Oregon Bulletin
Rule
Caption: Payment of fees to the Real
Estate Agency.
Adm.
Order No.: REA 4-2011
Filed with Sec. of
State: 8-15-2011
Certified to be
Effective: 9-1-11
Notice Publication
Date: 8-1-2011
Rules Adopted: 863-001-0020
Subject: Establishes that the Real Estate Agency’s primary
method for accepting payments for licensing following fees is electronic funds
transfer or credit card payment using online authorization and payment process.
Rules Coordinator: Laurie Skillman—(503) 378-4630
863-001-0020
Payment of Fees to the Agency
(1) As used in this rule, the following definitions
apply:
(a) “Electronic funds transfer” (EFT) has the same
meaning given the term in ORS 293.525.
(b) “EFT — ACH Credit” means the electronic funds
transfer from a person’s or entity’s bank account, initiated by the person or
entity, and cleared through the Automated Clearing House (ACH) network for
deposit to the Agency.
(c) “EFT — ACH Debit” means the electronic funds
transfer from a person’s or entity’s bank account, initiated by the Agency and
cleared through the ACH network to debit a person’s or entity’s bank account
and deposit to the Agency’s account.
(2) Effective September 12, 2011, it is the policy of
the Oregon Real Estate Agency that the payment method for accepting payments by
persons or entities doing business with the Agency for the following fees shall
be by EFT or credit/debit card payments:
(a) An application fee for a real estate broker,
principal real estate broker or real estate property manager license.
(b) An application fee for renewal of a real estate
broker, principal real estate broker or real estate property manager license.
(c) An application fee for the registration of a branch
office of a principal real estate broker or property manager.
(d) An application fee for a licensee name change.
(e) An application fee to transfer a real estate
broker’s, principal real estate broker’s or real estate property manager’s
license.
(f) An application fee to renew an inactive real estate
broker, principal real estate broker or real estate property manager inactive
license.
(h) An application fee for the reactivation of an
inactive license of a real estate broker, principal real estate broker or real
estate property manager.
(i) A late renewal fee that is in addition to the
renewal fee, for late renewal.
(k) An application fee for the initial registration of
a business name.
(l) An application fee for a membership campground
contract broker, operator or salesperson.
(3) Electronic payments to the Agency shall be made
using one of the following methods:
(a) Online payment process available on the Agency’s
website. A person or entity will authorize the Agency to charge their
credit/debit card or debit their bank account using an EFT — ACH Debit
through the Agency’s online payment process.
(b) EFT — ACH Credit to the Agency’s designated
bank account. A person or entity choosing to send EFT — ACH Credits to
the Agency’s bank account, shall complete a form provided by the Agency. This
form shall be submitted to the Agency to authorize EFT — ACH Credit
payments to the Agency.
(4) Notwithstanding (3) of this rule, the Agency will
grant an exception and accept payments by check when a person or entity
presents satisfactory evidence of special circumstances, which the Agency will
review on a case by case basis and will consider based on whether the
processing of a paper check would be in the best interests of the Agency. A
request for exception must be made in writing.
Stat. Auth: ORS 696.385
Stats. Implemented: ORS 696.270
& 296.525
Hist.: REA 4-2011, f. 8-15-11,
cert. ef. 9-1-11
Rule
Caption: Amends rule for petition to Board
for continuing education provider.
Adm.
Order No.: REA 5-2011
Filed with Sec. of
State: 8-15-2011
Certified to be
Effective: 9-1-11
Notice Publication
Date: 8-1-2011
Rules Amended: 863-020-0025
Rules Repealed: 863-020-0025(T)
Subject: OAR 863-020-0025 establishes the requirements for a
petitioner who wishes to petition the Real Estate Board for the Board to
approve the petitioner’s qualifications to apply to become a continuing
education provider. A person not otherwise qualified to be a
continuing
education provider must apply to the Board and request the Board’s approval of
the person’s qualifications.
Rules Coordinator: Laurie Skillman—(503) 378-4630
863-020-0025
Board Approval of Continuing
Education Provider Qualification
(1) A person not otherwise qualified under OAR
863-020-0020(1)(a) through (g) seeking the Board’s approval as an applicant for
certification must petition the Board under this rule.
(2) The person must submit a petition for approval to
the Agency on an Agency-approved form at least 21 days before the scheduled
Board meeting at which the applicant wishes the Board to act. The petition must
include the following:
(a) The petitioner’s name, address, and phone number.
(b) Sufficient information about the petitioner named
in the application to allow the Board to determine whether the petitioner
qualifies for certification, including specifics about one or both of the
following:
(A) Petitioner’s demonstrated expertise and experience
in providing educational courses to real estate licensees;
(B) Petitioner’s demonstrated experience and expertise
in at least two course topics eligible for continuing education credit under
OAR 863-020-0035(4)(a)-(gg).
(c) Attestation by the petitioner that the petitioner
knows and understands:
(A) The responsibilities of a continuing education
provider under OAR 863-020-0050;
(B) The requirements of an instructor under ORS 696.186
and the information required on a continuing education instructor form under
OAR 863-020-0060.
(3) If the Board approves the petition, the Agency will
mail a letter to the petitioner confirming the Board’s approval, and the
petitioner may apply for certification as a course provider under OAR
863-020-0030.
Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.182
Hist.: REA 1-2010, f. 6-14-10,
cert. ef. 7-1-10; REA 1-2011(Temp), f. 2-3-11, cert. ef. 2-4-11 thru 8-3-11;
REA 2-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 5-2011, f.
8-15-11, cert. ef. 9-1-11
Rule
Caption: Amends licensing rules to
implement new electronic licensing processes.
Adm.
Order No.: REA 6-2011
Filed with Sec. of
State: 8-15-2011
Certified to be
Effective: 9-1-11
Notice Publication
Date: 8-1-2011
Rules Adopted: 863-014-0066, 863-022-0060, 863-024-0066
Rules Amended: 863-014-0003, 863-014-0010, 863-014-0015,
863-014-0020, 863-014-0030, 863-014-0035, 863-014-0040, 863-014-0050,
863-014-0062, 863-014-0063, 863-014-0065, 863-014-0076, 863-014-0095,
863-022-0010, 863-022-0015, 863-022-0025, 863-024-0003, 863-024-0010, 863-024-0015,
863-024-0020, 863-024-0030, 863-024-0045, 863-024-0050, 863-024-0062,
863-024-0063, 863-024-0065, 863-024-0076, 863-024-0095
Rules Repealed: 863-014-0066(T), 863-022-0060(T), 863-024-0066(T),
863-014-0003(T), 863-014-0010(T), 863-014-0015(T), 863-014-0020(T),
863-014-0030(T), 863-014-0035(T), 863-014-0040(T), 863-014-0050(T),
863-014-0062(T), 863-014-0063(T), 863-014-0065(T), 863-014-0076(T),
863-014-0095(T), 863-022-0010(T), 863-022-0015(T), 863-022-0025(T),
863-024-0003(T), 863-024-0010(T), 863-024-0015(T), 863-024-0020(T),
863-024-0030(T), 863-024-0045(T), 863-024-0050(T), 863-024-0062(T),
863-024-0063(T), 863-024-0065(T), 863-024-0076(T), 863-024-0095(T)
Subject: These rules amend the real estate broker, principal
broker and property manager licensing rules in OAR chapter 863, Divisions 14
and 24 and implement the statutory changes in SB 156, which became effective
May 27, 2011. The purposes of these amendments are to align the license
application process with the Agency’s new electronic licensing system. Changes
to processes and requirements include: 1) the license application processes and
payment of fees for fingerprinting and examination services, which have been
contracted to a service provider; 2) the requirement of a licensee to renew online;
3) new requirement to maintain a license applicant or licensee’s email address;
4) establishes the Agency’s primary and preferred method of notification,
correspondence or confirmation is to a licensee’s email address; and 5) allows
the Agency to require an original or electronic signature.
New rules in
Division 14 and 24 establish the new requirements for a licensee’s name change.
A new rule in Division 22 establishes new requirements of the pre-license
education providers to certify course completion to the examination service
provider.
Rules Coordinator: Laurie Skillman—(503) 378-4630
863-014-0003
Definitions
As used in this division, unless the context requires
otherwise, the following definitions apply:
(1) “Agency” is defined in ORS 696.010.
(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” is defined in ORS 696.010.
(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) “Real estate activity,” “professional real estate
activity,” and “real estate business” mean “professional real estate activity”
as defined in ORS 696.010.
(11) “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.
(12) “Real estate licensee” and “licensee” mean a “real
estate licensee” as defined in ORS 696.010, unless the context requires
otherwise.
(13) “Registered business name” is defined in ORS
696.010.
(14) “Signed” or “Signature” means original or
electronic signature as provided by OAR-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
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 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.
(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 of (3) of this
rule, a real estate broker license applicant, who is basing the applicant’s
examination qualifications on a broker license from another state, must provide
the applicant’s certified license history from the state where such examination
was taken.
(5) 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.
(6) 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
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.
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
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.
(9) In lieu of the national portion of the examination
required for a real estate broker license in this rule, the Board may accept an
applicant’s passing results of the national portion of a broker examination
taken in another state if:
(a) The examination was taken after November 1, 1973
and the license issued as a result of that examination has not been expired for
more than one year; or
(b) The examination was taken within the 12 months
before the license application date and
(c) The applicant provides the Agency with the
applicant’s certified license history from the state where such examination was
taken.
Stat. Auth.: ORS 696.385 &
696.425
Stats. Implemented: ORS 696.020,
696.022 & 696.425
Hist.: REA 1-2002, f. 5-31-02,
cert. ef. 7-1-02; REA 3-2004, f. 4-28-04, cert. ef. 5-3-04; REA 1-2005, f.
5-5-05, cert. ef. 5-6-05; REA 2-2005(Temp), f. 6-9-05, cert. ef. 7-1-05 thru
12-26-05; Administrative correction 1-20-06; REA 2-2007(Temp), f. & cert.
ef. 3-21-07 thru 9-16-07; REA 4-2007, f. & cert. ef. 9-26-07; Renumbered
from 863-015-0020, REA 5-2008, f. 12-15-08, cert. ef. 1-1-09; REA 1-2010, f.
6-14-10, cert. ef. 7-1-10; REA 2-2010, f. 12-15-10, cert. ef. 1-1-11; 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
863-014-0030
License Issue, Term and Form
(1) The Agency will issue a real estate license to an
applicant after determining that the applicant meets the license requirements
contained in ORS 696.022 and 696.790, has paid all required fees, and meets:
(a) The requirements under OAR 863-014-0035 for real
estate broker license applicant; or
(b) The requirements under OAR 863-014-0040 for a
principal broker license applicant.
(2) A licensee may engage in professional real estate
activities allowed for that license by ORS Chapter 696 and OAR chapter 863 from
the date the license is issued until the license expires, becomes inactive, or
is revoked, surrendered, or suspended.
(3) A licensee may hold only one of the following
Oregon real estate licenses at any time:
(a) Real estate broker,
(b) Principal real estate broker, or
(c) Property manager.
(4) The license expiration date is the last day of the
month of a licensee’s birth month.
(5) The license term is not more than 24 months plus
the number of days between the date the license is issued or renewed and the
last day of the month of the licensee’s birth month.
(6) The license will include the following information:
(a) The licensee’s legal name,
(b) The license number, effective date, and expiration
date,
(c) The name under which the licensee conducts real
estate business or the registered business name,
(d) The licensee’s business address,
(e) The seal of the Real Estate Agency, and
(f) Any other information the Agency deems appropriate.
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 2-2007(Temp), f. & cert. ef. 3-21-07 thru 9-16-07; REA 4-2007,
f. & cert. ef. 9-26-07; Renumbered from 863-015-0030, 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
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 a 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. Effective July 1, 2011 until September 14, 2011, after the
requirements in (1) and (2) of this rule are met, the applicant must submit to
the Agency:
(a) The name and address of the principal broker who
will supervise the applicant’s professional real estate activity and name and
address of the registered business name of the principal broker; and
(b) The written authorization of the principal broker
to be associated with the principal broker and use the principal broker’s
registered business name.
(5) Effective September 15, 2011, after the
requirements in (1) and (2) of this rule are met:
(a) The applicant must submit to the Agency the name
and address of the principal broker who will supervise the applicant’s
professional real estate activity and name and address of the registered
business name of the principal broker; and
(b) The Agency will contact the principal broker for
authorization for the applicant to be associated with the principal broker and
to use the registered business name.
(6) Effective September 15, 2011, 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
863-014-0040
Principal Real Estate Broker
Licensing Requirements
(1) Effective July 1, 2011, 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) 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,
address and authorization of a principal broker with whom the applicant will be
associated, and the authorization of the principal broker to use the principal
broker’s registered business name.
(4) Effective September 15, 2011, after the
requirements in (1) and (2) of this rule are met:
(a) The applicant must state whether 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) After the applicant has submitted the following,
the Agency will contact the principal broker for authorization for the
applicant to be associated with the principal broker and to use the registered
business name:
(A) The name and address of a principal broker with
whom the applicant will be associated; and
(B) The address of the registered business name.
(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 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) Effective September 15, 2011, 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
863-014-0050
License Renewal
(1) Effective July 1, 2011 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 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.
(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
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) Effective September 15, 2011, 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
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 form” means a completed and
signed form 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) A license transfer form includes:
(a) The name, mailing address, email address and
license number of the licensee who is transferring the license or documenting
the authorized use of a registered business name;
(b) The current status of the license, whether active
or inactive;
(c) If the real estate broker is associated with a
sending principal broker, certification that the real estate broker provided
written notice of the transfer to the sending principal broker, and that such
notice was provided before the date the transfer form is submitted to the
Agency, including:
(A) The date of personal service of such notice; or
(B) The date a certified letter was delivered by the
post office to the sending principal broker’s address;
(d) If the form is used to authorize the use of a
different registered business name, certification that the licensee provided
written notice of such change to the authorized licensee for the current
registered business name, and that such notice was provided before the date the
license transfer form is submitted to the Agency, including:
(A) The date of personal service of such notice; or
(B) The date a certified letter was delivered to the
authorized licensee’s address;
(e) If applicable, the receiving principal broker’s
registered business name, street address, and registered business name
identification number;
(f) If applicable, the street address, registered
business name identification number, and the registered business name under
which the real estate licensee will be authorized to conduct professional real
estate activity; and
(g) The receiving broker’s or authorized licensee’s
name, license number, telephone number, date, and signature.
(3) The Agency will transfer the license of an active
real estate broker associated with a sending principal broker to a receiving
principal broker when the Agency receives a license transfer form and the
transfer fee authorized by ORS 696.270.
(4) The Agency will transfer the license of an active
principal real estate broker to a receiving principal broker when the Agency
receives a license transfer form and the transfer fee authorized by ORS
696.270.
(5) The Agency will transfer the license of an inactive
real estate licensee, who has been inactive for a period of 30 days or less, to
a receiving principal broker when the Agency receives a license transfer form
and the transfer fee authorized by ORS 696.270.
(6) 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 Agency-approved form submitted by the principal
real estate broker terminating the relationship with the licensee under OAR
863-014-0065; or
(b) A license transfer form and fee.
(7) If a principal real estate broker with whom a real
estate broker is associated voluntarily gives the license to the real estate
broker named in the license, 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 Agency-approved form submitted by the principal
real estate broker terminating the relationship with the licensee under OAR
863-014-0065;
(b) An Agency-approved form submitted by the licensee
terminating the relationship with the principal real estate broker under OAR
863-014-0065; or
(c) A license transfer form and fee.
(8) 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 a license transfer form 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
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) The license;
(b) A request by the licensee submitted on an
Agency-approved form to change the license status to inactive; or
(c) An Agency-approved form submitted by the licensee
terminating the relationship with the principal real estate broker under this
rule.
(4) The Agency will change the status of an active real
estate broker who is associated with a principal real estate broker to inactive
status when the Agency receives one of the following:
(a) The real estate broker license, submitted by the
licensee;
(b) The real estate broker license, submitted by the
principal real estate broker;
(c) An Agency-approved form, submitted by the principal
real estate broker, terminating the principal real estate broker’s relationship
with the real estate broker; or
(d) An Agency-approved form submitted by the real
estate broker terminating the relationship with the principal real estate
broker.
(5) An inactive real estate licensee may renew such
license under OAR 863-014-0050.
(6) 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 transfer the license to a principal real estate broker
under OAR 863-014-0063.
(7) Except as provided in section (8) of this rule, for
a period of 30 days after the real estate license becomes inactive, the
licensee may change such license category to 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 form to change the
license category and to change the license status to active,
(B) A license transfer form under OAR 863-014-0063, if
applicable, and
(C) Payment of the transfer fee authorized by ORS
696.270.
(8) If the licensee under section (7) of this rule is
changing license category to a principal real estate broker and has never been
licensed as a principal real estate broker, the licensee must submit to the
Agency:
(a) An Agency-approved broker license application form
and
(b) The licensing fee authorized by ORS 696.270.
(9) 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 a reactivation application 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.
(10) After
the 30-day period specified in sections (6) and (7) 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 application for license reactivation; and
(b) Payment of the reactivation fee authorized by ORS
696.270.
(11) 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 Agency-approved 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.
(12) The change of license status, transfer, change of
license category 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 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
863-014-0066
Licensee Name Change
A licensee may apply for a name change by submitting to
the Agency:
(1) A 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
863-014-0076
Signature Requirements
(1) Subject to ORS 84.001 to 84.061, the Agency may,
but is not required to, accept any electronic or facsimile signature created,
generated, sent, communicated, received, or stored regarding licensing
documents including, but not limited to, background check applications,
examination applications, license applications, license change forms, and license
surrender forms.
(2) The
Agency may require an individual to submit an original or electronic signature
on any document or Agency-approved form.
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 863-015-0076, 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
863-014-0095
Business Name Registration
(1) If a principal real estate broker wishes to conduct
real estate business in a name other than the licensee’s legal name, the
principal broker must first 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 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 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.
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
863-022-0010
Course Requirements for Real
Estate Broker License Applicants
(1) The real estate broker license applicant course of
study required by OAR 863-014-0035 must include 150 clock-hours in the seven
courses listed in section (2) of this rule.
(a) Courses offered by private career schools must be
approved by the Agency under OAR 863-022-0030.
(b) Courses offered by community colleges, colleges,
and universities must be approved by the Agency under OAR 863-022-0035.
(c) To be eligible for credit, all courses must be
presented for the designated number of hours and according to the percentages
allocated for each topic.
(2) The courses required for real estate broker license
applicants are:
(a) Real Estate Law (30 hours).
(b) Oregon Real Estate Practice (30 hours).
(c) Real Estate Finance (30 hours).
(d) Contracts (15 hours).
(e) Agency Law (15 hours).
(f) Property Management (10 hours).
(g) Real Estate Brokerage (20 hours).
(3) The seven required courses must include the
following number of hours and percentages allocated for the topics within each
course:
(a) Real Estate Law Course (30 hours). This course
covers general real estate law with an emphasis on Oregon real property law and
includes the following topics:
(A) (20% or 6 hours) Basic real property law, types of
estates and forms of ownership, such as fee simple absolute, severalty, various
concurrent estates, trust, by business organizations; the nature of real
property versus the nature of personal property; fixtures, emblements, water
rights (riparian rights, natural drainage rights, state ownership of navigable
riverbed), estoppel, condemnation, and severance.
(B) (10% or 3 hours) Ways to legally describe real
property, including the proper and complete writing of legal descriptions for
real estate transaction documents commonly used in Oregon.
(C) (10% or 3 hours) Transfer of title, including
voluntary and involuntary transfers and proper deed conveyance (types and their
requirements, statutory deed forms, recording requirements, acknowledgment).
(D) (15% or 4.5 hours) Encumbrances, including
easements, such as easement appurtenant, easements in gross, easement by
necessity, easements by prescription, as well as how easements are created and
terminated; voluntary and involuntary encumbrances, especially statutory liens,
such as mechanic’s liens, tax liens, judgment liens, and federal income tax
liens.
(E) (10% or 3 hours) Title insurance and escrow
recording, including types of coverage and exclusions in title insurance
policies; escrow procedures; requirements for recording documents.
(F) (10% or 3 hours) Taxes and assessments, especially
the levy and collection process; foreclosure and redemption rights, exemptions,
special assessments, and the Bancroft Bonding Act.
(G) (25% or 7.5 hours) Land use control, including
private controls such as covenants, conditions and restrictions; public
controls such as planning, zoning, city and county subdivision platting,
building regulations, implied warranties on new homes, consumer protection in
land sales through recording land sales contracts, public reporting under
Oregon Subdivision Control Law; and condominiums, including their creation and
statutory obligations of condominium developers.
(b) Oregon Real Estate Practice Course (30 hours). This
course covers the requirements for Oregon real estate licensees contained in
the Oregon Revised Statutes chapter 696 and the Oregon Administrative Rules
chapter 863 and includes the following topics:
(A) (5% or 1.5 hours) The basic business relationships
between principal brokers and associated brokers including, for example, the
agency relationship and the principal broker’s supervisory responsibilities,
duties, and liabilities to third parties.
(B) (25% or 7.5 hours) The Oregon real estate license
requirements and the limitations on licensing as set forth in the Oregon Real
Estate License Law; also the rules and regulations, especially their
applications to real estate transactional documents, advertising, competitive
market analyses, property management, and licensees.
(C) (20% or 6 hours) Listing agreements, specifically
the Oregon administrative rules concerning marketing and advertising listed
properties.
(D) (20% or 6 hours) Sale agreements, such as offers to
purchase and seller’s counter offers, earnest money agreements, options to buy
real property, the statutes and rules affecting sale agreements.
(E) (15% or 4.5 hours) The Civil Rights Act and real
estate-related provisions of the Americans with Disabilities Act and their administration
and enforcement.
(F) (15% or 4.5 hours) The basic roles of the real
estate broker, including additional requirements, liabilities, and needs for
advanced training in related activities, such as competitive market analyses,
property management (including renting and leasing), exchanging, securities,
business opportunities (i.e., business chance brokering.); auctions, farms,
vacation homes, and campgrounds.
(c) Real Estate Finance Course (30 hours). This course
covers real estate finance and appraisal methods, including the methods for
performing mathematical computations commonly required of real estate
licensees, and includes the following topics:
(A) (10% or 3 hours) Lending laws, including federal
laws and regulations such as Regulation Z, the Federal Equal Credit Opportunity
Act, and the Real Estate Settlement Procedures Act.
(B) (10% or 3 hours) The money market and sources of
financing; private versus government sources, the primary and secondary
mortgage market, the federal money market, and federal monetary controls.
(C) (10% or 3 hours) Financing documents, including
mortgages, trust deeds, and land sale contracts.
(D) (10% or 3 hours) Foreclosure; terms, methods,
procedures and remedies.
(E) (10% or 3 hours) Governmental loan programs; FHA,
federal VA, Oregon DVA.
(F) (10% or 3 hours) Non-governmental loan programs,
such as conventional loans, construction loans, and mobile home loans.
(G) (10% or 3 hours) Competitive market analyses;
principles, terminology, processes, and approaches commonly used.
(H) (15% or 4.5 hours) Mathematical calculations used
in financing real estate transactions.
(I) (10% or 3 hours) Other methods of financing,
including wraparound mortgages, second mortgages, sale-leasebacks, collateral
assignments, and use of personal property.
(J) (5% or 1.5 hours) Taxation and its impact in
financing arrangements.
(d) Contracts Course (15 hours). This course covers the
basic requirements for common real estate contracts, including listings, offers
to purchase, leases, and land sales contracts. The course highlights
Oregon-specific contract requirements and includes the following topics:
(A) (40% or 6 hours) Basic contract law, including the
elements necessary to form a contract, breaches, and interference with an existing
contract.
(B) (40% or 6 hours) Real estate contracts, especially
required provisions and suggested language for listing agreements, earnest
money/sale agreements, options land sales contracts, leases, and escrow
agreements.
(C) (20% or 3 hours) Special requirements and
limitations on contracts for the sale of subdivided lands, condominiums, and
planned developments under Oregon law.
(e) Agency Law Course (15 hours). This course covers
agency law, both its common law aspects and Oregon’s statutory requirements for
real estate licensees and includes the following topics:
(A) (40% or 6 hours) The common law of agency,
including an in-depth study of the fiduciary requirements and its application
to real estate brokerage.
(B) (60% or 9 hours) ORS 696.800 to 696.880 generally,
with an emphasis on the obligations and duties of an agent to clients and
others, as set out in ORS 696.805 to 696.815.
(f) Property Management Course (10 hours). This course
covers basic property management law and includes the following topics:
(A) (35% or 3.5 hours) Oregon real estate license
statutes and administrative rules as applied to property management activity.
(B) (10% or 1 hour) Oregon Residential Landlord and
Tenant Act, including tenants’ and landlords’ rights and obligations;
evictions, forcible entry, and detainer procedures.
(C) (10% or 1 hour) Economics of property management,
including analysis of markets, properties, and evaluating the owner’s
objectives.
(D) (5% or .5 hours) Leases, including leaseholds,
types of leases, and common lease clauses.
(E) (10% or 1 hour) Agency relationship between
property owner and property manager.
(F) (5% or .5 hours) Tenant relations, including
maintenance.
(G) (20% or 2 hours) Property management recordkeeping,
including operating reports, budgets, income tax records, types of insurance,
trust accounts, and trust account reconciliation.
(H) (5% or .5 hours) Anti-discrimination statutes,
federal and state, that apply to tenant selection and advertising; Fair Credit
Reporting Act and its application to tenant selection.
(g) Real Estate Brokerage Course (20 hours). This
covers basic real estate brokerage, including the legal requirements for
record-keeping and clients’ trust account reconciliation and includes the
following topics:
(A) (10% or 2 hours) Advertising, including supervising
content, format, and layout; public relations, image development, the Internet,
and relations between competitors; office policy on private transactions of
licensees; effect of disciplinary action on licensees.
(B) (20% or 4 hours) Financial records, such as general
checking account and its use for paying commissions; receipt of competitive
market analysis fees; legal requirements for the clients’ trust account,
including documentation required, reconciliation, use of interest-bearing
accounts, commingling of funds, the trust account’s use in cooperative
transactions, earnest money, advance fees, and rental fees.
(C) (10% or 2 hours) Office facilities and the
regulatory requirement for real estate offices, including site selection, space
and office layout, furniture and equipment; broker license requirements;
regulations affecting the office, such as signs; requirements for branch
offices, limitations on licenses, effect of actions on licenses, and reporting
of adverse litigation.
(D) (15% or 3 hours) The legal requirements for neutral
escrows and co-op transactions; the mathematics of a real estate closing, such
as tax pro-rations, computing commission splits, and making closing estimates;
closing procedures, such as title insurance, recording, and acknowledging
documents.
(E) (10% or 2 hours) Financial reports, such as income
statements, balance sheets, tax returns, and payroll records.
(F) (15% or 3 hours) Non-financial records, such as
listing files, transaction records, cooperative transaction records,
advertising folders, showing reports, competitive market analysis records and
reports; legal requirements, such as management review of broker transactions.
(G) (10% or 2 hours) Office manuals that specify office
policy and procedures; use of the manual in training and to set out grievance
procedures.
(H) (10% or 2 hours) Office activity other than real
estate sales; property management, competitive market analyses, investment
counseling, construction and development, including supervisory requirements,
as well as the nature of the activities in relation to real estate law and
rules.
(4) Except for Real Estate Finance courses, as provided
in section (7) of this rule,, an applicant must complete the required courses
through Agency-approved private career schools or in-state community colleges,
colleges, or universities, as those terms are defined in OAR 863-022-0005.
(5) To receive credit for courses provided by private
career schools, the following provisions apply:
(a) License applicants must complete the course of
study and receive a passing score of at least 75% on a final examination for
each course.
(b) Except for Real Estate Finance, only courses
completed on or after July 1, 2002 are eligible for credit.
(c) Real Estate Finance courses must have been
completed on or after July 1,1978 to be eligible for credit.
(6) To
receive credit for courses provided by in-state community colleges, colleges,
and universities, the following provisions apply:
(a) License applicants must complete the course of
study, including a final examination for each course and achieve a minimum
grade of “C.”
(b) Except for Real Estate Finance, only courses
completed on or after July 1, 2002 are eligible for credit.
(c) Real Estate Finance courses must have been
completed on or after July 1, 1973 to be eligible for credit.
(7) To receive credit for Real Estate Finance courses
taken through out-of-state community colleges, colleges, and universities:
(a) The courses must have been completed on or after
July 1, 1973,
(b) The applicant must have achieved a minimum grade of
“C;” and
(c) The applicant must obtain a transcript and submit
it to the Agency as part of the application process.
(8) The real estate broker license applicant course of
study is not eligible for continuing education credit under OAR 863-020-0008 or
863-020-0010.
Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.174,
696.182, & 696.184
Hist.: 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
863-022-0015
Course Requirements for Property
Manager License Applicants
(1) The course required by OAR 863-024-0045 for real
estate property manager license applicants consists of a 60-hour
Agency-approved real estate property manager course. The property manager
course covers the specialized area of the management of rental real estate,
including Oregon’s legal requirements.
(2) To be eligible for credit, the 60-hour course must
include 60 clock-hours allocated among topics in the number of hours and
percentages as follows:
(a) (30% or 18 hours) Oregon real estate license
statutes and administrative rules applicable to the management of rental real
estate.
(b) (15% or 9 hours) Clients’ trust accounts and
account reconciliation.
(c) (10% or 6 hours) Oregon Residential Landlord and
Tenant Act, including tenants’ and landlords’ rights and obligations;
evictions, forcible entry and detainer procedures.
(d) (5% or 3 hours) Economics of property management,
including analysis of markets, properties, and evaluating the owner’s
objectives.
(e) (5% or 3 hours) Leases, including leaseholds, types
of leases and common lease clauses.
(f) (5% or 3 hours) Agency relationship between
property owner and property manager and tenant relations, including
maintenance.
(g) (15% or 9 hours) Management recordkeeping,
including operating reports, budgets, income tax records, insurance types.
(h) (5% or 3 hours) Federal and state
anti-discrimination laws and their applicability to tenant selection and
advertising; the Fair Credit Reporting Act and its applicability to tenant
selection.
(i) (10% or 6 hours) General real estate law applicable
to property management activity, including types of estates and forms of
ownership; transfer of title; taxes and assessments, including the levy and
collection process, foreclosure and redemption rights, exemptions, and special
assessments; land use controls, including private controls such as covenants,
conditions, and restrictions, and public controls such as planning and zoning.
(3) The course must be completed through either
Agency-approved private career schools or in-state community colleges,
colleges, and universities, as those terms are defined in OAR 863-022-0005.
(4) To receive credit for a course provided by a
private career school, applicants must complete the course, including a final
examination, and receive a passing score of at least 75% on a final exam.
(5) To receive credit for a course provided by an
in-state community college, college, or university, applicants must complete
the course, including a final examination and achieve a minimum grade of “C.”
(6) Only
courses completed on or after July 1, 2002 are eligible for credit.
(7) The property manager license applicant course is
not eligible for continuing education credit under OAR 863-020-0008 or
863-020-0010.
Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.174,
696.182, & 696.184
Hist.: 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
863-022-0025
Education Course Requirements for
Principal Broker License Applicants
(1) The course required by OAR 863-014-0040 for
principal real estate broker license applicants is a 40-hour Agency-approved
brokerage administration and sales supervision course.
(2) The brokerage administration and sales supervision
course covers legal requirements unique to principal brokers and reviews the
material introduced in the 150-hour real estate broker applicant course of
study described in OAR 863-022-0010.
(3) To be eligible for credit, the 40-hour course must
include 40 clock-hours, allocated among topics in the number of hours and
percentages as follows:
(a) (10% or 4 hours) Introduction to management theory,
characteristics of successful management, the functions of management,
organizational formats such as corporate, partnerships, and proprietorship,
various problems associated with management, and types of licenses and their
legal requirements.
(b) (10% or 4 hours) Planning, including management
objectives, planning under the employer-employee relationship versus
independent contractor relationship, individual and office planning, budget
planning, market research, growth, and anticipation of expansion, and bottom
line planning.
(c) (15% or 6 hours) Selecting, training, and
supervising real estate personnel, including job descriptions, recruiting,
interviewing, and characteristics of a successful real estate broker; training
in Oregon real estate law, real estate documents; supervising transactions, performance
evaluations, commission arrangements; major theories of human motivation, for
example, those of Maslow, Herzberg, and McClelland; selecting, training, and
evaluating office support personnel.
(d) (5% or 2 hours) Leadership, authority, discipline;
office regulations, relationships between office personnel; office policy on
private transactions of licensees; effect of disciplinary action on licensees.
(e) (5% or 2 hours) Communication methods; formal
versus informal; verbal versus non-verbal; reading, writing, listening,
speaking; office sales meetings.
(f) (5% or 2 hours) Advertising, including supervising
content, format, and layout; public relations, image development, and relations
between competitors.
(g) (5% or 2 hours) Office facilities, including legal
requirements for real estate offices, such as site selection, space and office
layout, furniture and equipment, signs; broker license requirements; legal
requirements concerning branch offices; limitations on licenses, effect of
actions on licenses, and reporting of adverse litigation.
(h) (20% or 8 hours) Financial records, such as general
checking account and its use for paying commissions, receipt of competitive
market analysis fees; the clients’ trust account, legal requirements concerning
its use, including required documentation, use of interest-bearing accounts,
commingling of funds, the trust account’s use in cooperative transactions,
earnest money, advance fees, and rental fees.
(i) (5% or 2 hours) Financial reports, such as income statements,
balance sheets, tax returns, and payroll records.
(j) (5% or 2 hours) Non-financial records, such as
listing files, transaction records, cooperative transaction records,
advertising folders, showing reports, competitive market analysis records and
reports; legal requirements, such as broker review of salesperson transactions.
(k) (5% or 2 hours) Office manuals that specify office
policy and procedures, use of the manual in training and to set out grievance
procedures.
(l) (5% or 2 hours) Office activity other than real
estate sales; competitive market analyses, investment counseling, construction,
and development, including supervisory requirements, and the nature of the
activities relative to real estate legal requirements.
(m) (5% or 2 hours) Property management: legal
requirements for accounting and record keeping, Oregon Landlord Tenant Law.
(4) License applicants must complete the course,
including a final examination, and receive a passing score of at least 75% on a
final exam.
(5) An Agency-approved brokerage administration and
sales supervision course is eligible for continuing education credit for
licensees renewing under OAR 863-020-0008 or 863-020-0010 as follows:
(a) If the licensee completed the course on or before
December 31, 2010; or
(b) If the licensee completed the course on or after
January 1, 2011 and the course provider was a certified continuing education
course provider.
Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.174,
696.182, & 696.184
Hist.: 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
863-022-0060
Responsibilities of Providers of
Real Estate Broker, Principal Broker and Property Manager License Application
Courses
(1) This rule is effective July 1, 2011.
(2) For purposes of this rule, a “course provider” is:
(a) A private career school, in-state community
college, college, and university that provides the 150-hour real estate broker
license applicant course of study under OAR 863-022-0010, the 60-hour property
manager license applicant course under OAR 863-022-0015; or the 40-hour brokerage administration
and sales supervision course under OAR 863-022-0025; and
(b) A continuing education provider who provides the
40-hour brokerage administration and sales supervision course under OAR
863-022-0025.
(3) 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.
(4) A course provider must certify to the examination
provider that an applicant for a real estate license has successfully completed
the course or courses according to the requirements and instructions of the
examination provider.
(5) Before certifying completion of a course as
provided in (4) of this rule, a course provider must obtain proof from a
license applicant that the applicant has submitted a license application to the
Agency.
(6) A course provider must inform each student taking a
course that:
(a) The course provider will certify to the examination
provider that an applicant for a real estate license has successfully completed
the course or courses; and
(b) Before a course provider may certify successful
course completion, a student must provide proof to the provider that the
student has made application to the Agency for a real estate broker, principal
broker or property manager license.
(7) In addition to the requirements under this rule, a
course provider must provide a certificate of completion to each student.
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
863-024-0003
Definitions
As used in this division, unless the context requires
otherwise, the following definitions apply to this division:
(1) “Agency” is defined in ORS 696.010.
(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” is defined in ORS 696.010.
(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) “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.
(12) “Real estate broker” is defined in ORS 696.010.
(13) “Real estate licensee” and “licensee” mean a “real
estate licensee” as defined in ORS 696.010.
(14) “Registered business name” is defined in ORS
696.010.
(15) “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
863-024-0010
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 property manager license applicant must submit an 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 property manager license applicant 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
863-024-0003, mailing address, email address and phone number;
(b) The applicant’s date and place of birth;
(c) The applicant’s Social Security 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) 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 a real estate or any other
occupational or professional license revoked or suspended; or
(D) Has ever been fined or reprimanded as such a
licensee; and
(g) Any other information the commissioner considers
necessary to evaluate the applicant’s trustworthiness and competency to engage
in the management of rental real estate 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) 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 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
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.
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
863-024-0020
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 property manager license applicant must pass a
property manager examination.
(b) A property manager 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 863-024-0010 or a license
reactivation application and fee required under OAR 863-024-0065;
(b) A license applicant must have successfully
completed the required course of study for a property manager license under OAR
863-022-0015 from an approved school; and
(c) The school providing the course under (b) of this
section must have certified to the examination provider that the applicant
completed the course 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 property manager license
examination passes the 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.
Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.020,
696.022 & 696.425
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
863-024-0030
License Issue, Term, Form
(1) The Agency will issue a property manager license to
an applicant after determining that the applicant meets the license
requirements contained in ORS 696.022 and 696.790, has paid all required fees
and meets the requirements under OAR 863-024-0045.
(2) A licensee may engage in property management from
the date the license is issued until the license expires, becomes inactive, or
is revoked, surrendered, or suspended.
(3) A licensee may hold only one of the following
Oregon real estate licenses at any time:
(a) Real estate broker,
(b) Principal real estate broker, or
(c) Property manager.
(4) The license expiration date is the last day of the
month of a licensee’s birth month.
(5) The license term is not more than 24 months plus
the number of days between the date the license is issued or renewed and the
last day of the month of the licensee’s birth month.
(6) The license will include the following information:
(a) The licensee’s legal name,
(b) The license number, effective date, and expiration
date,
(c) The name under which the licensee conducts real
estate business or the registered business name,
(d) The licensee’s business address,
(e) The seal of the Real Estate Agency, and
(f) Any other information the Agency deems appropriate.
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 1-2009, 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
863-024-0045
Property Manager Licensing
Requirements
(1) Effective July 1, 2011, 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) Effective September 15, 2011, after the
requirements in (1) and (2) of this rule are met:
(a) The applicant must state whether 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) After the applicant has submitted the following,
the Agency will contact the property manager or principal broker for
authorization for the applicant to be associated with the property manager or
principal broker and to use the registered business name:
(A) The name and address of a property manager or
principal broker with whom the applicant will be associated; and
(B) The address of the registered business name.
(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 a property manager license and then register a
business name under 863-024-0095.
(6) 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.
(7) 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.
(8) 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
863-024-0050
License Renewal
(1) Effective July 1, 2011 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 or the postmarked
date.
(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 Agency-approved inactive renewal application
form.
(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 Agency-approved inactive renewal application
form.
(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 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 (3) or (4) of this rule.
(8) The Agency will renew an expired property manager
license to active statuswhen 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 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 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 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
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) Effective September 15, 2011, 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
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 form” means a completed and
signed Agency-approved form 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 a license transfer form:
(a) The name, mailing address, email address and
license number of the property manager licensee who is transferring the license
or documenting the authorized use of a registered business name;
(b) The current status of the license, whether active
or inactive;
(c) If the property manager is associated with a
sending principal broker, certification that the property manager provided
written notice of the transfer to the sending principal broker, and that such
notice was provided before the date the transfer form is submitted to the
Agency, including:
(A) The date of personal service of such notice; or
(B) The date a certified letter was delivered by the
post office to the sending principal broker’s address;
(d) If the form is used to authorize the use of a different
registered business name, certification that the property manager licensee
provided written notice of such change to the authorized licensee for the
current registered business name, and that such notice was provided before the
date the license transfer form is submitted to the Agency, including:
(A) The date of personal service of such notice; or
(B) The date a certified letter was delivered to the
authorized licensee’s address;
(e) If applicable, the receiving principal broker’s
registered business name, street address, and registered business name
identification number;
(f) If applicable, the street address, registered
business name identification number, and the registered business name under
which the property manager licensee will be authorized to conduct management of
rental real estate; and
(g) The receiving broker’s or authorized licensee’s
name, license number, telephone number, date, and signature.
(3) The Agency will transfer the license of an active
property manager associated with a sending principal broker to a receiving
principal broker when the Agency receives a license transfer form and the
transfer fee authorized by ORS 696.270.
(4) The Agency will transfer the license of a property
manager to a receiving principal broker when the Agency receives a license
transfer form and the transfer fee authorized by ORS 696.270.
(5) The Agency will transfer the license of an inactive
property manager licensee, who has been inactive for a period of 30 days or
less, to a receiving principal broker when the Agency receives a license
transfer form and the transfer fee authorized by ORS 696.270.
(6) 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 Agency-approved form submitted by the principal
real estate broker terminating the relationship with the licensee under OAR
863-024-0065; or
(b) A license transfer form and fee.
(7) 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 Agency-approved form submitted by the principal
real estate broker terminating the relationship with the licensee under OAR
863-024-0065;
(b) An Agency-approved form submitted by the licensee
terminating the relationship with the principal real estate broker under OAR
863-024-0065; or
(c) A license transfer form and fee.
(8) 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 a license transfer
form 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
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 Agency-approved form 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 application for licensing reactivation
examination 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 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 Agency-approved 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
863-024-0066
Licensee Name Change
A licensee may apply for a name change by submitting to
the Agency:
(1) A 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
863-024-0076
Signature Requirements
(1) Subject to ORS 84.001 to 84.061, the Agency may,
but is not required to, accept any electronic or facsimile signature created,
generated, sent, communicated, received, or stored regarding licensing
documents including, but not limited to, background check applications,
examination applications, license applications, license change forms, and
license surrender forms.
(2) The Agency may require an individual to submit an
original or electronic signature on any document or Agency-approved form.
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
863-024-0095
Business Name 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, on a Agency-approved form, 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.
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
Notes
1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2010.
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