Oregon has rules to allow principal brokers and brokers to keep working for one brokerage after switching to another
By Jeff Sorg, OnlineEd Blog
(May 20, 2019)
(PORTLAND, Ore.) OnlineEd – Senate Bill 67, Section 5 and rule OAR 863-014-0063 set out criteria and a process that will allow a broker or principal broker changing real estate brokerages to continue to work on a sale, exchange, purchase, or lease transaction that was started while under the supervision of the previous brokerage. The law and rule were effective back on January 1, 2018. Here are the highlights:
Transferring Brokers
Following a license transfer, a real estate broker may continue to engage in professional real estate activity on transactions that began while associated with the sending principal broker (the previous principal broker) under the following limitations:
- If there is a fully executed contract, an active written offer or counter-offer, or a letter of intent.
- With the client’s documented approval.
- With a written agreement between the sending principal broker with the old business and receiving principal broker with the new business. The agreement must:
- Identify which principal broker is responsible for supervision, including record retention.
- Identify the transaction or transactions included.
- State the effective date.
- Address agency relationships.
- Specify how compensation will be handled.
- Be signed by sending principal broker, the receiving principal broker, and the transferring broker.
Transferring Principal Broker
Following a license transfer, a principal broker may continue to engage in professional real estate activity on transactions that began while authorized to conduct professional real estate activity for the previous registered business name under the following limitations:
- If there is a fully executed contract, an active written offer or counter-offer, or a letter of intent.
- With the client’s documented approval.
- With a written agreement between the transferring principal broker and the sending principal broker from the old business. The agreement must:
- Identify responsibilities for supervision, as appropriate.
- Identify responsibilities for record retention.
- Identify the transaction or transactions included.
- State the effective date.
- Address agency relationships.
- Specify how compensation will be handled.
- Be signed by the transferring principal broker and the sending principal broker.
For additional information, please view OAR 863-014-0063 in its entirety.
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