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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