Tag Archives: Oregon

Oregon House Bill 2737 – The “Tiny House Bill”

Micro-houses have difficulty meeting residential building codes but this bill aims to solve this problem

By Jeff Sorg, OnlineEd Blog

(January 19, 2018)

(PORTLAND, OR – OnlineEd) 

Video transcript:

Perhaps one of the more interesting bills submitted and passed by the Oregon Legislature in its 2017 session is House Bill 2737, known as the Tiny House Bill.

The demand for tiny houses or micro-houses is driven by a number of factors, including the cost of building materials, efforts to reduce the use of energy and natural resources, housing density goals and homelessness. The micro-houses have difficulty meeting residential building codes as these codes were developed for traditional housing forms. The International Code Council, or ICC, has approved new micro-housing standards for inclusion in the 2018 ICC code update. The Building Codes Division of the Department of Consumer and Business Services typically has a lag of one-to-three years before adjusting its codes to reflect ICC changes.

ICC code changes are not necessarily adopted automatically into the Oregon building codes, so what House Bill 2737 does is to require the Director of the Department of Consumer and Business Services to adopt the amendments to the specialty building codes to establish construction standards for homes that are 600 square feet or less. The code addresses such issues as ceiling height, lofts, ladders, and egress.

The codes relating to micro-houses are effective as of January 1, 2018. Click here to sign up for your free 3-hour required Law and Rule Required Course, LARRC.

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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 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

Portland, Dallas, and Seattle Report the Highest Year-Over-Year Home Value Appreciation

Rents in Seattle are up just over 9 percent and in Portland, rents are up 7 percent

By Jeff Sorg, OnlineEd Blog

rising housing prices 1(October 20, 2016) –  U.S. home values are up 5.5 percent over the past year according to the September Zillow® Real Estate Market Reports. This is the fastest pace of appreciation in more than two years. The median value of a U.S. home is now $189,400.

Portland, Dallas, and Seattle reported the highest year-over-year home value appreciation among the 35 largest metros across the country. In Portland, home values rose almost 15 percent to a median value of $342,100. Home values in Dallas and Seattle appreciated 12 and 11 percent, respectively. For the first time, the median home value in the Seattle surpassed $400,000 and is now at $401,100.

Inventory has been falling steadily, with about 4 to 6 percent fewer homes for sale over the past several months. However, the bigger driver of home prices is increased demand. Sales have increased substantially since 2011, despite fewer homes on the market.

Bidding wars are commonplace in many housing markets across the country, as multiple buyers compete for the same home. According to the Zillow Group Consumer Housing Trends Report, only 46 percent of buyers get the first home on which they make an offer, and the home search takes an average of 4.2 months.

“Increasingly strong demand has been contributing to dwindling inventory stocks across the nation,” said Zillow Chief Economist Dr. Svenja Gudell. “Healthy demand for for-sale homes amidst low inventory has been driving the market, which is another sign that the housing market is recovering nicely. Buyers in the nation’s fastest moving markets can expect the search process to last a few months, as market conditions are often extremely competitive with homes selling for above asking price and receiving multiple offers. It’s definitely a seller’s market right now, with some homes being more expensive than ever.”

Rents are rising across the nation, but have slowed considerably over the past year. In September 2015, median rents were up 5.3 percent year-over-year but have since slowed to 1.5 percent annual appreciation. The median rent in the U.S. is now $1,403.

Seattle, Portland, and Sacramento reported the highest year-over-year rent appreciation among the 35 largest U.S. housing markets. Rents in Seattle are up just over 9 percent and in Portland, rents are up 7 percent. For the fourth month in a row, Seattle has the fastest year-over-year rent appreciation among the 35 largest U.S. housing markets.

Nationally, there are 6 percent fewer homes for sale than a year ago, with Indianapolis and Boston reporting the greatest drop in inventory. In Indianapolis, there are 26 percent fewer homes to choose from than a year ago, and 25 percent fewer in Boston.

Souce: Zillow®

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Zillow and Zestimate are a registered trademark of Zillow, Inc.

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

Seattle and Portland Rents Expected to Rise 6% and 7%

Zillow forecasts rent growth of more than 7 percent in Seattle and 6 percent in Portland

By Jeff Sorg, OnlineEd Blog

canstockphoto33101878-no-vacancies (October 11, 2016) – According to the latest Zillow® Rent Forecast for August 2016 to August 2017, rents in the West’s tech job centers are predicted to be among some of the fastest growing in the nation over the next year. The Zillow® Rent Forecast predicts rent trends down to the zip-code across the U.S.

Rents in Seattle and Portland are expected to rise the most over the next 12 months — Zillow forecasts rent growth of more than 7 percent in Seattle and 6 percent in Portland. Denver, San Francisco, and San Jose are predicted to see rent appreciation of more than 4 percent. Only 11 of the 35 largest metros will see a slowdown in rents.

 

Highest Forecasted Rent Appreciation over the Next Year

  1. Seattle – 7.2 percent
  2. Portland – 6.0 percent
  3. Denver – 5.9 percent
  4. Cincinnati – 5.2 percent
  5. San Francisco – 4.9 percent
  6. Los Angeles – 4.8 percent
  7. Sacramento – 4.7 percent
  8. San Diego – 4.7 percent
  9. Phoenix – 4.6 percent
  10. San Jose – 4.5 percent

[Source: Zillow]

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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 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

Portland Home Values Rise 15 Percent

San Francisco and San Jose are no longer among the top appreciating U.S. housing markets

By Jeff Sorg, OnlineEd Blog

housing graph 3(September 22, 2016) – U.S. home values are up 5 percent over the past year, to a Zillow Home Value Index (ZHVI) of $188,100, according to the August Zillow® Real Estate Market Reports.

Home values have been growing at a 5 percent annual rate since the beginning of the year. The most recent income data released by the Censusiii shows incomes rising by 5.2 percent, which is good news for those looking to break into the housing market. For the first time since 2011, incomes have been appreciating faster than home values.

Inventory is beginning to pick back up from the lows experienced at the beginning of the year, but there are still 5 percent fewer homes for sale than a year ago. Going forward, as more homes start to become available, home value growth may ease. Zillow predicts home value growth to slow down to a 2.7 percent appreciation rate by this time next year.

For the sixth straight month, Portland, Dallas, Seattle and Denver reported the highest year-over-year home value appreciation among the 35 largest U.S. metros, with home value growth in the double-digits. In Portland, home values rose almost 15 percent, to a median home value of $338,900.

While home values continue to rise in tech-centers San Francisco and San Jose, they’ve slowed considerably since last year. Median home values in both markets are up about 6 percent over the past year, compared to over 12 percent in 2015. No longer are these two metros among the top appreciating U.S. housing markets.

“The housing market is starting to smooth out ever-so-slightly, as the peak home shopping season winds down,” said Zillow Chief Economist Dr. Svenja Gudell. “This is good news for frenzied buyers tired of tight inventory, rapidly rising home prices and intense competition. Inventory, while still down nationwide and in most areas, is actually starting to rise in a handful of markets, including the Bay Area, Texas and parts of the Southwest. Rent growth has slowed considerably from just a few years ago, giving renters a chance to save enough to buy a home. But make no mistake, it’s still tough out there for buyers, especially in Western markets like Seattle, Denver and Portland that have strong job growth. Things won’t switch from a sellers’ market to a buyers’ market overnight, but conditions are starting to improve.”

Rents continue to rise, though not as quickly as home values. Last year at this time, rents were up over 6 percent, but are now appreciating by just 1.7 percent, to a Zillow Rent Index (ZRI) of $1,405.

Of the 35 largest U.S. metros, Seattle, Portland, Sacramento and San Diego reported the highest year-over-year rent appreciation. Rents in Seattle have seen the fastest annual appreciation for the third month in a row, up almost 10 percent over the past year to a median of $2,067 per month.

In Portland, the median rent rose to $1,777 per month, up 7 percent over the past year. In Sacramento and San Diego, rents are up 5.5 and 5 percent, respectively.

 

Metropolitan Area Zillow Home

Value Index (ZHVI)

Year-Over-Year ZHVI Change Zillow Rent Index (ZRI) Year-Over-Year ZRI Change Year-Over-Year Inventory Change
United States $             188,100 5.1% $         1,405 1.7% -5.4%
New York/Northern New Jersey $             389,000 3.3% $         2,399 2.5% -11.7%
Los Angeles-Long Beach-Anaheim, CA $             574,600 5.2% $         2,593 4.7% 0.6%
Chicago, IL $             201,300 4.5% $         1,643 -0.2% -11.5%
Dallas-Fort Worth, TX $             193,900 12.0% $         1,543 3.6% -20.6%
Philadelphia, PA $             210,000 2.9% $         1,578 1.3% -13.3%
Houston, TX $             174,000 7.1% $         1,576 0.5% 7.4%
Washington, DC $             370,100 2.1% $         2,121 0.5% -15.0%
Miami-Fort

Lauderdale, FL

$             239,300 9.0% $         1,885 4.2% 14.1%
Atlanta, GA $             168,400 7.5% $         1,314 3.5% -8.6%
Boston, MA $             398,200 5.6% $         2,310 3.9% -26.4%
San Francisco, CA $             809,500 6.0% $         3,406 4.8% 1.8%
Detroit, MI $             129,600 6.8% $         1,171 2.5% -17.8%
Riverside, CA $             313,400 7.0% $         1,736 3.4% -0.7%
Phoenix, AZ $             223,100 7.5% $         1,297 4.2% 8.3%
Seattle, WA $             397,800 11.3% $         2,067 9.7% -6.0%
Minneapolis-St Paul,

MN

$             229,300 6.2% $         1,540 2.5% -2.7%
San Diego, CA $             516,200 5.2% $         2,427 4.9% 13.0%
St. Louis, MO $             144,000 5.3% $         1,128 0.5% -13.2%
Tampa, FL $             170,500 9.8% $         1,332 3.3% -10.1%
Baltimore, MD $             252,700 2.5% $         1,731 0.6% -10.4%
Denver, CO $             341,400 10.7% $         2,013 4.1% 7.4%
Pittsburgh, PA $             131,200 4.6% $         1,100 -0.5% 3.7%
Portland, OR $             338,900 14.8% $         1,777 7.4% -12.4%
Charlotte, NC $             164,400 7.1% $         1,237 1.7% -10.3%
Sacramento, CA $             345,100 7.1% $         1,681 5.5% -6.4%
San Antonio, TX $             153,600 6.4% $         1,317 0.9% 25.2%
Orlando, FL $             189,000 8.1% $         1,372 2.8% -10.8%
Cincinnati, OH $             145,100 4.6% $         1,239 0.2% -15.7%
Cleveland, OH $             129,000 3.4% $         1,146 1.3% -12.7%
Kansas City, MO $             150,700 5.2% $         1,235 2.3% -23.6%
Las Vegas, NV $             206,800 7.8% $         1,237 2.0% 32.7%
Columbus, OH $             157,000 3.0% $         1,293 2.0% -16.6%
Indianapolis, IN $             131,700 -1.6% $         1,196 0.4% -24.7%
San Jose, CA $             945,700 5.8% $         3,517 3.8% 12.9%
Austin, TX $             255,900 8.6% $         1,713 2.0% 11.1%

[Source: Zillow®]

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Zillow® is a registered trademark of Zillow, Inc.

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 Housing Appreciation Hits 11.8% to Rank No. 1 in Appreciation Says New FHFA Report

U.S. house prices rose 1.3 percent in the first quarter of 2016 according to the Federal Housing Finance Agency (FHFA) House Price Index 

By Jeff Sorg, OnlineEd Blog

man holding up graph line(May 26, 2016) -Washington, D.C. – U.S. house prices rose 1.3 percent in the first quarter of 2016 according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI). This is the nineteenth consecutive quarterly price increase in the purchase-only, seasonally adjusted index. House prices rose 5.7 percent from the first quarter of 2015 to the first quarter of 2016. This is the fourth consecutive year in which prices grew more than 5 percent. FHFA’s seasonally adjusted monthly index for March was up 0.7 percent from February. The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac. FHFA has produced a video of highlights for this quarter.

“While the overall appreciation rate was robust in the first quarter, home price appreciation was somewhat less widespread than in recent quarters,” said FHFA Supervisory Economist Andrew Leventis. “Twelve states and the District of Columbia saw price declines in the quarter—the most areas to see price depreciation since the fourth quarter of 2013. Although most declines were modest, such declines are notable given the pervasive and extraordinary appreciation we have been observing for many years.”

While the purchase-only HPI rose 5.7 percent from the first quarter of 2015 to the first quarter of 2016, prices of other goods and services were nearly unchanged. The inflation-adjusted price of
homes rose approximately 5.6 percent over the latest year.

Significant Findings

  • Home prices rose in every state between the first quarter of 2015 and the first quarter of 2016. The top five states in annual appreciation were: 1) Oregon 11.8 percent; 2)
    Florida 11.2 percent; 3) Washington 10.9 percent; 4) Nevada 9.4 percent; and 5) Colorado 9.0 percent.
  • Among the 100 most populated metropolitan areas in the U.S., annual price increases were greatest in the West Palm Beach-Boca Raton-Delray Beach, FL (MSAD), where prices increased by 16.7 percent. Prices were weakest in El Paso, TX, where they fell 2.8 percent.
  • Of the nine census divisions, the Pacific division experienced the strongest increase in the first quarter, posting a 1.9 percent quarterly increase and an 8.1 percent increase since the first quarter of last year. House price appreciation was weakest  in the Middle Atlantic division, where prices rose 0.6 percent from the last quarter.

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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 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 of Harlow Spaan and Jeffrey Sorg

Negative Equity Still a Drag on the U.S. Housing Market

Despite improvements in the negative equity rate, underwater mortgages are holding back the housing market from full recovery

By Jeff Sorg, OnlineEd Blog

SOURCE: Zillow

underwater(December 4, 2015) /PRNewswire/  – The U.S. negative equity rate continued to drop in the third quarter of 2015, according to the Zillow® Negative Equity Report.i Nationally, 13.4 percent of homeowners owe more on their mortgage than their home is worth, down from 14.4 percent last quarter, and 16.9 percent a year ago.

Negative equity is one of the most persistent reminders of the housing market crash. Homeowners who owe more on their mortgage than their homes are worth cannot sell, which holds back markets from recovering.

Typically, negative equity rates will be close to 2-5 percent. Today, eight years after the housing crash, it remains a major barrier to a full recovery in certain markets. In Las Vegas, 22 percent of homeowners remain underwater, and another 19 percent are effectively underwater, meaning they have less than 20 percent equity in their home and therefore can’t cover the cost of selling their home and buying another.

Las Vegas has had the highest negative equity rate in the country for the past four and a half years, and Kansas City and Cleveland, with 16.6 and 16.8 percent negative equity respectively, are not far behind. San Francisco and San Jose are the only large markets where less than five percent of homeowners are underwater.

Almost a million homeowners were freed from negative equity in the third quarter of 2015. The improving rate means those people may be able to sell or refinance their homes before mortgage interest rates rise, as they are expected to do in the coming weeks.

“Negative equity has become almost an afterthought in a handful of the nation’s hottest markets, but is holding back the recovery in dozens of large markets nationwide,” said Zillow Chief Economist Dr.Svenja Gudell. “Despite steady declines in negative equity, many cities are still facing tight inventory, especially among entry-level homes. Those homes that are available are often not in demand and stay on the market for a long time. This can be extremely frustrating for buyers and sellers alike, as they come face to face with the difficult side effects of negative equity.”

Negative equity affects individual homeowners, but markets with high negative equity rates tend to have fewer homes for sale, especially lower-priced homes favored by first-time homebuyers. In markets with a lot of negative equity, homes generally take longer to sell than in other places.

Below are the top five large metros with the highest and lowest percent of homeowners underwater.

Smallest Share of Underwater Homeowners

  1. San Jose, CA – 3.0 percent
  2. San Francisco, CA – 4.7 percent
  3. Denver, CO – 5.5 percent
  4. Dallas-Fort Worth, TX – 5.8 percent
  5. Portland, OR – 6.2 percent

Largest Share of Underwater Homeowners

  1. Las Vegas, NV – 22.1 percent
  2. Chicago, IL – 20.6 percent
  3. Atlanta, GA – 18.6 percent
  4. St. Louis, MO – 17.6 percent
  5. Baltimore, MD – 16.9 percent

 

Metro Name Q3 2015 Effective Negative Equity Rate Q3 2015 Negative Equity Rate Q3 2014 Negative Equity Rate
United States 30.2% 13.4% 16.9%
New York-Northern New Jersey 24.3% 11.5% 13.6%
Los Angeles-Long Beach-Anaheim, CA 16.6% 7.1% 7.8%
Chicago, IL 37.8% 20.6% 25.3%
Dallas-Fort Worth, TX 18.4% 5.8% 9.3%
Philadelphia, PA 33.8% 15.5% 18.1%
Houston, TX 18.4% 6.2% 7.4%
Washington, DC 34.2% 15.7% 18.4%
Miami-Fort Lauderdale, FL 26.1% 14.7% 20.1%
Atlanta, GA 37.9% 18.6% 27.1%
Boston, MA 18.3% 7.1% 9.6%
San Francisco, CA 11.0% 4.7% 7.3%
Detroit, MI 29.8% 16.6% 22.0%
Riverside, CA 30.7% 14.3% 18.2%
Phoenix, AZ 35.4% 16.4% 21.7%
Seattle, WA 25.7% 10.2% 16.2%
Minneapolis-St Paul, MN 30.8% 11.7% 15.6%
San Diego, CA 21.6% 8.1% 10.1%
St. Louis, MO 37.6% 17.6% 22.7%
Tampa, FL 31.5% 15.7% 22.0%
Baltimore, MD 36.9% 16.9% 20.1%
Denver, CO 15.2% 5.5% 8.2%
Pittsburgh, PA 23.3% 9.8% 10.7%
Portland, OR 20.8% 6.2% 11.2%
Charlotte, NC 32.1% 11.0% 16.5%
Sacramento, CA 27.3% 11.6% 15.7%
San Antonio, TX 31.2% 10.7% 12.2%
Orlando, FL 32.6% 16.1% 21.9%
Cincinnati, OH 35.6% 14.5% 18.7%
Cleveland, OH 34.5% 16.8% 20.7%
Kansas City, MO 38.1% 16.6% 20.7%
Las Vegas, NV 41.3% 22.1% 27.8%
Columbus, OH 31.8% 12.9% 17.6%
Indianapolis, IN 37.2% 15.5% 17.9%
San Jose, CA 7.7% 3.0% 4.5%
Austin, TX 20.3% 6.8% 8.0%

 

Zillow is a registered trademark of Zillow, Inc.

SOURCE: Zillow

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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.

Study Puts Oregon as Top Moving Destination of 2014

212d3510-647c-412e-98a8-a6f49e2f82ef-original  (Jeff Sorg, OnlineEd) – For the third consecutive year, Oregon holds on to its title as “Top Moving Destination” according to the United Van Lines 2014 National Movers Study. The study, which tracks customers’ migration patterns state-to-state during the course of the past year, found that Oregon is the top moving destination of 2014, with 66 percent of moves to and from the state being inbound — nearly 5 percent increase of inbound moves compared to their 2013 study.

New Jersey is at the top of the list for outbound move states, with 65% of its moves leaving the state.

United has tracked migration patterns annually on a state-by-state basis since 1977. For 2014, the study is based on household moves handled by United within the 48 contiguous states and Washington, D.C.

 

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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.

For more information about United Van Lines, please visit their web site at: http://www.unitedvanlines.com/

This article was published on January 6, 2015. 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.

 

If You Are Licensed in Another State and Want to Become an Oregon Principal Broker

canstockphoto7389305 real estate license card(Jeff Sorg, OnlineEd) If you want to become an Oregon Principal Broker but are not currently licensed in Oregon, you must meet these qualifications:

  • Be 18 years old;
  • Have a high school diploma, GED or international equivalent; and
  • Have three years of active real estate license experience.

If you qualify, you must complete these steps:

  • Complete the OnlineEd Out-of-State Principal Broker Course Bundle, containing the required 150-hour broker pre-license course and the 40-hour principal broker qualifying education course.
  • Complete a Real Estate License Application in eLicense, the Agency’s online license management system. When the application is processed, you will receive an applicant ID number.
  • Pay the $230 license application fee in eLicense.
  • Submit to the Agency a certified license history from the state where you obtained your active real estate license experience.
  • Register and pay for principal broker license exam with the state selected licensing exam proctor.
  • Pass the principal broker license exam.
  • Pay for and submit fingerprints for background check while at the state licensing exam testing center.
  • Once your background check has cleared, choose to work for another principal broker or on your own

If you have additional questions about the course or licensing process, please telephone Chris Culbertson in our enrollment information office at 503.670.9278 or send him an email to chris@onlineed.com.

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 OnlineEd® is Oregon Real Estate Agency Approved Pre-License and Continuing Education School and an Oregon Licensed Vocational School under the Oregon Department of Education. For more information about OnlineEd, please visit www.OnlineEd.com.

 This article was published on August 7, 2014. All information contained in this posting is deemed correct and current as of this date, but is not guaranteed by the author. 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.

For more information about our post-licensing training, please visit our Power Up! information page.

Will My Oregon Real Estate CE Count In Washington?

(Jeff Sorg, OnlineEd) – The only Oregon real estate continuing education course that counts for both Oregon and Washington continuing education for license renewal is Broker Advanced Practices. The OnlineEd 27-hour Oregon Broker Advanced Practices course is presently accepted by both the Washington Real Estate Commission  and Oregon Real Estate Agency for real estate continuing education credit.

Washington real estate licensees will need to inform the Washington Real Estate Commission of their intention to use the Oregon BAP course for CE and will need to provide their Oregon certificate for credit. Although Washington accepts this course, it is accepted as an Oregon course and OnlineEd cannot prepare a Washington specific certificate.

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OnlineEd is a provider of pre-licensing, post-licensing, and continuing education for real estate licensees. For more information about OnlineEd, please visit www.OnlineEd.com.

 This article was published on July 17, 2014.  All information contained in this posting is deemed correct and current as of this date, but is not guaranteed by the author. 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.

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