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Oregon Bulletin

October 1, 2013

Real Estate Agency, Chapter 863

Rule Caption: Adds form and content of initial agency disclosure pamphlet to rule

Adm. Order No.: REA 3-2013

Filed with Sec. of State: 9-4-2013

Certified to be Effective: 10-1-13

Notice Publication Date: 7-1-2013

Rules Amended: 863-015-0215

Subject: The Agency filed a temporary rule that became effective on May 13, 2013. The Agency filed a Notice of Rulemaking hearing on June 14, 2013 that proposed amending the rule using the language in the temporary rule. The purpose of the amendments to the existing rule is to specify the contents of the initial agency disclosure pamphlet. Real estate brokers are required by statute to provide the pamphlet to certain individuals.

   After receiving comments from the public, the Agency made changes to the proposed language contained in the temporary rule. The two most significant changes were: 1) to describe the individuals who must be given an initial agency disclosure pamphlet; and 2) to more clearly define when a real estate broker or principal real estate broker must provide the pamphlet to an individual.

   Under the new rule, a broker must give the pamphlet to a person who is either a prospective party to a real property transaction or who is an unrepresented party seeking representation during the course of a real property transaction. The statute requires the pamphlet to be given to such an individual “at first contact.” The rule defines “at first contact” as the time the agent has sufficient contact information about a person to be able to provide an initial agency disclosure pamphlet to that person.

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

863-015-0215

Initial Agency Disclosure Pamphlet

(1) For purposes of this rule, “at first contact” means at the time the agent has sufficient contact information about a person to be able to provide an initial agency disclosure pamphlet to that person. Contact with a person includes, but is not limited to contacts in person, by telephone, over the Internet, by electronic mail, or by similar methods.

(2) An agent shall provide a copy of the initial agency disclosure pamphlet, which complies with section (5) of this rule, at first contact with:

(a) A prospective party to a real property transaction; or

(b) An unrepresented party seeking representation during the course of a real property transaction.

(3) An agent must provide the initial agency disclosure pamphlet in a written format by electronic mail, over the Internet, by USPS mail, facsimile, hand delivery or similar delivery method.

(4) An agent need not provide a copy of the initial agency disclosure pamphlet to a party who has, or may be reasonably assumed to have, received a copy of the pamphlet from another agent.

(5) The initial agency disclosure pamphlet must contain:

(a) The following information, directed to the consumer:

(A) A licensed real estate broker or principal broker must give a copy of the initial agency disclosure pamphlet at first contact with a prospective party to a real property transaction or at first contact with an unrepresented party seeking representation during the course of a real property transaction.

(B) A licensed real estate broker or principal broker need not provide a copy of the initial agency disclosure pamphlet to a party who has, or may be reasonably assumed to have, received a copy of the pamphlet from another broker.

(C) The pamphlet describes the legal relationship between a broker and a consumer when the broker acts as the consumer’s agent; and

(D) The pamphlet is informational only and may not be construed to be evidence of intent to create an agency relationship, as provided in ORS 696.820.

(b) A general definition of an agency relationship and the three real estate agency relationships of seller’s agent, a buyer’s agent and a disclosed limited agent.

(c) The definition of “confidential information” in ORS 696.800.

(d) The affirmative duties and responsibilities of a seller’s agent under ORS 696.805.

(e) The affirmative duties and responsibilities of a buyer’s agent under ORS 696.810.

(f) The affirmative duties and responsibilities of a disclosed limited agent who represents both the buyer and the seller in a transaction under ORS 696.815.

(g) The following statement to the consumer, “Whether you are a buyer or seller, you cannot make a licensee your agent without the licensee’s knowledge and consent, and an agent cannot make you a client without your knowledge and consent.”

(6) The Real Estate Agency will make available a sample of an initial agency disclosure pamphlet that complies with section (5) of this rule on the Agency’s website.

[ED. NOTE: Forms referenced are available from the agency.]

Stat. Auth.: ORS 696.385

Stats. Implemented: ORS 696.805, 696.810, 696.815& 696.820

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; REA 6-2008, f. 12-15-08, cert. ef. 1-1-09; REA 2-2013(Temp), f. & cert. ef. 5-13-13 thru 11-9-13; REA 3-2013, f. 9-4-13, cert. ef. 10-1-13

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, 2012.

2.) Copyright 2013 Oregon Secretary of State: Terms and Conditions of Use

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

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