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Advertising Rules for Oregon Real Estate Brokers, Principal Brokers, and Property Managers

(OnlineEd – Portland, OR) – Current Oregon Real Estate Agency advertising rules can be found in Oregon Administrative Rules (OAR 863-015-0125), which is reprinted below. For additional information in summary format, please be sure to read our other blog article, Important Advertising Points for Oregon Real Estate Licensees.

(This article was last upadted on July 5, 2019)

OAR 863-015-0125
Advertising

(1) As used in this rule, “advertising” and “advertisement” include all forms of representation, promotion and solicitation disseminated in any manner and by any means for any purpose related to professional real estate activity, including, without limitation, advertising by mail; telephone, cellular telephone, and telephonic advertising; the Internet, E-mail, electronic bulletin board and other similar electronic systems; and business cards, signs, lawn signs, and billboards.

(2) Advertising by a licensee, in process and in substance, must:

(a) Be identifiable as advertising of a real estate licensee;

(b) Be truthful and not deceptive or misleading;

(c) Not state or imply that the real estate broker or property manager associated with a principal real estate broker is the person responsible for operating the real estate brokerage or is a sole practitioner or principal broker;

(d) Not state or imply that the licensee is qualified or has a level of expertise other than as currently maintained by the licensee; and

(e) Be done only with the written permission of the property owner(s) or owner(s’) authorized agent.

(3) Advertising that includes the licensee’s name must:

(a) Use the licensee’s licensed name; or

(b) Use a common derivative of the licensee’s first name and the licensee’s licensed last name.

(4) The licensed name or registered business name of the principal real estate broker, sole practitioner real estate broker, or property manager must be prominently displayed, immediately noticeable, and conspicuous in all advertising.

(5) Except as provided in section (8) of this rule, a real estate broker must:

(a) Submit proposed advertising to the licensee’s principal broker for review and receive the principal broker’s approval before publicly releasing any advertisement; and

(b) Keep a record of the principal broker’s approval and make it available to the agency upon request.

(6) Except as provided in section (8) of this rule, a principal real estate broker:

(a) Is responsible for all advertising approved by the principal broker that states the principal real estate broker’s licensed name or registered business name; and

(b) Must review all advertising of a real estate broker or a property manager who is associated with the principal real estate broker.

(7) A principal real estate broker may delegate direct supervisory authority and responsibility for advertising originating in a branch office to the principal broker who manages the branch office if such delegation is in writing.

(8) A licensee associated with a principal real estate broker may advertise property owned by the licensee for sale, exchange, or lease option without approval of the principal real estate broker, if:

(a) The property is not listed for sale, exchange, or lease option with the principal broker;

(b) The advertising states that the property owner is a real estate licensee; and

(c) The advertising complies with all applicable other applicable provisions of ORS Chapter 696 and its implementing rules.

(9) Advertising in electronic media and by electronic communication, including but not limited to the Internet, web pages, E-mail, E-mail discussion groups, blogs, and bulletin boards is subject to the following requirements:

(a) Advertising must comply with all other requirements of this rule;

(b) Advertising by a licensee must include on its first page:

(A) The licensee’s licensed name as required in section (3) of this rule;

(B) The licensed name or registered business name of the principal real estate broker, sole practitioner real estate broker, or property manager; and

(C) A statement that the licensee is licensed in the State of Oregon.

(c) Sponsored links, which are paid advertisements located on a search engine results page, are exempt from the requirements contained in subsection (b) of this section if the first page following the link complies with subsection (b).

(d) E-mail from a licensee is exempt from the requirements of subsection (b) of this section if the licensee’s initial communication contained the information required by subsection (a).

(10) No advertising may guarantee future profits from any real estate activity.

(11) A licensee may use the term “team” or “group” to advertise if:

(a) The use of the term does not constitute the unlawful use of a trade name and is not deceptively similar to a name under which any other person is lawfully doing business;

(b) The team or group includes at least one real estate licensee;

(c) The licensee members of the team or group are associated with the same principal broker or property manager;

(d) The licensee members of the team or group use each licensee’s licensed name as required under section (3) of this rule;

(e) If any non-licensed individuals are named in the advertising, the advertising must clearly state which individuals are real estate licensees and which ones are not; and

(f) The advertising complies with all other applicable provisions of ORS Chapter 696 and its implementing rules.

Statutory/Other Authority: ORS 696.385

For more about real estate licensee advertising, please be sure to read our other blog article, Important Advertising Points for Oregon Real Estate Licensees.

 

 

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Important Advertising Points for Oregon Real Estate Licensees

Oregon’s definition of advertising by real estate licensees includes all forms of representation, promotion, and solicitation

[This article was last updated on July 5, 2019]

(Jeff Sorg, OnlineEd) – Oregon’s definition of advertising by real estate licensees includes all forms of representation, promotion and solicitation disseminated in any manner and by any means for any purpose related to professional real estate activity, including advertising by mail; telephone, cellular telephone, and telephonic advertising; the Internet, E-mail, electronic bulletin board and other similar electronic systems; and business cards, signs, lawn signs, and billboards. Here are some important points to remember when advertising:

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  • The licensee cannot lead the public to believe they have a level of expertise greater than they have.
  • The licensee cannot claim or imply a license status other than the one they hold.
  • All advertising must be truthful and cannot be deceptive or designed to mislead.
  • The written permission of the property owner is required to advertise the owner’s property.
  • Advertising property must be identified as the advertising of a real estate licensee.
  • When the licensee’s name is used in advertising the licensed name or registered business name of the principal real estate broker or property manager must be prominently displayed, immediately noticeable and conspicuous.
  • The licensee must submit all proposed advertising to the principal broker for review and approval before publicly releasing the advertising.
  • The licensee is required to keep a record of principal broker approval of advertising and to make it available to the REA upon request. The burden of maintaining advertising records and proving compliance is with the licensee.
  • The licensee does not have to obtain principal broker prior approval to advertise a personal property for sale, if the property is not listed with the principal broker. Personal real estate advertised for sale must disclose that the property owner is a real estate licensee.
  • The principal broker is responsible for all advertising that arises from his/her brokerage. The principal broker must review and approve all advertising or delegate direct supervisory authority and responsibility for advertising originating in a branch office to the principal broker who manages that office.
  • Advertising includes electronic media or communication such as e-mail, Web pages, bulletin board, e-mail discussion groups, blogs, Facebook, LinkedIn, Twitter, Craigslist, and any other social networking site. Also, the first page of the electronic communication must contain the licensee’s licensed name, the principal broker’s licensed or registered name, and a statement that the licensee is a licensee in the State of Oregon. Sponsored links on a search engine are exempt from this rule because the search link is outside of the control of the licensee. As long as the first e-mail communication contains the necessary disclosure relating to license status and identification of the principal broker, subsequent email communications are exempt from this rule.
  • No advertising may guarantee future profits.
  • Team advertising is permitted as long as the “team name” used does not constitute an unlawful use of a trade name or is similar to another name under which another person is legally authorized to do business. The team or group must include at least one licensee, and all licensee members of the team must be associated with the same principal broker.

NOTE: Sponsored links on a search engine are not considered advertising and are exempt from these rules because the search link is outside of the control of the licensee.

NOTE: Some real estate firms have entered into agreements with each other to interchangeably advertise properties. Many of these authorizations permit a broker to display or advertise the listings of other brokers over the Internet according to the rules of the member’s MLS system. This is commonly referred to as IDX or Internet Data Exchange. The licensee should check with their principal broker to make sure an agreement exists before advertising properties not listed by that licensee or licensee’s firm.

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Real Estate Sales Tax? Not Exactly

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The rumors have been spreading lately, through email mostly, about a new real estate sales tax attached to the Health Care Reform Bill. They usually say something like “UNDER THE NEW HEALTH CARE BILL – DID YOU KNOW THAT ALL REAL ESTATE TRANSACTIONS ARE SUBJECT TO A 3.8% SALES TAX?”. While this may scare individuals who may be looking sell real estate the truth is most probably have no reason to worry.

A new tax does exist, however it applies to only a fraction of sellers and it isn’t a “sales” tax. For example, if your adjusted gross income is less than $200,000 a year (or less than $250,000 if filing jointly) then you are exempt, this bill does not apply to you. I’m sure that makes many would be sellers happy, but what about everyone else? There’s some good news for them as well.

For those earning over $200,000 a year this tax still does not apply to the first $250,000 ($500,000 if married) of profits received from the sale of your home. Who has to worry about this? Here are some examples taken from FactCheck.org:

— A single executive making $210,000 a year who sells his $300,000 ski condo for a $50,000 profit. His tax on the sale of that vacation home would amount to $1,900, in addition to the capital gains tax he would have paid anyway.
— An “empty nester” couple with combined income of over $250,000 a year who sell their $1 million primary residence to move to smaller quarters. If they cleared $600,000 on the sale, they would be taxed on $100,000 of the profit (the amount over the half-million-dollar exclusion). Their health care tax on the sale would amount to $3,800 over and above the usual capital gains levy.

FactCheck.org also restores hope to those still worried about facing this tax:

However, a typical home sale would not incur any tax. In March, for example, half of all existing homes sold for $170,700 or less, according to the National Association of Realtors. Obviously, none of those sales could possibly generate a $250,000 profit, and so none would be subject to the tax. Thus, for the vast majority, the 3.8 percent tax won’t apply. The Tax Foundation, in a report released April 15, said the new tax on investment income (including real estate) “will hit approximately the top-earning two percent of families” when it takes effect in 2013.

While there is a tax for very few, it isn’t a sales tax and will hardly affect the real estate market. It certainly isn’t as bad as it is made out to be in the rapidly spreading emails.  This tax is a Medicare tax, allocated to the Medicare Trust Fund, which is a part of the Social Security System. The Medicare tax applies to individuals with an adjusted gross income over $200,000 a year who sell a principal residence or second home for a profit of over $250,000, and the tax is computed only on the sale amount over $250,000 (the first $250,000 is exempt.)


This posting is an editorial and is not intended as legal or tax advice. Please contact your tax professional for proper guidance.