US Laws, Codes, Statutes & Cases

Chapter 696 — Real Estate and Escrow Activities

 

2005 EDITION

 

 

REAL ESTATE AND ESCROW ACTIVITIES

 

OCCUPATIONS AND PROFESSIONS

 

REAL ESTATE LICENSEES

 

(Generally)

 

696.007     Statement of legislative purpose

 

696.010     Definitions

 

696.015     Legislative finding; short title

 

(Licensing)

 

696.020     License required for persons engaged in professional real estate activities

 

696.022     Licensing system for real estate brokers and property managers; rules

 

696.024     Payments due and owing to Real Estate Agency

 

696.026     Conducting business under broker’s name, under registered business name or through business organization; rules

 

696.028     Licensed personal assistant; rules

 

696.030     Certain persons exempted

 

696.040     Single act sufficient to constitute professional real estate activity

 

696.110     Exclusive nature of regulation of real estate licensees

 

696.130     Limited license

 

696.174     License renewal; continuing education courses; rules

 

696.200     Real estate broker or organization to maintain place of business; branch offices; change of business location

 

696.205     Death or incapacity of sole proprietor real estate licensee; temporary license; rules

 

696.232     Return of license by employee of agency; reissuance upon termination of employment

 

(Client Trust Fund Accounts)

 

696.241     Clients’ 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

 

696.243     Substituting copy for original canceled check allowed; electronic fund transfers

 

696.245     Clients’ Trust Accounts; notice to bank; retention of copy

 

(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

 

696.265     Recognition of nonresident real estate licensee; rules

 

(Miscellaneous)

 

696.270     Fees

 

696.280     Records of real estate brokers; rules

696.290     Sharing commission with or paying finder’s fee to unlicensed person prohibited; exceptions

 

696.301     Grounds for discipline

 

696.310     Intracompany supervision and control; effect of revocation on licensed associates

 

696.315     Licensee not to permit person whose license suspended or revoked to engage in activity with or on behalf of licensee

 

696.320     Effect of suspension or revocation of principal broker license on associated licensees

 

696.361     Regulation of real estate property manager

 

696.363     Relationship between licensees as independent contractors or employer and employee

 

696.365     City or county business license tax

 

(Administration)

 

696.375     Real Estate Agency; Real Estate Commissioner; confirmation, salary and security of commissioner

 

696.385     Power of agency; rulemaking procedures

 

696.392     Power of commissioner to administer oaths, take depositions and issue subpoenas

 

696.395     Power of commissioner

 

696.396     Investigation of complaints and progressive discipline; rules

 

696.398     Delegation by commissioner to employees; requirements

 

696.405     Real Estate Board; appointment; term; qualifications; compensation; expenses

 

696.415     Officers; meetings; quorum

 

696.425     Powers and duties of board; expenses

 

696.430     Records of commissioner as evidence; records open to inspection

 

696.445     Advancement of education and research; Oregon Real Estate News Journal; content as to disciplinary actions

 

696.490     Real Estate Account; disposition of receipts

 

696.495     Revolving fund; amount; use; procedure for repayment

 

ESCROWS AND ESCROW AGENTS

 

(Generally)

 

696.505     Definitions for ORS 696.505 to 696.590

 

696.508     Legislative finding; short title

 

(Licensing)

 

696.511     License required; application and information required; issuance

 

696.520     Application of ORS 696.505 to 696.590

 

696.523     Application of ORS 696.505 to 696.590 to title insurance activities

 

696.525     Bond for escrow agents

 

696.527     Deposits in lieu of bond; payment of claims; waiver

 

696.530     Expiration and renewal of license; fees

 

696.532     Limited license

 

696.534     Records of escrow agents

 

696.535     Grounds for refusing, suspending or revoking license

 

696.541     Authority of commissioner over escrow agents; rules

 

(Enforcement)

 

696.545     Investigation; injunction; jurisdiction

 

696.555     Commissioner to take possession of property and assets of escrow agent when assets or capital impaired; appointment of receiver

 

696.570     Hearings procedure under ORS 696.505 to 696.590; subpoena

 

696.575     Civil or criminal actions not limited by ORS 696.505 to 696.590

 

696.577     Commissioner’s order against unlicensed agent

 

(Escrow Property)

 

696.578     Deposit and designation of money held in escrow; treatment of earnings on escrow account; notice

 

696.579     Funds exempt from execution or attachment; designation of funds

 

696.581     Written escrow instructions or agreement required; statement; instructions containing blank prohibited; one-sided escrow

 

696.582     Escrow agent to hold certain commissions; conditions; notice of demand; disbursement of money; copy of notice to principal

 

(Civil Penalties)

 

696.585     Civil penalties

 

696.590     Penalty amounts

 

REAL ESTATE MARKETING

 

696.600     Definitions for ORS 696.392, 696.600 to 696.785 and 696.995

 

696.603     License required for persons engaged in real estate marketing activities

 

696.606     Real estate marketing organization license; requirements; deposit required; claims against deposit; rules

 

696.609     Certain persons exempted from ORS 696.392, 696.600 to 696.785 and 696.995

 

696.612     Grounds for disciplinary action

 

696.615     Publication of sanctions imposed for violations

 

696.618     Denial of right to court action for unlicensed real estate marketing organization

 

696.621     Real Estate Marketing Account

 

696.624     Consent by nonresident real estate marketing organization to service of summons or process required

 

696.627     On-site inspection allowed; deposit

 

ACTIONS AND REMEDIES

 

696.710     Necessity of alleging license in action to collect compensation

 

696.720     Remedies are concurrent

 

696.730     Jurisdiction of courts for violations; revoking license upon conviction; copy of order to commissioner

 

696.775     Authority of commissioner when license lapsed, suspended or surrendered

 

696.785     Commissioner duties when illegal commingling of funds found; receivership procedure

 

MISCELLANEOUS

 

696.790     Authority of commissioner to require fingerprints

 

696.795     Authority of commissioner to conduct investigations and proceedings

 

AGENTS’ OBLIGATIONS

 

696.800     Definitions

 

696.805     Real estate licensee as seller’s agent; obligations

 

696.810     Real estate licensee as buyer’s agent; obligations

 

696.815     Representation of both buyer and seller; obligations

 

696.820     Agency disclosure pamphlet; rules

 

696.822     Liability of principal for act, error or omission of agent or subagent

 

696.835     Buyer and seller responsibilities

 

696.840     Compensation and agency relationships

 

696.845     Acknowledgment of existing agency relationships form; rules

 

696.855     Common law application to statutory obligations and remedies

 

696.870     Duties of real estate licensee under ORS 105.462 to 105.490, 696.301 and 696.870

 

696.880     Licensee not required to disclose proximity of registered sex offender

 

PENALTIES

 

696.990     Penalties

 

696.995     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 Oregon law to parallel provisions of the Internal Revenue Code.

      (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 which 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 distribution and dissemination, 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) “Letter opinion” means a document that expresses a real estate licensee’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 licensee’s competitive market analysis. The 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.

      (9) “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.

      (10) “Principal real estate broker” means an individual who is licensed as a principal real estate broker and who employs, engages or supervises another real estate licensee.

      (11) “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. Such activity performed by a state certified appraiser or state licensed appraiser is not professional real estate activity.

      (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.

      (n) Performs real estate marketing activity as described in ORS 696.600.

      (12) “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.

      (13) “Real estate broker” means a person who engages in professional real estate activity and who is licensed as a real estate broker.

      (14) “Real estate licensee” means a real estate broker, principal real estate broker or real estate property manager.

      (15) “Real estate property manager” means a real estate licensee who is authorized to engage in management of rental real estate.

      (16) “Registered business name” means a name registered with the Real Estate Agency under which the person registering the name engages in professional real estate activity.

      (17) “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]

 

      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 persons engaged in professional real estate activities. (1) No person shall 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 without first obtaining a license as provided for in this chapter.

      (2) A real estate licensee shall be 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 in engaging in any professional real estate activity or while acting in the licensee’s own behalf in the offer to, negotiations for, or 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]

 

      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 all of the professional activities of a real estate broker described in this chapter. A real estate broker may not employ, engage or otherwise supervise the professional real estate activities of another real estate broker or principal real estate broker.

      (b) In order to qualify for a real estate broker’s license, an applicant must furnish proof satisfactory to the commissioner that the applicant has successfully completed the basic real estate broker’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 activities as a sole practitioner after:

      (A) The person has acquired three years of active experience as a real estate broker; or

      (B) The person 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 broker’s examination required by rule of the agency.

      (3)(a) A principal real estate broker may engage in all of the professional activities of a real estate broker described in this chapter. A principal real estate broker may conduct professional real estate activities in conjunction with other real estate brokers or principal real estate brokers. In addition, a principal real estate broker may employ, engage and otherwise supervise the professional real estate activities of real estate brokers or principal real estate brokers.

      (b) In order to qualify for a principal real estate broker’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 broker’s examination required by rule of the agency.

      (4) In order to qualify for a real estate property manager’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 manager’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 a person 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 such proof of competence and trustworthiness as 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 persons who are 18 years of age or older.

      (7) In order to qualify for a real estate broker’s license, a real estate salesperson licensed in another state or country must successfully complete a course of study and pass a real estate broker’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 broker’s license or a real estate broker’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]

 

      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 broker’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 broker’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 broker’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 person 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 commission payments 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]

 

      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 Certain persons exempted. (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, and the term “real estate licensee” does not include:

      (a) A nonlicensed regular 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 employer’s principal activity or business is not the sale, exchange, lease option or acquisition of real estate.

      (b) A nonlicensed person acting 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 person 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 person acting 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) An attorney at law rendering services in the performance of duties as an attorney at law.

      (e) A person acting in the person’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 person performing an act of professional real estate activity under order of a court.

      (g) A nonlicensed regular full-time employee of a single nonlicensed corporation, partnership, association or individual owner of real property acting for the corporation, partnership, association or individual in the rental or management of the real property, but not in the sale, exchange, lease option or purchase of the real property.

      (h) A registered professional engineer or architect rendering services in performance of duties as a professional engineer or architect.

      (i) A nonlicensed individual employed by a real estate broker or principal real estate broker and acting 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 premises’ managers and discussing financial matters relating to management of the real estate with the owner.

      (j) A person, or an employee of the person, selling or leasing 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.

      (k) 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 person, or a regular full-time employee of the person, analyzing or advising of permissible land use alternatives, environmental impact, building and use permit procedures or demographic market studies. This exclusion does not apply to the handling of transactional negotiations for transfer of an interest in real estate.

      (m) 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) 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) 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 who transports or purports to be willing to transport persons from place to place by rail, motor vehicle, boat or aircraft for hire, compensation or consideration.

      (p) 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 who provides reservations or sale services to independent hotels, airlines, steamship companies and government tourist agencies.

      (q) A nonlicensed person transferring or acquiring an interest in real estate owned or to be owned by the person.

      (r) 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) A membership camping contract broker or salesperson registered with the Real Estate Agency selling membership camping contracts.

      (t) A professional forester or farm manager engaging in property management activity on forest or farm land when the activity is incidental to the nonreal estate duties involving overall management of forest or farm resources.

      (u) 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 person referring a new tenant for compensation to a real estate licensee acting as the property manager for a residential building or facility while the person resides in the building or facility or within six months after termination of the person’s tenancy.

      (w) A nonlicensed person giving 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 person 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 person acting as a fiduciary under a court order, without regard to whether the court order specifically authorizes real estate activity.

      (z) A financial institution or trust company, as those terms are defined in ORS 706.008, acting as 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]

 

      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 persons 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]

 

      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 licensee’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 licensee’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 broker’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 broker’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 broker’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 person 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 a person 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]

 

      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 employee’s or officer’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 employee’s or officer’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 Clients’ 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 Clients’ 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 Clients’ 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 Clients’ 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 Clients’ 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 Clients’ 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 Clients’ 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 practitioner’s or broker’s commission or fee 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) No person shall knowingly keep or cause to be kept any funds or money in any bank under the heading of Clients’ 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 a procedure for disbursal of disputed funds from a Clients’ 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. Any disbursal pursuant to the procedure does not affect the claim of any other person to the funds.

      (11) The agency may provide by rules 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]

 

      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 licensee’s clients’ 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 clients’ 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 Clients’ Trust Accounts; notice to bank; retention of copy. (1) Each sole practitioner and each principal real estate broker, at the time a Clients’ 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 CLIENTS’ 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 Oregon a Clients’ Trust Account for the purpose of holding funds belonging to others.

      With regard to the account(s) numbered _________ which is/are designated as a Clients’ 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 so