0062 Mailing Address, Email Address, Address Change, Service of Notice

   Removal of past effective dates.

   OAR 863-024-0063 Property Manager License Transfers, Principal Brokers’ Responsibilities, Authority to Use Registered Business Name

   Added a description of the current online association (license transfer) process.

   OAR 863-024-0065 Inactive License, Change License Status to Active, License Reactivation

   Replaced former paper license inactivation, transfer, and reactivation form processes with the current online inactivation, transfer, and reactivation application processes.

   Also removes references to “changing license category”.

   OAR 863-024-0095 Business Name Registration

   Added a complete description of registering a PBLN or PMLN.

Rules Coordinator: Erica Kleiner—(503) 378-4409

863-024-0003

Definitions

As used in this division, unless the context requires otherwise, the following definitions apply to this division:

(1) “Agency” means the Real Estate Agency with powers pursuant to ORS 696.385.

(2) “Agency-approved form” means an electronic or paper form approved by the Real Estate Agency.

(3) “Board” means the Real Estate Board established pursuant to ORS 696.405.

(4) “Branch office” is defined in ORS 696.010.

(5) “Commissioner” means the Real Estate Commissioner described in ORS 696.375.

(6) “Legal name” means the first name, middle name and last or surname, without the use of initials or nicknames and is the name given at birth or subsequently acquired through marriage, court order or adoption.

(7) “Licensed Name” means the name of a real estate licensee as it appears on the current, valid real estate license issued to the licensee pursuant to ORS 696.020.

(8) “Management of rental real estate” is defined in ORS 696.010.

(9) “Principal broker” means “principal real estate broker,” as defined in ORS 696.010.

(10) “Property manager” means “real estate property manager,” as defined in ORS 696.010.

(11) “Property Manager Licensed Name” means the licensed name of a licensed real estate property manager under which the licensee will conduct professional real estate activity. The Property Manager Licensed Name must be the licensed real estate property manager’s legal name as displayed on the licensee’s license.

(12) “Real estate activity,” “professional real estate activity,” and “real estate business” mean “professional real estate activity” as defined in ORS 696.010, which includes managing rental real estate.

(13) “Real estate broker” is defined in ORS 696.010.

(14) “Real estate licensee” and “licensee” mean a “real estate licensee” as defined in ORS 696.010.

(15) “Registered business name” is defined in ORS 696.010.

(16) “Signed” or “Signature” means original or electronic signature as provided by OAR-024-0076.

Stat. Auth.: ORS 696.385

Stat. Implemented: ORS 696.010 & 696.020

Hist.: REA 7-2008, f. 12-15-08, cert. ef. 1-1-09; REA 1-2009, f. 12-15-09, cert. ef. 1-1-10; REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 5-2014, f. 4-14-14, cert. ef. 4-28-14

863-024-0015

Background Check and Fingerprint Requirements

(1) An applicant for a property manager license must submit to a background check, except an applicant who is currently licensed as a real estate broker or principal real estate broker or who is eligible for renewal of such licenses.

(2) The background check includes a criminal background check as provided in OAR chapter 863, division 005, which requires the applicant to provide fingerprints.

(3) The Agency and a vendor for fingerprinting services (“fingerprint service provider”) have contractually agreed that:

(a) The fingerprint service provider will provide fingerprint services to license applicants and submit the fingerprints to the Oregon State Police for Oregon and nationwide criminal history checks.

(b) A license applicant may only submit fingerprints required by the Agency through the fingerprint services provider.

(c) A license applicant must pay the fee for fingerprinting, authorized under ORS 696.270, directly to the fingerprint services provider.

(d) A license applicant must provide fingerprints according to the requirements and instructions of the fingerprint services provider.

(e) A license applicant must have submitted a license application to the Agency before providing fingerprints.

(4) As provided in ORS 181.540, all fingerprint cards, photographs, records, reports, and criminal offender information obtained or compiled by the Agency are confidential and exempt from public inspection. The commissioner will keep such information segregated from other information on the applicant or licensee and maintain such information in a secure place.

(5) If the Agency determines that additional information is necessary in order to conduct a background check, the Agency may request such information in writing, and the applicant must provide the requested information. If the applicant fails to provide the requested information, the Agency may determine that the license application is incomplete and terminate the application.

(6) A license applicant must successfully complete the remaining portions of the licensing process required by 863-024-0045 within the 12 months from the date of the successfully completed background check process and review. If the applicant does not meet all licensing requirement within the 12 months, the background check review is no longer valid and the applicant must submit to another background check, including fingerprints as described in this rule.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.020 & 696.022

Hist.: REA 7-2008, f. 12-15-08, cert. ef. 1-1-09; REA 1-2009, f. 12-15-09, cert. ef. 1-1-10; REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 4-2013(Temp), f.10-31-13, cert. ef. 11-1-13 thru 4-29-14; REA 3-2014, f. 4-14-14, cert. ef. 4-28-14; REA 5-2014, f. 4-14-14, cert. ef. 4-28-14

863-024-0045

Property Manager Licensing Requirements

(1) To be eligible for a property manager license, an individual must complete the following steps in the order listed:

(a) Submit a license application and pay the fee to the Agency required by OAR 863-024-0010.

(b) Successfully complete the required courses of study for a property manager license required by OAR 863-022-0015.

(c) Ensure that the school providing the required course of study certifies to the examination provider that the applicant completed the course as required by OAR 863-024-0020.

(d) Pass the property manager licensing examination and pay the fee to the examination provider as required by OAR 863-012-0020.

(e) Provide fingerprints for a criminal background check and pay the fee to the fingerprint services provider as required by OAR 863-0014-0015.

(2) After the applicant meets the requirements under (1) of this rule, the Agency will complete a background check on the applicant, which includes a criminal background check under OAR 863-024-0015.

(3) Effective July 1, 2011 to September 14, 2011, after the requirements in (1) and (2) of this rule are met:

(a) The applicant must state that the applicant will be conducting professional real estate activity under the applicant’s licensed name or is registering a business name as provided in (5) of this rule; or

(b) The applicant must submit to the Agency the name and address and authorization of a property manager or principal broker with whom the applicant will be associated and the authorization of the property manager or principal broker to use the registered business name.

(4) After the requirements in (1) and (2) of this rule are met:

(a) Using an online application through the Agency’s website, the applicant must specify whether the applicant will be conducting professional real estate activity under their property manager’s licensed name as provided in (5) of this rule or is registering a business name as provided in (6) of this rule; or

(5) If an applicant wishes to conduct professional real estate activity under their property manager’s licensed name, the applicant must first obtain the property manager license and then complete an online application available through the Agency’s website.

(6) If an applicant wishes to conduct professional real estate activity under a registered business name registered by the applicant, the applicant must first obtain a property manager license and then register a business name under 863-024-0095.

(7) A real estate property manager may only engage in the management of rental real estate. The licensee may not offer to, negotiate, attempt to, or engage in the sale, purchase, lease-option, appraisal, or exchange of real estate for another individual for compensation. The licensee may not charge, pay, receive, or accept a referral fee, finder’s fee, or compensation from or share in a commission paid to a real estate broker for any activity involving the sale, purchase, lease-option, appraisal, or exchange of real estate. However, the licensee may charge, pay, receive, or accept a referral fee or finder’s fee from or to a real estate broker or another real estate property manager for finding or referring an owner, renter, or lessee in real estate property management activity.

(8) A real estate property manager is responsible for all property management activity conducted under the property manager’s license and for the actions of the property manager’s nonlicensed property management employees. A licensed property manager may not authorize an unlicensed individual to supervise that property manager’s licensed activity in the manager’s absence. Except as provided for in OAR 863-024-0085, a property manager may not authorize another real estate licensee to supervise that property manager’s licensed activity in the property manager’s absence.

(9) A real estate property manager may be associated with a principal real estate broker to engage in property management activity on behalf of the principal real estate broker and under the supervision of that principal real estate broker. However, a property manager may not act in the broker’s absence under OAR 863-024-0085.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.020 & 696.022

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 1-2005, 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; Renumbered from 863-015-0045, REA 7-2008, f. 12-15-08, cert. ef. 1-1-09; REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 5-2014, f. 4-14-14, cert. ef. 4-28-14

863-024-0050

License Renewal

(1) A licensee may only submit a license renewal application and pay the fee using an online application process, which will be available through the Agency’s website.

(2) For purposes of this rule, “received by the Agency” means the date a license renewal is received by the Agency.

(3) A property manager license expires if a licensee fails to renew the license on or before the license expiration date. A licensee may not engage in any professional real estate activity after a license expires. A property manager may renew an expired license as provided in this rule.

(4) The Agency will renew an active property manager license to active status for the term prescribed in OAR 863-024-0030 when the Agency has received the following:

(a) The renewal fee authorized by ORS 696.270; and

(b) An Agency-approved active renewal application form requesting active license status that includes certification by the licensee that the licensee has met the real estate continuing education renewal requirements under section OAR 863-020-0010.

(5) The Agency will renew an active property manager license to inactive status for the term prescribed in OAR 863-024-0030, when the Agency has received the following:

(a) The renewal fee authorized by ORS 696.270; and

(b) An online inactive renewal application.

(6) The Agency will renew an inactive property manager license to inactive status for the term prescribed in OAR 863-024-0030 when the Agency has received the following:

(a) The renewal fee authorized by ORS 696.270; and

(b) An online inactive renewal application.

(7) The Agency will renew an inactive property manager license to active status for the term prescribed in OAR 863-024-0030, when the Agency has received the following:

(a) The renewal fee authorized by ORS 696.270; and

(b) An online active renewal application requesting active license status that includes certification by the licensee that the licensee has met the real estate continuing education renewal requirements under section (3) or (4) of this rule.

(8) The Agency will renew an expired property manager license to active status when the Agency receives, within one year of the date the license expired, the following:

(a) The renewal fee and a late fee authorized by ORS 696.270; and

(b) An online active renewal application that includes certification by the licensee that the licensee met the real estate continuing education renewal requirements under section OAR 863-020-0010.

(9) The Agency will renew an expired property manager license to inactive status when the Agency receives, within one year of the date the license expired, the following:

(a) The renewal fee and a late fee authorized by ORS 696.270; and

(b) An online inactive renewal application.

(10) When the Agency renews an expired license, the renewed license is effective the date the renewal requirements are met. The renewal is not retroactive to the date the license expired, and the expired license retains the status of expired during the expiration period.

(11) A license renewed under this rule expires two years from the date of the original expiration date.

(12) A real estate license that has expired for more than one year is lapsed, as defined in ORS 696.010.

(13) A license may not be renewed if it is lapsed, surrendered, suspended, or revoked. Except as provided in OAR 863-024-0075, the former licensee must reapply and meet all the licensing qualifications required of new license applicants.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.020, 696.022 & 696.270

Hist.: REA 7-2008, f. 12-15-08, cert. ef. 1-1-09; REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 5-2014, f. 4-14-14, cert. ef. 4-28-14

863-024-0062

Mailing Address, Email Address, Address Change, Service of Notice

(1) Each active, inactive and expired property manager licensee must maintain on file with the Agency a current mailing address and email and notify the Agency within 10 calendar days of a change of mailing or email address.

(2) A forwarding address is effective as a “current mailing address” when the Agency receives notice of the forwarding address by the United States Postal Service.

(3) Agency notice by mail, whether registered, certified, or regular, to the real estate licensee’s current mailing address on file with the Agency constitutes service on the licensee.

(4) The Agency is not required by law to send notification or correspondence by regular mail to a licensee or license applicant regarding license or application status. The Agency may send notification or correspondence to a licensee or license applicant to the email address of the licensee or applicant on file with the Agency. Failure by a licensee or applicant to receive notification or correspondence provided via email does not relieve the licensee or applicant of the responsibility to maintain a current license or complete an application process.

(5) The Agency’s primary and preferred method of notification and correspondence is to the licensee or license applicant’s email address.

(6) For purposes of this rule, “notification or correspondence” in (4) and (5) of this rule means:

(a) Notification, correspondence or confirmation to licensees about license renewal, change of license status to active or inactive, license transfers, registered business name, branch office registration, license reactivation, license expiration, and name and address changes.

(b) Notification, correspondence or confirmation to license applicants about license application status, receipt of documents or information from third parties on license qualifications, and license issuance.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.020 & 696.022

Hist.: REA 7-2008, f. 12-15-08, cert. ef. 1-1-09; REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 5-2014, f. 4-14-14, cert. ef. 4-28-14

863-024-0063

Property Manager License Transfers, Principal Brokers’ Responsibilities, Authority to Use Registered Business Name

(1) As used in this rule:

(a) “Authorized licensee” means a property manager or principal broker who has authority over the use of a registered business name;

(b) “License transfer application” means an online license transfer application that does one of the following:

(A) Transfers a property manager license to a receiving principal broker in order to become associated with the receiving principal broker, or

(B) Authorizes a property manager to use a registered business name to conduct management of rental real estate.

(c) “Sending principal broker” means the principal real estate broker with whom an active property manager license is associated before the license transfer;

(d) “Receiving principal broker” means the principal real estate broker with whom an active property manager license will be associated after the license transfer.

(2) The property manager licensee must provide the following information on an online license transfer:

(a) The name, email address and license number of the property manager licensee who is being transferred;

(b) The receiving broker’s or authorized licensee’s name, license number, date, signature, and attestation or the authorized use of the registered business name.

(3) A principal real estate broker with whom a property manager licensee is associated remains responsible for the licensee’s management of rental real estate until the Agency receives one of the following:

(a) An online inactivation application available through the Agency’s website; or

(b) An online license transfer form and fee.

(4) If a principal real estate broker with whom a property manager is associated voluntarily gives the license to the property manager named in the license, the principal real estate broker remains responsible for the licensee’s subsequent management of rental real estate until the Agency receives one of the following:

(a) An online inactivation application available through the Agency’s website; or

(b) An online license transfer application and fee.

(5) The Agency will document the registered business name under which a property manager licensee is authorized to conduct management of rental real estate when the Agency receives an online license transfer application and the transfer fee authorized by ORS 696.270.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.020 & 696.022

Hist.: REA 7-2008, f. 12-15-08, cert. ef. 1-1-09; REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 5-2014, f. 4-14-14, cert. ef. 4-28-14

863-024-0065

Inactive License, Change License Status to Active, License Reactivation

(1) A property manager licensee whose license is on inactive status may not engage in management of rental real estate.

(2) The commissioner may reprimand, suspend, revoke, or impose a civil penalty against an inactive licensee under ORS 696.301.

(3) The Agency will change an active property manager license to inactive license status when the Agency actually receives a request by the licensee submitted on an online inactivation application available through the Agency’s website to change the license status to inactive.

(4) An inactive property manager licensee may renew such license under OAR 863-024-0050.

(5) For a period of 30 days after a property manager license becomes inactive, a property manager may change such license status from inactive to active under OAR 863-024-0063.

(6) If a property manager license has not been on active status for two or more consecutive years, the licensee must complete the following steps in the order listed to reactivate the license:

(a) Submit an online application for license reactivation and pay the fee to the Agency authorized by ORS 696.270; and

(b) Pass the property manager reactivation examination and pay the fee to the examination provider as required by OAR 863-024-0020.

(7) After the 30-day period in section (5) of this rule, and subject to the examination requirements in section (6) of this rule, a property manager may change the license status from inactive to active only by submitting to the Agency:

(a) An online application for license reactivation; and

(b) Payment of the reactivation fee authorized by ORS 696.270.

(8) Subject to the examination requirements in section (6) of this rule, if an inactive licensee renews a license and maintains inactive status, the licensee may, within 60 days of the date of renewal, change the license status to active by submitting to the Agency:

(a) An online application for license reactivation that includes certification that the licensee met the real estate continuing education renewal requirements under OAR 863-020-0010; and

(b) Payment of the active renewal fee authorized by ORS 696.270, less the amount of the inactive renewal fee already paid by the licensee.

(9) The change of license status, transfer of license, or the reactivation of a license is effective when the Agency actually receives all required forms and fees.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.020 & 696.022

Hist.: REA 7-2008, f. 12-15-08, cert. ef. 1-1-09; REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 5-2014, f. 4-14-14, cert. ef. 4-28-14

863-024-0066

Licensee Name Change

A licensee may apply for a name change by submitting to the Agency:

(1) An online name change application and payment of the fee authorized under ORS 696.270; and

(2) Legal proof of the name change, which must be in the form of an official record such as a marriage certificate, divorce certificate, or a court order/decree.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.020 & 696.022

Hist.: REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 5-2014, f. 4-14-14, cert. ef. 4-28-14

863-024-0095

Business Name Registration, Principal Broker Licensed Name Registration, and Property Manager Licensed Registration

(1) Before conducting business in a name other than the licensee’s legal name, the property manager must register the business name with the Agency. For the purposes of this rule, “business name” means an assumed name or the name of a business entity, such as a corporation, partnership, limited liability company, or other business entity recognized by law. A licensee must maintain the registered business name with the Oregon Secretary of State’s Corporation Division.

(2) To register a business name, the property manager must submit to the Agency, using an online application, the following:

(a) The business name in which the licensee wishes to conduct business, which must be the exact name on file with the Oregon Secretary of State;

(b) Written authority by which the licensee is authorized to use the business name;

(c) A copy of the registration on file with the Oregon Secretary of State Business Registry, showing the business name is active; and

(d) The fee authorized by ORS 696.270.

(3) A property manager who wishes to use a registered business name must submit to the Agency the following:

(a) The registered business name the licensee wishes to use; and

(b) Authorization from the property manager or principal broker who is responsible for the registered business name on the records of the Agency to use the name.

(4) Business names registered with the Agency do not expire and need not be renewed by the licensee. Any change in the business name registered with the Agency will be treated as the registration of a new business name, and the change in business name must be registered with the Agency together with the fee authorized by ORS 696.270.

(5) If a licensee wishes to transfer the right to use a business name that is registered with the Agency, the licensee acquiring the right to use the name must file a change of business name registration with the Agency together with the fee authorized by ORS 696.270. A licensee must notify the Agency in writing if the licensee terminates its use of a business name.

(6) A business name registration becomes void when the Agency receives notice of termination of the use of a business name. A business name registration becomes void when no licensees are affiliated with the registered business name. A business name registration may be reactivated within one year from the voiding of a registration, unless a new user has registered the business name, without paying the fee set forth in ORS 696.270.

(7) No real estate property manager may engage in professional real estate activities under more than one registered business name. An exception to this requirement is that a real estate property manager may engage in the management of rental real estate under more than one registered business name if the business entity is an affiliated or subsidiary organization as described in OAR 863-024-0061.

(8) If a principal broker or property manager wishes to conduct real estate business in the licensee’s legal name, the principal broker or property manager must first register the principal broker’s licensed name or property manager’s licensed name with the Agency using an online application process available through the Agency’s website.

(9) To register a principal broker’s licensed name or property manager’s licensed name, the principal broker or property manager must submit to the Agency using an online application, the following:

(a) The licensee’s licensed name.

(b) The fee authorized by ORS 696.270.

(c) Authorization from the principal broker or property manager who is responsible for the principal broker’s licensed name or property manager’s licensed name on record with the Agency to use the name.

(10) Principal broker licensed name and property manager licensed name registrations do not expire and need not be renewed by the licensee. Any change in the principal broker’s licensed name or property manager’s licensed name registration with the Agency will be treated as the registration of a new business name, and an application for the change in business name must be submitted to the Agency together with the fee authorized in ORS 696.270.

(11) A principal broker’s licensed name or property manager’s licensed name registration becomes void when the Agency receives notice of termination.

(12) Except as provided in OAR 863-014-0085 and this section, no real estate broker, principal broker or property manager may engage in professional real estate activities under more than one registered business name, principal broker’s licensed name registration or property manager’s licensed name registration. A principal broker or property manager may engage in professional real estate activities under more than one registered business name, principal broker’s licensed name registration or property manager’s licensed name registration, if the business entity is an affiliated or subsidiary organization as described in OAR 863-014-0061.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.026

Hist.: REA 7-2008, f. 12-15-08, cert. ef. 1-1-09; REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 5-2014, f. 4-14-14, cert. ef. 4-28-14

863-024-0100

Branch Office Registration

(1) Before a property manager may engage in the management of rental real estate from a branch office, the property manager must provide to the commissioner an online application available through the Agency’s website the branch office street and mailing addresses and the fee authorized by ORS 696.270.

(2) For the purposes of ORS 696.270, a branch office registration does not require renewal.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.026 & 696.200

Hist.: REA 7-2008, f. 12-15-08, cert. ef. 1-1-09; REA 1-2009, f. 12-15-09, cert. ef. 1-1-10; REA 5-2014, f. 4-14-14, cert. ef. 4-28-14


Rule Caption: Various amendments to responsibilities of and requirements for continuing education providers.

Adm. Order No.: REA 6-2014

Filed with Sec. of State: 4-14-2014

Certified to be Effective: 4-28-14

Notice Publication Date: 3-1-2014

Rules Amended: 863-020-0000, 863-020-0010, 863-020-0015, 863-020-0030, 863-020-0040, 863-020-0055, 863-020-0060

Subject: OAR 863-020-0000 Applicability and Purpose

   Clarifies the responsibilities of continuing education course providers to maintain records as directed by the Agency (in paper or electronic format). This provides the Agency with flexibility to require providers to maintain electronic records as it works toward a comprehensive online continuing education module.

   OAR 863-020-0010 License Renewal Continuing Education Requirements, OAR 863-020-0015 Licensee Records, OAR 863-020-0040 Certain Courses Required for License Renewal that are Also Eligible for Continuing Education Credit

   Removal of past effective dates.

   OAR 863-020-0030 Application for Continuing Education Provider Certification and Renewal, OAR 863-020-0055 Continuing Education Provider Record-keeping Requirements

   Replaces a paper form/application reference with an online application.

   OAR 863-020-0055 Continuing Education Provider Record-keeping Requirements

   Clarifies that the Agency can request and the continuing education provider must produce records within 15 business days.

   OAR 863-020-0060 Continuing Education Instructor Form

   Removes “successful completion of an instructor training course approved by the Board and two years of experience working in a field related to the topic of the course” as a qualification option on the Instructor form.

Rules Coordinator: Erica Kleiner—(503) 378-4409

863-020-0000

Applicability and Purpose

(1) This division applies to licensed real estate brokers, principal real estate brokers, real estate property managers, continuing education providers, and instructors who teach courses for continuing education providers.

(2) For all real estate licensees, the purpose of this division is to set forth continuing education requirements for licensee renewals, including:

(a) Courses eligible for continuing education credit completed before January 1, 2011; and

(b) Courses eligible for continuing education credit completed on or after January 1, 2011 taken from continuing education course providers, including:

(A) Courses that meet the requirements for course topics and learning objectives in this division 20;

(B) A Board-approved three-hour law and rule required course on recent changes in rule and law, described in OAR 863-022-0055, required for all licensees;

(C) A 27-hour advanced course in real estate practices, described in OAR 863-022-0020, required for real estate brokers before the first active renewal of the broker’s license or before the first license reactivation following an inactive first renewal;

(D) A 27-hour property manager advanced practices course described in OAR 863-022-0022, required for licensed real estate property managers before the first active renewal of the property manager’s license or before the first license reactivation following an inactive first renewal;

(E) The 40-hour brokerage administration and sales supervision course, described in OAR 863-022-0025, for an initial principal real estate broker license application; and

(F) Continuing education record-keeping requirements for all licensees.

(3) For continuing education providers, the purpose of this division is to set forth:

(a) The application requirements for certification as a real estate continuing education course provider; and

(b) The responsibilities of continuing education course providers; including:

(A) Ensuring that courses offered by the provider meet the eligible course topics, learning objectives, and length of course requirements;

(B) Maintaining required records in paper or electronic format, as directed by the Agency.

(C) Providing real estate licensees with certificates of completion for each course that meet the requirements for certificates of completion; and

(D) Ensuring that each instructor who will teach a course offered by a provider meets instructor qualifications and completes a continuing education instructor form.

(4) For instructors who teach courses for continuing education providers, the purpose of this division is to set forth the instructor qualifications, set out on the instructor form that is completed by the instructor and given to the continuing education provider.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.174, 696.182, 696.184 & 696.186

Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert. ef. 8-15-12 thru 2-1-13; REA 1-2013, f. 1-14-13, cert. ef. 2-1-13; REA 6-2014, f. 4-14-14, cert. ef. 4-28-14

863-020-0010

License Renewal Continuing Education Requirements

(1) This rule applies to all real estate licensees.

(2) To renew an active license, a real estate licensee must truthfully certify on an Agency-approved form under OAR 863-014-0050 (for real estate brokers and principal brokers) or 863-024-0050 (for licensed real estate property managers) that the licensee:

(a) Has completed at least 27 hours of real estate continuing education that are eligible for credit under OAR 863-020-0035 and 863-020-0040 during the two years preceding renewal and,

(b) Has completed the Board-approved three-hour law and rule required course on recent changes in real estate rule and law described in OAR 863-022-0055.

(3) To renew an active license for the first time or before the first license reactivation following an inactive first renewal, a real estate broker and a licensed real estate property manager must comply with the following:

(a) A real estate broker must complete the 27-hour advanced course in real estate practices described in OAR 863-022-0020. A real estate broker must also take the three-hour law and rule required course described in 863-022-0055.

(b) A licensed real estate property manager must complete the 27-hour property manager advanced practices course described in OAR 863-022-0022. A licensed real estate property manager must also take the three-hour law and rule required course described in 863-022-0055.

(4) A real estate licensee will not be given credit for repeating a continuing education course with the same content during a two-year renewal period.

(5) A licensee who falsely certifies that the licensee has completed the required continuing education violates section (2) of this rule and subject to discipline under ORS 696.301.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.022, 696.174 & 696.301

Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert. ef. 8-15-12 thru 2-1-13; REA 1-2013, f. 1-14-13, cert. ef. 2-1-13; REA 1-2013, f. 1-14-13, cert. ef. 2-1-13; REA 6-2014, f. 4-14-14, cert. ef. 4-28-14

863-020-0015

Licensee Records

(1) A real estate licensee must maintain the licensee’s own continuing education records described in sections (3) and (4) of this rule for three years after the renewal date for which the continuing education credit applies.

(2) A principal broker is not required to maintain the continuing education records of a real estate broker or a property manager associated with the principal broker. However, the principal broker must maintain the continuing education records that pre-date January 1, 2011 as required by OAR 863-015-0260 and produce a copy of such records if the associated licensee or the Agency so requests.

(3) A real estate licensee must complete and maintain an Agency-approved form that contains the following information, taken from the certificate of completion provided by the continuing education provider:

(a) The licensee’s name and license number;

(b) The name of the course;

(c) The name of the certified course provider and the provider number;

(d) The course identification number assigned by the course provider;

(e) The course eligibility for continuing education credit as one of the following:

(A) The specific course topic(s) that is eligible under OAR 863-020-0035,

(B) The course is the three-hour law and rule required course under OAR-863-022-0055,

(C) The course is the advanced course in real estate practices under OAR-863-022-0020,

(D) The course is the property manager advanced practices course under OAR 863-022-0022, or

(E) The course is the brokerage administration and sales supervision course under OAR-863-022-0025;

(f) The date and location of the course;

(g) The length of time of the course; and

(h) The name of the instructor who taught the course.

(4) A licensee must maintain all certificates of completion the licensee received from continuing education providers.

(5) Upon request by the Agency, a licensee must produce a copy of the records required under this rule.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.174

Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert. ef. 8-15-12 thru 2-1-13; REA 1-2013, f. 1-14-13, cert. ef. 2-1-13; REA 6-2014, f. 4-14-14, cert. ef. 4-28-14

863-020-0030

Application for Continuing Education Provider Certification and Renewal

(1) An applicant for certification as a continuing education provider must submit to the Agency an online application available through the Agency’s website, containing the following information. No application fee is required.

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

(b) The date of the application;

(c) The applicable qualification listed in OAR 863-020-0020(1) and, if the Real Estate Board approved the applicant’s qualifications under 863-020-0025, the applicant must also submit the Agency’s confirmation letter;

(d) The name and signature of the individual authorized by the applicant to submit the application;

(e) The applicant’s authorized contact person, title, phone number, and e-mail address;

(f) The applicant’s website address;

(g) Information concerning the course presentation formats, such as classroom instruction, online, etc.; and

(h) An affirmation that the applicant:

(A) Will comply with the statutory and administrative rule provisions applicable to continuing education providers, and

(B) Understands that the continuing education provider certification does not authorize the provider to offer an advanced course in real estate practices, the property manager advanced practices course, or the brokerage administration sales and supervision course. If the provider wishes to offer those courses, the provider may seek separate approval of the course under OAR chapter 863, division 22.

(2) The Agency will assign a provider number and mail a confirmation of certification to the applicant after review and approval of an application.

(3) The Agency will publish on its website and have available at the Agency a list of certified course providers and include the following information:

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

(b) The provider’s authorized contact person, title, phone number, and e-mail address;

(c) The provider’s website address;

(d) The course presentation formats offered by the provider, such as classroom instruction, online, etc.; and

(e) The date of certification and provider number.

(4) Once certified, the continuing education provider must submit any changes in the information provided on the application electronically, using an online process available through the Agency’s website.

(5) If a provider no longer wishes to be certified or no longer meets the qualifications contained in OAR 863-020-0020, it must inform the Agency in writing within five business days.

(6) A continuing education provider certification expires on December 31, 2013, and annually thereafter on December 31 of each year. Effective November 1, 2013, continuing education providers must submit an application for renewal, prior to expiration, using an online renewal process that is available through the Agency’s website.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.182

Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert. ef. 8-15-12 thru 2-1-13; REA 1-2013, f. 1-14-13, cert. ef. 2-1-13; REA 6-2013(Temp), f. 10-31-13, cert. ef. 11-1-13 thru 4-29-14; REA 1-2014, f. 4-14-14, cert. ef. 4-28-14; REA 6-2014, f. 4-14-14, cert. ef. 4-28-14

863-020-0040

Certain Courses Required for License Renewal that are Also Eligible for Continuing Education Credit

(1) In addition to the eligible courses under OAR 863-020-0035 the courses listed in subsection (2) through (4) of this rule are eligible for continuing education credit.

(2) An Agency-approved 27-hour advanced course in real estate practices that meets the requirements of OAR 863-022-0020.

(3) An Agency-approved 27-hour property manager advanced practices course that meets the requirements of OAR 863-022-0022.

(4) An Agency-approved 40-hour brokerage administration and sales supervision course that meets the requirements of OAR 863-022-0015.

(5) Certification as a continuing education provider does not authorize the provider to offer an advanced course in real estate practices, the property manager advanced practices course, or the brokerage administration sales and supervision course. If the provider wishes to offer those courses, the provider may seek separate course approval under OAR chapter 863, division 22.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.022, 696.174, & 696.184

Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert. ef. 8-15-12 thru 2-1-13; REA 1-2013, f. 1-14-13, cert. ef. 2-1-13; REA 6-2014, f. 4-14-14, cert. ef. 4-28-14

863-020-0055

Continuing Education Provider Record-keeping Requirements

(1) A real estate continuing education provider must keep records in paper or electronic form, as directed by the Agency, of each course provided for three years from the date the course was provided. These records must include:

(a) The name of the course,

(b) The course identification number assigned by the course provider,

(c) Identification of the course eligibility for continuing education credit as one of the following:

(A) A continuing education course under OAR 863-020-0035 and which course topic(s) the offered course covers,

(B) The course is a three-hour rule and law required course under OAR 862-022-0055,

(C) The course is the advanced course in real estate practices course under OAR 863-022-0020,

(D) The course is the property manager advanced practices course under OAR 863-022-0022, or

(E) The course is the brokerage administration and sales supervision course under OAR 863-022-0025;

(d) The date and location of the course,

(e) The length of time of each course,

(f) The name of the instructor who taught the course,

(g) The signed form required by OAR 863-020-0060 containing the statement of instructor qualifications, and

(h) The licensee’s name and license number for each licensee attending the course on that date.

(2) All continuing education providers, whether located within or outside of this state, must keep the required records at the address provided on the application form.

(3) A real estate continuing education provider must produce records within 15 business days after the date of a request by the Agency.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.184

Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert. ef. 8-15-12 thru 2-1-13; REA 1-2013, f. 1-14-13, cert. ef. 2-1-13; REA 6-2014, f. 4-14-14, cert. ef. 4-28-14

863-020-0060

Continuing Education Instructor Form

(1) As provided in OAR 863-020-0050, a continuing education provider must ensure that the instructor who teaches a continuing education course offered for credit meets the requirements contained in ORS 696.186. The Agency does not certify instructors.

(2) A continuing education provider must ensure that the instructor completes and signs a form containing the following information:

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

(b) The continuing education provider name and provider number;

(c) A description of the instructor’s qualifications in sufficient detail that would enable the reader to know how the instructor has met those qualifications; and

(d) An attestation signed and dated by the instructor, identifying the instructor’s qualifications under section (4) of this rule and affirming that the instructor:

(A) Has not had a professional or occupational license related to the topic of the course revoked for disciplinary reasons;

(B) Has not had a professional or occupational license related to the topic of the course that is currently suspended for disciplinary reasons; and

(C) Has not been determined by a state court, an administrative law judge, or a final agency order to have violated any statute, rule, regulation, or order pertaining to real estate activity in this or any other state in the preceding five years.

(3) The instructor must indicate on the form which of the following qualifications applies to the instructor:

(a) A bachelor’s degree and two years of experience working in a field related to the course topic;

(b) Six years of experience working in a field related to the topic of the course;

(c) A total of six years of any combination of college-level coursework and experience working in a field related to the topic of the course:

(d) A designation by a professional real estate organization, as defined in section (5) of this rule, and two years of college-level coursework;

(e) A designation as a Distinguished Real Estate Instructor by the Real Estate Educators’ Association; or

(f) Certification or approval in good standing as a real estate instructor for the same or a similar course topic in any other state or jurisdiction.

(4) “Professional real estate organization,” as used in section (4) of this rule, means a group of individuals with a formal membership whose membership includes real estate licensees or licensed escrow agents.

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.184 & 696.186

Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert. ef. 8-15-12 thru 2-1-13; REA 1-2013, f. 1-14-13, cert. ef. 2-1-13; REA 6-2014, f. 4-14-14, cert. ef. 4-28-14


Rule Caption: Clarification that compliance reviews and mail-in audits also apply to principal real estate brokers.

Adm. Order No.: REA 7-2014

Filed with Sec. of State: 4-14-2014

Certified to be Effective: 4-28-14

Notice Publication Date: 3-1-2014

Rules Adopted: 863-015-0081

Rules Amended: 863-015-0003

Subject: Technical amendments were made to clarify compliance reviews and mail-in audits apply to principal real estate brokers, not only property managers. Previously, these provisions were only included in OAR Chapter 863, Division 25 related to property management. However, principal real estate brokers may also be included in compliance reviews and may have clients’ trust accounts which would be included in mail-in audits by the Agency.

   The language currently used in OAR Chapter 863, Division 25 (related to compliance reviews and mail-in audits) was duplicated. “Property manager” was changed to “principal real estate broker” and “owner or tenant funds” was changed to “funds belonging to others”.

Rules Coordinator: Erica Kleiner—(503) 378-4409

863-015-0003

Definitions

As used in this division, unless the context requires otherwise, the following definitions apply:

(1) “Addendum” means additional material attached to and made part of a document. The addendum must refer to the document and be dated and signed or otherwise acknowledged by all the parties.

(2) “Agent” is defined in ORS 696.800.

(3) “Agency” is defined in ORS 696.010.

(4) “Bank” is defined in ORS 696.010.

(5) “Banking day” means each day a financial institution is required to be open for the normal conduct of its business but does not include Saturday, Sunday, or any legal holiday under ORS 187.010.

(6) “Board” means the Real Estate Board established pursuant to ORS 696.405.

(7) “Branch office” is defined in ORS 696.010.

(8) “Buyer” is defined in ORS 696.800.

(9) “Clients’ Trust Account” means an account in a “bank,” as defined in ORS 696.010, that is subject to the provisions of ORS 696.241.

(10) “Closing” means the transfer of all property titles and the disbursement or distributions of all monies and documents for a real estate transaction.

(11) “Commissioner” is defined in ORS 696.010.

(12) “Compensation” is defined in ORS 696.010.

(13) “Competitive market analysis” is defined in ORS 696.010.

(14) “Compliance review” means an Agency review of a principal real estate broker’s records and procedures for the purpose of educating the principal real estate broker on statutes and rules.

(15) “Confidential information” is defined in ORS 696.800.

(16) “Cure noncompliance” means a principal real estate broker’s acts that resolve the principal real estate broker’s failure to comply with statutory and rule requirements.

(17) “Day” or “days” means each calendar day, including legal holidays under ORS 187.010.

(18) “Disclosed limited agency” is defined in ORS 696.800.

(19) “First contact with a represented party” means the initial contact by a licensee, whether in person, by telephone, over the Internet, or by electronic mail, electronic bulletin board, or similar electronic method, with an individual who is represented by a real estate licensee or can reasonably be assumed from the circumstances to be represented or seeking representation.

(20) “Investigation” means an Agency-initiated investigation of a principal real estate broker that may result in administrative actions against the licensee.

(21) “Letter opinion” is defined in ORS 696.010.

(22) “Licensed Name” means the name of a real estate licensee as it appears on the current, valid real estate license issued to the licensee pursuant to ORS 696.020.

(23) “Listing agreement” is defined in ORS 696.800.

(24) “Mail-in audit” means an Agency audit of a clients’ trust account based on information and documents prepared by a principal real estate broker and mailed to the Agency.

(25) “Offer” is defined in ORS 696.800.

(26) “Offering price” is defined in ORS 696.800.

(27) “Principal” is defined in ORS 696.800.

(28) “Principal broker” means “principal real estate broker,” as defined in ORS 696.010.

(29) “Real estate” is defined in ORS 696.010.

(30) “Real estate activity,” “professional real estate activity,” and “real estate business” mean “professional real estate activity” as defined in ORS 696.010.

(31) “Real estate broker” is defined in ORS 696.010 and includes a principal real estate broker, as that term is defined in 696.010, unless the context requires otherwise.

(32) “Real estate licensee” and “licensee” mean a “real estate licensee” as defined in ORS 696.010, unless the context requires otherwise.

(33) “Real property” is defined in ORS 696.800.

(34) “Real property transaction” is defined in ORS 696.800.

(35) “Registered business name” is defined in ORS 696.010.

(36) “Sale” and “sold” are defined in ORS 696.800.

(37) “Seller” is defined in ORS 696.800.

(38) “Timely” means as soon as is practicable under the circumstances.

Stat. Auth.: ORS 696.385 & 183.335

Stats. Implemented: ORS 696.010

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; Renumbered from 863-015-0120, REA 6-2008, f. 12-15-08, cert. ef. 1-1-09; REA 1-2009, f. 12-15-09, cert. ef. 1-1-10; REA 7-2014, f. 4-14-14, cert. ef. 4-28-14

863-015-0081

Compliance Reviews and Mail-in Audits

(1) The Agency will provide a principal real estate broker with written notice at least five business days before conducting a compliance review.

(2) A compliance review is completed when the Agency delivers a written notice of completion to the principal real estate broker.

(3) Except as provided in section (4) of this rule, if the Agency determines that a principal real estate broker is not in compliance with ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to 696.870, or OAR chapter 863 after the Agency completes a compliance review, the Agency will allow the principal real estate broker at least 30 days from the date the compliance review is completed to cure the noncompliance without sanction.

(4) Upon completion of a compliance review, if the Agency has reasonable grounds to believe that the funds belonging to others may be missing, funds may have been misappropriated, or that the principal real estate broker’s records are in such a condition that the principal real estate broker is placing funds belonging to others at risk the Agency may immediately initiate an investigation without providing a principal real estate broker with an opportunity to cure noncompliance.

(5) The Agency will provide a principal real estate broker with written notice of a mail-in audit at least 30 days before required information and documentation must be provided to the Agency.

(6) After the Agency reviews the information and documents provided in a mail-in audit, the Agency will take one of the following actions:

(a) If the information and documents are in compliance with statutes and rules, the Agency will provide written notice to the principal real estate broker confirming compliance only as to the information and documents provided;

(b) If the information and documents indicate that the principal real estate broker may be subject to additional documentation and procedural requirements that were not part of the mail-in audit, the Agency will provide written notice to the principal real estate broker detailing the Agency’s expectations for compliance on those matters;

(c) If the information and documents demonstrate that the principal real estate broker is not in compliance with ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to 696.870, or OAR chapter 863, the Agency will provide written notice to the principal real estate broker that includes:

(A) The principal real estate broker must cure all noncompliance issues and provide information and documentation to the Agency that the noncompliance has been cured within 30 days of the date of the notice; and

(B) If all noncompliance issues are not cured within 30 days, the Agency may impose sanctions on the principal real estate broker or may initiate an investigation and not allow additional time for the principal real estate broker to cure the noncompliance.

(d) If the Agency has reasonable grounds to believe that the funds belonging to others may be missing, funds may have been misappropriated, or that the principal real estate broker’s records are in such a condition that the principal real estate broker is placing funds belonging to others at risk, the Agency may immediately initiate an investigation without providing a principal real estate broker with an opportunity to cure noncompliance.

(7) If a principal real estate broker does not respond to a mail-in audit within the time period required in the notice, the Agency may initiate an investigation.

(8) The Agency may conduct a mail-in audit of a principal real estate broker:

(a) As part of a regular, routine and random selection of principal real estate broker clients’ trust accounts for mail-in audits;

(b) When the Agency has determined, after a compliance review, that the principal real estate broker was not in compliance and provided the principal real estate broker with an opportunity to cure the non-compliance; and

(c) After an investigation has been initiated.

Stat. Auth.: ORS 183.335 & 696.385

Stats. Implemented: ORS 696.280

Hist.: REA 7-2014, f. 4-14-14, cert. ef. 4-28-14


Rule Caption: Added a definition of “property management agreement” to Division 25 and technical fixes.

Adm. Order No.: REA 8-2014

Filed with Sec. of State: 4-14-2014

Certified to be Effective: 4-28-14

Notice Publication Date: 3-1-2014

Rules Amended: 863-025-0010

Subject: OAR 863-025-0010 Definitions

   Added “property management agreement”, which was defined by a new law.

   Updated for terms that are defined in ORS 696.010. Language now conforms to writing style utilized in other administrative rules for consistency.

   Reorganized order of included terms so terms appear in alphabetical order.

Rules Coordinator: Erica Kleiner—(503) 378-4409

863-025-0010

Definitions

In addition to the definitions used in ORS 696.010 and 863-015-0120, as used in OAR 863-025-0015 to 863-025-0080, unless the context requires otherwise:

(1) “Audit trail” means a documented history of a financial transaction by which the transaction can be traced to its source.

(2) “Bank account” is defined in ORS 696.010.

(3) “Banking day” means each day a bank is required to be open for the normal conduct of its business but does not include Saturday, Sunday, or any legal holiday under ORS 187.010.

(4) “Clients’ Trust Account” means a federally insured bank account labeled as “Clients’ Trust Account” on all bank records and checks that is established and maintained by a property manager, acting on behalf of an owner under a property management agreement, for depositing, holding and disbursing funds received by the property manager on behalf of an owner, including application fees and application screening fees.

(5) “Compliance review” means an Agency review of a property manager’s records and procedures for the purpose of educating the property manager on statutes and rules.

(6) “Cure noncompliance” means a property manager’s acts that resolve the property manager’s failure to comply with statutory and rule requirements.

(7) “Employee” means a non-licensed individual employed by a property manager for wages or a salary.

(8) “Identifying code” means a unique series of letters and/or numbers assigned by a property manager to a property management agreement at the time the agreement is signed by the parties and used on all transactions and records to reference the agreement. A property manager may use a supplemental unique series of letters and/or numbers on transactions and records if the property manager establishes a clear audit trail to a specific property management agreement and to the original identifying code.

(9) “Investigation” means an Agency-initiated investigation of a property manager that may result in administrative actions against the licensee.

(10) “Mail-in audit” means an Agency audit of a clients’ trust account based on information and documents prepared by a property manager and mailed to the Agency.

(11) “Owner” means a person or persons who own rental real estate that is managed by a property manager.

(12) “Property management agreement” is defined in ORS 696.010.

(13) “Property manager” is defined in ORS 696.010.

(14) “Records” and “property management records” mean a complete and adequate documentation of the management of rental real estate.

(15) “Security Deposit” means a conditionally refundable payment or deposit of money, however designated, the primary function of which is to secure the performance of a rental or lease agreement or any part of a rental or lease agreement.

(16) “Security Deposits Account” means a federally insured clients’ trust account labeled as “Clients’ Trust Account — Security Deposits” on all bank records and checks that is established and maintained by a property manager, acting in a fiduciary capacity on behalf of an owner under a property management agreement, for depositing, holding and disbursing security deposit funds.

(17) “Sufficient funds” or “sufficient credit balance” means an amount of funds on an owner’s ledger or a tenant’s ledger that is equal to or greater than the amount of a planned disbursement from a clients’ trust account or a security deposits account but which must not include any security deposits in a security deposits trust account that are required to be held pending the termination of a rental agreement. Only funds belonging to the owner or tenant on whose behalf the disbursement is planned may be considered in determining if there are sufficient funds or a sufficient credit balance.

Stat. Auth.: ORS 183.335 & 696.385

Stats. Implemented: ORS 696.010

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 8-2014, f. 4-14-14, cert. ef. 4-28-14


Rule Caption: Allowance for Agency to require a job applicant to submit to a criminal records check.

Adm. Order No.: REA 9-2014

Filed with Sec. of State: 4-14-2014

Certified to be Effective: 4-28-14

Notice Publication Date: 3-1-2014

Rules Adopted: 863-003-0000, 863-003-0005, 863-003-0010, 863-003-0020, 863-003-0040, 863-003-0050, 863-003-0060, 863-003-0070, 863-003-0080, 863-003-0090, 863-003-0100, 863-003-0110

Subject: This new division will allow the Real Estate Agency to require a person applying for employment with the Agency to complete a criminal records check. The purpose of these rules is to provide for the reasonable screening of subject individuals to determine if they have a history of criminal behavior such that they are not fit to work or volunteer in certain positions as specified in this new division. The fact that the Agency determines that a subject individual is fit does not guarantee the individual a position as an Agency employee, volunteer, contractor or vendor or that the individual will be hired by the Agency.

Rules Coordinator: Erica Kleiner—(503) 378-4409

863-003-0000

Purpose

The purpose of these rules is to provide for the reasonable screening of subject individuals to determine if they have a history of criminal behavior such that they are not fit to work or volunteer in positions covered in OAR 863-003-0010(2). The fact that the Agency determines that a subject individual is fit does not guarantee the individual a position as an Agency employee, volunteer, contractor or vendor or that the individual will be hired by the Agency.

Stat. Auth.: ORS 181.534 & 696.385

Stats. Implemented: ORS 181.534 & 696.790

Hist.: REA 9-2014, f. 4-14-14, cert. ef. 4-28-14

863-003-0005

Definitions

As used in OAR chapter 863, division 3, unless the context of the rule requires otherwise, the following definitions apply:

(1) Agency: The Real Estate Agency as defined in ORS 696.010.

(2) Conviction: A final judgment on a verdict or finding of guilty, a plea of guilty, or a plea of nolo contendere (no contest) or any determination of guilt entered by a court of law against a subject individual in a criminal case, unless that judgment has been reversed or set aside by a subsequent court decision.

(3) Fitness determination: A determination made by the Agency, pursuant to the process established under OAR 863-003-0050, that a subject individual is fit or not fit to be an Agency employee, volunteer, contractor or vendor in a position covered by 863-003-0010(2).

(4) Criminal offender information: Records and related data concerning physical description and vital statistics, fingerprints received and compiled by the Oregon Department of State Police to identify criminal offenders and alleged offenders, records of arrests and the nature and disposition of criminal charges, including sentencing, confinement, parole and release records.

(5) Criminal records check: One or more of the following three processes undertaken by the Agency to check the criminal history of a subject individual:

(a) A name-based check of criminal offender information conducted through the Law Enforcement Data System (LEDS) maintained by the Oregon Department of State Police, in accordance with the rules adopted and procedures established by the Oregon Department of State Police;

(b) A check of Oregon criminal offender information, through fingerprint identification and other means, conducted by the Oregon Department of State Police at the Agency’s request (Oregon Criminal Records Check); or

(c) A nationwide check of federal criminal offender information, through fingerprint identification and other means, conducted by the Oregon Department of State Police through the Federal Bureau of Investigation or otherwise at the Agency’s request (Nationwide Criminal Records Check).

(6) Criminal records request form: An Agency-approved form, completed by a subject individual, requesting the Agency to conduct a criminal records check.

(7) False statement: In association with an activity governed by these rules, a subject individual either:

(a) Provided the Agency with false information about the subject individual’s criminal history, including but not limited to false information about the individual’s identity or conviction record; or

(b) Failed to provide the Agency information material to determining the individual’s criminal history.

(8) Subject Individual: An individual identified in OAR 863-003-0010 as someone from whom the Agency may require a criminal records check.

Stat. Auth.: ORS 181.534 & 696.385

Stats. Implemented: ORS 181.534 & 696.790

Hist.: REA 9-2014, f. 4-14-14, cert. ef. 4-28-14

863-003-0010

Subject Individual

The Agency may require a subject individual to complete a criminal records check pursuant to these rules because the person:

(1)(a) Is employed by or applying for employment with the Agency; or

(b) Provides services or seeks to provide services to the Agency as a volunteer, contractor, or vendor; and

(2) Is, or will be, working or providing services in a position:

(a) In which the subject individual is providing information technology services and has control over, or access to, information technology systems that would allow the person to harm the information technology systems or the information contained in the systems;

(b) In which the subject individual has access to information that state or federal laws, rules or regulations prohibit disclosing or define as confidential;

(c) That has payroll functions;

(d) In which the subject individual has responsibility for receiving, receipting or depositing money or negotiable instruments;

(e) In which the subject individual has responsibility for billing, collections or other financial transactions;

(f) In which the subject individual has responsibility for purchasing or selling property or has access to property held in trust or to private property in the temporary custody of the state;

(g) That has mailroom duties as the primary duty or job function;

(h) That has personnel or human resources functions as one of the position’s primary responsibilities;

(i) In which the subject individual has access to Social Security numbers, dates of birth or criminal background information of employees or members of the public;

(j) In which the individual has access to tax or financial information about individuals or business entities.

Stat. Auth.: ORS 181.534 & 696.385

Stats. Implemented: ORS 181.534 & 696.790

Hist.: REA 9-2014, f. 4-14-14, cert. ef. 4-28-14

863-003-0020

Criminal Records Check Process

(1) Disclosure of Information by Subject Individual.

(a) Preliminary to a criminal records check, a subject individual must complete and sign the Agency criminal records request and a fingerprint card. Both forms ask for identifying information (e.g., name, birth date, social security number, physical characteristics, driver’s license or identification card number and current address of the subject individual). The Agency criminal records request also requires information about the subject individual’s prior residences in other states and any other identifying information deemed necessary by the Agency.

(b) A subject individual must complete and submit to the Agency the Criminal Records Request form and, if requested, a fingerprint card within three business days of receiving the forms. The Agency may extend the deadline for good cause.

(c) The Agency may require additional information from the subject individual as necessary to complete the criminal records check and fitness determination, such as, but not limited to, proof of identity; or additional criminal, judicial, or other background information.

(d) The Agency shall not request a fingerprint card from a subject individual under the age of 18 years unless the subject individual is emancipated pursuant to ORS 419B.550 et seq, or unless the Agency also requests the written consent of a parent or guardian. In such case, such parent or guardian and youth must be informed that they are not required to consent. Notwithstanding, failure to consent may be construed as a refusal to consent under OAR 863-003-0050(3).

(2) When a Criminal Records Check is Required. The Agency may conduct, or request the Oregon State Police to conduct, a criminal records check when:

(a) An individual meets the definition of a subject individual; or

(b) Required by federal law or regulation, by state or administrative rule, or by contract or written agreement with the Agency.

(3) Which Criminal Records Check is Conducted. When the Agency determines under section (2) of this rule that a criminal records check is needed, the Agency may request or conduct a LEDS Criminal Records Check, an Oregon Criminal Records Check, a Nationwide Criminal Records Check, or any combination thereof.

Stat. Auth.: ORS 181.534 & 696.385

Stats. Implemented: ORS 181.534 & 696.790

Hist.: REA 9-2014, f. 4-14-14, cert. ef. 4-28-14

863-003-0040

Hiring or Appointing on a Preliminary Basis

(1) If the Agency elects to conduct a criminal records check pursuant to these rules, the Agency, in its sole discretion, may hire or appoint the subject individual on a preliminary basis pending completion of a criminal records check when:

(a) The subject individual has provided all information (including a fingerprint card, if requested) as required by the Agency pursuant to OAR 863-003-0020; and

(b) The Agency, in its sole discretion, determines that preliminary hiring is in the Agency’s best interests.

(2) A subject individual hired or appointed on a preliminary basis under this rule may participate in training, orientation, and work activities as assigned by the Agency.

(3) Nothing in this rule shall be construed as requiring the Agency to hire on a preliminary basis.

(4) A subject individual hired on a preliminary basis is deemed to be on trial service.

Stat. Auth.: ORS 181.534 & 696.385

Stats. Implemented: ORS 181.534 & 696.790

Hist.: REA 9-2014, f. 4-14-14, cert. ef. 4-28-14

863-003-0050

Final Fitness Determination

(1) If the Agency elects to conduct a criminal records check, the Agency shall make a fitness determination about a subject individual based on information provided by the subject individual under OAR 863-003-0020, the criminal records check(s) conducted, and any false statements made by the subject individual.

(2) In making a fitness determination about a subject individual, the Agency will also consider the factors in subsections (a) through (f) below in relation to information provided by the subject individual under OAR 863-003-0020(1), any LEDS report or criminal offender information obtained through a criminal records check, and other information known by the Agency. To assist in considering these factors, the Agency may obtain any other information deemed relevant from the subject individual or any other source, including law enforcement and criminal justice agencies or courts within or outside of Oregon. To acquire other criminal offender information from the subject individual, the Agency may request to meet with the subject individual, and may request to receive written materials or authorization to obtain other relevant information, from him or her. The subject individual shall meet with the Agency if requested and provide additional information or authorization within a reasonable period of time, as established by the Agency. The Agency will use all collected information in considering:

(a) Whether the subject individual has been convicted, found guilty except for insanity (or a comparable disposition), or has a pending indictment for a crime listed in OAR 863-003-0060;

(b) The nature of any crime identified under section (2)(a) of this rule;

(c) The facts that support the conviction, finding of guilty except for insanity, or pending indictment;

(d) Any facts that indicate the subject individual made a false statement;

(e) The relevance, if any, of a crime identified under section (2)(a) of this rule or of a false statement made by the subject individual to the specific requirements of the subject individual’s present or proposed position, services or employment; and

(f) The following intervening circumstances, to the extent that they are relevant to the responsibilities and circumstances of the services or employment for which the fitness determination is being made:

(A) The passage of time since the commission or alleged commission of a crime identified under section (2)(a) of this rule;

(B) The age of the subject individual at the time of the commission or alleged commission of a crime identified under section (2)(a) of this rule;

(C) The likelihood of a repetition of offenses or of the commission of another crime;

(D) The subsequent commission of another crime listed in OAR 863-003-0060;

(E) Whether a conviction identified under section (2)(a) of this rule has been set aside, and the legal effect of setting aside the conviction;

(F) A recommendation of an employer;

(G) The disposition of a pending indictment identified under section (2)(a) of this rule;

(H) Whether the subject individual has been arrested for or charged with a crime listed under OAR 863-003-0060;

(I) Whether the subject individual is being investigated, or has an outstanding warrant, for a crime listed under OAR 863-003-0060;

(J) Whether the subject individual is currently on probation, parole or another form of post-prison supervision for a crime listed under OAR 863-003-0060;

(K) Whether the subject individual has a deferred sentence or conditional discharge in connection with a crime listed under OAR 863-003-0060;

(L) Whether the subject individual has been adjudicated in a juvenile court and found to be within the court’s jurisdiction for an offense that would have constituted a crime listed in OAR 863-003-0060 if committed by an adult;

(M) Periods of incarceration of the subject individual;

(N) The education and work history (paid or volunteer) of the subject individual since the commission or alleged commission of a crime.

(3) Refusal to Consent. If a subject individual refuses to submit or consent to a criminal records check including fingerprint identification, the Agency will deny the employment of the subject individual or deny any applicable position or authority to provide services. A person may not appeal any determination made based on a refusal to consent.

(4) If a subject individual is determined to be not fit, the subject individual may not be employed by or provide services as a volunteer, contractor or vendor to the Agency in a position described in OAR 863-003-0010(2).

(5) Final Order. A completed final fitness determination is a final order of the Agency unless the affected subject individual appeals the determination by requesting a contested case hearing as provided by 863-003-0090(2) or an alternative appeals process as provided by 863-003-0090(6).

Stat. Auth.: ORS 181.534 & 696.385

Stats. Implemented: ORS 181.534 & 696.790

Hist.: REA 9-2014, f. 4-14-14, cert. ef. 4-28-14

863-003-0060

Potentially Disqualifying Crimes

(1) Crimes Relevant to A Fitness Determination:

(a) All felonies;

(b) All misdemeanors;

(c) Any United States Military crime or international crime;

(2) Evaluation of Crimes. The Agency shall evaluate a crime on the basis of the law of the jurisdiction in which the crime or offense occurred, as those laws are in effect at the time of the fitness determination.

(3) Expunged Juvenile Record. Under no circumstances shall a subject individual be determined to be not fit under these rules on the basis of the existence or contents of a juvenile record that has been expunged pursuant to ORS 419A.260 and 419A.262.

Stat. Auth.: ORS 181.534 & 696.385

Stats. Implemented: ORS 181.534 & 696.790

Hist.: REA 9-2014, f. 4-14-14, cert. ef. 4-28-14

863-003-0070

Incomplete Fitness Determination

(1) The Agency will close a preliminary or final fitness determination as incomplete when:

(a) Circumstances change so that a person no longer meets the definition of a “subject individual” under OAR 863-003-0010.

(b) The subject individual does not submit materials or information within the time required under OAR 863-003-0020(1);

(c) The Agency cannot locate or contact the subject individual;

(d) The subject individual fails or refuses to cooperate with the Agency’s attempts to acquire other criminal records information under OAR 863-003-0050(2); or

(e) The Agency determines that the subject individual is not eligible or not qualified for the position (of employee, contractor, vendor or volunteer) for a reason unrelated to the fitness determination process.

(f) The position is no longer open.

(2) A subject individual does not have a right to a contested case hearing under OAR 863-003-0090(2) or a right to an alternative appeals process as provided by OAR 863-003-0090(6) to challenge the closing of a fitness determination as incomplete.

Stat. Auth.: ORS 181.534 & 696.385

Stats. Implemented: ORS 181.534 & 696.790

Hist.: REA 9-2014, f. 4-14-14, cert. ef. 4-28-14

863-003-0080

Notice to Subject Individual of Fitness Determination

The Agency shall inform the subject individual who has been determined not to be fit on the basis of a criminal records check, via personal service, or registered or certified mail to the most current address provided by the subject individual, of such disqualification.

Stat. Auth.: ORS 181.534 & 696.385

Stats. Implemented: ORS 181.534 & 696.790

Hist.: REA 9-2014, f. 4-14-14, cert. ef. 4-28-14

863-003-0090

Appealing a Fitness Determination

(1) Purpose. Sections (2) to (5) of this rule set forth the contested case hearing process a subject individual must use to appeal a completed final fitness determination made under OAR 863-003-0050 that the individual is not fit to hold a position with, or provide services to the Agency as an employee, volunteer, contractor, or vendor. Section (6) of this rule identifies an alternative appeal process available only to current Agency employees.

(2) Appeal process.

(a) To request a contested case hearing, the subject individual or the subject individual’s legal representative must submit a written request for a contested case hearing to the address specified in the notice provided under OAR 863-003-0080. To be timely, the request must be received by the Agency at the specified address within 14 calendar days of the date stated on the notice. The Agency shall address a request received after expiration of the deadline as provided under OAR 137-003-0528.

(b) When a timely request is received by the Agency under subsection (a), a contested case hearing shall be conducted by an administrative law judge assigned by the Office of Administrative Hearings, pursuant to the Attorney General’s Uniform and Model Rules, “Procedural Rules, Office of Administrative Hearings” OAR 137-003-0501 to 137-003-0700, as supplemented by the provisions of this rule.

(3) Discovery. The Agency or the administrative law judge may protect information made confidential by ORS 181.534(15) or other applicable law as provided under OAR 137-003-0570(7) or (8).

(4) No Public Attendance. Contested case hearings on fitness determinations are closed to non-participants.

(5) Proposed and Final Order:

(a) Proposed Order. After a hearing, the administrative law judge will issue a proposed order.

(b) Exceptions. Exceptions, if any, shall be filed within 14 calendar days after service of the proposed order. The proposed order shall provide an address to which exceptions must be sent.

(c) Default. A completed final fitness determination made under OAR 863-003-0050 becomes final:

(A) unless the subject individual makes a timely request for a hearing; or

(B) when a party withdraws a hearing request, notifies the Agency or the ALJ that the party will not appear, or fails to appear at the hearing.

(6) Alternative Process. A subject individual currently employed by the Agency may choose to appeal a fitness determination either under the process made available by this rule or through a process made available by applicable personnel rules, policies and collective bargaining provisions. A subject individual’s decision to appeal a fitness determination through applicable personnel rules, policies, and collective bargaining provisions is an election of remedies as to the rights of the individual with respect to the fitness determination and is a waiver of the contested case process made available by this rule.

(7) Remedy. The only remedy that may be awarded is a determination that the subject individual is fit or not fit. Under no circumstances shall the Agency be required to place a subject individual in any position, nor shall the Agency be required to accept services or enter into a contractual agreement with a subject individual.

(8) Challenging Criminal Offender Information. A subject individual may not use the appeals process established by this rule to challenge the accuracy or completeness of information provided by the Oregon Department of State Police, the Federal Bureau of Investigation, or agencies reporting information to the Oregon Department of State Police or the Federal Bureau of Investigation.

(a) To challenge information identified in this section of the rule, a subject individual may use any process made available by the agency that provided the information.

(b) If the subject individual successfully challenges the accuracy or completeness of information provided by the Oregon Department of State Police, the Federal Bureau of Investigation, or an agency reporting information to the Oregon Department of State Police or the Federal Bureau of Investigation, the subject individual may request that the Agency conduct a new criminal records check and re-evaluate the original fitness determination made under OAR 863-003-0050 by submitting a new Agency criminal records request. This provision only applies if the position for which the original criminal history check was conducted is vacant and available.

(9) Appealing a fitness determination under section (2) or section (6) of this rule, challenging criminal offender information with the agency that provided the information, or requesting a new criminal records check and re-evaluation of the original fitness determination under section (8)(b) of this rule, will not delay or postpone the Agency’s hiring process or employment decisions.

Stat. Auth.: ORS 181.534 & 696.385

Stats. Implemented: ORS 181.534 & 696.790

Hist.: REA 9-2014, f. 4-14-14, cert. ef. 4-28-14

863-003-0100

Recordkeeping and Confidentiality

Any information obtained in the criminal records check is confidential. The Agency must restrict the dissemination of information obtained in the criminal records check. Only those persons, as identified by the Agency, with a demonstrated and legitimate need to know the information, may have access to criminal records check records.

Stat. Auth.: ORS 181.534 & 696.385

Stats. Implemented: ORS 181.534 & 696.790

Hist.: REA 9-2014, f. 4-14-14, cert. ef. 4-28-14

863-003-0110

Fees

(1) The Agency may charge a fee for acquiring criminal offender information for use in making a fitness determination that will not exceed the fee charged the Agency by the Oregon Department of State Police and the Federal Bureau of Investigation to obtain such information.

(2) The Agency may charge the fee to the subject individual on whom criminal offender information is sought or, if the subject individual is an employee of an Agency contractor or vendor and is undergoing a fitness determination in that capacity, the Agency may charge the fee to the subject individual’s employer.

Stat. Auth.: ORS 181.534 & 696.385

Stats. Implemented: ORS 181.534 & 696.790

Hist.: REA 9-2014, f. 4-14-14, cert. ef. 4-28-14

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, 2013.

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

Oregon Secretary of State • 136 State Capitol • Salem, OR 97310-0722
Phone: (503) 986-1523 • Fax: (503) 986-1616 • oregon.sos@state.or.us

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