2007 Oregon Code - Chapter 696 :: Chapter 696 - Real Estate and Escrow Activities
Chapter 696 —
Real Estate and Escrow Activities
2007 EDITION
REAL ESTATE AND ESCROW ACTIVITIES
OCCUPATIONS AND PROFESSIONS
REAL ESTATE LICENSEES
(Generally)
696.007Â Â Â Â Statement
of legislative purpose
696.010Â Â Â Â Definitions
696.015Â Â Â Â Legislative
finding; short title
(Licensing)
696.020Â Â Â Â License
required for individuals engaged in professional real estate activities;
exception; rules
696.022Â Â Â Â Licensing
system for real estate brokers and property managers; rules
696.024Â Â Â Â Payments
due and owing to Real Estate Agency
696.026Â Â Â Â Conducting
business under brokerÂ’s name, under registered business name or through
business organization; rules
696.028Â Â Â Â Licensed
personal assistant; rules
696.030Â Â Â Â Exemptions
696.040Â Â Â Â Single
act sufficient to constitute professional real estate activity
696.110Â Â Â Â Exclusive
nature of regulation of real estate licensees
696.130Â Â Â Â Limited
license
696.174Â Â Â Â License
renewal; continuing education courses; rules
696.200Â Â Â Â Real
estate broker or organization to maintain place of business; branch offices;
change of business location
696.205Â Â Â Â Death
or incapacity of sole proprietor real estate licensee; temporary license; rules
696.232Â Â Â Â Return
of license by employee of agency; reissuance upon termination of employment
(Client Trust Fund Accounts)
696.241Â Â Â Â ClientsÂ’
Trust Accounts; notice to agency; authority to examine account; branch trust
account; interest earnings on trust account; when broker entitled to earnest
money; funds not subject to execution; rules
696.243Â Â Â Â Substituting
copy for original canceled check allowed; electronic fund transfers
696.245Â Â Â Â ClientsÂ’
Trust Accounts; notice to bank; retention of copy
(Nonresident and Reciprocal Real Estate
Broker and Salesperson Licensing)
696.255Â Â Â Â Nonresident
license equivalent to appointment of commissioner as agent for service of
process; service on commissioner; fee
696.265Â Â Â Â Recognition
of nonresident real estate licensee; rules
(Miscellaneous)
696.270Â Â Â Â Fees
696.280Â Â Â Â Records
of real estate brokers; rules
696.290Â Â Â Â Sharing
compensation with or paying finderÂ’s fee to unlicensed person prohibited;
exceptions
696.294Â Â Â Â Opinion
letter; rules
696.301Â Â Â Â Grounds
for discipline
696.310Â Â Â Â Intracompany
supervision and control; effect of revocation on licensed associates
696.315Â Â Â Â Prohibition
against licensee permitting nonlicensed individual to engage in activity with
or on behalf of licensee
696.320Â Â Â Â Effect
of suspension or revocation of principal broker license on associated licensees
696.361Â Â Â Â Regulation
of real estate property manager
696.363Â Â Â Â Relationship
between licensees as independent contractors or employer and employee
696.365Â Â Â Â City
or county business license tax
(Administration)
696.375Â Â Â Â Real
Estate Agency; Real Estate Commissioner; confirmation, salary and security of
commissioner
696.385Â Â Â Â Power
of agency; rulemaking procedures
696.392Â Â Â Â Power
of commissioner to administer oaths, take depositions and issue subpoenas
696.395Â Â Â Â Power
of commissioner
696.396Â Â Â Â Investigation
of complaints and progressive discipline; rules
696.398Â Â Â Â Delegation
by commissioner to employees; requirements
696.405Â Â Â Â Real
Estate Board; appointment; term; qualifications; compensation; expenses
696.415Â Â Â Â Officers;
meetings; quorum
696.425Â Â Â Â Powers
and duties of board; expenses
696.430Â Â Â Â Records
of commissioner as evidence; records open to inspection; rules
696.445Â Â Â Â Advancement
of education and research; Oregon Real Estate News Journal; content as to
disciplinary actions
696.490Â Â Â Â Real
Estate Account; disposition of receipts
696.495Â Â Â Â Revolving
fund; amount; use; procedure for repayment
ESCROWS AND ESCROW AGENTS
(Generally)
696.505Â Â Â Â Definitions
for ORS 696.505 to 696.590
696.508Â Â Â Â Legislative
finding; short title
(Licensing)
696.511Â Â Â Â License
required; application and information required; issuance
696.520Â Â Â Â Application
of ORS 696.505 to 696.590
696.523Â Â Â Â Application
of ORS 696.505 to 696.590 to title insurance activities
696.525Â Â Â Â Bond
for escrow agents
696.527Â Â Â Â Deposits
in lieu of bond; payment of claims; waiver
696.530Â Â Â Â Expiration
and renewal of license; fees; rules
696.532Â Â Â Â Limited
license
696.534Â Â Â Â Records
of escrow agents; rules
696.535Â Â Â Â Grounds
for refusing, suspending or revoking license
696.541Â Â Â Â Authority
of commissioner over escrow agents; rules
(Enforcement)
696.545Â Â Â Â Investigation;
injunction; jurisdiction
696.555Â Â Â Â Commissioner
to take possession of property and assets of escrow agent when assets or
capital impaired; appointment of receiver
696.570Â Â Â Â Hearings
procedure under ORS 696.505 to 696.590; subpoena
696.575Â Â Â Â Civil
or criminal actions not limited by ORS 696.505 to 696.590
696.577Â Â Â Â CommissionerÂ’s
order against unlicensed agent
(Escrow Property)
696.578Â Â Â Â Deposit
and designation of money held in escrow; treatment of earnings on escrow
account; notice
696.579Â Â Â Â Funds
exempt from execution or attachment; designation of funds
696.581Â Â Â Â Written
escrow instructions or agreement required; statement; instructions containing
blank prohibited; one-sided escrow; exception
696.582Â Â Â Â Escrow
agent to hold certain compensation; conditions; notice of demand; disbursement
of money; copy of notice to principal
(Civil Penalties)
696.585Â Â Â Â Civil
penalties
696.590Â Â Â Â Penalty
amounts
REAL ESTATE MARKETING
696.600Â Â Â Â Definitions
for ORS 696.392, 696.600 to 696.785 and 696.995
696.603Â Â Â Â License
required for persons engaged in real estate marketing activities
696.606Â Â Â Â Real
estate marketing organization license; requirements; deposit required; claims
against deposit; rules
696.609Â Â Â Â Exemptions
from ORS 696.392, 696.600 to 696.785 and 696.995
696.612Â Â Â Â Grounds
for disciplinary action
696.615Â Â Â Â Publication
of sanctions imposed for violations
696.618Â Â Â Â Denial
of right to court action for unlicensed real estate marketing organization
696.621Â Â Â Â Real
Estate Marketing Account
696.624Â Â Â Â Consent
by nonresident real estate marketing organization to service of summons or
process required
696.627Â Â Â Â On-site
inspection allowed; deposit
ACTIONS AND REMEDIES
696.710Â Â Â Â Necessity
of alleging license in action to collect compensation
696.720Â Â Â Â Remedies
are concurrent
696.730Â Â Â Â Jurisdiction
of courts for violations; revoking license upon conviction; copy of order to
commissioner
696.775Â Â Â Â Authority
of commissioner when license lapsed, expired, revoked, suspended or surrendered
696.785Â Â Â Â Commissioner
duties when illegal commingling of funds found; receivership procedure
MISCELLANEOUS
696.790Â Â Â Â Authority
of commissioner to require fingerprints
696.795Â Â Â Â Authority
of commissioner to conduct investigations and proceedings
AGENTSÂ’ OBLIGATIONS
696.800Â Â Â Â Definitions
696.805Â Â Â Â Real
estate licensee as sellerÂ’s agent; obligations
696.810Â Â Â Â Real
estate licensee as buyerÂ’s agent; obligations
696.815Â Â Â Â Representation
of both buyer and seller; obligations
696.820Â Â Â Â Agency
disclosure pamphlet; rules
696.822Â Â Â Â Liability
of principal for act, error or omission of agent or subagent
696.835Â Â Â Â Buyer
and seller responsibilities
696.840Â Â Â Â Compensation
and agency relationships
696.845Â Â Â Â Acknowledgment
of existing agency relationships form; rules
696.855Â Â Â Â Common
law application to statutory obligations and remedies
696.870Â Â Â Â Duties
of real estate licensee under ORS 105.462 to 105.490, 696.301 and 696.870
696.880Â Â Â Â Licensee
not required to disclose proximity of registered sex offender
PENALTIES
696.990Â Â Â Â Penalties
696.995Â Â Â Â Civil
penalties for violation of ORS 696.603, 696.606 or 696.612
     696.005 [1963 c.580 §39; repealed by 1965 c.617 §8]
REAL ESTATE LICENSEES
(Generally)
     696.007
Statement of legislative purpose. (1) The Sixty-second Legislative Assembly recognizes that
notwithstanding amendments made to ORS chapter 696 by sections 9, 17, 19, 23,
25, 27 to 30, 32 and 40 to 43, chapter 649, Oregon Laws 1977, section 40,
chapter 617, Oregon Laws 1981, and amendments made to ORS chapter 656 by
chapter 864, Oregon Laws 1979, section 1, chapter 725, Oregon Laws 1981, and
section 4, chapter 854, Oregon Laws 1981, agencies of this state are uncertain
regarding application to real estate licensees of statutes of this state
relating to employers and employees. This section and ORS 316.209 and 656.037
are enacted to eliminate that uncertainty, to reaffirm the legislative intent
of the enactments cited in this section and to conform
     (2) Nothing in this section and ORS
316.209 and 656.037 shall be construed to impair or invalidate any claim of
refund or defense against collection of any tax, which claim or defense is
asserted by a taxpayer who has services performed by an individual who does not
meet the requirements of ORS 316.209. [1983 c.597 §1]
     Note: 696.007 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 696 or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     696.010
Definitions. As used in ORS
696.010 to 696.495, 696.600 to 696.785, 696.800 to 696.870, 696.990 and
696.995, unless the context requires otherwise:
     (1) “Agency” means the Real Estate Agency.
     (2) “Associated with” means to be
employed, engaged or otherwise supervised by, with respect to the relationship
between a real estate broker and a principal real estate broker.
     (3) “Bank” includes any bank or trust
company, savings bank, mutual savings bank, savings and loan association or
credit union that maintains a head office or a branch in this state in the
capacity of a bank or trust company, savings bank, mutual savings bank, savings
and loan association or credit union.
     (4)(a) “Branch office” means a business
location, other than the main office designated under ORS 696.200 (1), where
professional real estate activity is regularly conducted or that is advertised
to the public as a place where such business may be regularly conducted.
     (b) Model units or temporary structures
used solely for the dissemination of information and distribution of lawfully
required public reports shall not be considered branch offices. A model unit means
a permanent residential structure located in a subdivision or development used
for such dissemination and distribution, so long as the unit is at all times
available for sale, lease, lease option or exchange.
     (5) “Commissioner” means the Real Estate
Commissioner.
     (6) “Compensation” means any fee,
commission, salary, money or valuable consideration for services rendered or to
be rendered as well as the promise thereof and whether contingent or otherwise.
     (7) “Competitive market analysis” means a
method or process used by a real estate licensee in pursuing a listing
agreement or in formulating an offer to acquire real estate in a transaction
for the sale, lease, lease-option or exchange of real estate. The objective of
competitive market analysis is a recommended listing, selling or purchase price
or a lease or rental consideration. A competitive market analysis may be
expressed as an opinion of the value of the real estate in a contemplated
transaction. Competitive market analysis may include but is not limited to an
analysis of market conditions, public records, past transactions and current
listings of real estate.
     (8) “Expired” means, in the context of a
real estate licensee, that the license has not been renewed in a timely manner,
but may still be renewed.
     (9) “Inactive” means, in the context of a
real estate licensee, that the license has been returned to the agency to be
held until the licensee reactivates the license or the license expires or
lapses.
     (10) “Lapsed” means, in the context of a real
estate licensee, that the license has not been renewed in a timely manner and
is not eligible for renewal.
     (11) “Letter opinion” has the meaning
given that term in ORS 696.294.
     (12) “Management of rental real estate”
means:
     (a) Representing the owner of real estate
in the rental or lease of the real estate and includes but is not limited to:
     (A) Advertising the real estate for rent
or lease;
     (B) Procuring prospective tenants to rent
or lease the real estate;
     (C) Negotiating with prospective tenants;
     (D) Accepting deposits from prospective
tenants;
     (E) Checking the qualifications and
creditworthiness of prospective tenants;
     (F) Charging and collecting rent or lease
payments;
     (G) Representing the owner in inspection
or repair of the real estate;
     (H) Contracting for repair or remodeling
of the real estate;
     (I) Holding trust funds or property
received in managing the real estate and accounting to the owner for the funds
or property;
     (J) Advising the owner regarding renting
or leasing the real estate;
     (K) Providing staff and services to
accommodate the tax reporting and other financial or accounting needs of the
real estate;
     (L) Providing copies of records of acts
performed on behalf of the owner of the real estate; and
     (M) Offering or attempting to do any of
the acts described in this paragraph for the owner of the real estate; or
     (b) Representing a tenant or prospective
tenant when renting or leasing real estate and includes but is not limited to:
     (A) Consulting with tenants or prospective
tenants about renting or leasing real estate;
     (B) Assisting prospective tenants in
renting or leasing real estate;
     (C) Assisting prospective tenants in
qualifying for renting or leasing real estate;
     (D) Accepting deposits or other funds from
prospective tenants for renting or leasing real estate and holding the funds in
trust for the prospective tenants;
     (E) Representing tenants or prospective
tenants renting or leasing real estate; and
     (F) Offering or attempting to do any of
the acts described in this paragraph for a tenant or prospective tenant.
     (13) “Nonlicensed individual” means an
individual:
     (a) Who has not obtained a real estate
license; or
     (b) Whose real estate license is lapsed,
expired, inactive, suspended, surrendered or revoked.
     (14) “Principal real estate broker” means
an individual who holds an active license as a principal real estate broker and
who employs, engages or supervises the professional real estate activity of
another real estate licensee.
     (15) “Professional real estate activity”
means any of the following actions, when engaged in for another and for
compensation or with the intention or in the expectation or upon the promise of
receiving or collecting compensation, by any person who:
     (a) Sells, exchanges, purchases, rents or leases
real estate;
     (b) Offers to sell, exchange, purchase,
rent or lease real estate;
     (c) Negotiates, offers, attempts or agrees
to negotiate the sale, exchange, purchase, rental or leasing of real estate;
     (d) Lists, offers, attempts or agrees to
list real estate for sale;
     (e) Offers, attempts or agrees to perform
or provide a competitive market analysis or letter opinion, to represent a
taxpayer under ORS 305.230 or 309.100 or to give an opinion in any
administrative or judicial proceeding regarding the value of real estate for
taxation, except when the activity is performed by a state certified appraiser
or state licensed appraiser;
     (f) Auctions, offers, attempts or agrees
to auction real estate;
     (g) Buys, sells, offers to buy or sell or
otherwise deals in options on real estate;
     (h) Engages in management of rental real
estate;
     (i) Purports to be engaged in the business
of buying, selling, exchanging, renting or leasing real estate;
     (j) Assists or directs in the procuring of
prospects, calculated to result in the sale, exchange, leasing or rental of
real estate;
     (k) Assists or directs in the negotiation
or closing of any transaction calculated or intended to result in the sale,
exchange, leasing or rental of real estate;
     (L) Except as otherwise provided in ORS
696.030 (1)(L), advises, counsels, consults or analyzes in connection with real
estate values, sales or dispositions, including dispositions through eminent
domain procedures;
     (m) Advises, counsels, consults or
analyzes in connection with the acquisition or sale of real estate by an entity
if the purpose of the entity is investment in real estate; or
     (n) Performs real estate marketing
activity as described in ORS 696.600.
     (16) “Real estate” includes leaseholds and
licenses to use including, but not limited to, timeshare estates and timeshare
licenses as defined in ORS 94.803, as well as any and every interest or estate
in real property, whether corporeal or incorporeal, whether freehold or
nonfreehold, whether held separately or in common with others and whether the
real property is situated in this state or elsewhere.
     (17) “Real estate broker” means an
individual who engages in professional real estate activity and who holds an
active license as a real estate broker.
     (18) “Real estate licensee” means an
individual who holds an active license as a real estate broker, principal real
estate broker or real estate property manager.
     (19) “Real estate property manager” means
a real estate licensee who is authorized to engage in management of rental real
estate.
     (20) “Registered business name” means a
name registered with the Real Estate Agency under which the individual
registering the name engages in professional real estate activity.
     (21) “Sole practitioner” means a real
estate broker conducting professional real estate activity not in conjunction
with other real estate brokers or principal real estate brokers. [Amended by
1953 c.166 §5; 1955 c.322 §6; 1965 c.617 §1; 1973 c.416 §1; 1975 c.746 §1; 1977
c.649 §9; 1981 c.617 §2; 1985 c.589 §6; 1987 c.414 §37; 1987 c.468 §1; 1987
c.611 §12; 1989 c.724 §1; 1991 c.5 §26; 1995 c.217 §14; 1997 c.417 §5; 1999
c.488 §1; 2001 c.300 §10; 2003 c.347 §2; 2003 c.398 §6; 2005 c.116 §1; 2007
c.319 §1]
     696.015
Legislative finding; short title. (1) The Legislative Assembly finds the activity of persons seeking to
assist others, for compensation, to deal in real estate in this state to be a
matter of public concern. The provisions of ORS 696.010 to 696.495, 696.600 to
696.785, 696.800 to 696.870, 696.990 and 696.995 are enacted to assist in
creating for the public a healthy real estate market atmosphere and to assure
that professional real estate activity is conducted with high fiduciary
standards.
     (2) ORS 696.010 to 696.495, 696.600 to
696.785, 696.800 to 696.870, 696.990 and 696.995 may be cited as the Oregon
Real Estate License Law. [1977 c.649 §2]
(Licensing)
     696.020
License required for individuals engaged in professional real estate activities;
exception; rules. (1) The
Real Estate Agency may issue a real estate license only to an individual.
     (2) An individual may not engage in, carry
on, advertise or purport to engage in or carry on professional real estate
activity, or act in the capacity of a real estate licensee, within this state
unless the individual holds an active license as provided for in this chapter.
     (3) A real estate licensee is bound by and
subject to the requirements of ORS 696.010 to 696.495, 696.600 to 696.785,
696.800 to 696.870, 696.990 and 696.995 while:
     (a) Engaging in professional real estate
activity; or
     (b) Acting on the licensee’s own behalf in
the sale, exchange, lease option or purchase of real estate or in the offer or
negotiations for the sale, exchange, lease option or purchase of real estate.
     (4) The agency by rule may establish
provisions for a nonlicensed individual whose license is inactive or suspended
and who acts on the licenseeÂ’s own behalf in the sale, exchange, lease option
or purchase of real estate or in the offer or negotiations for the sale,
exchange, lease option or purchase of real estate. [Amended by 1969 c.674 §1;
1975 c.746 §1a; 1977 c.649 §10; 1981 c.617 §2a; 2007 c.319 §4]
     696.022
Licensing system for real estate brokers and property managers; rules. (1) The Real Estate Agency shall establish
by rule a system for licensing real estate brokers, principal real estate
brokers and real estate property managers. The system shall establish, at a
minimum:
     (a) The form and content of applications
for licensing under each category of real estate professional licensed by the
agency;
     (b) A licensing examination for each
category of license;
     (c) Schedules and procedures for issuing
and renewing licenses;
     (d) The term of a license in each
category; and
     (e) Terms and conditions under which the
license of a real estate licensee must be returned or transferred to the Real
Estate Commissioner for purposes including, but not limited to, inactivation,
suspension or termination of the license.
     (2)(a) A real estate broker may engage in
professional real estate activity. A real estate broker may not employ, engage
or supervise the professional real estate activity of another real estate
licensee.
     (b) In order to qualify for a real estate
brokerÂ’s license, an applicant must furnish proof satisfactory to the
commissioner that the applicant has successfully completed the basic real
estate brokerÂ’s educational courses and the examination required by rule of the
agency. Proof of completion of all required courses must be provided at the
time of applying for the license.
     (c) A real estate broker may conduct
professional real estate activity as a sole practitioner after:
     (A) The individual has acquired three
years of active experience as a real estate broker; or
     (B) The individual has acquired three
years of active experience as a real estate salesperson as defined in ORS
696.025 (1999 Edition) and has successfully completed the real estate brokerÂ’s
examination required by rule of the agency.
     (3)(a) A principal real estate broker may
engage in professional real estate activity. A principal real estate broker may
conduct professional real estate activity in conjunction with other real estate
brokers or principal real estate brokers. In addition, a principal real estate
broker must employ, engage or supervise the professional real estate activity
of another real estate licensee.
     (b) In order to qualify for a principal
real estate brokerÂ’s license, an applicant must meet the requirements of
subsection (2)(b) of this section and must furnish proof satisfactory to the
commissioner that the applicant has successfully completed the brokerage
administration and sales supervision course, as required by agency rule, and
has:
     (A) Three years of active experience as a
licensed real estate broker; or
     (B) Three years of active experience as a
real estate salesperson as defined in ORS 696.025 (1999 Edition) and has
successfully completed the real estate brokerÂ’s examination required by rule of
the agency.
     (4) In order to qualify for a real estate
property managerÂ’s license, an applicant must furnish proof satisfactory to the
commissioner that the applicant has successfully completed courses in the legal
aspects of real estate, real estate property management and accounting,
bookkeeping and trust accounting practices. The applicant also must have
successfully completed a real estate property managerÂ’s license examination
prescribed by rule of the agency. Proof of completion of all required courses
must be provided at the time of applying for the license.
     (5)(a) A license for a real estate broker,
principal real estate broker or real estate property manager shall be granted
only to an individual who is trustworthy and competent to conduct professional
real estate activity in a manner that protects the public interest. As a
condition of licensing, the commissioner may require proof of competence and
trustworthiness that the commissioner deems necessary to protect the public
interest.
     (b) In implementing this subsection, the
commissioner shall require fingerprints and criminal offender information of an
applicant for initial licensing and may require fingerprints and criminal
offender information of an applicant for license renewal. Fingerprints acquired
under this subsection may be used for the purpose of requesting a state or
nationwide criminal records check under ORS 181.534.
     (6) A license may be issued under this
section only to an individual who is 18 years of age or older.
     (7) In order to qualify for a real estate
brokerÂ’s license, a real estate salesperson licensed in another state or country
must successfully complete a course of study and pass a real estate brokerÂ’s
license examination, both as prescribed by agency rule.
     (8) In order to satisfy the educational
requirements under subsections (2) to (4) and (7) of this section, a course must
be approved by the commissioner. The commissioner shall determine the final
examination score acceptable as evidence of successful completion for each
required course.
     (9) The Real Estate Board may determine
that an applicant for a principal real estate brokerÂ’s license or a real estate
brokerÂ’s license has experience related to professional real estate activity
that is equivalent to the experience required under subsection (2) or (3) of
this section. [2001 c.300 §9; 2003 c.398 §7; 2005 c.116 §2; 2005 c.730 §37;
2007 c.319 §5]
     Note: 696.022 to 696.028 were added to and made a
part of the Oregon Real Estate License Law by legislative action but were not
added to any smaller series therein. See Preface to Oregon Revised Statutes for
further explanation.
     696.024
Payments due and owing to Real Estate Agency. To qualify for a real estate license under ORS 696.022 or to renew an
active or inactive real estate license, the applicant must make full payment of
any unpaid moneys due and owing to the Real Estate Agency, including any unpaid
civil penalties assessed under a final order of the Real Estate Commissioner. [2001
c.300 §15]
     Note: See note under 696.022.
     696.025 [1977 c.649 §8a; 1981 c.617 §3; 1987 c.468 §2;
1987 c.611 §13; 1989 c.724 §2; 1991 c.5 §27; repealed by 2001 c.300 §84]
     696.026
Conducting business under brokerÂ’s name, under registered business name or
through business organization; rules. (1) A real estate broker or principal real estate broker may conduct
professional real estate activity under the brokerÂ’s name, a registered
business name or a name prescribed by agency rule. The business name under
which a broker conducts professional real estate activity has no license
standing independent of the broker.
     (2) The agency by rule shall adopt a
registration system for business names. The system shall allow the registration
of any branch office of either a sole practitioner or a principal real estate
broker.
     (3) A real estate broker or principal real
estate broker operating under a business name registered by the broker need not
be an owner or officer of any organization otherwise lawfully entitled to use
the registered business name or have an ownership interest in the registered
name. However, all professional real estate activity conducted by or on behalf
of the broker must be conducted under the business name registered by the
broker.
     (4) A real estate broker or principal real
estate broker may register two or more business names if the business names are
for affiliated or subsidiary business organizations. If a real estate broker or
principal real estate broker registers the business names for two or more
affiliated or subsidiary business organizations, the broker may conduct
professional real estate activity separately under each business name. A real
estate broker or principal real estate broker must supervise and control the
professional real estate activity conducted under the brokerÂ’s name or
registered business name.
     (5) A real estate broker employed, engaged
or supervised by a principal real estate broker for required training and
supervision by the principal real estate broker may have an ownership interest
in any business through which the principal broker conducts professional real
estate activity, but may not control or supervise the professional real estate
activity of the principal broker and may not interfere with or be responsible
for the training and supervision of any other broker.
     (6) A nonlicensed individual may have an
ownership interest in any business through which a real estate broker or
principal real estate broker engages in professional real estate activity, but
may not control or supervise the professional real estate activity of any real
estate broker or principal real estate broker licensed to control or supervise
the professional real estate activity of such business.
     (7) Two or more real estate brokers
operating under the same registered business name who do not exercise any
administrative or supervisory control over one another are solely responsible
for their own professional real estate activity.
     (8) Notwithstanding any other provision of
ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to 696.870, 696.990 and
696.995, a broker associated with a principal broker may create a corporation,
limited liability company, limited liability partnership or any other lawfully
constituted business organization for the purpose of receiving compensation
from the principal broker. A business organization created under this
subsection may not be licensed under ORS 696.022 or conduct in its own name
professional real estate activity requiring a real estate license. [2001 c.300 §8;
2005 c.116 §3; 2005 c.393 §1; 2007 c.319 §6; 2007 c.337 §3]
     Note: See note under 696.022.
     696.028
Licensed personal assistant; rules. The Real Estate Commissioner may prescribe by rule the terms and
conditions for licensed personal assistant agreements including, but not
limited to, the duties and responsibilities of, the limitations on the
activities of, and the nature and scope of the business relationship between a
real estate licensee and a licensed personal assistant. [2001 c.300 §30]
     Note: See note under 696.022.
     696.030
Exemptions. (1) ORS 696.010
to 696.375, 696.392, 696.395 to 696.430, 696.490, 696.600 to 696.785, 696.990
and 696.995 do not apply to:
     (a) A nonlicensed individual who is a
full-time employee of a single owner of real estate whose real estate activity
involves the real estate of the employer and:
     (A) Is incidental to the employee’s
normal, nonreal estate activities; or
     (B) Is the employee’s principal activity,
but the employerÂ’s principal activity or business is not the sale, exchange,
lease option or acquisition of real estate.
     (b) A nonlicensed individual who acts as
attorney in fact under a duly executed power of attorney from the owner or
purchaser authorizing the supervision of the closing of or supervision of the
performance of a contract for the sale, leasing or exchanging of real estate if
the power of attorney was executed prior to July 1, 2002, in compliance with
the requirements of law at the time of execution or if:
     (A) The power of attorney is recorded in
the office of the recording officer for the county in which the real estate is
located;
     (B) The power of attorney specifically
describes the real estate; and
     (C) The individual does not use the power
of attorney as a device to engage in professional real estate activity without
obtaining the necessary real estate license.
     (c) A nonlicensed individual who acts as
attorney in fact under a duly executed power of attorney in which the
authorized agent is the spouse of the principal, or the child, grandchild,
parent, grandparent, sibling, aunt, uncle, niece or nephew of the principal or
of the spouse of the principal, authorizing real estate activity if the power
of attorney is recorded in the office of the recording officer for the county
in which the real estate to be sold, leased or exchanged is located.
     (d) A nonlicensed individual who is an
attorney at law rendering services in the performance of duties as an attorney
at law.
     (e) A nonlicensed individual who acts in
the individualÂ’s official capacity as a receiver, a conservator, a trustee in
bankruptcy, a personal representative or a trustee, or a regular salaried
employee of the trustee, acting under a trust agreement, deed of trust or will.
     (f) A nonlicensed individual who performs
an act of professional real estate activity under order of a court.
     (g) A nonlicensed individual who is a
regular full-time employee of a single corporation, partnership, association or
nonlicensed individual owner of real property acting for the corporation,
partnership, association or nonlicensed individual owner in the rental or
management of the real property, but not in the sale, exchange, lease option or
purchase of the real property.
     (h) An individual who is a registered
professional engineer or architect rendering services in performance of duties
as a professional engineer or architect.
     (i) A nonlicensed individual who is
employed by a real estate broker or principal real estate broker and who acts
as a manager for real estate if the real estate activity of the nonlicensed
individual is limited to negotiating rental or lease agreements, checking
tenant and credit references, physically maintaining the real estate,
conducting tenant relations, collecting the rent, supervising the premisesÂ’
managers and discussing financial matters relating to management of the real
estate with the owner.
     (j) An individual who sells or leases
cemetery lots, parcels or units while engaged in the disposition of human
bodies under ORS 97.010 to 97.040, 97.110 to 97.450, 97.510 to 97.730, 97.810
to 97.920 and 97.990 or an employee of the nonlicensed individual performing
similar activities.
     (k) An individual who is a salaried
employee of the State of Oregon, or any of its political subdivisions, engaging
in professional real estate activity as a part of such employment.
     (L) A nonlicensed individual who analyzes
or provides advice regarding permissible land use alternatives, environmental
impact, building and use permit procedures or demographic market studies, or a
regular full-time employee of the nonlicensed individual performing similar
activities. This exclusion does not apply to the handling of transactional
negotiations for transfer of an interest in real estate.
     (m) An individual who is a hotelkeeper or
innkeeper as defined by ORS 699.005 arranging the rental of transient lodging
at a hotel or inn in the course of business as a hotelkeeper or innkeeper.
     (n) An individual who is a travel agent
arranging the rental of transient lodging at a hotel or inn as defined in ORS
699.005 in the course of business as a travel agent for compensation. For the
purpose of this paragraph, “travel agent” means a person, and employees of the
person, regularly representing and selling travel services to the public
directly or indirectly through other travel agents.
     (o) An individual who is a common carrier
arranging the rental of transient lodging at a hotel or inn as defined in ORS
699.005 in the course of business as a common carrier. For the purpose of this
paragraph, “common carrier” means a person that transports or purports to be
willing to transport individuals from place to place by rail, motor vehicle,
boat or aircraft for hire, compensation or consideration.
     (p) An individual who is a hotel
representative arranging the rental of transient lodging at a hotel or inn as
defined in ORS 699.005 in the course of business as a hotel representative. For
the purpose of this paragraph, “hotel representative” means a person that
provides reservations or sale services to independent hotels, airlines,
steamship companies and government tourist agencies.
     (q) A nonlicensed individual transferring
or acquiring an interest in real estate owned or to be owned by the individual.
     (r) An individual who is a general partner
for a domestic or foreign limited partnership duly registered and operating
within this state under ORS chapter 70 engaging in the sale of limited
partnership interests and the acquisition, sale, exchange, lease, transfer or
management of the real estate of the limited partnership.
     (s) An individual who is a membership
camping contract broker or salesperson registered with the Real Estate Agency
selling membership camping contracts.
     (t) An individual who is a professional
forester or farm manager engaging in property management activity on forestland
or farmland when the activity is incidental to the nonreal estate duties
involving overall management of forest or farm resources.
     (u) An individual who is a registered
investment adviser under the Investment Advisers Act of 1940, 15 U.S.C. §80b-1
et seq., rendering real estate investment services for the office of the State
Treasurer or the Oregon Investment Council.
     (v) A nonlicensed individual who refers a
new tenant for compensation to a real estate licensee acting as the property
manager for a residential building or facility while the individual resides in
the building or facility or within six months after termination of the
individualÂ’s tenancy.
     (w) A nonlicensed individual who gives an
opinion in an administrative or judicial proceeding regarding the value of real
estate for taxation or representing a taxpayer under ORS 305.230 or 309.100.
     (x) A nonlicensed individual acting as a
paid fiduciary whose real estate activity is limited to negotiating or closing
a transaction to obtain the services of a real estate licensee.
     (y) A nonlicensed individual who is a
fiduciary under a court order, without regard to whether the court order
specifically authorizes real estate activity.
     (z) An individual who is a representative
of a financial institution or trust company, as those terms are defined in ORS
706.008, that is attorney in fact under a duly executed power of attorney from
the owner or purchaser authorizing real estate activity, if the power of
attorney is recorded in the office of the county clerk for the county in which
the real estate to be sold, leased or exchanged is located.
     (2) The vesting of title to real estate in
more than one person by tenancy by the entirety, tenancy in common or by
survivorship shall be construed as that of a single owner for the purposes of
this section. [Amended by 1955 c.322 §7; 1963 c.593 §1; 1967 c.277 §1; 1969
c.674 §2; 1975 c.746 §2; 1977 c.649 §11; 1979 c.125 §3; 1979 c.289 §1a; 1981
c.617 §4; 1985 c.639 §13; 1985 c.677 §64; 1991 c.5 §28; 1991 c.212 §1; 1993
c.18 §149; 1995 c.246 §1; 1997 c.307 §2; 1999 c.488 §2; 2001 c.300 §11; 2003
c.347 §1; 2005 c.116 §4; 2007 c.319 §7]
     696.040
Single act sufficient to constitute professional real estate activity. One act or transaction of professional real
estate activity is sufficient to constitute engaging in professional real
estate activity, within the meaning of this chapter. [Amended by 1955 c.322 §8;
1977 c.649 §12]
     696.050 [Amended by 1955 c.322 §9; 1961 c.471 §1;
1963 c.412 §1; 1969 c.515 §1; 1969 c.674 §3; 1971 c.671 §1; 1973 c.416 §3; 1973
c.827 §78; 1974 c.36 §21; 1975 c.746 §3; 1977 c.191 §1; 1977 c.649 §13; 1981
c.617 §5; 1983 c.258 §1; 1989 c.532 §6; 1989 c.724 §3; 1991 c.5 §29; repealed
by 2001 c.300 §84]
     696.060 [Amended by 1975 c.746 §4; 1977 c.649 §14;
1981 c.617 §6; repealed by 2001 c.300 §84]
     696.070 [Amended by 1963 c.412 §2; repealed by 1977
c.649 §53 and 1977 c.842 §17]
     696.080 [Amended by 1975 c.746 §5; 1977 c.649 §15;
1981 c.617 §6a; 1987 c.611 §14; repealed by 2001 c.300 §84]
     696.085 [1991 c.462 §2; repealed by 2001 c.300 §84]
     696.090 [Amended by 1955 c.322 §10; repealed by 1977
c.649 §16 and 1977 c.842 §17 (694.169 enacted in lieu of 696.090)]
     696.100 [Amended by 1963 c.412 §3; 1977 c.649 §17;
repealed by 2001 c.300 §84]
     696.110
Exclusive nature of regulation of real estate licensees. The provisions of ORS 696.010 to 696.495,
696.600 to 696.785, 696.800 to 696.870 and 696.995 shall be exclusive and no
political subdivision or agency of this state shall require or issue any
license or charge any fee for licensing or regulation of individuals licensed
under ORS 696.022. Nothing in this section shall limit the authority of a county,
city or town to levy and collect a general and nondiscriminatory license fee
upon all businesses in the county, city or town or to levy a tax based upon the
business conducted by any licensee or firm within the county, city or town. [Amended
by 1955 c.322 §11; 1961 c.309 §3; 1965 c.617 §2; 1975 c.746 §1b; 2001 c.300 §12;
2007 c.319 §22]
     696.120 [Amended by 1977 c.649 §18; repealed by 2001
c.300 §84]
     696.130
Limited license. (1) If the
license of any real estate broker or principal real estate broker is revoked by
the Real Estate Commissioner, the commissioner may not issue a new license
until the individual complies with the provisions of ORS 696.010 to 696.495,
696.600 to 696.785 and 696.800 to 696.870.
     (2) Notwithstanding subsection (1) of this
section, the commissioner may issue the individual a limited license if, in the
discretion of the commissioner, it is in the public interest to do so. The
commissioner may limit a license issued under this subsection:
     (a) By term;
     (b) To acts subject to the supervision of
a specific principal real estate broker; or
     (c) By conditions to be observed in the
exercise and the privileges granted.
     (3) A limited license issued under this
section does not confer any property right in the privileges to be exercised thereunder,
and the holder of a limited license does not have the right to renewal of such
license. A limited license may be suspended or revoked, or the licensee may be
reprimanded, by the commissioner on the grounds set out in ORS 696.301. [Amended
by 1955 c.322 §12; 1969 c.674 §4; 1973 c.416 §4; 1975 c.746 §6; 1977 c.191 §2;
1977 c.649 §19; 1981 c.617 §7; 1987 c.611 §15; 1991 c.5 §30; 2001 c.300 §13;
2003 c.398 §8]
     696.140 [Amended by 1961 c.471 §2; 1963 c.412 §4;
1973 c.416 §5; repealed by 1975 c.746 §10 (696.141 enacted in lieu of 696.140)]
     696.141 [1975 c.746 §11 (enacted in lieu of
696.140); 1977 c.649 §51; 1979 c.243 §1; repealed by 2001 c.300 §84]
     696.150 [Amended by 1977 c.649 §20; repealed by 2001
c.300 §84]
     696.160 [Amended by 1969 c.674 §5; 1975 c.746 §12;
1977 c.649 §21; 1987 c.611 §16; 1989 c.724 §4; 1991 c.5 §31; repealed by 2001
c.300 §84]
     696.162 [1975 c.746 §8; 1977 c.190 §1; 1977 c.649 §22;
1981 c.617 §8; 1987 c.468 §3; repealed by 1991 c.5 §46]
     696.165 [1953 c.166 §4; 1969 c.674 §6; 1977 c.649 §23;
1981 c.617 §8a; 1991 c.5 §32; repealed by 2001 c.300 §84]
     696.167 [1975 c.746 §9; 1977 c.649 §24; repealed by
1981 c.617 §41]
     696.169 [1977 c.649 §16a (enacted in lieu of
696.090); 1989 c.724 §5; repealed by 2001 c.300 §84]
     696.170 [Amended by 1955 c.322 §13; repealed by 1969
c.674 §20]
     696.172 [1969 c.674 §9; repealed by 1975 c.746 §34]
     696.174
License renewal; continuing education courses; rules. (1) To qualify an active license for
renewal, the real estate licensee must present evidence of attendance during
the preceding two license years at 30 clock-hours of real estate oriented
continuing education courses, of which a minimum of 15 clock-hours shall be in
required course topics.
     (2)(a) The Real Estate Commissioner, with advice
from real estate professionals, educators and the public, may accept a broad
range of topics for real estate oriented continuing education courses. Required
course topics shall be flexible so as to allow for changes in the real estate
profession.
     (b) The minimum length of each course,
required or elective, shall be one hour. A standard form, created by the Real
Estate Agency in consultation with real estate professionals, shall be
developed to ensure that licensees have completed the required number of hours.
Certification of attendance by the principal real estate broker with whom the
real estate broker is associated, or self-certification if the licensee is a
sole practitioner, a principal real estate broker or a real estate property
manager, shall be considered evidence of attendance.
     (3) The commissioner, with advice from
real estate professionals, educators and the public, shall prescribe rules for
certifying continuing education courses. The rules shall provide for
correspondence courses and other distance learning alternatives, including but
not limited to rules for minimum course length, comprehension of written
materials and tests for course completion. The rules shall also provide that
continuing education course topics contain an advanced course in real estate
practices that must be completed by a licensee prior to the licenseeÂ’s first
renewal of an active license.
     (4) The commissioner may waive the
continuing education requirements of subsection (1) of this section for any
licensee who submits satisfactory evidence of inability to attend such courses
because of health or other circumstances beyond the licenseeÂ’s control. [1969
c.674 §11; 1973 c.416 §6; 1977 c.649 §25; 1981 c.617 §9; 1983 c.359 §1; 1987
c.611 §19; 1989 c.724 §6; 1991 c.5 §33; 1995 c.335 §1; 2001 c.300 §14]
     696.176 [1969 c.674 §10; 1975 c.746 §13; 1977 c.649 §26;
repealed by 2001 c.300 §84]
     696.180 [Amended by 1977 c.649 §27; repealed by 2001
c.300 §84]
     696.190 [Amended by 1977 c.649 §28; repealed by 1981
c.617 §41]
     696.200
Real estate broker or organization to maintain place of business; branch
offices; change of business location. (1) Except for real estate brokers associated with a principal real
estate broker, every real estate broker and principal real estate broker shall
maintain in this state a place of business to be designated as the brokerÂ’s
main office and designate the place of business by a sign that contains the
name under which the broker is licensed.
     (2) The place of business must be
specified in the application for a real estate license, and designated in the
license. Prior to the change of a business location, the broker shall notify
the Real Estate Commissioner in writing of the new location. The change of a
business location without notification to the commissioner is grounds for
revocation of licenses previously issued.
     (3) A real estate broker or principal real
estate broker may establish one or more branch offices as separate business
locations under the management of the broker. A broker may conduct and
supervise the business of more than one office, whether main or branch. The
broker shall register each branch office with the commissioner and designate
each branch office by a sign that contains the name under which the broker is
licensed.
     (4) Upon vacating any business location,
the broker shall ensure that the sign containing the brokerÂ’s name or the name
under which the broker has operated is removed from the location that the
broker has vacated. A broker may not display any name at the designated places
of business named in the brokerÂ’s license or licenses other than the name under
which the broker is licensed. [Amended by 1955 c.322 §14; 1961 c.471 §3; 1965
c.367 §1; 1973 c.416 §7; 1975 c.746 §14; 1977 c.649 §29; 1979 c.823 §1; 1981
c.617 §10; 1989 c.532 §7; 2001 c.300 §16; 2003 c.398 §9; 2005 c.116 §5]
     696.205
Death or incapacity of sole proprietor real estate licensee; temporary license;
rules. (1) If a real estate
licensee who is a sole practitioner or who is the sole principal real estate broker
of a real estate business dies or becomes incapacitated, the Real Estate
Commissioner may issue a temporary license to the executor, administrator or
personal representative of the estate of the deceased real estate licensee or
to the court-appointed fiduciary of the incapacitated real estate licensee, or
to some other individual designated by the commissioner, in order to continue
to transact the real estate business in the case of the incapacitated real
estate licensee or to wind up the affairs of the deceased or incapacitated real
estate licensee. The term of a temporary license issued under this section may
not exceed one year from the date of issuance unless the commissioner, in the
discretion of the commissioner, extends the term of the temporary license based
on sufficient cause provided by the temporary licensee to the commissioner.
     (2) The Real Estate Agency may adopt
administrative rules to administer this section or to authorize an individual
to transact or wind up real estate business on behalf of the deceased or
incapacitated real estate licensee. [1975 c.746 §7; 2001 c.300 §17; 2005 c.116 §6;
2007 c.319 §8]
     696.210 [Amended by 1977 c.649 §30; repealed by 2001
c.300 §84]
     696.220 [Repealed by 1955 c.322 §15]
     696.221 [1955 c.322 §4; 1969 c.674 §12; 1977 c.649 §31;
1983 c.258 §2; 1991 c.5 §34; 2001 c.300 §18; repealed by 2005 c.116 §24]
     696.224 [1955 c.322 §5; 1969 c.674 §13; 1977 c.649 §32;
1983 c.258 §3; 1989 c.724 §12; 1991 c.5 §35; repealed by 2001 c.300 §84]
     696.226 [1955 c.322 §2; 1977 c.649 §33; 1983 c.258 §4;
1991 c.5 §36; 2001 c.300 §19; repealed by 2005 c.116 §24]
     696.228 [1969 c.674 §8; 1977 c.649 §34; 1983 c.258 §5;
repealed by 2001 c.300 §84]
     696.230 [Repealed by 1969 c.674 §21]
     696.232
Return of license by employee of agency; reissuance upon termination of
employment. (1) An employee
or officer of the Real Estate Agency licensed as a real estate licensee under
this chapter shall return the employeeÂ’s or officerÂ’s license to the agency at
the time of commencing employment. The agency shall hold the license as an
active license held in suspense. At the termination of an employeeÂ’s or officerÂ’s
employment, the license may be returned to the licensee as an active or
inactive license. The agency shall activate a license held in suspense without
payment of further fee, and the license expires on the date on which it would
have expired if the license had not been held in suspense.
     (2) Except as stated in subsection (1) of
this section, the return of the license to the licensee and all renewals are
subject to the provisions of ORS 696.010 to 696.495, 696.600 to 696.785,
696.800 to 696.870 and 696.995. [1975 c.746 §16; 1977 c.649 §35; 1983 c.258 §6;
2001 c.300 §63; 2005 c.116 §7]
     696.235 [1975 c.746 §15; 1977 c.649 §36; 1981 c.617 §11;
1989 c.724 §7; 1995 c.335 §2; 2001 c.300 §20; repealed by 2005 c.116 §24]
     696.240 [Amended by 1957 c.383 §1; 1963 c.580 §49;
repealed by 1975 c.746 §17 (696.241 enacted in lieu of 696.240)]
(Client Trust
Fund Accounts)
     696.241
ClientsÂ’ Trust Accounts; notice to agency; authority to examine account; branch
trust account; interest earnings on trust account; when broker entitled to
earnest money; funds not subject to execution; rules. (1) Each sole practitioner and each
principal real estate broker shall maintain in this state one or more separate
bank accounts that shall be designated a ClientsÂ’ Trust Account in which all
trust funds received or handled by the sole practitioner or broker and the real
estate licensees subject to the supervision of the broker on behalf of any
other person shall be deposited unless, pursuant to written agreement of all
parties having an interest in the trust funds, the trust funds are immediately
placed in a neutral escrow depository in this state.
     (2) Each sole practitioner or principal
real estate broker shall file with the Real Estate Agency, on forms approved by
the Real Estate Commissioner, a statement identifying the name of the bank or
banks, account number or account numbers, and name of account or accounts for
each ClientsÂ’ Trust Account maintained.
     (3) Each sole practitioner or principal
real estate broker shall authorize the agency, by a form approved by the
commissioner, to examine any ClientsÂ’ Trust Account, by a duly authorized
representative of the agency. The examination shall be made at such times as
the commissioner may direct.
     (4) If a sole practitioner or principal
real estate broker maintains a separate ClientsÂ’ Trust Account in a branch
office, a separate bookkeeping system shall be maintained in the branch office,
provided a copy of the records required by the provisions of ORS 696.280 are
maintained in the main office of the sole practitioner or broker.
     (5) Trust funds received by a sole
practitioner or principal real estate broker may be placed by the sole
practitioner or broker in a federally insured interest-bearing bank account,
designated a ClientsÂ’ Trust Account, but only with the prior written approval
of all parties having an interest in the trust funds. The earnings of such
interest-bearing account shall not inure to the benefit of the sole
practitioner or principal real estate broker unless expressly approved in
writing before deposit of the trust funds by all parties having an interest in
the trust funds.
     (6) With prior written notice to all
parties who have an interest in the trust funds, a sole practitioner or
principal real estate broker may place trust funds received by the sole
practitioner or principal real estate broker in a federally insured
interest-bearing bank account that is designated a ClientsÂ’ Trust Account and
the earnings of which inure to the benefit of a public benefit corporation, as
defined in ORS 65.001, for distribution to organizations and individuals for
first-time homebuying assistance and for development of affordable housing. The
sole practitioner or principal real estate broker shall select a qualified
public benefit corporation to receive the interest earnings.
     (7) A sole practitioner or principal real
estate broker is not entitled to any part of any interest earnings on trust
funds deposited under subsection (5) of this section or to any part of the
earnest money or other money paid to the sole practitioner or broker in
connection with any real estate transaction as part or all of the sole
practitionerÂ’s or brokerÂ’s compensation until the transaction has been
completed or terminated. The question of the disposition of forfeited earnest
money shall be negotiated between the sole practitioner or principal real
estate broker and the seller at the time of executing any listing agreement or
earnest money agreement. The result of such negotiation shall be filled in on
the agreement form at the time of signing by the seller and either separately
initialed by the seller or placed immediately above the signature of the
seller.
     (8) Clients’ Trust Account funds are not
subject to execution or attachment on any claim against a sole practitioner or
principal real estate broker.
     (9) A sole practitioner or principal real
estate broker may not knowingly keep or cause to be kept any funds or money in
any bank under the heading of ClientsÂ’ Trust Account or any other name
designating such funds or money as belonging to the clients of any sole
practitioner or principal real estate broker, except actual trust funds
deposited with the sole practitioner or broker.
     (10) The agency by rule shall establish an
optional procedure by which a sole practitioner or a principal real estate
broker may elect to disburse disputed funds held in relation to the sale,
exchange or purchase of real estate from a ClientsÂ’ Trust Account to the person
who delivered the funds to the sole practitioner or principal real estate
broker. The procedure shall allow disbursal not more than 20 days after a
request is made for the disbursal. A disbursal pursuant to the procedure does
not affect the claim of any other person to the funds.
     (11) The agency may provide by rule for
other records to be maintained and for the manner in which trust funds are
deposited, held and disbursed. [1975 c.746 §18 (enacted in lieu of 696.240);
1977 c.649 §39; 1981 c.617 §11a; 1985 c.589 §4; 1991 c.5 §37; 2001 c.300 §21;
2003 c.224 §1; 2005 c.116 §18; 2005 c.393 §2a; 2007 c.224 §1; 2007 c.319 §9;
2007 c.337 §4]
     696.243
Substituting copy for original canceled check allowed; electronic fund
transfers. (1) Any real
estate broker, principal real estate broker, real estate property manager or
escrow agent who is required by the Real Estate Commissioner to maintain the
canceled checks used to disburse moneys from the licenseeÂ’s clientsÂ’ trust
account may substitute a copy of the original canceled check, if the copy is
provided by a bank and is produced by optical imaging or other process that
accurately reproduces the original or forms a durable medium for reproducing
the original, and the copy is at least 300 dots per inch in quality.
     (2) A real estate broker, principal real
estate broker, real estate property manager or escrow agent may use electronic
fund transfers for the deposit into or for withdrawal from a clientsÂ’ trust
account established under ORS 696.241 or 696.578, if the bank furnishes to the
licensee an accurate paper record of the deposits and withdrawals.
     (3) As used in subsection (2) of this
section, “electronic fund transfer” has the meaning set forth in section 903 of
the Electronic Transfer Act (P.L. 90-321, 15 U.S.C. §1693a). [1995 c.760 §4;
2001 c.300 §22]
     Note: 696.243 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 696 or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     696.245
ClientsÂ’ Trust Accounts; notice to bank; retention of copy. (1) Each sole practitioner and each
principal real estate broker, at the time a ClientsÂ’ Trust Account is opened
under ORS 696.241, shall provide the bank in which the account is opened with a
notice in substantially the following form:
______________________________________________________________________________
NOTICE OF CLIENTSÂ’ TRUST ACCOUNT
To: (name of
bank) ________
     Under the Oregon Real Estate License Law,
I am the sole practitioner, principal real estate broker or designated real
estate appraiser for (licensed name of broker or business) ____________.
     Further, under ORS 696.241, I am required
to maintain in
     With regard to the account(s) numbered _________
which is/are designated as a ClientsÂ’ Trust Account, the account(s) is/are
maintained with you as a depository for money belonging to persons other than
myself and in my fiduciary capacity as a sole practitioner or principal real
estate broker established by client agreements in separate documents.
Dated:
(insert date)
__________________
(signature of broker)
ACKNOWLEDGMENT OF RECEIPT
     I, __________________, a duly authorized
representative of (bank) __________________, do hereby acknowledge receipt of
the above NOTICE OF CLIENTSÂ’ TRUST ACCOUNT on (date)______.
__________________
(signature)
__________________
(title)
______________________________________________________________________________
     (2) The acknowledged copy of the notice
described in subsection (1) of this section shall be retained by the sole
practitioner or principal real estate broker as provided in ORS 696.241 for the
retention of trust account records, subject to inspection by the Real Estate
Commissioner or the commissioner’s authorized representative. [1985 c.589 §2;
1991 c.5 §38; 2001 c.300 §23; 2005 c.116 §19]
     Note: 696.245 was added to and made a part of ORS
696.010 to 696.495 by legislative action but was not added to any smaller
series therein. See Preface to Oregon Revised Statutes for further explanation.
     696.247 [1989 c.916 §1; 1991 c.716 §1; repealed by
1997 c.801 §37]
     696.249 [1989 c.916 §2; 1991 c.716 §2; repealed by
1997 c.801 §37]
     696.250 [Amended by 1953 c.202 §2; 1961 c.675 §1;
1965 c.367 §2; 1969 c.674 §14; 1975 c.746 §19; 1977 c.649 §37; 1981 c.617 §12;
repealed by 1989 c.532 §10]
     696.251 [1989 c.916 §2a; repealed by 1997 c.801 §37]
     696.253 [1989 c.916 §3; repealed by 1997 c.801 §37]
     696.254 [1989 c.916 §7; 1991 c.716 §4; 1993 c.744 §176;
repealed by 1997 c.801 §37]
(Nonresident
and Reciprocal Real Estate Broker and Salesperson Licensing)
     696.255
Nonresident license equivalent to appointment of commissioner as agent for
service of process; service on commissioner; fee. (1) The acceptance by a nonresident of a
real estate license shall be considered equivalent to an appointment by the
nonresident of the Real Estate Commissioner as the nonresident licenseeÂ’s true
and lawful attorney, upon whom may be served any lawful summons, process or
pleading in any action or suit against the nonresident licensee in any court of
this state, arising out of any business done by the nonresident licensee as a
real estate licensee in this state. The acceptance shall be considered
equivalent to an agreement by the nonresident licensee that any summons,
process or pleading so served shall be of the same legal force and validity as
if served on the nonresident licensee personally in this state.
     (2) If it appears by the certificate of
the sheriff of the county in which an action or suit has been filed against a
nonresident licensee, that the defendant cannot be found in this state, service
of any summons, process or pleading in the action or suit may be made by
leaving a copy thereof, with a fee of $2, in the hands of the commissioner or
in the commissionerÂ’s office. Such service shall be sufficient and valid
personal service upon the defendant; provided that:
     (a) Notice of the service and copy of the
summons, process or pleading is sent forthwith by registered mail or by
certified mail with return receipt by the plaintiff or the plaintiffÂ’s attorney
to the defendant, at the most recent address furnished to the commissioner by
the nonresident licensee or to the nonresident licenseeÂ’s last-known address;
and
     (b) The affidavit of the plaintiff or the
plaintiffÂ’s attorney of the mailing is appended to the summons, process or
pleading and entered as a part of the return thereof.
     (3) Notwithstanding any other provision of
this section, personal service outside of the state in accordance with the
statutes relating to personal service of summons outside of the state shall
relieve the plaintiff from the mailing requirement under this section.
     (4) Any summons served as provided in this
section shall require the defendant to appear and answer the complaint within
four weeks after receipt thereof by the commissioner.
     (5) The fee of $2 paid by the plaintiff to
the commissioner shall be taxed as costs in favor of the plaintiff if the
plaintiff prevails in the action.
     (6) The commissioner shall keep a record
of each summons, process or pleading served upon the commissioner under this
section, showing the day and hour of service. [1981 c.617 §12a; 1989 c.532 §9;
1991 c.249 §62]
     696.258 [1989 c.532 §1; repealed by 2001 c.300 §84]
     696.260 [Repealed by 1977 c.649 §53 and 1977 c.842 §17]
     696.262 [1989 c.532 §§2,3; repealed by 1999 c.470 §4]
     696.265
Recognition of nonresident real estate licensee; rules. Notwithstanding ORS 696.040 to 696.232 and
696.255, the Real Estate Commissioner may prescribe by rule the terms and
conditions for license recognition of a nonresident real estate broker or
salesperson and for reciprocity agreements with other states and countries,
including but not limited to application procedures, license qualifications,
license maintenance, limitations on activities and license renewal
requirements. [1989 c.532 §4; 1999 c.470 §3; 2001 c.300 §24]
     Note: 696.265 was added to and made a part of
696.010 to 696.495 by legislative action but was not added to any smaller
series therein. See Preface to Oregon Revised Statutes for further explanation.
(Miscellaneous)
     696.270
Fees. The maximum fees described
in this section may be charged by and paid to the Real Estate Agency. Actual
fees shall be prescribed by the Real Estate Commissioner with approval of the
Oregon Department of Administrative Services. This section applies to the
following fees:
     (1) For each licensing examination applied
for, $75.
     (2) For each real estate broker’s,
principal real estate brokerÂ’s or real estate property managerÂ’s license, $230.
     (3) For each renewal of a real estate
brokerÂ’s, principal real estate brokerÂ’s or real estate property managerÂ’s
license, $230.
     (4) For each notification of the opening
or closing of a registered branch office of a real estate broker or principal
real estate broker, at times other than the time of issuing or renewing the
brokerÂ’s license, $10.
     (5) For each change of name or address of
a broker on the records of the agency, $10.
     (6) For each duplicate license, when the
original license is lost or destroyed and affidavit made thereof, $20.
     (7) For each transfer of a real estate
brokerÂ’s, principal real estate brokerÂ’s or real estate property managerÂ’s
license within the same license category, $10.
     (8) For the renewal of a real estate
brokerÂ’s, principal real estate brokerÂ’s or real estate property managerÂ’s
inactive license, $110.
     (9) For the reactivation of a real estate
brokerÂ’s, principal real estate brokerÂ’s or real estate property managerÂ’s
inactive license, $75.
     (10) In addition to the renewal fee, for
late renewal, $30.
     (11) For a temporary license issued under
ORS 696.205, $40, and for an extension thereof, $40.
     (12) For initial registration of a
business name, $230. [Amended by 1953 c.166 §5; 1955 c.457 §1; subsections
(13), (14), (15) enacted as 1955 c.322 §3; 1957 c.383 §2; 1961 c.670 §1; 1965
c.617 §3; 1969 c.674 §15; 1971 c.293 §1; 1975 c.746 §20; 1977 c.191 §3; 1977
c.649 §52; 1981 c.566 §4; 1987 c.58 §13; 1987 c.158 §146; 1987 c.611 §20; 1989
c.724 §8; 1991 c.5 §39; 1991 c.462 §3; 1997 c.451 §1; 2001 c.300 §25; 2003
c.398 §10; 2005 c.116 §20]
     696.275 [1977 c.873 §18; repealed by 1987 c.58 §15]
     696.280
Records of real estate brokers; rules. (1) A real estate broker or principal real estate broker shall
maintain within this state, except as provided in subsection (4) of this
section, complete and adequate records of all professional real estate activity
conducted by or through the broker. The Real Estate Agency shall specify by
rule the records required to establish complete and adequate records of a
brokerÂ’s professional real estate activity. The only documents the agency may
require by rule a real estate broker or principal real estate broker to use or
generate are documents that are otherwise required by law or are voluntarily
generated during a real estate transaction.
     (2)(a) The records of a principal real
estate broker or a sole practitioner shall include records of attendance in
continuing education courses by the sole practitioner or broker. The records of
attendance shall state the name of the sole practitioner or broker and the date
of the sole practitionerÂ’s or brokerÂ’s attendance, and shall be the basis for
self-certification under ORS 696.174.
     (b) A principal real estate broker’s
records shall include records of attendance in continuing education courses by
real estate licensees associated with the principal broker. The record of
attendance shall state the name of the licensee and the date of the licenseeÂ’s
attendance, and shall be the basis for the certificate of attendance submitted
under ORS 696.174.
     (3) The records shall at all times be open
for inspection by the Real Estate Commissioner or the commissionerÂ’s authorized
representatives. The records of each transaction shall be maintained by the
licensee for a period of not less than six years after the date the transaction
closed or failed. The records may be maintained in any format that allows for
inspection and copying by the commissioner or the commissionerÂ’s
representatives, as determined by the commissioner by rule.
     (4) The agency may prescribe by rule terms
and conditions under which a real estate broker or principal real estate broker
may maintain records outside this state. [Amended by 1977 c.649 §38; 1981 c.617
§12b; 1983 c.258 §7; 1983 c.359 §2; 1991 c.5 §40; 1995 c.335 §3; 2001 c.300 §26;
2005 c.116 §21; 2007 c.319 §9a]
     696.290
Sharing compensation with or paying finderÂ’s fee to unlicensed person
prohibited; exceptions. (1)
A real estate licensee shall not offer, promise, allow, give, pay or rebate,
directly or indirectly, any part or share of the licenseeÂ’s compensation
arising or accruing from any real estate transaction or pay a finderÂ’s fee to
any person who is not a real estate licensee licensed under ORS 696.022.
However, a real estate broker or principal real estate broker may pay a finderÂ’s
fee or a share of the licenseeÂ’s compensation on a cooperative sale when the
payment is made to a licensed real estate broker in another state or country,
provided that the state or country in which that broker is licensed has a law
permitting real estate brokers to cooperate with real estate brokers or principal
real estate brokers in this state and that such nonresident real estate broker
does not conduct in this state any acts constituting professional real estate
activity and for which compensation is paid. If a country does not license real
estate brokers, the payee must be a citizen or resident of the country and
represent that the payee is in the business of real estate brokerage in the
other country. A real estate broker associated with a principal real estate
broker shall not accept compensation from any person other than the principal
real estate broker with whom the real estate broker is associated at the time.
A principal real estate broker shall not make payment to the real estate broker
of another principal real estate broker except through the principal real
estate broker with whom the real estate broker is associated. Nothing in this
section prevents payment of compensation earned by a real estate broker or
principal real estate broker while licensed, because of change of affiliation
or inactivation of the brokerÂ’s license.
     (2) Nothing in subsection (1) of this
section is intended to prohibit a real estate licensee who has a written
property management agreement with the owner of a residential building or
facility from authorizing the payment of a referral fee, rent credit or other
compensation to an existing tenant of the owner or licensee, or a former tenant
if the former tenant resided in the building or facility within the previous
six months, as compensation for referring new tenants to the licensee.
     (3) Nothing in subsection (1) of this
section is intended to prevent an
     (a) Before the out-of-state real estate
licensee performs any act in this state that constitutes professional real
estate activity, the licensee and the cooperating Oregon real estate broker or
principal real estate broker agree in writing that the acts constituting
professional real estate activity conducted in this state will be under the
supervision and control of the cooperating Oregon broker and will comply with
all applicable Oregon laws;
     (b) The cooperating Oregon real estate
broker or principal real estate broker accompanies the out-of-state real estate
licensee and the client during any property showings or negotiations conducted
in this state; and
     (c) All property showings and negotiations
regarding nonresidential real estate located in this state are conducted under
the supervision and control of the cooperating
     (4) Nothing in subsection (1) of this
section is intended to prohibit a real estate licensee from directly
compensating a licensed personal assistant if permitted by the terms,
conditions and requirements of a licensed personal assistant agreement under
ORS 696.028.
     (5) As used in subsection (3) of this
section, “nonresidential real estate” means any real property that is improved
or available for improvement by commercial structures or five or more
residential dwelling units. [Amended by 1953 c.42 §2; 1961 c.670 §2; 1969 c.674
§16; 1975 c.746 §21; 1977 c.649 §40; 1981 c.617 §13; 1989 c.724 §9; 1997 c.307 §1;
1999 c.470 §1; 2001 c.300 §27; 2007 c.337 §5]
     696.294
Opinion letter; rules. (1)
As used in this section, “letter opinion” means a document that expresses a
real estate licenseeÂ’s conclusion regarding a recommended listing, selling or
purchase price or a rental or lease consideration of certain real estate and
that results from the licenseeÂ’s competitive market analysis.
     (2) The Real Estate Commissioner by rule
shall specify the minimum contents of a letter opinion, including but not
limited to the distinction between a letter opinion and a real estate
appraisal. [2007 c.319 §3]
     Note: 696.294 was added to and made a part of
696.010 to 696.495 by legislative action but was not added to any smaller
series therein. See Preface to Oregon Revised Statutes for further explanation.
     696.300 [Amended by 1959 c.585 §1; 1961 c.670 §3;
1969 c.674 §17; 1971 c.743 §409; 1973 c.421 §50; 1974 c.1 §25; repealed by 1975
c.746 §22 (696.301 enacted in lieu of 696.300)]
     696.301
Grounds for discipline.
Subject to ORS 696.396, the Real Estate Commissioner may suspend or revoke the
real estate license of any real estate licensee, reprimand any licensee or deny
the issuance or renewal of a license to an applicant who has done any of the
following:
     (1) Created a reasonable probability of
damage or injury to a person by making one or more material misrepresentations
or false promises in a matter related to professional real estate activity.
     (2) Represented, attempted to represent or
accepted compensation from a principal real estate broker other than the
principal real estate broker with whom the real estate broker is associated.
     (3) Disregarded or violated any provision
of ORS 659A.421, 696.010 to 696.495, 696.600 to 696.785 and 696.800 to 696.870
or any rule of the Real Estate Agency.
     (4) Knowingly or recklessly published
materially misleading or untruthful advertising.
     (5) Acted as an agent and an undisclosed
principal in any transaction.
     (6) Intentionally interfered with the
contractual relations of others concerning real estate or professional real
estate activity.
     (7) Intentionally interfered with the
exclusive representation or exclusive brokerage relationship of another
licensee.
     (8) Accepted employment or compensation
for the preparation of a competitive market analysis or letter opinion that is
contingent upon reporting a predetermined value or for real estate in which the
licensee had an undisclosed interest.
     (9) Represented a taxpayer as described in
ORS 305.230 or 309.100, contingent upon reporting a predetermined value or for
real estate in which the licensee had an undisclosed interest.
     (10) Failed to ensure, in any real estate
transaction in which the licensee performed the closing, that the buyer and
seller received a complete detailed closing statement showing the amount and
purpose of all receipts, adjustments and disbursements.
     (11) Has been convicted of a felony or
misdemeanor substantially related to the licenseeÂ’s trustworthiness or
competence to engage in professional real estate activity.
     (12) Demonstrated incompetence or
untrustworthiness in performing any act for which the licensee is required to
hold a license.
     (13) Violated a term, condition,
restriction or limitation contained in an order issued by the commissioner.
     (14) Committed an act of fraud or engaged
in dishonest conduct substantially related to the fitness of the applicant or
licensee to conduct professional real estate activity, without regard to
whether the act or conduct occurred in the course of professional real estate
activity.
     (15) Engaged in any conduct that is below
the standard of care for the practice of professional real estate activity in
     696.310
Intracompany supervision and control; effect of revocation on licensed
associates. (1) If two or
more principal real estate brokers are in business together, the brokers may
have equal supervisory control over and shall be equally responsible for the
conduct of other principal real estate brokers or real estate brokers
associated with the principal real estate brokers, or other employees employed
by the principal real estate brokers. The principal real estate brokers shall execute
a written agreement between them and establish office policies specifying the
supervisory control and responsibility for each principal real estate broker
who is a party to the agreement.
     (2) An act constituting a violation of any
of the provisions of ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to
696.870 and 696.995 or of any rule adopted thereunder by any licensee is not
cause for the suspension or revocation of a license of any real estate licensee
associated with or engaged by such licensee, unless it appears to the
satisfaction of the Real Estate Commissioner that such associated or engaged
real estate licensee had guilty knowledge of the act. A course of dealing shown
to have been persistently and consistently followed by any real estate licensee
shall constitute prima facie evidence of such knowledge upon the part of any
real estate licensee associated with or engaged by that licensee. [Amended by
1977 c.649 §42; 1981 c.617 §15; 2001 c.300 §31]
     696.315
Prohibition against licensee permitting nonlicensed individual to engage in
activity with or on behalf of licensee. A real estate licensee may not knowingly permit a nonlicensed
individual to engage in professional real estate activity, with or on behalf of
the licensee. [1977 c.649 §7; 1981 c.617 §15a; 2007 c.319 §11]
     696.320
Effect of suspension or revocation of principal broker license on associated
licensees. The suspension or
revocation of a principal real estate brokerÂ’s license renders inactive every
license of the real estate brokers engaged by the principal real estate broker
pending a transfer of the license. The Real Estate Agency shall transfer a
license rendered inactive under this section if the real estate licensee
requests a transfer within 30 days after the effective date of the suspension
or revocation of the principal real estate brokerÂ’s license and pays a transfer
fee. [Amended by 1969 c.674 §18; 1975 c.746 §24; 1977 c.649 §43; 1981 c.617 §15b;
1989 c.724 §10; 2001 c.300 §32; 2005 c.116 §9]
     696.325 [1975 c.746 §36; 1977 c.649 §44; repealed by
1981 c.617 §41]
     696.330 [Amended by 1967 c.206 §1; repealed by 1971
c.734 §21]
     696.340 [Repealed by 1971 c.734 §21]
     696.345 [1977 c.649 §4; repealed by 1991 c.5 §46]
     696.350 [Repealed by 1971 c.734 §21]
     696.355 [1977 c.649 §6; 1987 c.468 §4; 1991 c.5 §42;
repealed by 2001 c.300 §84]
     696.359 [1981 c.617 §39; repealed by 2001 c.300 §84]
     696.360 [Amended by 1967 c.206 §2; repealed by 1971
c.734 §21]
     696.361
Regulation of real estate property manager. A real estate property manager is regulated and bound as a real estate
broker and as a principal real estate broker. [1987 c.611 §18; 1989 c.724 §17;
1991 c.5 §43; 2001 c.300 §33]
     696.363
Relationship between licensees as independent contractors or employer and
employee. Nothing contained
in ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to 696.870, 696.990 and
696.995 prevents the establishment of an independent contractor relationship
between real estate licensees or requires the establishment of an employer-employee
relationship. [1981 c.617 §40]
     696.365
City or county business license tax. (1) A city or county may not impose a business license tax on or
collect a business license tax from an individual licensed as a real estate
broker who engages in professional real estate activity only as an agent of a
principal real estate broker.
     (2) As used in this section, “business
license tax” has the meaning given that term in ORS 701.015. [1987 c.581 §4;
2001 c.300 §78; 2007 c.319 §12]
     Note: 696.365 was added to and made a part of ORS
696.010 to 696.495 but was not added to any smaller series therein by
legislative action. See Preface to Oregon Revised Statutes for further
explanation.
(Administration)
     696.375
Real Estate Agency; Real Estate Commissioner; confirmation, salary and security
of commissioner. (1) The
Real Estate Agency is established.
     (2) The Real Estate Agency shall be under
the supervision and control of an administrator who shall be known as the Real
Estate Commissioner. The Governor shall appoint the Real Estate Commissioner
who shall have been, before the date of appointment, for five years a real
estate broker or principal real estate broker actively engaged in business as
such in this state. The Governor also may appoint an individual who has been
actively connected with the administration of the agency for at least one year
as acting or temporary commissioner. The commissioner shall hold office at the
pleasure of the Governor and shall be responsible for the performance of the
duties imposed upon the agency. The Real Estate Commissioner shall receive such
salary as may be provided by law.
     (3) The appointment of the commissioner is
subject to confirmation by the Senate in the manner prescribed in ORS 171.562
and 171.565.
     (4) Before entering upon the duties of
office the commissioner shall give to the state a fidelity bond with one or
more corporate sureties authorized to do business in this state, or an
irrevocable letter of credit issued by an insured institution, as defined in
ORS 706.008, in either case in the sum fixed by the Governor. The premium for
the bond or the fee for the letter of credit shall be paid by the agency. [1963
c.580 §§40,41; 1974 c.25 §1; 1975 c.746 §25; 1987 c.414 §38; 1991 c.331 §104;
1995 c.674 §1; 1997 c.631 §523; 2001 c.300 §34; 2007 c.319 §13]
     696.380 [Repealed by 1963 c.580 §103]
     696.385
Power of agency; rulemaking procedures. The Real Estate Agency shall have the power to:
     (1) Adopt a seal by which it shall
authenticate its proceedings.
     (2) From time to time, prepare and cause
to be printed and circulated among the real estate licensees of
     (3) Make and enforce any and all such
reasonable rules as shall be deemed necessary to administer and enforce the
provisions of, and enforce and discharge the duties defined in, any law with
the administration or enforcement of which the agency is charged.
     (4) Except as provided in subsection (5)
of this section, when the agency proposes to adopt, amend or repeal a rule
concerning real estate licensees, the agency shall:
     (a) Submit a copy of the proposed rule to
the Real Estate Board at least 45 days prior to publication of the notice of
intended action required under ORS 183.335 for the rule.
     (b) Consider any recommendations that the
board, by majority vote, makes concerning the proposed rule.
     (c) Publish as part of the statement of
need in the matters any written comments submitted by the board for publication
under paragraph (b) of this subsection.
     (5) Subsection (4) of this section does
not apply to a temporary rule that is adopted, amended or suspended pursuant to
ORS 183.335 (5). However, the agency shall submit to the board a copy of any
proposed temporary rule as soon as practicable and, to the extent possible
under the circumstances, consider any recommendations that the board may make
by majority vote regarding the temporary rule. [1963 c.580 §48; 1965 c.617 §5;
1981 c.617 §16; 1985 c.565 §116]
     696.390 [Repealed by 1963 c.580 §103]
     696.392
Power of commissioner to administer oaths, take depositions and issue
subpoenas. (1) The Real
Estate Commissioner may administer oaths, take depositions and issue subpoenas
to compel the attendance of witnesses and the production of books, papers,
records, memoranda or other information necessary to the carrying out of the
laws the commissioner is charged with administering.
     (2) If any person fails to comply with a
subpoena issued under this section or refuses to testify on any matters on
which the person may be lawfully interrogated, the procedure provided in ORS
183.440 shall be followed to compel obedience. [1995 c.217 §13]
     696.395
Power of commissioner. The
Real Estate Commissioner shall have the power to:
     (1) For the purpose of administration,
organize and reorganize, as necessary, the Real Estate Agency in the manner
that the commissioner deems necessary to properly conduct the work of the
agency.
     (2) Appoint all subordinate officers and
employees of the agency, or such other agents or representatives, and prescribe
their duties and fix their compensation, subject to the applicable provisions
of the State Personnel Relations Law. Subject to any other applicable law
regulating travel expenses, the officers, employees, agents or representatives
of the agency shall be allowed such reasonable and necessary travel and other
expenses as may be incurred in the performance of their duties.
     (3) Require a fidelity bond or an
irrevocable letter of credit issued by an insured institution as defined in ORS
706.008 of any officer or employee of the agency who has charge of, handles or
has access to any state money or property, and who is not otherwise required by
law to give a bond or letter of credit. The amounts of the bonds or letters of
credit shall be fixed by the commissioner, except as otherwise provided by law,
and the sureties or letter of credit issuers shall be approved by the
commissioner. The agency shall pay the premium on the bonds and the fees for the
letters of credit. [1963 c.580 §42; 1977 c.649 §45; 1987 c.414 §38a; 1991 c.331
§105; 1997 c.631 §524]
     696.396
Investigation of complaints and progressive discipline; rules. (1) The Real Estate Commissioner shall
provide by rule for the progressive discipline of real estate licensees and an
objective method for investigation of complaints alleging grounds for
discipline under ORS 696.301.
     (2) The rules adopted by the commissioner
under this section:
     (a) Must establish procedures for the
discovery of material facts relevant to an investigation and for the reporting
of those facts without conclusions of violation or grounds for discipline to
the commissioner or the commissionerÂ’s designee by the individual assigned to
investigate the complaint.
     (b) Must provide for progressive
discipline designed and implemented to correct inappropriate behavior.
     (c) May not authorize imposition of a
suspension or a revocation of a real estate license unless the material facts
establish a violation of a ground for discipline under ORS 696.301 that:
     (A) Results in significant damage or
injury;
     (B) Exhibits incompetence in the
performance of professional real estate activity;
     (C) Exhibits dishonesty or fraudulent
conduct; or
     (D) Repeats conduct or an act that is
substantially similar to conduct or an act for which the real estate licensee
was disciplined previously. [2005 c.393 §5]
     696.398
Delegation by commissioner to employees; requirements. (1) The Real Estate Commissioner may
delegate to any of the officers and employees of the Real Estate Agency to
exercise or discharge in the commissionerÂ’s name any power, duty or function
vested in or imposed upon the commissioner under this chapter. The power to
administer oaths and affirmations, subpoena witnesses, take evidence and
require the production of books, papers, correspondence, memoranda, agreements
or other documents or records, and to sign notices and orders may be exercised
by an officer or employee of the agency only when specified in writing by the
commissioner and filed in the records of the Real Estate Agency.
     (2) An official act of an individual
acting in the commissionerÂ’s name and by authority of the commissioner shall be
deemed to be an official act of the commissioner. [1975 c.746 §26; 2007 c.319 §14]
     696.400 [Repealed by 1963 c.580 §103]
     696.405
Real Estate Board; appointment; term; qualifications; compensation; expenses. (1) The Real Estate Board is established
within the Real Estate Agency. The board shall consist of nine members
appointed by the Governor to hold office for a period of four years, but to
serve at the pleasure of the Governor. Seven members of the board appointed by
the Governor must have been, before the date of their appointment, real estate
licensees actively engaged for five years in professional real estate activity
in this state. Two members to be appointed by the Governor shall not be real
estate licensees or have been connected with, or employed by, the Real Estate
Agency or a predecessor thereof. In case of a vacancy for any cause, the
Governor shall make an appointment to become immediately effective for the
unexpired term.
     (2) A member of the board is entitled to
compensation or expenses as provided in ORS 292.495. [1963 c.580 §43; 1969
c.314 §97; 1975 c.746 §27; 1977 c.649 §46; 1981 c.617 §17; 1987 c.414 §39; 1993
c.744 §250]
     696.410 [Repealed by 1963 c.580 §103]
     696.415
Officers; meetings; quorum.
(1) The Real Estate Board shall annually select one of its members as
chairperson, who shall preside at the meetings of the board. In the absence of
the chairperson some other member of the board may serve as chairperson. The
board shall meet at such times and places as determined by the board and may
also meet upon call of the chairperson.
     (2) A majority of the board shall constitute
a quorum for the transaction of business. A vacancy on the board shall not
impair the right of the remaining members to perform all the duties and
exercise all the functions and authority of the board. [1963 c.580 §45]
     696.420 [Repealed by 1963 c.580 §103]
     696.425
Powers and duties of board; expenses. (1) The Real Estate Board is authorized to inquire into the needs of
the real estate licensees of Oregon, the functions of the Real Estate Agency
and the matter of the business policy thereof, to confer with and advise the
Governor as to how the agency may best serve the state and the licensees, and
to make recommendations and suggestions of policy to the agency as the board
may deem beneficial and proper for the welfare and progress of the licensees
and of the public and of the real estate business in Oregon.
     (2) The board shall conduct all
examinations for applicants for real estate licenses, prepare or cause to be
prepared the questions to be asked in the examinations and grade or cause to be
graded the papers of each applicant after the completion of the examination and
file a written report with the agency as to applicants taking the examination
who have passed and who have failed to pass the examination. The board shall
provide the manner and methods for conducting examinations.
     (3) The expenses of the board shall be
paid from moneys available to the agency for payment of administrative expenses
relating to the real estate activities of the agency. [1963 c.580 §46; 1969
c.674 §19; 1977 c.649 §47; 1981 c.617 §18; 1987 c.414 §39a; 1993 c.744 §179]
     696.430
Records of commissioner as evidence; records open to inspection; rules. Copies of all records and papers in the
office of the Real Estate Commissioner duly certified and authenticated by the
seal of the commissioner shall be received in evidence in all courts equally
and with like effect as the original. Except for records of open
investigations, all records kept in the office of the commissioner under
authority of ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to 696.870 and
696.995 shall be open to public inspection under such reasonable rules and
regulations as shall be prescribed by the commissioner. [Amended by 2001 c.300 §35]
     696.435 [1963 c.546 §5; 1965 c.617 §6; repealed by
2001 c.300 §84]
     696.440 [Repealed by 1963 c.580 §103]
     696.445
Advancement of education and research;
     (2) The Real Estate Commissioner may
assign and reassign staff in the agency to perform such duties as the
commissioner considers necessary to carry out subsection (1) of this section,
including but not limited to the preparation and distribution of a periodic
publication to be known as the Oregon Real Estate News Journal and the
preparation and publication of other printed matter of an educational nature
for the benefit of real estate licensees.
     (3) The commissioner shall publish in the
Oregon Real Estate News Journal the names and addresses of all applicants for
real estate or escrow licenses whose licenses have been refused, of real estate
licensees who have been reprimanded, of real estate and escrow licensees whose
licenses have been suspended or revoked and of real estate and escrow licensees
who have been assessed civil penalties. Each such publication shall include a
brief description of the situation involved and the grounds for the
commissioner’s action. [1974 c.26 §5; 1975 c.746 §28; 1977 c.649 §48; 1981
c.617 §19; 1983 c.258 §8; 2001 c.300 §64]
     696.450 [Repealed by 1963 c.580 §103]
     696.460 [Repealed by 1963 c.580 §103]
     696.470 [Repealed by 1963 c.580 §103]
     696.480 [Amended by 1977 c.649 §49; repealed by 1981
c.617 §41]
     696.490
Real Estate Account; disposition of receipts. (1) There is established in the General Fund of the State Treasury the
Real Estate Account. All moneys, fees and charges collected or received by the
Real Estate Agency shall be deposited in the account.
     (2) The moneys in the Real Estate Account
are continuously appropriated for the payment of the expenses of the agency in
carrying out the provisions of ORS 92.305 to 92.495, 94.803, 94.807 to 94.945,
100.005 to 100.910, 100.990, 696.010 to 696.785, 696.800 to 696.870 and
696.995. [Amended by 1955 c.457 §2; 1961 c.309 §4; 1963 c.440 §16; 1963 c.580 §50;
1965 c.617 §7; 1971 c.293 §2; 1974 c.26 §1; 1977 c.41 §2; 1981 c.85 §11; 1983
c.17 §30; 1983 c.530 §53; 1985 c.565 §117]
     696.495
Revolving fund; amount; use; procedure for repayment. (1) Upon written request by the Real Estate
Agency, the Oregon Department of Administrative Services shall draw a warrant
on the Real Estate Account, established by ORS 696.490, for use as a revolving
fund. Warrants drawn to establish or increase the revolving fund, rather than
to reimburse the revolving fund, may not exceed the aggregate sum of $1,500.
The State Treasurer shall hold the revolving fund in a special account against
which the Real Estate Agency may draw checks.
     (2) The Real Estate Agency may use the
revolving fund for the purpose of paying witness fees and other administrative
expenses.
     (3) All claims for reimbursement of moneys
paid from the revolving fund are subject to approval by the Director of the
Oregon Department of Administrative Services and by the Real Estate Commissioner.
When such claims have been approved, a warrant covering them shall be drawn in
favor of the Real Estate Agency and used to reimburse the revolving fund. Such
warrants shall be charged against the Real Estate Account established by ORS
696.490. [1974 c.26 §3; 1977 c.41 §3]
     696.500 [Amended by 1959 c.27 §1; repealed by 1961
c.309 §5]
ESCROWS AND
ESCROW AGENTS
(Generally)
     696.505
Definitions for ORS 696.505 to 696.590. As used in ORS 696.505 to 696.590, unless the context requires
otherwise:
     (1) “Collection escrow” means an escrow in
which the escrow agent:
     (a) Receives:
     (A) Installment payments;
     (B) Instruments evidencing or securing an
obligation; or
     (C) Instruments discharging the security
interest; and
     (b) Disburses the payments or delivers the
instruments upon specified conditions pursuant to the written instructions of
an obligor and obligee.
     (2) “Commissioner” means the Real Estate
Commissioner.
     (3) “Compensation” means any fee,
commission, salary, money or valuable consideration for services rendered or to
be rendered as well as the promise thereof and whether contingent or otherwise.
     (4) “Escrow” means any transaction wherein
any written instrument, money, evidence of title to real or personal property
or other thing of value is delivered, for the purpose of paying an obligation
or effecting the sale, transfer, encumbrance or lease of real or personal
property, to a person not otherwise having any right, title or interest
therein, to be held by that person as a neutral third party until the happening
of a specified event or the performance of a prescribed condition, when it is
then to be delivered by the neutral third party to a grantee, grantor,
promisee, promisor, obligee, obligor, bailee, bailor or any agent or employee
of any of them pursuant to the written instructions of the principals to the
transaction.
     (5) “Escrow agent” means any person who
engages in the business of receiving escrows for deposit or delivery and who
receives or is promised any fee, commission, salary or other valuable
consideration, whether contingent or otherwise, for or in anticipation of
performance.
     (6) “Principal” means:
     (a) The buyer and seller, lessor and
lessee and the exchanging parties in an escrow transaction involving the sale,
lease, lease-option or exchange of real property or personal property; and
     (b) The borrower in an escrow transaction
involving the refinancing of real or personal property, including but not
limited to the refinancing of an obligation secured by a land sale contract
requiring a deed to be delivered as part of such refinancing.
     (7) “Real estate closing escrow” means an
escrow where the escrow fee is paid in whole or in part by the principals to a
real estate transaction and wherein the unpaid purchase price is delivered to
an escrow agent for disbursal pursuant to the written instructions of the
principals to the transaction simultaneously on the transfer of specified title
to the real property.
     (8) “Subservicer” means an escrow agent, a
financial institution or a trust company, as those terms are defined in ORS
706.008, or a collection agency registered under ORS 697.015 when providing,
pursuant to written instructions, a portion of the escrow services for an
escrow to an escrow agent, or a person in the business of receiving escrows
under the laws of another state, that would otherwise provide the escrow
services directly to the principals. [1963 c.440 §1; 1977 c.351 §4; 1981 c.617 §20;
1991 c.874 §1; 1993 c.18 §150; 2003 c.427 §4; 2005 c.116 §23; 2007 c.337 §2]
     696.508
Legislative finding; short title. (1) The Legislative Assembly finds the activity of escrow agents in
handling large sums of money and important rights of clients to be of public
concern. In order to permit uniform and equitable regulation of all escrow
agents and to improve the standards of escrow conduct, the provisions of ORS
696.505 to 696.590 shall be construed to grant the Real Estate Commissioner
authority to protect the public.
     (2) ORS 696.505 to 696.590 may be cited as
the Oregon Escrow Law. [1977 c.351 §2]
     696.510 [Repealed by 1961 c.309 §6]
(Licensing)
     696.511
License required; application and information required; issuance. (1) A person may not directly or indirectly
engage in or carry on, or purport to engage in or carry on, the business of an
escrow agent, or act in the capacity of an escrow agent, unless the person
holds an active license as an escrow agent under the provisions of ORS 696.505
to 696.590.
     (2)(a) Every escrow agent before engaging
in the escrow business shall file in the office of the Real Estate Commissioner
an application for a license, in writing, verified by the applicant and in the
form prescribed by the commissioner. The application must include the location
of the agentÂ’s main office and all branch offices in this state, the name or
style of doing business, the names, resident and business addresses of all
persons interested in the business as principals, partners, elected officers,
trustees and directors, specifying as to each the personÂ’s capacity and title, the
general plan and character of business and the length of time the agent has
been engaged in business. Notification of changes in the information contained
in the application or in the ownership of the business must be immediately
filed with the commissioner.
     (b) If the applicant is an individual, the
applicant must be 18 years of age or older.
     (3) For the initial license of an escrow
agent, the commissioner may require information and evidence the commissioner
considers necessary to demonstrate the applicantÂ’s qualifications to transact
escrow business including, but not limited to, information regarding the
applicantÂ’s financial resources, the applicantÂ’s escrow business in another
state or the experience or training of employees in escrow business, or a
testimonial of an escrow agent licensed in this state. Subject to subsection
(4) of this section, an applicant:
     (a) Who is an individual must demonstrate
a minimum of three years of experience in the administration of escrows within
Oregon or a state with comparable escrow laws; or
     (b) Who is not an individual must
demonstrate a minimum collective experience among its personnel of three years
in the administration of escrows within
     (4) The commissioner may waive the
three-year experience requirement in subsection (3) of this section for an
applicant who demonstrates other qualifications sufficient to ensure the
protection of the public.
     (5) For the initial license or license
renewal of an escrow agent, the commissioner shall require fingerprints and a
state or nationwide criminal records check under ORS 181.534 of an applicant
for an initial license and may require fingerprints and a state or nationwide
criminal records check under ORS 181.534 of an applicant for license renewal.
The commissioner may require additional information for an initial license or
license renewal under this subsection that the commissioner considers necessary
for protecting the public. For purposes of requiring fingerprints and a criminal
records check, “applicant” means an individual who has more than five percent
ownership interest in the escrow agency and the corporate officers in direct
control of escrow operations.
     (6) For license renewal, an escrow agent
shall provide:
     (a) A certification of training, by which
the applicant certifies that the applicant provides escrow agency staff within
Oregon with an average of six hours or more of training per year per permanent,
full-time employee in subjects that bear directly on the administration of
escrows; and
     (b) A statement identifying by name,
address and telephone number one or more individuals who can respond to the
inquiries of or referrals by the commissioner or the commissionerÂ’s authorized
representative regarding the applicantÂ’s escrow business.
     (7) The commissioner, if satisfied that
the applicant should not be refused a license under ORS 696.535, shall issue or
renew an escrow agent license for an applicant that complies with the
requirements of ORS 696.505 to 696.590.
     (8) To qualify for issuance or renewal of
an escrow agent license, an applicant shall pay any outstanding civil penalties
or other moneys due and owing to the Real Estate Agency except civil penalties
or other moneys due that are the subject of judicial or administrative review
on the date of the application for license or license renewal. [1963 c.440 §§4,17;
1975 c.746 §29; 1977 c.351 §5; 1981 c.617 §21; 1991 c.874 §2; 2001 c.300 §36;
2003 c.427 §5; 2005 c.730 §§38,86; 2007 c.319 §15]
     696.515 [1963 c.440 §3; repealed by 1981 c.617 §41]
     696.520
Application of ORS 696.505 to 696.590. The provisions of ORS 696.505 to 696.590 do not apply to and the term “escrow
agent” does not include:
     (1) Any person doing business under the
laws of this state or the United States relating to banks, mutual savings
banks, trust companies, savings and loan associations, consumer finance
companies, or insurance companies except to the extent that the person provides
real estate closing escrow services other than those permitted under subsection
(3) of this section.
     (2) An attorney at law rendering services
in the performance of duties as attorney at law.
     (3) Any firm or corporation lending money
on real or personal property and which firm or corporation is subject to
licensing, supervision or auditing by a federal or state agency but only to the
extent of closing a loan transaction between such firm or corporation and a
borrower, and seller, if a fee for escrow services is not charged to the
seller.
     (4) Any person doing any of the acts
specified in ORS 696.505 (4) under order of any court.
     (5) Any real estate broker or principal
real estate broker licensed under ORS 696.022 who performs the closing for the
principals in a real estate transaction handled by the broker, if the
principals are not charged a separate fee for escrow services.
     (6) Any collection agency registered under
ORS 697.015 that is engaged in any collection or billing activity without
holding documents relating to the debt. [1963 c.440 §2; 1967 c.359 §701; 1971
c.398 §1; 1977 c.351 §6; 1981 c.617 §22; 1991 c.874 §3; 2001 c.300 §37; 2003
c.427 §6; 2007 c.337 §7]
     696.523
Application of ORS 696.505 to 696.590 to title insurance activities. The provisions of ORS 696.505 to 696.590
apply to those escrow activities of a title insurance company, or an insurance
producer of a title insurance company which prepares abstracts or makes
searches of title which are used as a basis for the insurance of titles by a
title insurance company. [1971 c.398 §3; 1977 c.351 §7; 2003 c.364 §55]
     696.525
Bond for escrow agents. (1)
At the time of filing an application for an escrow agent license, the applicant
shall deposit with the Real Estate Commissioner a corporate surety bond running
to the State of
     (2) If the total annual receipts of client
trust funds, as reported in the required annual report of the escrow agent,
are:
     (a) Less than $30 million, the bond or
deposit must be $50,000.
     (b) $30 million or more, but less than $60
million, the bond or deposit must be $125,000.
     (c) $60 million or more, but less than
$100 million, the bond or deposit must be $250,000.
     (d) $100 million or more, but less than
$300 million, the bond or deposit must be $375,000.
     (e) $300 million or more, the bond or
deposit must be $500,000.
     (3) The provisions of the corporate surety
bond must be in the form substantially as follows:
______________________________________________________________________________
     Know All Persons by These Presents, That
we, ______ as principal, and ______, a corporation, qualified and authorized to
do business in the State of Oregon as surety, are held and firmly bound unto
the State of Oregon for the use and benefit of any interested person, in the
sum of $______, lawful money of the United States of America, to be paid to the
State of Oregon for the use and benefit aforesaid, for which payment well and
truly to be made, we bind ourselves, our heirs, executors, administrators,
successors, and assigns, jointly and severally, firmly by these presents.
     The condition of the above obligation is
such that: Whereas the above-named principal has made application for
registration as an escrow agent within the meaning of ORS 696.505 to 696.590
and is required by the provisions of ORS 696.505 to 696.590 to furnish a bond
in the sum above named, conditioned as herein set forth:
     Now, therefore, if the principal, the
principalÂ’s agents and employees, shall strictly, honestly and faithfully
comply with the provisions of ORS 696.505 to 696.590, and shall pay all actual
damages suffered by any person by reason of the violation of any of the
provisions of ORS 696.505 to 696.590, now or hereafter enacted, or by reason of
any fraud, dishonesty, misrepresentation or concealment of material facts
growing out of any transaction governed by the provisions of ORS 696.505 to
696.590, then this obligation shall be void; otherwise to remain in full force
and effect.
     This bond shall become effective on the ___
day of ______, 2__, and shall remain in force until the surety is released from
liability by the commissioner, or until this bond is canceled by the surety.
The surety may cancel this bond and be relieved of further liability hereunder
by giving 30 daysÂ’ written notice to the principal and to the commissioner.
     This bond shall be one continuing
obligation, and the liability of the surety for the aggregate of any and all
claims which may arise hereunder shall in no event exceed the amount of the
penalty hereof.
     In witness whereof, the seal and signature
of the principal hereto is affixed, and the corporate seal and the name of the
surety hereto is affixed and attested by its duly authorized officers at ___________,
     __________________(Seal)
     Principal
     __________________(Seal)
     Surety
     By __________________
______________________________________________________________________________
[1963 c.440 §5;
1971 c.398 §4; 1977 c.351 §8; 1981 c.617 §23; 1983 c.258 §9; 1991 c.874 §4;
2001 c.300 §72; 2003 c.427 §7]
     696.527
Deposits in lieu of bond; payment of claims; waiver. (1) Any escrow agent may satisfy the
requirements of ORS 696.525 by depositing with the State Treasurer, in an
amount equal to the surety bond required, a deposit consisting only of the
following:
     (a) Cash;
     (b) Ample secured obligations of the
     (c) Certificates of deposit or other
investments described in ORS 733.650 (4), to the extent that such investments
are insured by the Federal Deposit Insurance Corporation; or
     (d) Any combination of paragraphs (a), (b)
or (c) of this subsection.
     (2) The State Treasurer shall accept and
hold the deposit for the faithful performance of escrow activity by the escrow
agent. No claimant or judgment creditor or the escrow agent shall have the
right to attach or levy upon any of the assets or securities held on deposit.
     (3) The Real Estate Commissioner, by
order, may authorize the State Treasurer to use such deposit, as follows:
     (a) To satisfy any final judgment entered
against the escrow agent for actual damages suffered by any person by reason of
the violation of any of the provisions of ORS 696.505 to 696.590, now or
hereafter enacted, or by reason of any fraud, dishonesty, misrepresentation or
concealment of material fact growing out of any escrow transaction;
     (b) For use in the liquidation of the
escrow agent under the provisions of ORS 696.555; or
     (c) To release any or all of such deposit
to the escrow agent when, in the opinion of the commissioner, such deposit is
no longer necessary to protect the public.
     (4) The commissioner may waive the
requirement of the surety bond or deposit for any escrow agent that:
     (a) Demonstrates to the commissioner’s
satisfaction that the capital and surplus or net worth, of such escrow agent as
of the end of the previous business accounting year of the agent is equal to,
or greater than, the average month-end balance of custodial funds held by such
agent during the previous business accounting year;
     (b) Provides a certified, annually
renewable letter of credit executed by a financial institution and satisfactory
to the commissioner in the amount of the surety bond required by ORS 696.525;
or
     (c) Provides a certified, personal
guarantee executed by one or more owners of the escrow agency and satisfactory
to the commissioner in the amount of the surety bond required by ORS 696.525.
     (5) All other claims against the bond or
deposit of an escrow agent must be paid by the commissioner only upon the
receipt of a final court judgment against the escrow agent and only in the
amount of actual damages as ordered by the court. [1977 c.351 §3; 1981 c.617 §24;
1991 c.874 §5; 1999 c.107 §11; 2003 c.427 §8]
     696.530
Expiration and renewal of license; fees; rules. (1) The license of an escrow agent expires
on June 30 next after the date of issuance or on such date as may be specified
by rule of the Real Estate Commissioner. A license may be renewed by filing a
renewal application in writing, verified by the applicant and in the form
prescribed by the commissioner, and paying the annual license fee for the next
succeeding fiscal year.
     (2) The filing fees are:
     (a) For filing an original or a renewal
application, $300 for the main office and $150 for each branch office.
     (b) For filing an application for a
duplicate copy of a license, upon satisfactory showing of loss of the license,
the sum of $20.
     (c) For a name change or a change of
address of an escrow agent, $10 for the main office plus $10 for each affected
branch office.
     (3) The commissioner, by rule, may provide
an opportunity for the late renewal of an expired escrow agent license by an
applicant who fails to renew the license by the date specified under subsection
(1) of this section. [1963 c.440 §6; 1977 c.351 §9; 1977 c.873 §19; 1981 c.617 §25;
1991 c.874 §14; 1997 c.451 §2; 2003 c.427 §9; 2005 c.116 §11; 2007 c.225 §1;
2007 c.768 §54a]
     696.532
Limited license. (1) The
Real Estate Commissioner may issue or renew a limited escrow agent license if:
     (a) An applicant elects not to apply for
an escrow agent license; or
     (b) An applicant does not qualify for an
escrow agent license.
     (2) The commissioner may limit a license
issued under this section:
     (a) By term;
     (b) To activities subject to supervision
by a specific escrow agent;
     (c) By conditions to be observed in the
exercise of the privileges granted; or
     (d) In other ways determined by the
commissioner as necessary or appropriate to protect the public.
     (3) A limited licensee shall comply with
the requirements of ORS 696.505 to 696.590 and shall:
     (a) Restrict the escrow business of the
licensee to those escrows specified in the application; or
     (b) Limit its escrow business to
collection escrows. [2003 c.427 §2]
     Note: 696.532 and 696.534 were added to and made a
part of 696.505 to 696.590 by legislative action but were not added to any
smaller series therein. See Preface to Oregon Revised Statutes for further
explanation.
     696.534
Records of escrow agents; rules. (1) An escrow agent shall keep and maintain at all times in the
licensed office of the agent, complete and suitable records of escrow
transactions made by the agent and of the business of the agent including, but
not limited to, books, papers and data clearly reflecting the financial
condition of the business of the agent. The records must be open for inspection
by the Real Estate Commissioner or the commissionerÂ’s authorized
representatives at all times. An escrow agent shall keep escrow records for a
period of six years from the date the escrow closes or is terminated. An escrow
agent may maintain the records in any format, as determined by the commissioner
by rule, that allows for inspection and copying by the commissioner or the
commissionerÂ’s representatives. When an escrow agent acts as a subservicer for
another escrow agent, the subservicer shall keep its records in the manner
required for an escrow agent under this section.
     (2) Notwithstanding the requirement of
subsection (1) of this section that an escrow agent maintain escrow records in
the agentÂ’s licensed office, an escrow agent shall keep escrow records in the
office in which the transaction occurred for one year from the date the escrow
closes or is terminated.
     (3) Notwithstanding the requirements of
subsections (1) and (2) of this section to maintain escrow records in specified
locations, an escrow agent may maintain escrow records at another location
satisfactory to the commissioner if the escrow agent provides the commissioner
with prior written notice of the proposed location. [2003 c.427 §3]
     Note: See note under 696.532.
     696.535
Grounds for refusing, suspending or revoking license. (1) The Real Estate Commissioner may refuse
to issue or may suspend or revoke any license by entering an order to that
effect with the commissionerÂ’s findings in respect thereto if, upon examination
into the affairs of the applicant or licensee in the performance of routine
duties, upon field examination or upon hearing, the commissioner determines that
the applicant or licensee:
     (a) Has, under generally accepted
accounting principles, a deficit net worth;
     (b) Has demonstrated unworthiness to
transact the business of an escrow agent;
     (c) Does not conduct business in
accordance with law or has violated any provisions of ORS 696.505 to 696.590;
     (d) Has committed fraud in connection with
any transaction governed by ORS 696.505 to 696.590;
     (e) Has made any misrepresentations or
false statement of an essential or material fact to, or concealed any essential
or material fact from, any person in the course of the escrow business;
     (f) Has knowingly made or caused to be
made to the commissioner any false representation of a material fact, or has
suppressed or withheld from the commissioner any information the applicant or
licensee possesses that, if submitted, would have disqualified the applicant or
licensee from original or renewed licensing under ORS 696.505 to 696.590;
     (g) Has failed to account to the
principals or persons entitled thereto in a real estate transaction for the
moneys, documents or other things of value received in the transaction;
     (h) Has not delivered, after a reasonable
time, to persons entitled thereto, moneys, documents or other things of value
held or agreed to be delivered by the licensee, as and when paid for and due to
be delivered;
     (i) Has caused uncompensated material loss
to principals by engaging in a pattern of failures to act with neutrality
between principals in multiple escrows;
     (j) Has refused to permit an examination
by the commissioner of the escrow agentÂ’s books and affairs, or has refused or
failed, within a reasonable time, to furnish any information, records or files
or make any report that may be required by the commissioner under the
provisions of ORS 696.505 to 696.590; or
     (k) Has been convicted of a felony or any
misdemeanor that is substantially related to the escrow agentÂ’s competency or
trustworthiness to engage in the business of an escrow agent.
     (2) It is sufficient cause for refusal or
revocation of a license in case of a partnership or corporation or any
unincorporated association, if any member of a partnership or any officer or
director of the corporation or association has been guilty of any act or
omission which would be cause for refusing or revoking the registration of an
individual agent. [1963 c.440 §7; 1971 c.734 §159; 1977 c.351 §10; 1981 c.617 §26;
1985 c.399 §3; 1991 c.874 §6; 1995 c.760 §5; 1997 c.812 §1; 2001 c.300 §38;
2003 c.427 §10]
     696.540 [1963 c.440 §8; repealed by 1977 c.351 §11
and 1977 c.842 §17 (696.541 enacted in lieu of 696.540)]
     696.541
Authority of commissioner over escrow agents; rules. (1) The Real Estate Commissioner shall have
general supervision and control over all escrow agents doing business in this
state. Subject to ORS chapter 183, the commissioner may adopt such rules as
reasonably necessary for the administration and enforcement of ORS 696.505 to
696.590.
     (2) All escrow agents are subject to
audits or examinations by the commissioner, or the commissionerÂ’s authorized
representatives at any time the commissioner considers advisable. The
commissioner may collect from each escrow agent the reasonable expenses of such
audit or examination including but not limited to any administrative expense
for travel.
     (3) The provisions of this section and of
any other section relating to the examination of the affairs of an escrow agent
shall extend to an escrow agent whose license has expired or been revoked or
suspended, if in the judgment of the commissioner, such agent has violated any
provisions of ORS 696.505 to 696.590. [1977 c.351 §12 (enacted in lieu of
696.540); 1981 c.617 §27; 1985 c.399 §4; 1991 c.874 §7; 2001 c.300 §39; 2003
c.427 §11]
(Enforcement)
     696.545
Investigation; injunction; jurisdiction. (1) The Real Estate Commissioner may investigate either upon complaint
or otherwise whenever it appears that an escrow agent has violated ORS 696.505
to 696.590 or that any person is engaging in the escrow business without being
licensed under the provisions of ORS 696.505 to 696.590.
     (2) If upon investigation it appears that
such agent is so conducting business the commissioner may, in addition to any
other remedies, bring action in the name and on behalf of the State of Oregon
against such person and any other person acting in violation of ORS 696.505 to
696.590, to enjoin such person and such other person from continuing any act in
violation of ORS 696.505 to 696.590.
     (3) The circuit court of any county of
this state is vested with jurisdiction to restrain illegal practices or
transactions and may grant injunctions to prevent and restrain such illegal
practices or transactions, in addition to the penalties and other remedies
provided in ORS 696.505 to 696.590. The court shall have power, during the
pendency of the proceedings before it to issue such preliminary restraining
orders as may appear to be just and proper; and the findings of the
commissioner shall be deemed to be prima facie evidence and sufficient ground,
in the discretion of the court, for the issue ex parte of a preliminary
restraining order.
     (4) In any such court proceedings the
commissioner may apply for and on due showing be entitled to have issued the
courtÂ’s subpoena requiring forthwith the appearance of any defendant and
employees of the defendant and the production of documents, books and records
as may appear necessary for the hearing of such petition, to testify and give
evidence concerning the acts or conduct or things complained of in such
application for injunction. [1963 c.440 §9; 1979 c.284 §194; 1981 c.617 §28;
1991 c.874 §8]
     696.550 [1963 c.440 §10(1), (2); repealed by 1971
c.734 §21]
     696.555
Commissioner to take possession of property and assets of escrow agent when
assets or capital impaired; appointment of receiver. (1) When the Real Estate Commissioner
ascertains by examination or otherwise that the assets or capital of any agent
are impaired, as described in ORS 696.535 (1)(a), the commissioner may
immediately take possession of all the property, business and assets of the
agent which are located in this state and retain possession of them pending the
further proceedings specified in this section.
     (2) Pursuant to subsection (1) of this
section, the commissioner may apply to the circuit court of the county in which
the agentÂ’s principal place of business is located for an order directing the
agent to show cause why a receiver should not be appointed to take charge of
and manage or liquidate if necessary the assets of the agent utilized in
professional escrow activity in such a manner as to prevent or minimize such
financial loss to others.
     (3) If the court is satisfied from reading
the commissionerÂ’s petition that the facts therein alleged, if established,
warrant such receivership action, the court shall issue such order to show
cause. The court may at such time, without notice, issue a temporary injunction
restraining such agent, or any of the agentÂ’s officers, directors,
stockholders, members, agents or employees, from the transaction of any
professional escrow activity, or the waste or disposition of any such assets
until further order of the court. Should such an injunction be issued, a
hearing on whether the injunction shall be continued shall be held within five
business days of its service.
     (4) On return of the order to show cause, and
after a full hearing, the court shall either deny the application or grant the
same, together with such other relief as the court may deem necessary.
     (5) Notwithstanding any other provision of
law, no bond shall be required of the commissioner or the commissionerÂ’s
authorized representatives as a prerequisite for the issuance of any injunction
or other order pursuant to this section.
     (6) At any time during such proceedings,
the agent may satisfy the court that the activity which prompted such proceedings
has been rectified or that financial loss to others no longer will likely
occur, in which case the court may dismiss such proceedings.
     (7) The expenses of the receiver,
compensation of the legal counsel of the receiver, as well as all expenditures
of the receiver required in such proceedings shall be fixed by the court and
shall be paid out of funds in the hands of the receiver or entered as a
judgment against such licensee. [1963 c.440 §10(3), (4); 1975 c.746 §30; 1981
c.617 §29; 1991 c.874 §9; 2001 c.300 §40]
     696.560 [1963 c.440 §11; 1975 c.746 §31; 1981 c.617 §30;
1985 c.589 §5; renumbered 696.578]
     696.565 [1963 c.440 §12; renumbered 696.579]
     696.570
Hearings procedure under ORS 696.505 to 696.590; subpoena. (1) All hearings before the Real Estate
Commissioner or the commissionerÂ’s authorized representative conducted under
the authority of ORS 696.505 to 696.590 shall be conducted in accordance with
the provisions of ORS chapter 183.
     (2) The commissioner, or anyone authorized
by the commissioner, shall have the power to subpoena witnesses and administer
oaths in connection with hearings in the enforcement of ORS 696.505 to 696.590.
[1963 c.440 §13; 1981 c.617 §30a]
     696.575
Civil or criminal actions not limited by ORS 696.505 to 696.590. Nothing in ORS 696.505 to 696.590 shall
limit any statutory or common law right of any person to bring any action in
any court for any act involved in the transaction of the escrow business or the
right of the state to punish any person for any violation of any law. [1963
c.440 §14]
     696.577
CommissionerÂ’s order against unlicensed agent. Whenever the Real Estate Commissioner finds
that any person is offering to engage in or engaging in the business of an
escrow agent without a license as an escrow agent as required under ORS 696.505
to 696.590, the commissioner may order the person to cease and desist from
offering to engage in or engaging in the business of an escrow agent. Any
proceeding under this section is subject to the requirements of ORS chapter
183. [1981 c.617 §36]
(Escrow
Property)
     696.578
Deposit and designation of money held in escrow; treatment of earnings on
escrow account; notice. (1)
All money deposited in escrow to be delivered upon the close of the escrow or
upon any other contingency shall be deposited and maintained in a bank
authorized to do business within this state and kept separate, distinct and
apart from funds belonging to the escrow agent. Such funds, when deposited, are
to be designated as trust funds, escrow accounts, or under some other
appropriate name indicating that the funds are not the funds of the escrow
agent.
     (2) Trust funds received by an escrow
agent may be placed by the agent in a federally insured interest-bearing bank
account, designated a clientsÂ’ trust account, but only with the prior written
approval of all parties having an interest in the trust funds. The earnings of
such interest-bearing account may inure to the benefit of the escrow agent if
expressly approved in writing before deposit of the trust funds by all parties
having an interest in the trust funds.
     (3) With prior written notice to all
parties who have an interest in the trust funds, an escrow agent may place
trust funds received by the escrow agent in a federally insured
interest-bearing bank account that is designated a clientsÂ’ trust account and
the earnings of which inure to the benefit of a public benefit corporation, as
defined in ORS 65.001, for distribution to organizations and individuals for
first-time homebuying assistance and for development of affordable housing. The
escrow agent shall select a qualified public benefit corporation to receive the
interest earnings.
     (4) Any bank services, as defined by rule
by the Real Estate Commissioner, provided to the escrow agent shall not be
considered to affect the impartiality or neutrality of the escrow agent. Such
services are permitted with approval in the written closing instructions of the
principals.
     (5) Clients’ trust funds may be invested
in secured obligations of the
     (a) The depositing principal gives prior
written approval to the escrow agent for such investment after receiving
written disclosure as may be required by rule adopted by the commissioner;
     (b) The depositing principal releases the
escrow agent from any liability for loss of such funds;
     (c) The depositing principal agrees that
any loss of funds shall not be a claim against the bond, deposit, letter of
credit or personal guarantee of the agent under ORS 696.525 and 696.527; and
     (d) The escrow agent does not have any
interest in the investment or earnings from the investment.
     (6) If the funds to be invested represent
earnest money in a transaction, both principals in the transaction must give
prior written approval for the investment and are both considered depositing
principals. [Formerly 696.560; 1991 c.874 §10; 2003 c.224 §2; 2003 c.427 §12]
     696.579
Funds exempt from execution or attachment; designation of funds. (1) Escrow or trust funds are not subject to
execution or attachment on any claim against the escrow agent.
     (2) No person shall knowingly keep or
cause to be kept any funds or money in any bank under the heading of “trust
funds” or “escrow accounts” or any other name designating such funds or money
as belonging to the clients of any escrow agency, except actual escrow or trust
funds deposited with such agency. [Formerly 696.565]
     696.580 [1963 c.440 §15; repealed by 1973 c.794 §34]
     696.581
Written escrow instructions or agreement required; statement; instructions
containing blank prohibited; one-sided escrow; exception. (1) An escrow agent may not accept funds,
property or documents in any escrow transaction without dated, written escrow
instructions from the principals to the transaction or a dated executed
agreement in writing between the principals to the transaction.
     (2) An escrow agent may not close an
escrow or disburse any funds or property in an escrow without obtaining dated,
separate escrow instructions in writing from the principals to the transaction
adequate to administer and close the transaction or, in the case of
disbursement, to disburse the funds and property.
     (3) The following statement or its
substantial equivalent shall appear on or be attached to all written escrow
instructions prepared by an escrow agent for signature of the principals to a
transaction. The statement shall be in at least 10-point bold type. The
statement shall either appear immediately above the signatures of the
principals or be separately initialed by the principals:
______________________________________________________________________________
     It is understood by the parties signing
the above or attached instructions that the instructions are the complete
instructions between this firm as an escrow agent and you as a principal to the
escrow transaction. These instructions may not include all the terms of the
agreement which is the subject of this escrow. Read these instructions
carefully, and do not sign them unless they are acceptable to you.
______________________________________________________________________________
     (4) An escrow agent may not solicit or
accept any original, amended or supplemental escrow instructions containing any
blank to be filled in after signing. An escrow agent shall not allow any
alteration of original, amended or supplemental escrow instructions, unless the
alteration is signed or initialed by all principals who signed or initialed the
instructions before the alteration.
     (5) An escrow agent may accept client
funds, in excess of earnest money required in transaction documents to be held,
as individual funds of the principal who has paid them into escrow. Such
individual funds may be disbursed with only the separate written instructions
of the principal who deposited the funds into escrow.
     (6) An escrow agent may open a one-sided escrow,
as defined by rule by the Real Estate Commissioner. Such escrow funds may be
disbursed with only the separate written instructions of the principal who
deposited the funds into escrow.
     (7) Except as authorized in ORS 105.475,
notwithstanding the requirement for dated, separate escrow instructions to
close an escrow or disburse funds or property in an escrow, an escrow agent:
     (a) May disburse earnest money deposited
based on an agreement of the parties executed after the initial sales
agreement; and
     (b) May not impose additional requirements
on the principals to the transaction, including a requirement that the
principals sign a release of liability in favor of the escrow agent. [1985
c.399 §2; 1991 c.874 §11; 2007 c.289 §1]
     696.582
Escrow agent to hold certain compensation; conditions; notice of demand;
disbursement of money; copy of notice to principal. (1) An escrow agent shall hold, as provided
in subsection (3) of this section, the amount of money or other property agreed
to as compensation in a written real estate brokerÂ’s or principal real estate
brokerÂ’s compensation agreement, if the escrow agent has at the office at which
the escrow is being closed, before the date of closing:
     (a) A written notice of compensation,
signed by the real estate broker or principal real estate broker who is
authorized under rules adopted by the Real Estate Commissioner to enter into
the compensation agreement and sign the written notice of compensation, in
substantially the form set out in subsection (2) of this section; and
     (b) The written closing instructions of
the principals which do not honor the amount and terms of payment in the notice
of compensation.
     (2) The notice of compensation required by
subsection (1) of this section may not be incorporated into any document of
agreement between the principals or between the broker and a principal, and
shall be in substantially the following form:
______________________________________________________________________________
     Notice of
     Real Estate Compensation
     To: ____________
     (Name of Escrow Company)
     Re: ____________
     (Names of Principals to
     Transaction)
     Your Escrow Number: ______
     The undersigned real estate broker or
principal real estate broker states that such broker has a valid written
compensation agreement with ______ (Name of Principal), one of the principals
to the transaction referred to above, and that such principal is obligated to
pay the broker the compensation on account of that transaction. The
compensation amount is $_____ and is to be paid on the following terms: _________.
Request is hereby made that the compensation be paid in that amount and on
those terms, out of escrow and as a part of your closing of that transaction.
__________________
(Name and
Signature of Real Estate Broker
or Principal
Real Estate Broker)
______________________________________________________________________________
     (3) An escrow agent in a transaction
described in subsection (1) of this section may only disburse the moneys or
other property to:
     (a) The broker and principal, based upon a
written agreement between those parties and directed to the escrow agent as
disbursement instructions;
     (b) Any persons, as directed by order of a
court of competent jurisdiction; or
     (c) The court, upon filing by the escrow
agent of an interpleader action for the moneys or property.
     (4) If the filing of a notice of
compensation with an escrow agent under subsection (1) of this section is made
more than 10 days prior to the scheduled closing date, the real estate broker
or principal real estate broker filing the notice shall deliver a copy of the
notice to the principal identified in the notice. If the notice is filed within
10 days of the scheduled closing date, a copy of the notice shall be provided
by the escrow agent to the principal identified in the notice at the time of
closing. [1985 c.449 §2; 2001 c.300 §41; 2007 c.337 §1]
(Civil
Penalties)
     696.585
Civil penalties. (1) Any
person who violates any provision of ORS 696.505 to 696.545, or any lawful rule
or final order of the Real Estate Commissioner or any final judgment made by
any court upon application of the commissioner, may be required to forfeit and
pay to the General Fund of the State Treasury, a civil penalty in an amount
determined by the commissioner of not more than $3,000 for each offense. Each
violation shall be deemed a separate offense.
     (2) In addition to the civil penalty set
forth in subsection (1) of this section, any person who violates any provision
of ORS 696.505 to 696.590, any lawful rule or final order of the commissioner
or any final judgment made by a court upon application to the commissioner, may
be required to forfeit and pay to the General Fund of the State Treasury, a
civil penalty in an amount determined by the commissioner but not to exceed the
amount by which such person profited in any transaction which violates any such
provision, rule, order or judgment.
     (3) Civil penalties under this section are
imposed as provided in ORS 183.745.
     (4) The provisions of this section are in
addition to and not in lieu of any other enforcement provision contained in ORS
696.505 to 696.590. [1975 c.746 §32; 1981 c.617 §31; 1983 c.696 §26a; 1989
c.706 §24; 1991 c.734 §85; 1991 c.874 §12; 2003 c.427 §13; 2003 c.576 §544]
     696.590
Penalty amounts. (1) Any person
who violates ORS 696.511 (1) may be required by the Real Estate Commissioner to
forfeit and pay to the General Fund of the State Treasury a civil penalty in an
amount determined by the commissioner of:
     (a) Not less than $500 nor more than
$1,000 for the first offense of unlicensed professional escrow activity; and
     (b) Not less than $1,000 nor more than
$3,000 for the second and subsequent offenses of unlicensed professional escrow
activity.
     (2) In addition to the civil penalty set
forth in subsection (1) of this section, any person who violates ORS 696.511
may be required by the commissioner to forfeit and pay to the General Fund of
the State Treasury a civil penalty in an amount determined by the commissioner
but not to exceed the amount by which such person profited in any transaction
which violates ORS 696.511.
     (3) Civil penalties under this section
must be imposed in the manner provided in ORS 183.745.
     (4) The civil penalty provisions of
subsections (1) and (2) of this section are in addition to and not in lieu of
the criminal penalties for unlicensed professional escrow activity in ORS
696.990 (1) and (2). [1991 c.874 §17; 2003 c.427 §14]
REAL ESTATE
MARKETING
     696.600
Definitions for ORS 696.392, 696.600 to 696.785 and 696.995. As used in ORS 696.392, 696.600 to 696.785
and 696.995:
     (1) “Employee” includes an individual who
has an independent contractual relationship with a real estate marketing
organization and performs real estate marketing activity.
     (2) “Real estate marketing activity” means
procuring or offering to procure prospects to purchase, sell, lease or rent
real estate by telemarketing, mail or otherwise.
     (3) “Real estate marketing organization”
means any person, including a partnership, association, corporation, limited
liability company or other organization, other than a real estate marketing
employee, that engages in real estate marketing activity and is licensed under
ORS 696.606.
     (4)(a) “Real estate marketing employee”
means an individual who receives compensation from a real estate marketing
organization for performing real estate marketing activity.
     (b) “Real estate marketing employee” does
not mean an individual licensed under ORS 696.022. [1995 c.217 §2; 2001 c.300 §65;
2007 c.319 §16]
     696.603
License required for persons engaged in real estate marketing activities. (1) A person may not engage in real estate
marketing activity unless that person is:
     (a) Licensed under ORS 696.606;
     (b) Licensed under ORS 696.022; or
     (c) Registered by a person licensed under
ORS 696.606.
     (2) No person may employ an individual as
a real estate marketing employee unless the person registers the individual
with the Real Estate Commissioner as the employee of the real estate marketing
organization before the individual commences real estate marketing activity.
     (3) This section applies to persons who:
     (a) Initiate real estate marketing
activity in this state; or
     (b) Initiate real estate marketing
activity in another state that includes contacting persons in this state.
     (4) One act or transaction of real estate
marketing activity is sufficient to constitute engaging in real estate
marketing activity within the meaning of this section. [1995 c.217 §3; 2001
c.300 §66]
     696.606
Real estate marketing organization license; requirements; deposit required;
claims against deposit; rules.
(1) In accordance with any applicable provisions of ORS chapter 183, the Real
Estate Commissioner shall establish by rule a system to license real estate
marketing organizations. Such a system shall include but need not be limited to
prescribing:
     (a) The form and content of and the times
and procedures for submitting an application for the issuance or renewal of a
license.
     (b) The term of the license and the fee
for the original issue and renewal in an amount that does not exceed the cost
of administering the licensing system.
     (c) The requirements and procedures to
register the names of and other information regarding the real estate marketing
employees employed by applicants or licensees.
     (d) Those actions or circumstances that
constitute failure to achieve or maintain licensing or competency or that
otherwise constitute a danger to the public interest and for which the
commissioner may refuse to issue or renew or may suspend or revoke a license or
registration or may impose a penalty.
     (e) Those activities of principals of the
organization that constitute a danger to the public interest and for which the
commissioner may refuse to issue or renew or may suspend or revoke a
registration or may impose a penalty. For purposes of this section, “principal”
means a person who has permitted or directed another to act for the personÂ’s
benefit with respect to a real estate marketing organization.
     (2) Licenses for real estate marketing
organizations shall be granted only if the principal persons of the
organization are trustworthy and competent to conduct real estate marketing
activity in such manner as to safeguard the interests of the public and only
after satisfactory proof has been presented to the commissioner. As used in
this subsection, “satisfactory proof” includes but is not limited to the
fingerprints and a criminal records check of the applicant. For the purpose of
requesting a state or nationwide criminal records check under ORS 181.534, the
commissioner may require the fingerprints of the applicant.
     (3) At the time of filing an application
for a license as a real estate marketing organization, the applicant shall
deposit with the commissioner a corporate surety bond running to the State of
     (4) Any real estate marketing organization
may satisfy the requirements of subsection (3) of this section by depositing
with the commissioner, in an amount equal to the surety bond required, a
deposit consisting of any of the following:
     (a) Cash;
     (b) Ample secured obligations of the
     (c) Certificates of deposit or other
investments described in ORS 733.650 (4) to the extent that such investments
are insured by the Federal Deposit Insurance Corporation; or
     (d) Any combination of paragraphs (a), (b)
and (c) of this subsection.
     (5) Any real estate marketing organization
making a deposit with the commissioner shall assign in trust, to the Real
Estate Commissioner, and the commissionerÂ’s successors in office, all cash
certificates or securities deposited in accordance with this section.
     (6) The deposit shall be accepted and held
by the commissioner for the faithful performance of real estate marketing
activity by the real estate marketing organization. No claimant or judgment
creditor of the real estate marketing organization shall have the right to attach
or levy upon any of the assets or securities held on deposit.
     (7) The commissioner, by order, may use
such deposit under subsection (3) or (4) of this section, as follows:
     (a) To satisfy any final judgment entered
against the real estate marketing organization for actual damages suffered by
any person by reason of the violation of ORS 696.603, 696.606 or 696.612 or a
rule adopted pursuant thereto, or by reason of any fraud, dishonesty,
misrepresentation or concealment of material fact growing out of any real
estate marketing activity.
     (b) To satisfy an order of the
commissioner if the commissioner determines that a violation of ORS 696.603,
696.606 or 696.612 or a rule adopted pursuant thereto has occurred and directs
the payment of a claim from the deposit provided the following conditions have
been met:
     (A) The amount of actual damages claimed,
excluding attorney fees, by the consumer is $1,000 or less.
     (B) The consumer has first contacted the
real estate marketing organization involved and, in writing, has made demand
for payment of actual damages.
     (C) The real estate marketing organization
has had 30 calendar days from the date of the consumerÂ’s written demand to deal
with the demand.
     (D) The claim is only for actual damages
sustained by the consumer.
     (8) All claims against the deposit under
subsection (3) or (4) of this section of a real estate marketing organization,
other than those described in subsection (7) of this section, must be paid by
the commissioner only upon the receipt of a final court judgment against the
real estate marketing organization and only in the amount of actual damages as
ordered by the court. [1995 c.217 §4; 1999 c.107 §12; 2005 c.730 §39]
     696.609
Exemptions from ORS 696.392, 696.600 to 696.785 and 696.995. ORS 696.392, 696.600 to 696.785 and 696.995
do not apply to an individual licensed under ORS 696.022 or to those persons
exempt under ORS 696.030 from licensing under ORS 696.020. [1995 c.217 §5; 2001
c.300 §42; 2007 c.319 §17]
     696.610 [Repealed by 1981 c.617 §41]
     696.612
Grounds for disciplinary action. The Real Estate Commissioner may suspend or revoke the license of any
real estate marketing organization or reprimand any licensee, or may deny the
issuance or renewal of a license to an applicant who has done any of the
following:
     (1) Knowingly or negligently pursued a
course of material misrepresentation in matters related to real estate
marketing activity, whether or not damage or injury resulted, or knowingly or
negligently made any material misrepresentation or material false promise in a
matter related to real estate marketing activity if the material
misrepresentation or material false promise created a reasonable probability of
damage or injury, whether or not damage or injury actually resulted.
     (2) Failed, within a reasonable time, to
account for or to remit any moneys or to surrender to the rightful owner any
documents or other valuable property coming into the possession of the real
estate marketing organization that belongs to others.
     (3) Disregarded or violated any provision
of this section, ORS 696.603 or 696.606 or any rule adopted pursuant thereto.
     (4) Guaranteed, authorized or permitted
any person to guarantee future profits that may result from the resale of real
property.
     (5) Failed or refused upon demand to
produce or to supply true copies of any document, book or record in the
possession or control of the real estate marketing organization for inspection
by the commissioner or the commissionerÂ’s authorized representative.
     (6) Failed to register and maintain the
current and accurate names of, and information regarding, each real estate
marketing employee of the real estate marketing organization.
     (7) Procured or attempted to procure a
real estate marketing license by fraud, misrepresentation or deceit or by
making any material misstatement of fact in an application for a real estate
marketing license.
     (8) Failed to exercise supervision over
the activities of real estate marketing employees. For the purposes of this
subsection, “supervision” means that management by an organization that is
reasonably designed and implemented to result in compliance by the employees of
the organization with this section, ORS 696.603 or 696.606 or any rule adopted
pursuant thereto.
     (9) Engaged in any act or conduct, whether
of the same or of a different character specified in this subsection, that
constitutes or demonstrates bad faith, incompetence, untrustworthiness or
dishonest, fraudulent or improper dealings.
     (10) Failed to meet or maintain the
deposit requirements of ORS 696.606 (3) or (4).
     (11) Failed to pay in full any final
judgment on claims adjudged by the commissioner or by a court of competent
jurisdiction.
     (12) Violated ORS 646.608. [1995 c.217 §6]
     696.615
Publication of sanctions imposed for violations. The Real Estate Commissioner shall publish
information in local newspapers pertaining to sanctions imposed for violations
of ORS 696.603, 696.606 or 696.612 in a manner allowed under ORS 696.430 and
696.445 (3). [1995 c.217 §7]
     696.618
Denial of right to court action for unlicensed real estate marketing
organization. No person
carrying on, conducting or transacting any real estate marketing activity may
maintain any suit or action in any of the courts of this state to enforce any
claim arising out of real estate marketing activity without alleging and
proving that the person was licensed under ORS 696.606 at the time of
performing such activities. [1995 c.217 §8]
     696.620 [Amended by 1975 c.491 §7; repealed by 1981
c.617 §41]
     696.621
Real Estate Marketing Account.
The Real Estate Marketing Account is established as an account in the General
Fund of the State Treasury. All moneys received by the Real Estate Agency
pursuant to ORS 696.392, 696.600 to 696.785 and 696.995 shall be paid into the
State Treasury and credited to the account. All moneys in the account are
appropriated continuously to the Real Estate Agency to carry out the provisions
of ORS 696.392, 696.600 to 696.785 and 696.995. [1995 c.217 §9; 2001 c.300 §67]
     696.624
Consent by nonresident real estate marketing organization to service of summons
or process required. (1)
Every nonresident real estate marketing organization, at the time of licensing,
shall file with the Real Estate Commissioner an irrevocable consent that if, in
any suit or action commenced against the nonresident organization in this state
arising out of a violation of any provision of ORS 696.603, 696.606 or 696.612,
personal service of summons or process upon the nonresident organization cannot
be made in this state after the exercise of due diligence, a valid service may
be made upon the nonresident organization by service on the commissioner.
     (2) The consent shall be in writing,
executed and verified by an officer of the real estate marketing organization
and shall set forth:
     (a) The name of the real estate marketing
organization.
     (b) The address to which documents served
upon the commissioner are to be forwarded.
     (c) If the real estate marketing
organization is a corporation or unincorporated association, that the consent
signed by such officer was authorized by resolution duly adopted by the board
of directors.
     (3) The address for forwarding documents
served under this section may be changed by filing a new consent in the form
prescribed in subsection (2) of this section.
     (4) Service on the commissioner of any
summons or process shall be made by delivery to the commissioner or a clerk on
duty in any office of the commissioner, and shall include duplicate copies of
such summons or process, together with duplicate copies of any papers required
by law to be delivered in connection with such service.
     (5) When the commissioner is served with
any such summons or process, the commissioner shall immediately cause one of
the copies thereof, with any accompanying papers, to be forwarded by registered
or certified mail, return receipt requested, to the real estate marketing
organization at the address set forth in the consent.
     (6) The commissioner shall keep a record
of all summonses and processes, notices and demands served upon the
commissioner under this section, and shall record therein the time of such
service and the action with reference thereto. [1995 c.217 §11]
     696.627
On-site inspection allowed; deposit. (1) The Real Estate Commissioner may make an on-site inspection of any
real estate marketing organization.
     (2) When an on-site inspection under
subsection (1) of this section is to be made, the commissioner may require the
organization to advance a deposit not to exceed $200 per day, in addition to
any other fee, for making the on-site inspection. Any unexpended portion of the
deposit shall be refunded to the organization. [1995 c.217 §12]
     696.630 [Repealed by 1981 c.617 §41]
     696.640 [Repealed by 1981 c.617 §41]
ACTIONS AND
REMEDIES
     696.710
Necessity of alleging license in action to collect compensation. (1) An individual engaged in the business
of, or acting in the capacity of, a real estate broker or principal real estate
broker within this state may not bring or maintain any action in the courts for
the collection of compensation without alleging and proving that the individual
was a licensed broker when the alleged cause of action arose.
     (2) An action in the courts for collection
of compensation for an individual engaged in the business of, or acting in the
capacity of, a real estate broker associated with a principal real estate
broker may not be brought or maintained except by the principal real estate
broker with whom the real estate broker was associated when the alleged cause
of action arose. [Amended by 1981 c.617 §32; 1991 c.5 §44; 2001 c.300 §43; 2007
c.319 §18]
     696.720
Remedies are concurrent. The
remedies provided for in ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to
696.870 and 696.995 are in addition to and not exclusive of any other remedies
provided by law.
     696.730
Jurisdiction of courts for violations; revoking license upon conviction; copy
of order to commissioner.
Any court of competent jurisdiction, including a justice court, has full power
to hear any violation of ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to
696.870 and 696.995 by an individual licensed under ORS 696.022, and, upon
finding a violation, the court may, at its discretion and in addition to the
other penalties imposed, revoke the license of the individual found to have
violated any provision of ORS 696.010 to 696.495, 696.600 to 696.785, 696.800
to 696.870 and 696.995. The clerk of the court shall forward a copy of any
order revoking a real estate license to the Real Estate Commissioner. [Amended
by 1987 c.468 §5; 2001 c.300 §79; 2007 c.319 §19]
     696.740 [1971 c.734 §161; repealed by 1981 c.617 §41]
     696.745 [1975 c.746 §33; 1977 c.649 §56; repealed by
1981 c.617 §41]
     696.775
Authority of commissioner when license lapsed, expired, revoked, suspended or
surrendered. The lapsing,
expiration, revocation or suspension of a real estate license, whether by
operation of law, order of the Real Estate Commissioner or decision of a court
of law, or the inactive status of the license or voluntary surrender of the
license by the real estate licensee, does not deprive the commissioner of
jurisdiction to:
     (1) Proceed with an investigation of the
licensee;
     (2) Conduct disciplinary proceedings
relating to the licensee;
     (3) Take action against a licensee,
including assessment of a civil penalty against the licensee for a violation of
ORS 696.020 (2); or
     (4) Revise or render null and void an
order suspending or revoking a license. [1977 c.649 §3; 1981 c.617 §32a; 2005
c.116 §12; 2007 c.319 §20]
     696.785
Commissioner duties when illegal commingling of funds found; receivership
procedure. (1) When the Real
Estate Commissioner ascertains by audit, investigation or otherwise that a real
estate licensee has commingled trust funds with personal funds or has embezzled
trust funds and that such activity is likely to cause significant financial
loss to others as a result of professional real estate activity engaged in by
such licensee, the commissioner may communicate such fact to the Attorney
General, whereupon it shall become the duty of the Attorney General to
forthwith assist the commissioner in instituting such proceedings as may be
necessary to carry out the purposes of this section.
     (2) Pursuant to subsection (1) of this
section, the commissioner may apply to the circuit court of the county in which
the licenseeÂ’s principal place of business is located for an order directing
the licensee to show cause why a receiver should not be appointed to take
charge of and manage or liquidate if necessary the assets of the licensee utilized
in professional real estate activity in such a manner as to prevent or minimize
such financial loss to others.
     (3) If the court is satisfied from reading
the commissionerÂ’s petition that the facts therein alleged, if established,
warrant such receivership action, the court shall issue such order to show
cause. The court may at such time, without notice, issue a temporary injunction
restraining such licensee, or any of the licenseeÂ’s officers, directors,
stockholders, members, agents or employees, from the transaction of any
professional real estate activity, or the waste or disposition of any such
assets until further order of the court. Should such an injunction be issued, a
hearing on whether the injunction shall be continued shall be held within five
business days of its service.
     (4) On return of the order to show cause,
and after a full hearing, the court shall either deny the application or grant
the same, together with such other relief as the court may deem necessary.
     (5) Notwithstanding any other provision of
law, no bond shall be required of the commissioner or the commissionerÂ’s
authorized representatives as a prerequisite for the issuance of any injunction
or other order pursuant to this section.
     (6) At any time during such proceedings, the
licensee may satisfy the court that the activity which prompted such
proceedings has been rectified or that financial loss to others no longer will
likely occur, in which case the court may dismiss such proceedings.
     (7) The expenses of the receiver, compensation
of the legal counsel of the receiver, as well as all expenditures of the
receiver required in such proceedings shall be fixed by the court and shall be
paid out of funds in the hands of the receiver or entered as a judgment against
such licensee. [1977 c.649 §8; 1981 c.617 §33]
MISCELLANEOUS
     696.790
Authority of commissioner to require fingerprints. For the purpose of requesting a state or
nationwide criminal records check under ORS 181.534, the Real Estate
Commissioner may require the fingerprints of an individual who:
     (1) Is applying for a license, or renewal
of a license, under this chapter; or
     (2)(a)(A) Is employed or applying for
employment by the Real Estate Agency; or
     (B) Provides services or seeks to provide
services to the Real Estate Agency as a contractor or volunteer; and
     (b) Is, or will be, working or providing
services in a position:
     (A) In which the individual is providing
information technology services and has control over, or access to, information
technology systems that would allow the individual to harm the information
technology systems or the information contained in the systems;
     (B) In which the individual has access to
information that state or federal laws, rules or regulations prohibit
disclosing or define as confidential;
     (C) That has payroll functions or in which
the individual has responsibility for receiving, receipting or depositing money
or negotiable instruments, for billing, collections or other financial
transactions or for purchasing or selling property or has access to property
held in trust or to private property in the temporary custody of the state;
     (D) That has mailroom duties as a primary
duty or job function;
     (E) That has personnel or human resources
functions as a primary responsibility;
     (F) In which the individual has access to
Social Security numbers, dates of birth or criminal background information of
employees or members of the public; or
     (G) In which the individual has access to
tax or financial information about individuals or business entities. [1989
c.724 §14; 2005 c.730 §40; 2007 c.619 §4]
     696.793 [1989 c.724 §15; repealed by 2005 c.730 §77]
     696.795
Authority of commissioner to conduct investigations and proceedings. (1) For the purpose of an investigation or
proceeding under this chapter, the commissioner may administer oaths and
affirmations, subpoena witnesses, compel their attendance, take evidence and
require the production of books, papers, correspondence, memoranda, agreements
or other documents or records which the commissioner deems relevant or material
to the inquiry. Each witness who appears before the commissioner under a
subpoena shall receive the fees and mileage provided for witnesses in civil
cases.
     (2) If a person fails to comply with a
subpoena so issued or a party or witness refuses to testify on any matters, the
judge of the circuit court or of any county, on the application of the
commissioner, shall compel obedience by proceedings for contempt as in the case
of disobedience of the requirements of a subpoena issued from such court or a
refusal to testify therein. [1989 c.724 §16]
AGENTSÂ’
OBLIGATIONS
     696.800
Definitions. As used in ORS
696.392, 696.600 to 696.785, 696.800 to 696.870 and 696.995, unless the context
requires otherwise:
     (1) “Agent” means:
     (a) A real estate broker or principal real
estate broker who has entered into:
     (A) A listing agreement with a seller;
     (B) A service contract with a buyer to
represent the buyer; or
     (C) A disclosed limited agency agreement;
or
     (b) An individual licensed under ORS
696.022 who has entered into a written contract with a real estate broker or
principal real estate broker to act as the brokerÂ’s agent in connection with
acts requiring a real estate license and to function under the brokerÂ’s
supervision.
     (2) “Buyer” means a potential transferee
in a real property transaction, and includes a person who:
     (a) Executes an offer to purchase real
property from a seller through an agent; or
     (b) Enters into an exclusive
representation contract or buyerÂ’s service agreement with a real estate broker
or principal real estate broker, whether or not a sale or transfer of property
results.
     (3) “Confidential information” means
information communicated to a real estate licensee or the licenseeÂ’s agent by
the buyer or seller of one to four residential units regarding the real
property transaction, including but not limited to price, terms, financial
qualifications or motivation to buy or sell. “Confidential information” does
not mean information that:
     (a) The buyer instructs the licensee or
the licenseeÂ’s agent to disclose about the buyer to the seller or the seller
instructs the licensee or the licenseeÂ’ agent to disclose about the seller to
the buyer; and
     (b) The licensee or the licensee’s agent
knows or should know failure to disclose would constitute fraudulent
representation.
     (4) “Disclosed limited agency” means a
real property transaction in which the representation of a buyer and seller or
the representation of two or more buyers occurs within the same real estate
business.
     (5) “Listing agreement” means a contract
between a seller of real property and a real estate broker or principal real
estate broker by which the broker has been authorized to act as an agent of the
seller for compensation to offer the real property for sale or to find and
obtain a buyer.
     (6) “Listing price” means the amount
expressed in dollars, specified in the listing agreement, for which the seller
is willing to sell the real property through the listing agent.
     (7) “Offer” means a written proposal executed
by a buyer for the sale or lease of real property.
     (8) “Offering price” is the amount
expressed in dollars specified in an offer to purchase for which the buyer is
willing to buy the real property.
     (9) “Principal” means the person who has
permitted or directed an agent to act on the principalÂ’s behalf. In a real
property transaction, this generally means the buyer or the seller.
     (10) “Real property” means any estate in
real property, including a condominium as defined in ORS 100.005, a timeshare
property as defined in ORS 94.803 and the granting of an option or right of
first refusal. “Real property” also includes a manufactured structure, as
defined in ORS 446.561, owned by the same person who owns the land upon which
the manufactured structure is situated. “Real property” does not include a
leasehold in real property.
     (11) “Real property transaction” means a
transaction regarding real property in which an agent is employed by one or
more of the principals to act in that transaction and includes but is not
limited to listing agreements, buyerÂ’s service agreements, exclusive
representation contracts and offers to purchase.
     (12) “
     (a) Exchanges of real property between the
seller and the buyer and third parties; and
     (b) Land sales contracts.
     (13) “Seller” means a potential transferor
in a real property transaction and includes an owner:
     (a) Who enters into a listing agreement
with a real estate broker or principal real estate broker, whether or not a
transfer results; or
     (b) Who receives an offer to purchase real
property, of which the seller is the owner, from an agent acting on behalf of a
buyer. [1993 c.570 §2; 2001 c.300 §44; 2003 c.655 §84; 2005 c.116 §§13,14; 2007
c.319 §21]
     Note: Section 351, chapter 79, Oregon Laws 1995,
provides:
     Sec.
351. The provisions of ORS
696.800 to 696.855 [series became 696.800 to 696.870] apply to ORS 696.010 to
696.495. [1995 c.79 §351]
     696.805
Real estate licensee as sellerÂ’s agent; obligations. (1) A real estate licensee who acts under a
listing agreement with the seller acts as the sellerÂ’s agent only.
     (2) A seller’s agent owes the seller,
other principals and the principalsÂ’ agents involved in a real estate
transaction the following affirmative duties:
     (a) To deal honestly and in good faith;
     (b) To present all written offers, written
notices and other written communications to and from the parties in a timely
manner without regard to whether the property is subject to a contract for sale
or the buyer is already a party to a contract to purchase; and
     (c) To disclose material facts known by
the sellerÂ’s agent and not apparent or readily ascertainable to a party.
     (3) A seller’s agent owes the seller
involved in a real estate transaction the following affirmative duties:
     (a) To exercise reasonable care and
diligence;
     (b) To account in a timely manner for
money and property received from or on behalf of the seller;
     (c) To be loyal to the seller by not
taking action that is adverse or detrimental to the sellerÂ’s interest in a
transaction;
     (d) To disclose in a timely manner to the
seller any conflict of interest, existing or contemplated;
     (e) To advise the seller to seek expert
advice on matters related to the transaction that are beyond the agentÂ’s
expertise;
     (f) To maintain confidential information
from or about the seller except under subpoena or court order, even after
termination of the agency relationship; and
     (g) Unless agreed otherwise in writing, to
make a continuous, good faith effort to find a buyer for the property, except
that a sellerÂ’s agent is not required to seek additional offers to purchase the
property while the property is subject to a contract for sale.
     (4) A seller’s agent may show properties
owned by another seller to a prospective buyer and may list competing
properties for sale without breaching any affirmative duty to the seller.
     (5) Except as provided in subsection
(3)(g) of this section, an affirmative duty may not be waived.
     (6) Nothing in this section implies a duty
to investigate matters that are outside the scope of the real estate licenseeÂ’s
expertise, including but not limited to investigation of the condition of
property, the legal status of the title or the ownerÂ’s past conformance with
law, unless the licensee or the licenseeÂ’s agent agrees in writing to
investigate a matter. [1993 c.570 §3; 2001 c.300 §45; 2003 c.398 §11; 2005
c.393 §6]
     Note: See note under 696.800.
     696.810
Real estate licensee as buyerÂ’s agent; obligations. (1) A real estate licensee other than the
sellerÂ’s agent may agree with the buyer to act as the buyerÂ’s agent only. The
buyerÂ’s agent is not representing the seller, even if the buyerÂ’s agent is
receiving compensation for services rendered, either in full or in part, from
the seller or through the sellerÂ’s agent.
     (2) A buyer’s agent owes the buyer, other
principals and the principalsÂ’ agents involved in a real estate transaction the
following affirmative duties:
     (a) To deal honestly and in good faith;
     (b) To present all written offers, written
notices and other written communications to and from the parties in a timely
manner without regard to whether the property is subject to a contract for sale
or the buyer is already a party to a contract to purchase; and
     (c) To disclose material facts known by
the buyerÂ’s agent and not apparent or readily ascertainable to a party.
     (3) A buyer’s agent owes the buyer
involved in a real estate transaction the following affirmative duties:
     (a) To exercise reasonable care and
diligence;
     (b) To account in a timely manner for
money and property received from or on behalf of the buyer;
     (c) To be loyal to the buyer by not taking
action that is adverse or detrimental to the buyerÂ’s interest in a transaction;
     (d) To disclose in a timely manner to the
buyer any conflict of interest, existing or contemplated;
     (e) To advise the buyer to seek expert
advice on matters related to the transaction that are beyond the agentÂ’s
expertise;
     (f) To maintain confidential information
from or about the buyer except under subpoena or court order, even after
termination of the agency relationship; and
     (g) Unless agreed otherwise in writing, to
make a continuous, good faith effort to find property for the buyer, except
that a buyerÂ’s agent is not required to seek additional properties for the
buyer while the buyer is subject to a contract for purchase or to show
properties for which there is no written agreement to pay compensation to the
buyerÂ’s agent.
     (4) A buyer’s agent may show properties in
which the buyer is interested to other prospective buyers without breaching an
affirmative duty to the buyer.
     (5) Except as provided in subsection
(3)(g) of this section, an affirmative duty may not be waived.
     (6) Nothing in this section implies a duty
to investigate matters that are outside the scope of the real estate licenseeÂ’s
expertise, including but not limited to investigation of the condition of
property, the legal status of the title or the ownerÂ’s past conformance with
law, unless the licensee or the licenseeÂ’s agent agrees in writing to
investigate a matter. [1993 c.570 §4; 2001 c.300 §46; 2003 c.398 §12; 2005
c.393 §7]
     Note: See note under 696.800.
     696.815
Representation of both buyer and seller; obligations. (1) A real estate licensee may represent
both the seller and the buyer in a real estate transaction under a disclosed
limited agency agreement, with full disclosure of the relationship under the
agreement.
     (2) A real estate licensee acting pursuant
to a disclosed limited agency agreement has the following duties and
obligations:
     (a) To the seller, the duties under ORS
696.805;
     (b) To the buyer, the duties under ORS
696.810; and
     (c) To both seller and buyer, except with
express written permission of the respective person, the duty not to disclose
to the other person:
     (A) That the seller will accept a price
lower or terms less favorable than the listing price or terms;
     (B) That the buyer will pay a price
greater or terms more favorable than the offering price or terms; or
     (C) Specific confidential information as
defined in ORS 696.800 (3).
     (3) Nothing in this section implies a duty
to investigate matters that are outside the scope of the real estate licenseeÂ’s
expertise unless the licensee agrees in writing to investigate a matter.
     (4) In a real estate transaction in which
different real estate brokers associated with the same principal real estate
broker establish agency relationships with different parties to the real estate
transaction, the principal real estate broker shall be the only broker acting
as a disclosed limited agent representing both seller and buyer. Other brokers
shall continue to represent only the party with whom the broker has an agency
relationship unless all parties agree otherwise in writing.
     (5) The principal real estate broker and
the real estate licensees representing either seller or buyer shall owe the
following duties to the seller and buyer:
     (a) To disclose a conflict of interest in
writing to all parties;
     (b) To take no action that is adverse or
detrimental to either partyÂ’s interest in the transaction; and
     (c) To obey the lawful instructions of
both parties. [1993 c.570 §5; 2001 c.300 §47]
     Note: See note under 696.800.
     696.820
Agency disclosure pamphlet; rules. (1) The Real Estate Commissioner shall prescribe by rule the format
and content of an initial agency disclosure pamphlet. The rules must provide
that the initial agency disclosure pamphlet is informational only and may not
be construed to be evidence of intent to create an agency relationship.
     (2) An agent shall provide a copy of the
initial agency disclosure pamphlet at the first contact with each party to a
real property transaction, including but not limited to contacts in person, by
telephone, over the Internet or the World Wide Web, or by electronic mail,
electronic bulletin board or a similar electronic method. [1993 c.570 §6; 2001
c.300 §48; 2005 c.116 §15]
     Note: See note under 696.800.
     696.822
Liability of principal for act, error or omission of agent or subagent. (1) A principal is not liable for an act,
error or omission by an agent or subagent of the principal arising out of an
agency relationship established under ORS 696.805, 696.810, 696.815 or 696.820:
     (a) Unless the principal participates in or
authorizes the act, error or omission; and
     (b) Only to the extent that:
     (A) The principal benefited from the act,
error or omission; and
     (B) A court or arbitrator determines that
it is highly probable that the claimant would be unable to enforce a judgment
against the agent or subagent of the principal.
     (2) A real estate licensee is not liable
for an act, error or omission by a principal or an agent of a principal that is
not related to the licensee unless the licensee participates in or authorizes the
act, error or omission. This subsection does not limit the liability of a
principal real estate broker for an act, error or omission by a real estate
licensee under the principal brokerÂ’s supervision.
     (3) Unless acknowledged by a principal in
writing, facts known by an agent or subagent of the principal may not be
imputed to the principal if the principal does not have actual knowledge.
     (4) Unless acknowledged by a real estate
licensee in writing, facts known by a principal or an agent of the principal
may not be imputed to the licensee if the licensee does not have actual
knowledge. This subsection does not limit the knowledge imputed to a principal
real estate broker of facts known by a real estate licensee under the
supervision of the principal real estate broker. [2001 c.300 §52]
     Note: See note under 696.800.
     696.825 [1993 c.570 §7; repealed by 2001 c.300 §84]
     696.830 [1993 c.570 §8; repealed by 2001 c.300 §84]
     696.835
Buyer and seller responsibilities. None of the affirmative obligations of a real estate licensee or agent
in a real estate transaction under ORS 696.805, 696.810 or 696.815 relieves a
seller or a buyer from the responsibility to protect the sellerÂ’s or buyerÂ’s
own interests respectively. [1993 c.570 §9]
     Note: See note under 696.800.
     696.840
Compensation and agency relationships. The payment of compensation or the obligation to pay compensation to a
real estate licensee by the seller or the buyer is not necessarily
determinative of a particular agency relationship between a real estate
licensee and the seller or the buyer. After full disclosure of agency
relationships, a listing agent, a selling agent or a real estate licensee or
any combination of the three may agree to share any compensation paid, or any
right to any compensation for which an obligation arises as the result of a
real property transaction, and the terms of the agreement shall not necessarily
be determinative of a particular relationship. Nothing in this section shall
prevent the parties from selecting a relationship not specifically prohibited
by ORS 696.301, 696.392, 696.600 to 696.785, 696.800 to 696.870 and 696.995. [1993
c.570 §10; 2007 c.337 §8]
     Note: See note under 696.800.
     696.845
Acknowledgment of existing agency relationships form; rules. When signing an offer to purchase, each
buyer shall acknowledge the existing agency relationships, if any. When a
seller accepts or rejects an offer to purchase in writing, each seller shall
acknowledge the existing agency relationships, if any. An agent to the real
property transaction shall obtain the signatures of the buyers and the sellers
to the acknowledgment, which shall be incorporated into or attached as an
addendum to the offer to purchase or to the acceptance. The Real Estate Agency
shall prescribe by rule the form and content of the acknowledgment of existing
agency relationships. [1993 c.570 §11; 2001 c.300 §49; 2003 c.398 §13; 2005
c.116 §16]
     Note: See note under 696.800.
     696.855
Common law application to statutory obligations and remedies. (1) ORS 696.301, 696.392, 696.600 to 696.785
and 696.995 do not directly, indirectly or by implication limit or alter any
preexisting common law or statutory right or remedy including actions for
fraud, negligence or equitable relief.
     (2) The terms “loyalty,” “obedience,” “disclosure,”
“confidentiality,” “reasonable care and diligence” and “accounting in dealings”
shall be interpreted under the common law of agency.
     (3) Common law and statutory remedies are
not affected by ORS 696.301, 696.392, 696.600 to 696.785 and 696.995. [1993
c.570 §12; 2001 c.300 §49a]
     Note: See note under 696.800.
     696.870
Duties of real estate licensee under ORS 105.462 to 105.490, 696.301 and
696.870. (1)(a) A real
estate licensee representing a seller of real property has a duty to inform
each represented seller of the sellerÂ’s duties created by this section and ORS
105.462 to 105.490 and 696.301.
     (b) A real estate licensee representing a
buyer of real property has a duty to inform each represented buyer of the buyerÂ’s
rights under this section and ORS 105.462 to 105.490 and 696.301.
     (2) If a real estate licensee performs the
duties set forth in subsection (1) of this section, the real estate licensee
shall have no further duties under this section.
     (3) Notwithstanding subsections (1) and
(2) of this section, for the purposes of ORS 696.301, a real estate licensee:
     (a) Representing a seller by written
agreement or course of conduct is bound by the standards of conduct and duties
created under ORS 696.805;
     (b) Representing a buyer by written
agreement or course of conduct is bound by the standards of conduct and duties
created under ORS 696.810; and
     (c) Acting as a disclosed limited agent by
a written agreement or course of conduct is bound by the standards of conduct
and duties created under ORS 696.815. [1993 c.547 §6; 2001 c.300 §50]
     Note: See note under 696.800.
     696.880
Licensee not required to disclose proximity of registered sex offender. Nothing in ORS 181.586, 181.587, 181.588,
181.589, 696.301, 696.805, 696.810, 696.815 or 696.855 creates an obligation on
the part of a person licensed under this chapter to disclose to a potential
purchaser of residential property that a convicted sex offender registered
under ORS 181.595, 181.596 or 181.597 resides in the area. [1999 c.732 §2; 2001
c.300 §73]
     Note: 696.880 was added to and made a part of ORS
chapter 696 by legislative action but was not added to any smaller series
therein. See Preface to Oregon Revised Statutes for further explanation.
PENALTIES
     696.990
Penalties. (1) Violation of
any provision of ORS 696.010 to 696.130, 696.200, 696.205, 696.241 to 696.375,
696.392, 696.395 to 696.430, 696.490, 696.600 to 696.785 and 696.995 is a Class
A misdemeanor.
     (2) Any officer, director or shareholder
or agent of a corporation, or member or agent of a partnership or association,
who personally participates in or is an accessory to any violation of ORS
696.010 to 696.130, 696.200, 696.205, 696.241 to 696.375, 696.392, 696.395 to
696.430, 696.490, 696.600 to 696.785 and 696.995 by the partnership,
association or corporation, is subject to the penalties prescribed in
subsection (1) of this section.
     (3) A violation of any one of the
provisions of ORS 696.505 to 696.590 is a Class A misdemeanor.
     (4) Any person that violates ORS 696.020
(2) may be required by the Real Estate Commissioner to forfeit and pay to the
General Fund of the State Treasury a civil penalty in an amount determined by
the commissioner of:
     (a) Not less than $100 nor more than $500
for the first offense of unlicensed professional real estate activity; and
     (b) Not less than $500 nor more than
$1,000 for the second and subsequent offenses of unlicensed professional real
estate activity.
     (5) In addition to the civil penalty set
forth in subsection (4) of this section, any person that violates ORS 696.020
may be required by the commissioner to forfeit and pay to the General Fund of
the State Treasury a civil penalty in an amount determined by the commissioner
but not to exceed the amount by which such person profited in any transaction
that violates ORS 696.020.
     (6) Civil penalties under this section
shall be imposed as provided in ORS 183.745.
     (7) The civil penalty provisions of
subsections (4) and (5) of this section are in addition to and not in lieu of
the criminal penalties for unlicensed professional real estate activity in
subsections (1) and (2) of this section.
     (8) For the purposes of subsection (4) of
this section, any violation of ORS 696.020 (2) that results from a failure of a
real estate licensee to renew a license within the time allowed by law
constitutes a single offense of unlicensed professional real estate activity
for each 30-day period after expiration of the license during which the
individual engages in professional real estate activity. A civil penalty
imposed for a violation of ORS 696.020 (2) that results from a failure of a
real estate licensee to renew a license within the time allowed by law is not
subject to the minimum dollar amounts specified in subsection (4) of this
section.
     (9) Subsection (5) of this section does
not apply to a violation of ORS 696.020 (2) that results from a failure of a
real estate licensee to renew a license within the time allowed by law. [Subsection
(3) enacted as 1963 c.440 §18; 1977 c.649 §50; 1981 c.617 §34; 1989 c.724 §11;
1991 c.734 §86; 2001 c.300 §68; 2005 c.116 §17; 2005 c.393 §8; 2007 c.319 §23]
     696.995
Civil penalties for violation of ORS 696.603, 696.606 or 696.612. (1) Any person who violates ORS 696.603,
696.606 or 696.612 may be required by the Real Estate Commissioner to forfeit
and pay to the General Fund of the State Treasury a civil penalty in an amount
determined by the commissioner of:
     (a) Not less than $100 nor more than $500
for the first violation of ORS 696.603, 696.606 or 696.612 or a rule adopted
pursuant thereto; or
     (b) Not less than $500 nor more than
$1,000 for the second and subsequent violations of ORS 696.603, 696.606 or
696.612 or a rule adopted pursuant thereto.
     (2) In addition to the civil penalty set
forth in subsection (1) of this section, any person who violates ORS 696.603
may be required by the commissioner to forfeit and pay to the General Fund of
the State Treasury a civil penalty in an amount determined by the commissioner
but not to exceed the amount by which such person profited from the transaction
in violation of ORS 696.603.
     (3) Civil penalties under this section
shall be imposed as provided in ORS 183.745.
     (4) The civil penalty provisions of this
section are in addition to and not in lieu of other administrative sanctions. [1995
c.217 §10]
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