Tag Archives: license

Do You Need an Oregon Real Estate License?

canstockphoto7389305 real estate license card  (Jeff Sorg, OnlineEd) –  Anyone who conducts professional real estate activity within the State of Oregon is required to have a real estate license. Oregon defines professional real estate activity as any of the following actions, when engaged in for another and for compensation or in the expectation or upon the promise of receiving or collecting compensation, by any person who:

  • sells, exchanges, purchases, rents or leases real estate;
  • offers to sell, exchange, purchase, rent or lease real estate;
  • negotiates, offers, attempts or agrees to negotiate the sale, exchange, purchase, rental or leasing of real estate;
  • lists, offers, attempts or agrees to list real estate for sale;
  • offers, attempts or agrees to perform or provide a competitive market analysis or letter opinion, to represent a taxpayer under ORS 305 or 309 or to give an opinion in any administrative or judicial proceeding regarding the value of real estate for taxation, except when the activity is performed by a state certified appraiser or state licensed appraiser;
  • auctions, offers, attempts or agrees to auction real estate;
  • buys, sells, offers to buy or sell or otherwise deals in options on real estate;
  • engages in management or rental real estate;
  • purports to be engaged in the business of buying, selling, exchanging, renting or leasing real estate;
  • assists or directs in the procuring of prospects, calculated to result in the sale, exchange, leasing or rental of real estate;
  • expect as otherwise provided in ORS 696 advises, counsels, consults or analyzes in connection with real estate values, sales or dispositions, including dispositions through eminent domain procedures;
  • advises, counsels, consults or analyzes in connection with the acquisition or sale of real estate by an entity if the purpose of the entity is investment in real estate; or
  • performs real estate marketing activity ad described in ORS 696.

While exemptions to licensing can be found in ORS 696.030, the Oregon Real Estate Agency will not say if an exemption applies to a certain situation. Anyone who thinks they might qualify for such an exemption should consult their attorney.

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This article was published on September 10, 2014. All information contained in this posting is deemed correct and current as of this date, 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 and mortgage brokers, visit www.OnlineEd.com.

Make sure your contracting business doesn’t work for free!

Your contractor’s license is the most important first step.

In California, a contractor was recently ordered to repay over $750,000 when it became evident that the company had operated without being properly licensed in the state of California. In Oregon, a contractor has been barred from seeking over $285,000 in compensation when his license was suspended during the course of a contract.  Don’t let this happen to your contracting business! OnlineEd will tell you what the risks are, and what you can do to mitigate them.

In a 2012 court decision, a California constructing contractor was ordered to repay the entire $750,000 contract earned while performing work while unlicensed.  The sole proprietor was contracted to construct a temporary access road and parking lot for a casino. After submitting a bid in March 2007, the contracting company finished its work and was paid in full around May. However, an application for a license was submitted while work was ongoing, and the contracting company first received its contractor’s license in October 2007.  The court subsequently ruled that the company be required to refund all of the money paid by the client  upon completion of the contract.

While harsh, this action is consistent with California courts’ previous decisions that contractors should be held liable for their licensure to the point of being denied payment or being required to refund payment already received.

Similar legislation is in place in Oregon, and can be seen in another 2012 court decision which upheld a ruling barring a contractor from commencing action seeking compensation earned while operating without being properly licensed. While constructing a residence, the contractor’s license to perform construction work was suspended for two weeks because of expired liability insurance. Because of this suspension, the court held that the contractor was unable to seek compensation allegedly owed to him through legal means, losing out on an amount over $280,000.

These worst-case scenarios are cautionary tales, but they should not be ignored. Licensure costs time and money to obtain, but the alternative is far more expensive. Making sure that your contracting business is properly licensed throughout the entire process – from bid to completion – will protect your business from substantial losses. OnlineEd.com can help with your Oregon contractor needs here.

Once you have obtained or renewed your license, make sure you fulfill all of the continuing requirements to avoid a suspension. The CCB lists some common mistakes and oversights that can cause your license to be suspended:

  • Expired liability insurance.
  • Cancellation of your bond.
  • Hiring employees while in an “exempt” employer status
  • Deletion of RMI (Responsible Managing Individual) form due to disassociation or death.
  • License or renewal fees returned as “insufficient” or other non-payment issues.
  • Maintaining a non-exempt status with no workers’ compensation.
  • Failure to maintain your corporate or LLC (Limited Liability Company) filing.

 

Make the most of your business; ensure you are properly licensed and continue to double-check your license frequently. Don’t get caught in a mistake and end up working for free!

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For more information on obtaining an Oregon contractor license, please visit the OnlinEed web site at: www.OnlineEd.com or give them a call at 866.519.9597

It’s Time For Mortgage Loan Originators to Start Their Annual NMLS Continuing Education

(OnlineEd) – Every state-licensed mortgage loan originator (“MLO”) in any approved status is to complete at least 8 hours of NMLS approved license renewal education as part of their license renewal requirements.  This annual continuing education must include 3 hours of Federal law, 2 hours of ethics, which includes fraud, consumer protection, and fair lending issues, and 2 hours of non-traditional mortgage lending, plus one additional hour of elective courses. In addition to the 8-hours of education, some  states have an additional state-specific course requirement. To find out the requirements for each state, please visit the NMLS State-Specific Education Requirements (July 9, 2012).

Because of a successive years rule, MLOs are not to take the same CE course two years in a row, but can take from the same provider two or more years in a row.  The provider’s NMLS ID number for the course indicates whether a course is a duplicate course. If a course has a NMLS ID number different from the course completed in the prior year, the course is not the same as the year prior and it will satisfy the requirements of the NMLS. At OnlineEd® (www.OnlineEd.com), the NMLS approved education course package is brand new and can be used by the thousands of licensees who used their courses last year.

The annual deadline to complete license renewal continuing education is December 31, 2012. However, NMLS gives course providers seven days to report a course completion into NMLS. Because of this seven days to report rule, MLO’s should not wait until the last minute to  complete CE or they may be prevented from submitting for renewal on time. The renewal is submitted when the provider uploads the licensee’s completion to the NMLS, not the actual date the course is completed by the licensee.  The team at OnlineEd® is usually able to upload NMLS course completions not later than the next business day from the licensees completion of their courses and, in most cases, they will even upload the same business day. Because the NMLS does not process course completions on weekends or holidays, the final date providers can upload completions this year is Friday, December 28th. MLOs are encouraged to complete all their educational requirements not later than December 21st.

To learn more about the OnlineEd® NMLS approved courses, please visit their web site.

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 OnlineEd® is NMLS approved under provider number 1400327.

OnlineEd® is a licensed vocational school offering real estate broker, mortgage broker, and insurance licensing courses.

For more information about OnlineEd®, please visit www.OnlineEd.com or contact Paul Cleary at 866.519.9597

Introducing eLicensing for Oregon

eLicensing has been around for a while now in California, and has come along way since it was first introduced, and now the Oregon Real Estate Agency has made it available to Oregon licensees as well. eLicensing provides a quick, convenient way to update information regarding your real estate license, and, as an added bonus, saves on printing and postage costs since everything is submitted electronically.

(Oregon Real Estate News Journal – June, 2012) The Oregon Real Estate Agency successfully launched eLicense, the new online license management system, in March 2012. Since then, the Agency’s licensing staff has been helping real estate licensees manage their licenses in the new system.

Here is the staff’s list of frequently received questions about eLicense:

How do I log in?

  • First, when you enter eLicense, select “Login.” You will then need your User ID and Password. When you first log in, your User ID is your license number. Your Password is the last four digits of your Social Security Number. Once you log in for the first time, you can change your User ID and Password, as well as set security questions.

How do I transfer my license to a different company?

  • To start the transfer process, you need to login to eLicense and select “Inactivate My License.” Once you have made your license inactive, your former principal broker or property manager will receive an email notice indicating you are no longer with them.
  • Then, the principal broker or property manager from your new company can go into eLicense and add you as an affiliated licensee. The principal broker or property manager will then pay the $10 transfer fee.
  • Once this process is completed, you will be notified by e-mail.

How do I renew my license?

  • If this will be your first time entering eLicense, read “How do I log in?” above for information on your User ID and Password. Once you have logged in, select “Renew my License” from the left menu. Note: You can only renew your license within the month that it expires.

You can enter eLicense from the Agency’s home page at www.rea.state.or.us.

Upcoming DRE License Changes

(California DRE News Bulletin – Summer 2012)

Branch or Division Manager Appointments

Effective July 1, 2012, pursuant to Business and Professions Code (B&P) Section 10164, an employing real estate broker or corporate designated broker officer may appoint a licensee as a manager of a branch office or division of the employing broker’s or employing corporate designated broker officer’s real estate business and delegate to that manager responsibility to oversee and supervise operations and licensed activities. The appointed manager will share with the employing broker or corporate designated broker officer the liability of potential license discipline should violations of the Real Estate Law occur at the branch or division location.

While the appointment of a branch or division manager is completely voluntary under B&P §10164, a broker or designated broker choosing to appoint a branch or division manager must follow the guidelines set forth by B&P §10164. A licensee cannot be appointed as a manager if the licensee holds a restricted license or has ever been subject to a bar order. If the branch or division manager is a salesperson, the salesperson must have at least two years of full-time real estate experience within five years preceding the appointment. Whenever an appointment of a branch or division manager is terminated or changed, brokers or corporate designated broker officers should immediately notify the DRE in writing.

DRE’s Licensing Unit has developed a new form titled, “Branch or Division Manager Appointment” (RE 242), which will be used by a broker or corporate designated broker officer to appoint or terminate branch or division managers. This new form will be available on our Web site no later than July 1, 2012. Licensees wishing to add or cancel branch offices should continue to use the Branch Office Application (RE 203).

Online License Certificates

In conjunction with our on-going efforts to continue to streamline processing, DRE will be implementing an online printing process for license certificates during the summer of 2012. The Department will continue to provide licensees with a pocket identification card, but license certificates will only be available for printing from the DRE Web site. Licensees who renew using eLicensing will receive notification at the conclusion of their eLicensing transaction that their license certificate is available for printing. Applicants who do not utilize eLicensing will receive notification that their license certificate is available for printing when they receive their pocket identification card. In order to print a license certificate, licensees will need to register on eLicensing by setting up a username account and password. Stay tuned for more information on this exciting new process!

Click here to read view the full Summer 2012 DRE News Bulletin.

Are You Using eLicensing?

eLicensing has been around for a while now, and has come along way since it was first introduced. It provides a quick, convenient way to update information regarding your real estate license, and, as an added bonus, saves on printing and postage costs since everything is submitted to the California Department of Real Estate electronically. Whether you are renewing your license for the first time or you just need to update your business address, eLicensing is the way to go. Here’s a few other things you can do with eLicensing:

  • Add/Change Employing Broker
  • Request a Duplicate License
  • View License Application Exam Results
  • and more

Click here to view the DRE’s Getting Started with eLicensing guide.

 

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OnlineEd® is a licensed vocational school offering real estate broker, mortgage broker, and insurance licensing courses.

For more information about OnlineEd®, please visit www.OnlineEd.com or contact Paul Cleary at 503.670.9278

What is a Buyer Broker Agreement?

(Jeff Sorg – OnlineEd)The buyer broker agreement, also known as buyer broker service agreement, exclusive buyer service agreement, etc.  is a contract for services between a buyer of real property and real estate broker. In the agreement, the buyer agrees to work with the broker for a specified period while locating and negotiating the purchase of a specified type of property. The agreement also provides that the buyer will pay a commission to the broker if the buyer purchases a property during the term of the agreement. The agreement can also require the buyer to reimburse the broker for expenses incurred during fulfillment of the contract. The commission the buyer agrees to pay in the buyer broker agreement is to be reduced by any fee paid to the buyer broker by the seller or other third party. The buyer broker contract can also, but seldom does, require the buyer to reimburse the broker for certain expenses incurred during the term of the contract.

The buyer broker agreement, also known as buyer broker service agreement, exclusive buyer service agreement, etc. is a contract for services between a buyer of real property and real estate broker.

In the usual case, under a typical Multiple Listing Service (“MLS”) cooperation arrangement, the listing  broker offers to pay the selling broker a specified percentage of sales price of the listed property when the sold property closes in escrow. This amount paid by the listing broker to the buyer broker is then subtracted from the amount the buyer agreed to pay, and the buyer pays only the difference. The amount offered through the MLS is a percentage of the total amount the listing broker was able to negotiate with the seller when entering into the listing contract.  There is no rule or law requiring the listing broker to disclose to the buyer broker the fee arrangement with the seller or that requires the listing broker to disclose to the seller the amount offered to the buyer broker. However, when the listing broker is a REALTOR®, the National Association of REALTORS® Code of Ethics requires the REALTOR® to discuss with and disclose to the seller the amount the listing broker is offering to the buyer broker. For example, if the listing REALTOR® accepts a listing at 7% and then only offers 2.5% to the selling broker, this needs to be disclosed to and agreed to with the seller. Under this type of MLS cooperation arrangement, although the money for the buyer broker’s fee is offered by the listing broker, it is really paid by the seller from the sale proceeds. It is important to note that the source of the fee does not determine the fiduciary responsibilities of the buyer broker. In other words, even when the seller pays the fee to the buyer broker, and absent an agreement allowing the broker to be a dual agent (one who represents both the buyer and seller), the buyer broker’s  fiduciary responsibility remains with the buyer.

A real estate broker can represent a buyer without a written agreement, but if the buyer is expected to pay the broker for services, then the broker must put the agreement in writing for if it is to be enforceable.

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OnlineEd® is a licensed vocational school offering real estate and mortgage broker courses.

For more information about OnlineEd®, please visit www.OnlineEd.com or contact Paul Cleary at 503.670.9278

Loan Underwriting Approval: Collateral, Character, and Capacity

Qualifying ratios are only the beginning of the loan approval process. The three Cs of loan approval in lending are:

  1. Collateral,
  2. Character (credit), and
  3. Capacity.

Collateral – The lender will look to the collateral to hedge its loss if the creditor defaults on their loan. To help analyze the collateral, the lender will order an appraisal to verify the collateral value and then determine a loan-to-value ratio (LTV). For a new home purchase, the LTV ratio is calculated by dividing the requested loan amount by the lesser of the purchase price or appraised value. LTVs are also used when refinancing a mortgage or borrowing against equity. Different mortgage loan programs have different LTV requirements.

A $600,000 home with a $480,000 mortgage has a 80% LTV. Rationale: $480,000/$600,000=.80 or 80%

The equation for the LTV is: Current loan balance ÷ Current appraised value = LTV.

Character – Character refers to creditworthiness. Lenders use a combined credit report from the three standard national credit reporting agencies – Equifax, Experian, and Trans-Union. The information and scoring in the combined report provide the foundation for approval, which type of loan will be best for the borrower, the interest rate to be charged, or grounds for loan denial. The credit history of the borrower is the most crucial consideration in granting a mortgage.

Credit scoring considers a variety of components. While the element of how much a borrower owes and their payment history is one objective element, several subjective factors determine the credit score. These elements can include account balances that are 75% or more of the credit limit, which indicates high financial leverage and creates a higher risk to the lender. A large number of open accounts with zero balances is also a consideration since these can lower the credit score because they provide the potential for future excess debt, thereby affecting the borrower’s ability to service the loan debt. Most lenders who sell their loans into the secondary market use the following parameters when evaluating credit scores:

  • Scores above 720: Borrowers will receive better terms and interest rates on their loans.
  • Scores between 680 and 720: credit risk is good and can help compensate for other borrower profile risks.
  • Scores between 620 and 680: comprehensive review to look for potential risks.
  • Scores below 620: cautious review required; borrowers may find themselves locked out of the best loans and terms available.

Credit reporting agencies are required to investigate and correct borrower-reported errors in a credit report. They must allow borrowers to include statements of explanation for derogatory information in their report.

The Fair Credit Reporting Act (FCRA) requires credit reporting agencies to give borrowers denied credit a free copy of their credit report. Borrowers who have not been declined can also receive a copy for a nominal charge.

Capacity – Capacity refers to the borrower’s ability to repay the loan (to service the debt), emphasizing two ratios. The first is the borrower’s monthly proposed housing costs to total gross income. Total housing costs will also include PITI and homeowners association dues. Most conventional lenders look for a ratio that does not exceed 28%. FHA allows up to 31%.

The second ratio is the borrower’s total debt payments (inclusive of the proposed loan) to the borrower’s gross monthly income. Most conventional lenders do not allow this to exceed about 36%. FHA will allow up to 43%, and VA allows up to 41%. If a borrower qualifies comfortably on one of the ratios, a lender may allow a little leeway on the other.

The lender also considers the employment history of the borrower. Employment history evaluates such factors as the reliability and stability of the borrower’s income, length of time on the job, type of occupation, overtime pay and bonuses, and the probability of continued employment.

Another factor considered by the lender is the net worth of the borrower. To determine net worth, the lender will subtract borrower liabilities from borrow assets (Assets-Lisbilities=New Worth). Fannie Mae regards “an accumulation of net worth as a strong indication of creditworthiness.” By establishing net worth, the underwriter evaluates the borrower’s ability to cover the down payment and any additional costs for the purchase and is verifying adequate cash reserves.

Total Assets of $1,500,000 – Total Liabilities of $500,000 = $1,000,000 net worth. Rationale: Assets-Lisbilities=New Worth.

The equation for Net Worth is Assets-Lisbilities=New Worth.

After evaluating the collateral and the borrower, the underwriter summarizes their evaluation and sends it to a loan committee. The loan committee makes the final decision on whether to approve the borrower for the loan. If the committee approves the loan, they will issue a loan commitment letter to the borrower. A commitment letter is a written agreement by the lender to make the loan, subject to any specific terms and conditions listed in the letter.

Note: Qualifying ratios and credit score parameters change based on economic conditions. Always check with your qualified mortgage professional for the most current information for today’s market conditions.

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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 an 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 publication date 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.

Big Fines Issued in Portland, OR Unlicensed Contractor Sting Operation

OnlineEd (Portland, OR) – KATU News recently teamed with the Oregon Construction Contractors Board to launch a sting operation designed to catch unlicensed contractors advertising for work in Portland, Oregon. An undercover reporter, pretending to be a homeowner in need of a contractor to perform various work activities requiring a Oregon contractors license, called numerous online ads from web sites such as Craigslist, invited the unlicensed contractors to a property, and then solicited them for bids.  As soon as the unlicensed contractors gave their written bids, a Contractors Board enforcement officer moved in to issue citations ranging from $600 to $1,300.

In Oregon, any individual who does work for or gives written bids to others in expectation of receiving work for certain types of activities such as  roofing, siding, painting, carpentry, concrete, on-site appliance repair, heating, air conditioning, electrical, floor covering, plumbing or home inspections must be licensed, bonded, and insured.

Obtaining a contractors license in Oregon is a very simple process, requiring just 16 hours of study and passage of a state licensing examination. Once the licensing examination is passed, the license applicant will need to obtain a bond and insurance. The OnlineEd (www.OnlineEd.com) Oregon CCB approved Oregon Contractors Licensing Course costs just $149, includes the required Oregon Contractors Reference Manual, a 16-hour online course of study, practice exams, and instructor and author support by telephone or email. The Oregon state licensing examination costs only $85.

For additional questions about the licensing process or the OnlineEd course of study, please complete the form below or visit their web site at https://www.onlineed.com.

To watch the KATU news report, please visit their link:  http://www.katu.com/news/problemsolver/115978144.html?tab=video&c=y

To visit the Oregon Contractors Board Web Site for more licensing information, please visit their link: http://www.oregon.gov/CCB/Licensing_I.shtml

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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 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.

How to Get a Copy Your Oregon Real Estate License

The time may come when you need a new copy of your Oregon real estate license. Maybe yours is missing. Perhaps you are out of town and need a copy right away. Or, maybe you just want to print out a duplicate copy to hang in your office or file in your records. There is good news! Licensees who need a replacement or duplicate license can now download and print one directly from the Oregon eLicensing website. The process is simple:

  1. Log into eLicense at https://orea.elicense.irondata.com/
  2. Click on the Print License link in the menu to the left

That’s it! Now you have a duplicate copy of your license downloaded to your computer. All that’s left to do is click the Print button if you want a physical copy.