Chapter 470 Oregon Laws 1999

Session Law

 

AN ACT

 

SB 1310

 

Relating to real estate brokers; amending ORS 696.265, 696.290 and 696.301; and repealing ORS 696.262.

 

Be It Enacted by the People of the State of Oregon:

 

      SECTION 1. ORS 696.290 is amended to read:

      696.290. (1) No real estate licensee shall offer, promise, allow, give, pay or rebate, directly or indirectly, any part or share of the licensee's commission or compensation arising or accruing from any real estate transaction or pay a finder's fee to any person who is not a real estate licensee licensed under ORS 696.010 to 696.490, 696.600 to 696.730, 696.800 to 696.855 and 696.995. However, a [licensed] real estate broker may pay a finder's fee or a share of the commission on a cooperative sale where such payment is made to a licensed real estate broker in another state or country provided that the state or country in which that broker is licensed has a law permitting real estate brokers to cooperate with real estate brokers in this state and that such nonresident real estate broker does not conduct in this state any [of the negotiations for which a fee, compensation or commission is paid] acts constituting professional real estate activity and for which compensation is paid. No real estate salesperson or associate real estate broker shall be engaged by, or accept compensation from, any person other than the real estate broker under whom the salesperson or associate broker is licensed at the time, and no real estate broker shall make payment to the salesperson or associate broker of another real estate broker except through the real estate broker with whom such real estate salesperson or associate broker is licensed. Nothing in this section prevents payment of a commission or fee earned by such real estate salesperson or associate broker while licensed, because of change of affiliation or inactivation of the salesperson's or associate broker's license.

      (2) Nothing in subsection (1) of this section is intended to prohibit a real estate licensee who has a written property management agreement with the owner of a residential building or facility from authorizing the payment of a referral fee, rent credit or other compensation to an existing tenant of the owner or licensee, or a former tenant if the former tenant resided in the building or facility within the previous six months, as compensation for referring new tenants to the licensee.

      (3) Nothing in subsection (1) of this section is intended to prevent an Oregon real estate broker from sharing a commission on a cooperative nonresidential real estate transaction with a person who holds an active real estate license in another state or country, provided:

      (a) Before the out-of-state real estate licensee performs any act in this state that constitutes professional real estate activity, the licensee and the cooperating Oregon real estate broker agree in writing that the acts constituting professional real estate activity conducted in this state will be under the supervision and control of the cooperating Oregon broker and will comply with all applicable Oregon laws;

      (b) The cooperating Oregon real estate broker or a real estate broker engaged by the cooperating broker accompanies the out-of-state real estate licensee and the client during any property showings or negotiations conducted in this state; and

      (c) All property showings and negotiations regarding nonresidential real estate located in this state are conducted under the supervision and control of the cooperating Oregon real estate broker or a real estate broker engaged by the cooperating broker.

      (4) As used in subsection (3) of this section, "nonresidential real estate" means any real property that is improved or available for improvement by commercial structures or five or more residential dwelling units.

      SECTION 2. ORS 696.301 is amended to read:

      696.301. The Real Estate Commissioner may suspend or revoke the real estate license of any real estate licensee, [or] reprimand any licensee[,] or [may] deny the issuance or renewal of a license to an applicant[,] who has done any of the following:

      (1) Knowingly or negligently pursued a continued course of material misrepresentation in matters related to professional real estate activity, whether or not damage or injury resulted, or knowingly or negligently made any material misrepresentation or false promise in a matter related to professional real estate activity, if the material misrepresentation or material false promise created a reasonable probability of damage or injury, whether or not damage or injury actually resulted.

      (2) Accepted a commission or other valuable consideration as a real estate salesperson or associate real estate broker for the performance of any professional real estate activity from any person, except the real estate broker with whom the real estate salesperson or associate real estate broker is licensed.

      (3) Represented or attempted to represent a real estate broker other than the real estate broker with whom the real estate salesperson or associate real estate broker is licensed.

      (4) Failed, within a reasonable time, to account for or to remit any moneys or to surrender to the rightful owner any documents or other valuable property coming into the licensee's possession which belongs to others.

      (5) Disregarded or violated any provisions of ORS 696.010 to 696.490, 696.600 to 696.730, 696.800 to 696.855 and 696.995.

      (6) Knowingly or negligently made, printed, distributed or in any manner published materially misleading or untruthful advertising, descriptions or promises, of such character as reasonably to induce any person to act to the damage or injury of the person, whether or not actual damage or injury resulted.

      (7) Guaranteed, authorized or permitted any person to guarantee future profits which may result in the resale of real property.

      (8) Placed a sign on any property offering it for sale or for rent without the written authority of the owner or the owner's authorized agent.

      (9) Failed for any reason to pay to the commissioner the license registration or renewal fee as specified in ORS 696.270 within the time specified in that section.

      (10) Commingled the money or other property of the principal or client with the licensee's own.

      (11) Failed or refused upon demand to produce or to supply true copies of any document, book or record in the licensee's possession or control, or required by the provisions of ORS 696.280 concerning any real estate business transacted by the licensee, for inspection by the Real Estate Commissioner or the commissioner's authorized representative.

      (12) Failed to maintain at all times in the licensee's principal place of business a complete record as required by law of every transaction which comes within the provisions of ORS 696.010 to 696.490, 696.600 to 696.730, 696.800 to 696.855 and 696.995.

      (13) Violated ORS 659.033.

      (14) Acted for more than one party in a transaction, in the negotiation of a transaction, without the knowledge and written permission of all parties for whom the licensee acted.

      (15) Acted in the dual capacity of agent and undisclosed principal in any transaction.

      (16) Induced any party to a contract, sale or lease to break such contract for the purpose of substituting in lieu thereof a new contract with the same principal or different principal.

      (17) Offered real estate for sale or lease without the knowledge and consent of the owner or the owner's authorized agent or on terms other than those authorized by the owner or the owner's authorized agent.

      (18) Negotiated a sale, exchange, lease option or lease of real estate directly with an owner or lessor knowing that such owner had a written outstanding contract in connection with such property, granting an exclusive agency or an exclusive right to sell to another real estate broker without the consent of the other broker.

      (19) Accepted employment or compensation for:

      (a) The preparation of a competitive market analysis or letter opinion, the representation of a taxpayer under ORS 305.230, 306.115 or 309.100 or the giving of an opinion in any administrative or judicial proceeding regarding the value of real estate for taxation contingent upon the reporting of a predetermined value; or

      (b) The preparation of a competitive market analysis or letter opinion, the representation of a taxpayer under ORS 305.230, 306.115 or 309.100 or the giving of an opinion in any administrative or judicial proceeding regarding the value of real estate for taxation for real estate in which the licensee had an undisclosed interest.

      (20) Failed to maintain on deposit in a bank account or neutral escrow depository funds entrusted to the licensee as a real estate broker by the principal or other as required by ORS 696.241 and the rules of the Real Estate Agency.

      (21) Paid a commission or compensation to any person, performing professional real estate activity who has not first secured a license under this chapter or is a nonresident real estate broker licensed in another state or country and not licensed in this state, except as permitted by ORS 696.290.

      (22) Failed to deliver within a reasonable time a completed copy of any purchase agreement or offer to buy or sell real estate to the purchaser and to the seller.

      (23) Failed to [assure] ensure, in any real estate transaction, in which such real estate broker performed the closing, that the buyer and seller each received a complete detailed closing statement showing the amount and purpose of all receipts, adjustments and disbursements.

      (24) If, as an associate real estate broker or real estate salesperson, failed to place, as soon after receipt as practicable, in the custody of the real estate broker with which the licensee is licensed, any deposit money or other money or funds entrusted to the licensee by any person dealing with the licensee as a representative of such licensed broker.

      (25) Procured or attempted to procure, a real estate license for personal use or use of any associate broker or salesperson by fraud, misrepresentation, or deceit or by making any material misstatement of fact in an application for a real estate license.

      (26) Entered a plea of nolo contendere, or has been found guilty of, or been convicted of, a felony or misdemeanor substantially related to the licensee's trustworthiness or competence to engage in professional real estate activity.

      (27) Knowingly authorized, directed or aided in the publication, advertisement, distribution or circulation of any material false statement or misrepresentation concerning the licensee's business or any real estate offered for sale.

      (28) Demonstrated negligence or incompetence in performing any act for which the licensee is required to hold a license.

      (29) If, as a broker licensee, failed to exercise supervision over the activities of real estate salespersons, associate real estate brokers or employees. For the purposes of this subsection, "supervision" means that management by a broker that is reasonably designed and implemented to result in compliance by the broker's real estate salespersons, associate real estate brokers and employees with ORS 696.010 to 696.490, 696.600 to 696.730, 696.800 to 696.855 and 696.995 and any administrative rules adopted thereunder.

      (30) Violated any of the terms, conditions, restrictions and limitations contained in any order granting a limited license.

      (31) Any act or conduct, whether of the same or of a different character specified in this section which constitutes or demonstrates bad faith, incompetency or untrustworthiness, or dishonest, fraudulent or improper dealings.

      (32) If, as a reciprocal real estate broker or salesperson licensee, violated any of the terms, conditions or requirements of this section and ORS 696.050, 696.200 and 696.255 or rules adopted under ORS 696.265.

      (33) Failed to comply with ORS 696.815, 696.820, 696.845 or 696.870.

      SECTION 3. ORS 696.265 is amended to read:

      696.265. [A reciprocal real estate broker or salesperson may not engage in property management activity, real estate appraisal activity or real estate auction activity under a reciprocal license.] The Real Estate Commissioner may prescribe by rule the terms and conditions for reciprocity agreements with other states and countries, including but not limited to application procedures, license qualifications, license maintenance, limitations on activities and license renewal requirements.

      SECTION 4. ORS 696.262 is repealed.

 

Approved by the Governor July 6, 1999

 

Filed in the office of Secretary of State July 6, 1999

 

Effective date October 23, 1999

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