Category Archives: Oregon Real Estate

On presenting multiple offers

Five Ways for Presenting Multiple Offers

Presenting multiple offers can be stressful for buyers and sellers and their real estate brokers. For listing brokers, offers should not be presented with favoritism or in any way designed to manipulate the seller into accepting one offer over another. The best practice is to present all offers before discussing which offer is best for the seller.

REALTOR® Code of Ethics, Standard of Practice 1-7: When acting as listing brokers, REALTORS® shall continue to submit to the seller all offers and counter-offers until closing unless the seller has waived this obligation in writing.

Listing brokers are to get the highest price and most favorable terms for their clients. Buyer brokers are to help get their clients to purchase the property at the lowest possible price and terms favorable to the buyer. Regardless of these competing dynamics, the real estate broker cannot make disclosures that are not in the client’s best interest and must always act honestly toward all parties.

REALTORS® shall submit offers and counter-offers objectively and as quickly as possible.” (Standard of Practice 1-6)

Here are five different ways for a seller and their broker to deal with multiple offers:

  1. Inform all buyers that other offers exist and to deliver their “highest and best” offer
  2. Inform all buyers that multiple offers will be all be presented on a specific date and time
  3. Present offers as they come in and counter them one at a time while making the other offers wait for the outcome
  4. Present all offers, counter one offer and reject all other offers
  5. Accept the best offer and reject all other offers

Always check with the seller before disclosing the existence of other offers. If the seller agrees to disclose other offers to one buyer, the disclosure should be given to all buyers since you, as a REALTOR, have a duty to practice fairness with all parties.

Remember, the listing broker must present all offers unless told otherwise by the seller. And, it is not up to the broker to decide how to present multiple offers or which to accept; it is up to the seller.

Oregon Excludes Certain Facts as Material Facts to Real Property Transactions

Oregon Excludes Certain Facts From Disclosure as Material Facts to Real Property Transactions

By Jeff Sorg, OnlineEd Blog


sellers disclosure statement(February 10, 2021)
 – In Oregon, unless one of the limited legal exclusions applies, each seller of residential property is required to deliver to each buyer who makes a written offer a Seller’s Property Disclosure Statement. A seller who is not excluded under the law who fails to deliver this statement is penalized in that the buyer of the property will be able to revoke their transaction at any time up until closing.  These allowable seller exclusions are:

  • The first selling of a dwelling never occupied;
  • The sale of property by a financial institution that acquired the property as a trustee, custodian, or agent, or by foreclosure or by deed in lieu of foreclosure,
  • The seller who is a court-appointed trustee, representative, conservator,  or guardian; and
  • The sale of property by a governmental agency.

While the Oregon form lists many items that must be disclosed and allow for additional material facts not listed in the form to be disclosed, the following are among incidents that are not considered to be material to a real property transaction under Oregon law and do not have to be disclosed by the seller or real estate brokers:

  • The fact or suspicion that the real property or a neighboring property was the site of death by violent crime, by suicide, or by any other manner;
  • The fact or suspicion that the real property or a neighboring property was the site of a crime, political activity, religious activity, or any other act or occurrence that does not adversely affect the physical condition of or title to real property;
  • The fact or suspicion that an owner or occupant of the real property has or had a blood-borne infection;
  • The fact or suspicion that a sex offender registered under ORS 163A.010 (Reporting by sex offender discharged, paroled or released from correctional facility or another United States jurisdiction), 163A.015 (Reporting by sex offender discharged, released or placed on probation by court or another United States jurisdiction), 163A.020 (Reporting by sex offender upon moving into state) or 163A.025 (Reporting by sex offender adjudicated in juvenile court) resides in the area; and
  • The fact that a notice has been received that a neighboring property has been determined to be not fit for use under ORS 453.876 (Determination that property is not fit for use).

Brokers should advise their buyers of these exceptions and notice them to perform their own due diligence investigations.

(Original article published October 21, 2015)

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 All information in this posting is deemed correct at publication but is not guaranteed by the author and may have been obtained by third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices, and all other information may or may not be correct in the future and should be verified if cited, shared, or otherwise republished.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

Effective Immediately: Discriminatory Speech and Conduct Outside of REALTORS® Practice is Prohibited

The NATIONAL ASSOCIATION OF REALTORS® Board of Directors approved a change today expanding the Code of Ethics’ applicability to discriminatory speech and conduct outside of members’ real estate practices.

OnlineEd Blog

(November 13, 2020)

 

Salem, Oregon November 13, 2020 – NAR’s Board of Directors today strengthened REALTORS®’ commitment to upholding fair housing ideals, approving a series of recommendations from NAR’s Professional Standards Committee that extend the application of Article 10 of the Code of Ethics to discriminatory speech and conduct outside of members’ real estate practices.

Article 10 prohibits REALTORS® from discriminating on the basis of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity in the provision of professional services and in employment practices. The Board approved a new Standard of Practice under the Article, 10-5, that states, “REALTORS® must not use harassing speech, hate speech, epithets, or slurs” against members of those protected classes.

The Board also approved a change to professional standards policy, expanding the Code of Ethics’ applicability to all of a REALTOR®’s activities, and added guidance to the Code of Ethics and Arbitration Manual to help professional standards hearing panels apply the new standard.

Finally, Directors approved a revision to the NAR Bylaws, expanding the definition of “public trust” to include all discrimination against the protected classes under Article 10 along with all fraud. Associations are required to share with the state real estate licensing authority final ethics decisions holding REALTORS® in violation of the Code of Ethics in instances involving real estate-related activities and transactions where there is reason to believe the public trust may have been violated.

The Board made these changes effective immediately, though the changes cannot be applied to speech or conduct that occurred before the effective date. NAR has produced training and resource materials to assist leaders with understanding and implementing the changes and will be rolling those out in the coming weeks.

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OnlineEd® is a Registered Trademark. For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, visit www.OnlineEd.com.

OnlineEd blog postings are the opinion of the author. Nothing posted in this or any other article is intended as legal or any other type of professional advice. Be sure to consult an appropriate professional when professional advice is needed. Excerpts from articles not originating with Jeff Sorg/OnlineEd are reprinted with permission; remain the sole property of the author; no permission to reprint articles or portions thereof not arising from this blog but reprinted here is given or implied. Information in this posting is deemed correct as of the date of publication. Still, it is not guaranteed by the author to be accurate, or information may have been obtained from third-party sources and cannot be further verified for correctness. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices, and all other information may or may not be correct in the future and should be verified.

How to Find Out if Someone Holds an Oregon Real Estate License

How the public can easily verify an Oregon real estate license

By Jeff Sorg, OnlineEd Blog

(October 1, 2020)

 OnlineEd – The Oregon Real Estate Agency Index Page provides many features for the public and its licensees. One feature the public takes advantage of from this page is being able to confirm that an individual who represents theirself to be a licensee is, in fact, a licensee. Finding out the license status of an individual takes just a few clicks using the Agency’s handy “licensee lookup” feature, and it’s pretty intuitive. For example, a search can be performed by first name, last name, business name, license number, address, or any combination of these fields.

Buyers and sellers should make sure that someone holding theirself out to be a real estate broker is an active licensed before hiring the person. Another reason to search for the legitimacy of a license is to prevent being scammed. Currently, for example, scammers are contacting timeshare owners, giving the names of legitimate Oregon real estate licensees, representing they have a buyer for their timeshare, asking the owner to wire transfer money to pay a “transfer fee” to effect the transfer of the timeshares. Finally, the scammers will ask the seller to sign over a deed.

Clearly, the Agency provides this service for many reasons. It only takes a few moments using the Agency’s tool to find out if someone is legitimate or to find the actual contact information to make verification. A few minutes could save thousands of dollars and a whole lot of trouble!

 

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OnlineEd® is a Registered Trademark. For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

OnlineEd blog postings are the opinion of the author. Nothing posted in this or any other article is intended as legal or any other type of professional advice. Be sure to consult an appropriate professional when professional advice is needed. Excerpts from articles not originating with Jeff Sorg/OnlineEd are reprinted with permission; remain the sole property of the author; no permission to reprint articles or portions thereof not arising from this blog but reprinted here is given or implied. Information in this posting is deemed correct as of the date of publication. Still, it is not guaranteed by the author to be accurate, or information may have been obtained from third-party sources and cannot be further verified for correctness. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices, and all other information may or may not be correct in the future and should be verified.

Starting Today, Portland Home Sellers Can Request a Cash Offer From Zillow

Zillow Now Buying and Selling Homes in Portland

By Jeff Sorg, OnlineEd Blog

(July 15, 2019)

(PORTLAND, Ore.) July 15, 2019 /PRNewswire/ — Starting today, home sellers in the Portland, Oregon metro — including Vancouver, Wash. — can use Zillow Offers to request a cash offer from Zillow to buy their home.

Portland is the twelfth market where Zillow now directly buys homes – giving homeowners a new way to sell their homes that is convenient, transparent and gives them more control over the entire real estate transaction.

“Sellers across the country have shown that they are looking for an easier, less stressful way to sell their home,” said Zillow Brand President Jeremy Wacksman. “We’re excited to launch our first market in the Pacific Northwest today, giving potential home sellers in Portland and Vancouver the certainty and transparency they want when selling their home. Zillow Offers provides a seamless transaction experience, helping sellers move on to the next step in their life.”

Selling a home is one of the most stressful experiences in modern life, second only to a relationship break-up1. Decluttering and readying their home for tours and open houses are often the most frustrating tasks for sellers, according to Zillow research. In fact, according to a recent Zillow survey, more than a third of home sellers said the process left them in tears, with millennials and parents far more likely to cry at some point during the sale process.

Zillow Offers is transforming the way people sell their homes across the country. With Zillow Offers, sellers don’t need to worry about prepping their home for sale or hosting open houses — avoiding much of the hassle and time and energy associated with a traditional sale.

Designed to accommodate all types of sellers, Zillow Offers can work for anyone, whether they need to close quickly for a job move across the country or they want to close on a longer timeline to search for their dream home. Zillow Offers gives sellers the flexibility to choose their close date within just a few days or up to 90 days after accepting their offer.

Additionally, consumers using Zillow Offers – whether they are selling to or buying from Zillow – can experience an even simpler real estate transaction if they decide to get financing from Zillow’s affiliate lender, Zillow Home Loans to purchase their next home. Homeowners using Zillow Offers to sell their home can apply to get pre-approved for a mortgage through Zillow Home Loans, giving them the certainty to be able to sell their existing home and shop for a new home simultaneously.

Buyers who purchase a Zillow-owned home have the confidence of moving into a home that’s been professionally renovated, refreshed and is move-in ready.

Zillow Offers first launched in Phoenix last April and is currently available for home sellers in Las Vegas, Atlanta, Denver, Charlotte, Raleigh, Houston, Riverside, Dallas, Minneapolis and Orlando. Zillow also has plans to launch in Austin, Los Angeles, Miami, Nashville, Sacramento, San Antonio, San Diego and Tampa, by the end of the first quarter of 2020, bringing the total number of planned Zillow Offers markets to at least 20.

In each market where Zillow Offers is currently available, Zillow works with local agents and brokers on every transaction. Zillow pays a commission to local real estate agents when it buys and sells a home, and agents remain at the center of every Zillow Offers transaction. A local Portland broker will represent Zillow in each transaction.

The Zillow Offers program also provides local brokerages and Premier Agents the opportunity to acquire new for-sale listings by connecting them with motivated sellers who have taken a direct action to sell their home. Sellers who request a Zillow Offer, but decide to instead sell their house traditionally with an agent or do not receive a Zillow Offer, may be connected with a local brokerage or Zillow Premier Agent to support their needs.

As of May, more than 100,000 homeowners across the country have requested a no-obligation cash offer from Zillow to buy their home – equal to a request for an offer every two minutes.

[Source: Zillow press release]

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Zillow and Zillow Offers are registered trademarks of Zillow, Inc.

OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Oregon Real Estate Transaction Law for Domestic Well Water Testing

“The seller of the real estate shall, upon accepting an offer to purchase that real estate, have the well tested.”

By Jeff Sorg, OnlineEd Blog

(June 28, 2019)

(PORTLAND, Ore.) OnlineEd – Oregon requires testing of domestic well water during a real estate transaction. This requirement is often referred to as the Real Estate Transaction Law or RET. The law says:

“In any transaction for the sale or exchange of real estate that includes a well that supplies groundwater for domestic purposes, the seller of the real estate shall, upon accepting an offer to purchase that real estate, have the well tested for arsenic, nitrates and total coliform bacteria. The Oregon Health Authority also may, by rule, require additional tests for specific contaminants in specific areas of public health concern.  The seller shall submit the results of the tests required under this section to the authority and to the buyer within 90 days of receiving the results of the tests.”

In Oregon, the seller is responsible for testing domestic well water but can designate their attorney, real estate broker, the laboratory person conducting the water testing, or a private party to assist them with water testing and reporting requirements. The seller must notify the potential buyer of the testing results within 90 days. While the lab tests required cannot be waived even if the buyer agrees not to have the well tested, if the seller fails to comply with the rule, then this does not invalidate any of the documents needed to complete the sale of the real estate.

Samples must be drawn from the source before any form of water treatment and may be collected after treatment injection points where water treatment has been bypassed or disabled. Registered Sanitarians, certified water system operators, well drillers, pump installers, and lab technicians are qualified to collect samples for testing by accredited laboratories. Only laboratories accredited by the Oregon Environmental Laboratory Accreditation Program can conduct water tests.

If the well is not on the property being sold, but the seller is selling an interest to a well on adjacent property, including an easement, that interest would be considered part of the real property. Capped domestic wells on unimproved lots are NOT required to be tested, but wells that are dug, drilled or driven and supply groundwater for domestic purposes must be tested.

For more information on domestic well safety and sample collection, visit the Oregon Health Authority, Oregon Drinking Water Services.

Oregon rules for testing domestic wells are found in OAR 333-015-0305 through 333-015-0335.

 

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OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

OnlineEd Launches Free Oregon Real Estate Forms Course on Seller Carried Financing

Join OREF Forms Committee legal counsel, Alan Brickley, as he goes in-depth to explain seller carried financing issues. 

By Jeff Sorg, OnlineEd Blog

(June 25, 2019)

(PORTLAND, Ore.) OnlineEd – OnlineEd, Inc. and Oregon Real Estate Forms, LLC (OREF) have launched a new mid-year OREF course called Seller Carry Issues.

Course presenter, Alan Brickley, served as counsel with First American Title Insurance Company and has more than 50 years experience in working with title insurance and real estate law. He has also taught at Clackamas Community College, Lewis & Clark College, Northwestern College of Law, and Willamette University Law School and was an adjunct professor at Marylhurst University and Portland State University. Alan is the former mayor of West Linn (1974 to 1982) and member of the City Club of Portland where he has served on the Board of Governors and Chair of the research board. He is a frequent lecturer on real estate related issues for the Oregon State Bar, the Oregon Law Institute, the Mortgage Lending Education Board and other organizations.
Brickley starts this video course with the definition of seller carried transactions and explains the different ways to structure and secure seller financing. The second part of this course continues on to list various default and foreclosure remedies, identify how to mitigate payment risk for the buyer, what a broker can do without involving a lender or lawyer, and how the broker’s responsibilities will vary depending on which side of the transaction they represent.
Seller Carry Issues is approved by Oregon Real Estate Agency Continuing Education Provider, OnlineEd, for 1-hour of continuing education credit for real estate license renewal. The free course can be found as a standalone course here or bundled in the free OREF 4-credit hour package in the OnlineEd Oregon Real Estate CE Catalog.
OnlineEd, Inc. and OREF, LLC. have worked together since 2014 to bring free courses about various OREF forms as a public service to the Oregon real estate and legal community. To find out more about OREF, LLC. or to subscribe to their forms catalog, please visit their website:  https://orefonline.com/.

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Oregon Real Estate Forms, LLC was formed in 1997 by the Oregon Association of Realtors®, the Eugene Association of Realtors® and the Portland Metropolitan Association of Realtors®. The company is professionally managed by a staff of three in concert with a Board of Managers and a Forms Committee who are Realtors® appointed by each Association owner. OREF prepares and licenses high-quality real estate transaction and advisory forms created by legal and industry professionals.

OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

First American Title/Financial Corp. May Have Leaked 885 Million Customer Records

Title company faces class action lawsuit for its apparent negligence

By Jeff Sorg, OnlineEd Blog

(May 29, 2019)

A class-action lawsuit is already filed in California after Brian Krebs, a cybersecurity expert, reported 885 million First American files were available without authentication to anyone with a web browser. The data allegedly included bank account numbers, social security numbers, and financial and tax records.

First American was ultimately notified by Brian Krebs of KrebsOnSecurity, who was contacted by a real estate developer in Washington state who said he’d had little luck getting a response from the company when told by him that a portion of its Web site (firstam.com) was leaking tens if not hundreds of millions of records. He said anyone who knew the URL for a valid document at the Web site could view other documents just by modifying a single digit in the link. Brian Krebs posted on his web site, “KrebsOnSecurity confirmed the real estate developer’s findings, which indicate that First American’s Web site exposed approximately 885 million files, the earliest dating back more than 16 years. No authentication was required to read the documents.” *

In their complaint**, Gibbs Law Group alleges, “First American made it incredibly easy for the public to access this private information by failing to implement even rudimentary security measures. Suppose that you are a First American customer. The company provides you with a URL to access your documents on its website. That URL might end in “DocumentID= 000000075.” Now suppose you want to access someone else’s personal file. Type the same URL but alter the Document ID number by one digit—say, “DocumentID=000000076”—and someone else’s personal file will appear. Change the numbers again (and again), and you will reveal still more personal files.”

* Read the entire Brian Krebs posting available on his website here: https://krebsonsecurity.com/2019/05/first-american-financial-corp-leaked-hundreds-of-millions-of-title-insurance-records/

** Class action lawsuit Gritz v. First American Financial Corp., 19-cv-01009, U.S. District Court, Central District of California (Santa Ana).

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OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark.

National Association of REALTORS® Moves to Dismiss Price-Fixing Lawsuit

Class action lawsuit claims real estate broker franchisors and National Association of Realtors conspire to require home sellers to pay buyer broker fees

By Jeff Sorg, OnlineEd Blog

(May 23, 2019)

CHICAGO (May 18, 2019) – The National Association of REALTORS® (NAR) moved to dismiss the Moehrl v. NAR lawsuit on the basis that the complaint misrepresents NAR rules for the operation of Multiple Listing Services (MLSs), which have long been recognized by the courts across the country as protecting consumers and creating competitive, efficient markets that benefit home buyers and sellers. The filing was made in federal court in Chicago.

“In today’s complex real estate environment, REALTORS® and Multiple Listing Services promote a pro-consumer, pro-competitive market for home buyers and sellers, contrary to the baseless claims of these class action attorneys,” said John Smaby, President of NAR. “Our filing today shows the lawsuit is wrong on the facts, wrong on the economics and wrong on the law.”

NAR’s brief points out that, as the centerpiece of their case, the seven class action law firms who represent one plaintiff have resorted to fundamentally mischaracterizing NAR’s rules. That mischaracterization, according to the NAR’s filing, led the class action attorneys to “dream up” purportedly anticompetitive rules that simply do not exist in NAR’s Handbook or Code of Ethics. In reality, NAR rules specifically direct listing brokers to determine – in consultation with their clients – the amount of compensation to offer buyers’ brokers in connection with their MLS listings. Furthermore, under NAR rules, a buyer’s broker is free to negotiate a commission from the listing broker that is different from what appears in the MLS listing. Neither NAR nor any MLS has any say in setting broker commissions.

Ultimately, these rules create a system of highly competitive markets where consumers receive superior service.

Beyond misreading the facts, NAR’s filing to dismiss demonstrates the shaky legal grounds of the plaintiff’s case, pointing out that the lawsuit disregards legal precedents that have upheld the pro-competitive benefits represented by the MLS system. For example, past court rulings have noted that NAR rules provide a more transparent marketplace, and encourage REALTORS® to share listing information and cooperate in the sale of real estate.

In fact, when considering the structure of commission payments, NAR’s filing notes that listing brokers’ offers of commission to buyers’ brokers on MLSs has been shown to actually increase the number of potential buyers. “When a seller elects to permit their brokers to pay compensation to the buyer’s broker, it frees up buyer cash thereby potentially increasing the number of buyers able to bid for that home and the amount of funds available for the purchase price,” the filing states.

“The MLS system is designed to create competitive markets to facilitate the sale of residential property in a way that benefits both buyers and sellers,” said Smaby.

Contrary to the career class action attorneys’ manufactured rules and claims, the plaintiff’s transaction was subject to the same rules as all transactions facilitated via an MLS: commissions are agreed upon up front by the seller and listing broker – independent of NAR – and commissions are negotiable. These rules have been proven to promote competition and ensure that brokers act in the best interests of their clients.

On the basis of these fundamental arguments that refute the plaintiff’s allegations and reading of legal precedent, as well as a failure to demonstrate harm, NAR is seeking to dismiss the lawsuit “with prejudice.”

[Source – NAR Press Release]

DEFENDANT: The National Association of Realtors, Realogy Holdings Corp., HomeServices of America Inc., RE/MAX Holdings Inc., Keller Williams Realty Inc.
CASE NUMBER: 1:19-cv-01610
COURT: U.S. District Court for the Northern District of Illinois

The National Association of REALTORS® is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries

 

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OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Process for Oregon Real Estate Brokers, Principal Brokers to Continue Transactions after Changing Businesses

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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OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark