Chapter 0116

Chapter 116 Oregon Laws 2005

AN ACT

HB 2096

Relating to professional real estate activity; amending ORS 696.010, 696.022, 696.026, 696.030, 696.200, 696.205, 696.232, 696.241, 696.245, 696.270, 696.280, 696.301, 696.320, 696.505, 696.511, 696.530, 696.775, 696.800, 696.820, 696.845 and 696.990; and repealing ORS 696.221, 696.226 and 696.235.

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

SECTION 1. ORS 696.010 is amended to read:

696.010. As used in ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to 696.855, 696.990 and 696.995, unless the context requires otherwise:

(1) “Agency” means the Real Estate Agency.

(2) “Associated with” means to be employed, engaged or otherwise supervised by, with respect to the relationship between a real estate broker and a principal real estate broker.

(3) “Bank” includes any bank or trust company, savings bank, mutual savings bank, savings and loan association or credit union that maintains a head office or a branch in this state in the capacity of a bank or trust company, savings bank, mutual savings bank, savings and loan association or credit union.

[(4) “Board” means the Real Estate Board.]

[(5)(a)] (4)(a) “Branch office” means a business location other than the main office designated under ORS 696.200 (1), where professional real estate activity is regularly conducted or which is advertised to the public as a place where such business may be regularly conducted.

(b) Model units or temporary structures used solely for the dissemination of information and distribution of lawfully required public reports shall not be considered branch offices. A model unit means a permanent residential structure located in a subdivision or development used for such distribution and dissemination, so long as the unit is at all times available for sale, lease, lease option or exchange.

[(6)] (5) “Commissioner” means the Real Estate Commissioner.

[(7)] (6) “Compensation” means any fee, commission, salary, money or valuable consideration for services rendered or to be rendered as well as the promise thereof and whether contingent or otherwise.

[(8)] (7) “Competitive market analysis” means a method or process used by a real estate licensee in pursuing a listing agreement or in formulating an offer to acquire real estate in a transaction for the sale, lease, lease-option or exchange of real estate. The objective of competitive market analysis is a recommended listing, selling or purchase price or a lease or rental consideration. A competitive market analysis may be expressed as an opinion of the value of the real estate in a contemplated transaction. Competitive market analysis may include but is not limited to an analysis of market conditions, public records, past transactions and current listings of real estate.

[(9) “Inactive license” means a license which has been returned to the commissioner and is being held by the commissioner on an inactive status.]

[(10)] (8) “Letter opinion” means a document that expresses a real estate licensee’s conclusion regarding a recommended listing, selling or purchase price or a rental or lease consideration of certain real estate and that results from the licensee’s competitive market analysis. The commissioner by rule shall specify the minimum contents of a letter opinion, including but not limited to the distinction between a letter opinion and a real estate appraisal.

[(11)(a)] (9) “Management of rental real estate” means:

(a) Representing the owner of real estate in the rental or lease of the real estate and includes but is not limited to:

(A) Advertising the real estate for rent or lease;

(B) Procuring prospective tenants to rent or lease the real estate;

(D) Accepting deposits from prospective tenants;

(E) Checking the qualifications and creditworthiness of prospective tenants;

(F) Charging and collecting rent or lease payments;

(G) Representing the owner in inspection or repair of the real estate;

(H) Contracting for repair or remodeling of the real estate;

(I) Holding trust funds or property received in managing the real estate and accounting to the owner for the funds or property;

(J) Advising the owner regarding renting or leasing the real estate;

(K) Providing staff and services to accommodate the tax reporting and other financial or accounting needs of the real estate;

(L) Providing copies of records of acts performed on behalf of the owner of the real estate; and

(M) Offering or attempting to do any of the acts described in this paragraph for the owner of the real estate[.]; or

(b) [“Management of rental real estate” also means] Representing a tenant or prospective tenant when renting or leasing real estate and includes but is not limited to:

(A) Consulting with tenants or prospective tenants about renting or leasing real estate;

(B) Assisting prospective tenants in renting or leasing real estate;

(D) Accepting deposits or other funds from prospective tenants for renting or leasing real estate and holding the funds in trust for the prospective tenants;

(E) Representing tenants or prospective tenants renting or leasing real estate; and

(F) Offering or attempting to do any of the acts described in this paragraph for a tenant or prospective tenant.

[(12)] (10) “Principal real estate broker” means [a real estate broker] an individual who is licensed as a principal real estate broker and who employs, engages or supervises another real estate [broker] licensee.

[(13)] (11) “Professional real estate activity” means any of the following actions, when engaged in for another and for compensation or with the intention or in the expectation or upon the promise of receiving or collecting compensation, by any person who:

(a) Sells, exchanges, purchases, rents or leases real estate.

(b) Offers to sell, exchange, purchase, rent or lease real estate.

(d) Lists, offers, attempts or agrees to list real estate for sale.

(e) Offers, attempts or agrees to perform or provide a competitive market analysis or letter opinion, to represent a taxpayer under ORS 305.230 or 309.100 or to give an opinion in any administrative or judicial proceeding regarding the value of real estate for taxation. Such activity performed by a state certified appraiser or state licensed appraiser is not professional real estate activity.

(f) Auctions, offers, attempts or agrees to auction real estate.

(g) Buys, sells, offers to buy or sell or otherwise deals in options on real estate.

(h) Engages in management of rental real estate.

(i) Purports to be engaged in the business of buying, selling, exchanging, renting or leasing real estate.

(j) Assists or directs in the procuring of prospects, calculated to result in the sale, exchange, leasing or rental of real estate.

(k) Assists or directs in the negotiation or closing of any transaction calculated or intended to result in the sale, exchange, leasing or rental of real estate.

(L) Except as otherwise provided in ORS 696.030 (1)(L), advises, counsels, consults or analyzes in connection with real estate values, sales or dispositions, including dispositions through eminent domain procedures.

(m) 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.

(n) Performs real estate marketing activity as described in ORS 696.600.

[(14)] (12) “Real estate” includes leaseholds and licenses to use including, but not limited to, timeshare estates and timeshare licenses as defined in ORS 94.803, as well as any and every interest or estate in real property, whether corporeal or incorporeal, whether freehold or nonfreehold, whether held separately or in common with others and whether the real property is situated in this state or elsewhere.

[(15)] (13) “Real estate broker” means a person who engages in professional real estate activity and who is licensed as a real estate broker.

[(16)] (14) “Real estate licensee” means a real estate broker, principal real estate broker or real estate property manager.

[(17)] (15) “Real estate property manager” means a real estate licensee who is authorized to engage in management of rental real estate.

[(18)] (16) “Registered business name” means a name registered with the Real Estate Agency under which the person registering the name engages in professional real estate activity.

(17) “Sole practitioner” means a real estate broker conducting professional real estate activity not in conjunction with other real estate brokers or principal real estate brokers.

SECTION 2. ORS 696.022 is amended to read:

696.022. (1) The Real Estate Agency shall establish by rule a system for licensing real estate brokers, principal real estate brokers and real estate property managers. The system shall establish, at a minimum:

(a) The form and content of applications for licensing under each category of real estate professional licensed by the agency;

(b) A licensing examination for each category of license;

(d) The term of a license in each category; and

(e) Terms and conditions under which the license of a real estate licensee must be returned or transferred to the Real Estate Commissioner for purposes including, but not limited to, inactivation, suspension or termination of the license.

(2)(a) A real estate broker may engage in all of the professional activities of a real estate broker described in this chapter. [A real estate broker may conduct professional real estate activities as a sole practitioner or in conjunction with other real estate brokers or principal real estate brokers after the person has acquired three years of active experience as a real estate broker.] A real estate broker may not employ, engage or otherwise supervise the professional real estate activities of another real estate broker or principal real estate broker.

(b) In order to qualify for a real estate broker’s license, an applicant must furnish proof satisfactory to the [Real Estate] commissioner that the applicant has successfully completed the basic real estate broker’s educational courses and the examination required by rule of the agency. Proof of completion of all required courses must be provided at the time of applying for the license.

(c) A real estate broker may conduct professional real estate activities as a sole practitioner after:

(A) The person has acquired three years of active experience as a real estate broker; or

(B) The person has acquired three years of active experience as a real estate salesperson as defined in ORS 696.025 (1999 Edition) and has successfully completed the real estate broker’s examination required by rule of the agency.

(3)(a) A principal real estate broker may engage in all of the professional activities of a real estate broker described in this chapter. A principal real estate broker may conduct professional real estate activities [as a sole practitioner or] in conjunction with other real estate brokers or principal real estate brokers. In addition, a principal real estate broker may employ, engage and otherwise supervise the professional real estate activities of real estate brokers or principal real estate brokers.

[(b) In order to qualify for a principal real estate broker’s license, an applicant must meet the requirements of subsection (2)(b) of this section and must furnish proof satisfactory to the commissioner that the applicant has successfully completed courses in brokerage administration and sales supervision, as required by agency rule, and has three years of active experience as a licensed real estate broker.]

(b) In order to qualify for a principal real estate broker’s license, an applicant must meet the requirements of subsection (2)(b) of this section and must furnish proof satisfactory to the commissioner that the applicant has successfully completed the brokerage administration and sales supervision course, as required by agency rule, and has:

(A) Three years of active experience as a licensed real estate broker; or

(B) Three years of active experience as a real estate salesperson as defined in ORS 696.025 (1999 Edition) and has successfully completed the real estate broker’s examination required by rule of the agency.

(4) In order to qualify for a real estate property manager’s license, an applicant must furnish proof satisfactory to the commissioner that the applicant has successfully completed courses in the legal aspects of real estate, real estate property management and accounting, bookkeeping and trust accounting practices. The applicant also must have successfully completed a real estate property manager’s license examination prescribed by rule of the agency. Proof of completion of all required courses must be provided at the time of applying for the license.

(5)(a) A license for a real estate broker, principal real estate broker or real estate property manager shall be granted only to a person who is trustworthy and competent to conduct professional real estate activity in a manner that protects the public interest. As a condition of licensing, the commissioner may require such proof of competence and trustworthiness as the commissioner deems necessary to protect the public interest.

(b) In implementing this subsection, the commissioner [may] shall require fingerprints and criminal offender information of an applicant for initial licensing [or] and may require fingerprints and criminal offender information of an applicant for license renewal. Fingerprints acquired under this subsection may be submitted to appropriate law enforcement agencies to determine any previous unlawful activity of the applicant.

(6) A license may be issued under this section only to persons who are 18 years of age or older.

(7) In order to qualify for a real estate broker’s license, a real estate salesperson licensed in another state or country must successfully complete a course of study and pass a real estate broker’s license examination, both as prescribed by agency rule.

(8) In order to satisfy the educational requirements under subsections (2) to (4) and (7) of this section, a course must be approved by the commissioner. The commissioner shall determine the final examination score acceptable as evidence of successful completion for each required course.

(9) The Real Estate Board may determine that an applicant for a principal real estate broker’s license or a real estate broker’s license has [real estate related] experience related to professional real estate activity that is equivalent to the experience required under [subsection] subsection (2) or (3) of this section.

SECTION 3. ORS 696.026 is amended to read:

696.026. (1) A real estate broker or principal real estate broker may conduct [business] professional real estate activity under the broker’s name [or may register], a registered business name [with the Real Estate Agency] or a name prescribed by agency rule. [Registering a business name allows the real estate broker or principal real estate broker to conduct professional real estate activity in the registered business name. The registered] The business name under which a broker conducts professional real estate activity has no license standing independent of the broker [registering the business].

(2) The agency by rule shall adopt a registration system for business names. The system shall allow the registration of any branch office of either a [real estate broker] sole practitioner or a principal real estate broker [acting as a sole practitioner].

(3) A real estate broker or principal real estate broker operating under a business name registered by the broker need not be an owner or officer of any organization otherwise lawfully entitled to use the registered business name or have an ownership interest in the registered name. However, all professional real estate activity conducted by or on behalf of the broker must be conducted under the business name registered by the broker.

(4) A real estate broker or principal real estate broker may register two or more business names if the business names are for affiliated or subsidiary business organizations. If a real estate broker or principal real estate broker registers the business names for two or more affiliated or subsidiary business organizations, the broker may conduct professional real estate activity separately under each business name. A real estate broker or principal real estate broker must supervise and control the professional real estate activity conducted under the broker’s name or registered business name.

(5) A real estate broker employed, engaged or supervised by a principal real estate broker for required training and supervision by the principal real estate broker may have an ownership interest in any business through which the principal broker conducts professional real estate activity, but may not control or supervise the professional real estate activity of the principal broker and may not interfere with or be responsible for the training and supervision of any other broker.

(6) A nonlicensed person may have an ownership interest in any business through which a real estate broker or principal real estate broker engages in professional real estate activity, but may not control or supervise the professional real estate activity of any real estate broker or principal real estate broker licensed to control or supervise the professional real estate activity of such business.

[(7) A real estate business in which two or more real estate brokers engage in professional real estate activity may not have two or more principal real estate brokers who are jointly responsible for the supervision and control of the professional real estate activity conducted through the business, unless the principal brokers enter into a written agreement and have written office policies dividing control and supervision responsibilities.]

[(8) Two or more principal real estate brokers operating under the same registered business name who have engaged one or more real estate brokers for training or supervision or who have supervisory control over other principal real estate brokers may not be jointly responsible for the supervision and control of the real estate brokers engaged by them or the other principal real estate brokers under their supervision unless the principal brokers enter into a written agreement and have written office policies dividing control and supervision responsibilities.]

[(9) Two or more principal real estate brokers operating under the same registered business name who have engaged one or more real estate brokers to provide administrative or managerial services may not be jointly responsible for supervision and control of the real estate brokers providing administrative or managerial services unless the principal brokers enter into a written agreement and have written office policies dividing the responsibilities for control and supervision.]

[(10)] (7) Two or more real estate brokers operating under the same registered business name who do not exercise any administrative or supervisory control over one another are solely responsible for their own professional real estate activity.

SECTION 4. ORS 696.030 is amended to read:

696.030. (1) ORS 696.010 to 696.375, 696.392, 696.395 to 696.430, 696.490, 696.600 to 696.785, 696.990 and 696.995 do not apply to, and the term “real estate licensee” does not include:

(a) A nonlicensed regular full-time employee of a single owner of real estate whose real estate activity involves the real estate of the employer and:

(A) Is incidental to the employee’s normal, numeral estate activities; or

(B) Is the employee’s principal activity, but the employer’s principal activity or business is not the sale, exchange, lease option or acquisition of real estate.

(b) A nonlicensed person acting as attorney in fact under a duly executed power of attorney from the owner or purchaser authorizing the supervision of the closing of or supervision of the performance of a contract for the sale, leasing or exchanging of real estate if the power of attorney was executed prior to July 1, 2002, in compliance with the requirements of law at the time of execution or if:

(A) The power of attorney is recorded in the office of the recording officer for the county in which the real estate is located;

(B) The power of attorney specifically describes the real estate; and

(C) The person does not use the power of attorney as a device to engage in professional real estate activity without obtaining the necessary real estate license.

(c) A nonlicensed person acting as attorney in fact under a duly executed power of attorney in which the authorized agent is the spouse of the principal, or the child, grandchild, parent, grandparent, sibling, aunt, uncle, niece or nephew of the principal or of the spouse of the principal, authorizing real estate activity if the power of attorney is recorded in the office of the recording officer for the county in which the real estate to be sold, leased or exchanged is located.

(d) An attorney at law rendering services in the performance of duties as an attorney at law.

(e) A person acting in the person’s official capacity as a receiver, a conservator, a trustee in bankruptcy, a personal representative or a trustee, or a regular salaried employee of the trustee, acting under a trust agreement, deed of trust or will.

(f) A person performing an act of professional real estate activity under order of a court.

(g) A nonlicensed regular full-time employee of a single nonlicensed corporation, partnership, association or individual owner of real property acting for the corporation, partnership, association or individual in the rental or management of the real property, but not in the sale, exchange, lease option or purchase of the real property.

(h) A registered professional engineer or architect rendering services in performance of duties as a professional engineer or architect.

(i) A nonlicensed individual employed by a real estate broker or principal real estate broker and acting as a manager for real estate if the real estate activity of the nonlicensed individual is limited to negotiating rental or lease agreements, checking tenant and credit references, physically maintaining the real estate, conducting tenant relations, collecting the rent, [and] supervising the premises’ managers and discussing financial matters relating to management of the real estate with the owner.

(j) A person, or an employee of the person, selling or leasing cemetery lots, parcels or units while engaged in the disposition of human bodies under ORS 97.010 to 97.040, 97.110 to 97.450, 97.510 to 97.730, 97.810 to 97.920 and 97.990.

(k) A salaried employee of the State of Oregon, or any of its political subdivisions, engaging in professional real estate activity as a part of such employment.

(L) A nonlicensed person, or a regular full-time employee of the person, analyzing or advising of permissible land use alternatives, environmental impact, building and use permit procedures or demographic market studies. This exclusion does not apply to the handling of transactional negotiations for transfer of an interest in real estate.

(m) A hotelkeeper or innkeeper as defined by ORS 699.005 arranging the rental of transient lodging at a hotel or inn in the course of business as a hotelkeeper or innkeeper.

(n) A travel agent arranging the rental of transient lodging at a hotel or inn as defined in ORS 699.005 in the course of business as a travel agent for compensation. For the purpose of this paragraph, “travel agent” means a person, and employees of the person, regularly representing and selling travel services to the public directly or indirectly through other travel agents.

(o) A common carrier arranging the rental of transient lodging at a hotel or inn as defined in ORS 699.005 in the course of business as a common carrier. For the purpose of this paragraph, “common carrier” means a person who transports or purports to be willing to transport persons from place to place by rail, motor vehicle, boat or aircraft for hire, compensation or consideration.

(p) A hotel representative arranging the rental of transient lodging at a hotel or inn as defined in ORS 699.005 in the course of business as a hotel representative. For the purpose of this paragraph, “hotel representative” means a person who provides reservations or sale services to independent hotels, airlines, steamship companies and government tourist agencies.

(q) A nonlicensed person transferring or acquiring an interest in real estate owned or to be owned by the person.

(r) A general partner for a domestic or foreign limited partnership duly registered and operating within this state under ORS chapter 70 engaging in the sale of limited partnership interests and the acquisition, sale, exchange, lease, transfer or management of the real estate of the limited partnership.

(s) A membership camping contract broker or salesperson registered with the Real Estate Agency selling membership camping contracts.

(t) A professional forester or farm manager engaging in property management activity on forest or farm land when the activity is incidental to the numeral estate duties involving overall management of forest or farm resources.

(u) A registered investment adviser under the Investment Advisers Act of 1940, 15 U.S.C. §80b-1 et seq., rendering real estate investment services for the office of the State Treasurer or the Oregon Investment Council.

(v) A nonlicensed person referring a new tenant for compensation to a real estate licensee acting as the property manager for a residential building or facility while the person resides in the building or facility or within six months after termination of the person’s tenancy.

(w) A nonlicensed person giving an opinion in an administrative or judicial proceeding regarding the value of real estate for taxation or representing a taxpayer under ORS 305.230 or 309.100.

(x) A nonlicensed person acting as a paid fiduciary whose real estate activity is limited to negotiating or closing a transaction to obtain the services of a real estate licensee.

(y) A nonlicensed person acting as a fiduciary under a court order, without regard to whether the court order specifically authorizes real estate activity.

(z) A financial institution or trust company, as those terms are defined in ORS 706.008, acting as attorney in fact under a duly executed power of attorney from the owner or purchaser authorizing real estate activity, if the power of attorney is recorded in the office of the county clerk for the county in which the real estate to be sold, leased or exchanged is located.

(2) The vesting of title to real estate in more than one person by tenancy by the entirety, tenancy in common or by survivorship shall be construed as that of a single owner for the purposes of this section.

SECTION 5. ORS 696.200 is amended to read:

696.200. (1) Except for real estate brokers associated with a principal real estate broker, every real estate broker and principal real estate broker shall maintain in this state a place of business to be designated as the broker’s main office and designate [such] the place of business by a sign [which shall contain] that contains the name under which [such] the broker is licensed.

(2) The place of business [shall] must be specified in the application for a real estate license, and designated in the license. Prior to the change of a business location, the broker shall notify the Real Estate Commissioner in writing of the new location. The change of a business location without notification to the commissioner is grounds for revocation of licenses previously issued.

(3) A real estate broker or principal real estate broker may establish one or more branch offices as separate business locations under the management of the broker. A broker may conduct and supervise the business of more than one office, whether main or branch. The broker [must] shall register each branch office with the commissioner and designate each branch office by a sign that contains the name under which the broker is licensed.

(4) Upon [removal from] vacating any business location, [it shall be a broker’s duty to see] the broker shall ensure that the sign containing the broker’s name or the name under which the broker has operated is removed from the location [which] that the broker has vacated. A broker [shall] may not display any name [as such] at the designated places of business named in the broker’s license or licenses other than the name under which the broker is licensed.

SECTION 6. ORS 696.205 is amended to read:

696.205. (1) [In the event of the death or incapacity of a licensed broker] If a real estate licensee who is a sole practitioner or who is the sole principal real estate broker of a real estate business dies or becomes incapacitated, the Real Estate Commissioner may issue a temporary license to the executor, administrator or personal representative of the estate of the deceased [broker,] real estate licensee or to the court-appointed fiduciary of the incapacitated [broker] real estate licensee, or to some other person designated by the commissioner, in order to continue to transact [said] the real estate business in the case of [an] the incapacitated [broker] real estate licensee or [for the purpose of winding] to wind up the affairs of the deceased or incapacitated [broker.] real estate licensee. The term of a temporary license issued under this section may not exceed one year from the date of issuance unless the commissioner, in the discretion of the commissioner, extends the term of the temporary license [upon] based on sufficient cause [being furnished] provided by the temporary licensee to the commissioner [by the temporary licensee, the term of a temporary license shall not exceed one year from the date of issuance].

(2) The Real Estate Agency may adopt administrative rules to administer this section or to authorize a person to transact or wind up real estate business on behalf of the deceased or incapacitated real estate licensee.

SECTION 7. ORS 696.232 is amended to read:

696.232. (1) An employee or officer of the Real Estate Agency licensed as a real estate licensee under this chapter shall return the employee’s or officer’s license to the agency at the time of commencing employment. The agency shall hold the license as an active license held in suspense. At the termination of an employee’s or officer’s employment, the license may be returned to the licensee as an active or inactive license. The [license shall be returned to the licensee] agency shall activate a license held in suspense without payment of further fee, and [shall expire] the license expires on the date on which it would have expired if the license had not been held in suspense.

(2) Except as stated in subsection (1) of this section, the return of the license to the licensee and all renewals [shall be] are subject to the provisions of ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to 696.855 and 696.995.

NOTE: Section 8 was deleted by amendment. Subsequent sections were not renumbered.

SECTION 9. ORS 696.320 is amended to read:

696.320. The suspension or revocation of a principal real estate broker’s license [shall suspend automatically] renders inactive every license of the real estate brokers engaged by the principal real estate broker pending a transfer of the license. [A license shall be transferred] The Real Estate Agency shall transfer a license rendered inactive under this section if [requested] the real estate licensee requests a transfer within 30 days after the effective date of the suspension or revocation of the principal real estate broker’s license[, upon payment of] and pays a transfer fee [and upon the receipt of the broker’s original license].

SECTION 10. ORS 696.511 is amended to read:

696.511. (1) A person may not directly or indirectly engage in or carry on, or purport to engage in or carry on, the business of an escrow agent or act in the capacity of an escrow agent without first obtaining a license as an escrow agent under the provisions of ORS 696.505 to 696.590.

(2)(a) Every escrow agent before engaging in the escrow business shall file in the office of the Real Estate Commissioner an application for a license, in writing, verified by the applicant and in the form prescribed by the commissioner. The application must include the location of the agent’s [principal] main office and all branch offices in this state, the name or style of doing business, the names, resident and business addresses of all persons interested in the business as principals, partners, elected officers, trustees and directors, specifying as to each the person’s capacity and title, the general plan and character of business and the length of time the agent has been engaged in business. Notification of changes in the information contained in the application or in the ownership of the business must be immediately filed with the commissioner.

(b) If the applicant is an individual, the applicant must be 18 years of age or older.

(3) For the initial license of an escrow agent, the commissioner may require information and evidence the commissioner considers necessary to demonstrate the applicant’s qualifications to transact escrow business including, but not limited to, information regarding the applicant’s financial resources, the applicant’s escrow business in another state or the experience or training of employees in escrow business, or a testimonial of an escrow agent licensed in this state. Subject to subsection (4) of this section, an applicant:

(a) Who is an individual must demonstrate a minimum of three years of experience in the administration of escrows within Oregon or a state with comparable escrow laws; or

(b) Who is not an individual must demonstrate a minimum collective experience among its personnel of three years in the administration of escrows within Oregon or a state with comparable escrow laws.

(4) The commissioner may waive the three-year experience requirement in subsection (3) of this section for an applicant who demonstrates other qualifications sufficient to ensure the protection of the public.

(5) For the initial license or license renewal of an escrow agent, [the commissioner may require additional information the commissioner considers necessary to protect the public including, but not limited to, the fingerprints and criminal offender information of the applicant] the commissioner shall require fingerprints and criminal offender information of an applicant for an initial license and may require fingerprints and criminal offender information of an applicant for license renewal. The commissioner may require additional information for an initial license or license renewal under this subsection that the commissioner considers necessary for protecting the public. For purposes of requiring fingerprints and criminal offender information, “applicant” means a person who has more than five percent ownership interest in the escrow agency and the corporate officers in direct control of escrow operations.

(6) For license renewal, an escrow agent shall provide:

(a) A certification of training, by which the applicant certifies that the applicant provides escrow agency staff within Oregon with an average of six hours or more of training per year per permanent, full-time employee in subjects that bear directly on the administration of escrows; and

(b) A statement identifying by name, address and telephone number one or more individuals who can respond to the inquiries of or referrals by the commissioner or the commissioner’s authorized representative regarding the applicant’s escrow business.

(7) The commissioner, if satisfied that the applicant should not be refused a license under ORS 696.535, shall issue or renew an escrow agent license for an applicant that complies with the requirements of ORS 696.505 to 696.590.

(8) To qualify for issuance or renewal of an escrow agent license, an applicant shall pay any outstanding civil penalties or other moneys due and owing to the Real Estate Agency except civil penalties or other moneys due that are the subject of judicial or administrative review on the date of the application for license or license renewal.

SECTION 11. ORS 696.530 is amended to read:

696.530. (1) The license of an escrow agent expires June 30 next after the date of issuance if it is not renewed by July 1 of such year. A license may be renewed by filing a renewal application in writing, verified by the applicant and in the form prescribed by the Real Estate Commissioner, and paying the annual license fee for the next succeeding fiscal year.

(2) The filing fees [shall be] are:

(a) For filing an original or a renewal application, $300 for the [principal] main office and $150 for each branch office.

(b) For filing an application for a duplicate copy of [any] a license, upon satisfactory showing of [such] loss of the license, the sum of $20.

(c) For [each] a name change [of an escrow agent] or a change of address of [a principal or branch office in the records of the agency] an escrow agent, $10 for the main office plus $10 for each affected branch office.

SECTION 12. ORS 696.775 is amended to read:

696.775. [The lapsing or suspension of a license by operation of law or by order of the Real Estate Commissioner or decision of a court of law, or the voluntary surrender of a license by a licensee shall not deprive the commissioner of jurisdiction to proceed with any investigation of or any action or disciplinary proceedings against such licensee, or to revise or render null and void an order suspending or revoking such license] The lapsing or suspension of a license, whether by operation of law, order of the Real Estate Commissioner, decision of a court of law, inactive status of the license or voluntary surrender of the license by the licensee, does not deprive the commissioner of jurisdiction to:

(1) Proceed with an investigation of the licensee;

(2) Conduct disciplinary proceedings relating to the licensee;

(3) Take action against a licensee, including assessment of a civil penalty against the licensee for a violation of ORS 696.020 (1); or

(4) Revise or render null and void an order suspending or revoking a license.

SECTION 13. ORS 696.800 is amended to read:

696.800. As used in ORS 696.392, 696.600 to 696.785, 696.800 to 696.855 and 696.995, unless the context requires otherwise:

(1) “Agent” means:

(a) A real estate broker or principal real estate broker who has entered into:

(A) A listing agreement with a seller;

(B) A service contract with a buyer to represent the buyer; or

(b) A person licensed under ORS 696.022 who has entered into a written contract with a real estate broker or principal real estate broker to act as the broker’s agent in connection with acts requiring a real estate license and to function under the broker’s supervision.

(2) “Buyer” means a potential transferee in a real property transaction, and includes a person who:

(a) Executes an offer to purchase real property from a seller through an agent; or

(b) Enters into an exclusive representation contract or buyer’s service agreement with a real estate broker or principal real estate broker, whether or not a sale or transfer of property results.

(3) “Confidential information” means information communicated to a real estate licensee or the licensee’s agent by the buyer or seller of one to four residential units regarding the real property transaction, including but not limited to price, terms, financial qualifications or motivation to buy or sell. “Confidential information” does not mean information that:

(a) The buyer instructs the licensee or the licensee’s agent to disclose about the buyer to the seller or the seller instructs the licensee or the licensee’ agent to disclose about the seller to the buyer; and

(b) The licensee or the licensee’s agent knows or should know failure to disclose would constitute fraudulent representation.

(4) “Disclosed limited agency” means a real property transaction in which the representation of a buyer and seller or the representation of two or more buyers occurs within the same real estate business.

(5) “Listing agreement” means a contract between a seller of real property and a real estate broker or principal real estate broker by which the broker has been authorized to act as an agent of the seller for compensation to offer the real property for sale or to find and obtain a buyer.

(6) “Listing price” means the amount expressed in dollars, specified in the listing agreement, for which the seller is willing to sell the real property through the listing agent.

(7) “Offer” means a written proposal executed by a buyer for the sale or lease of real property.

(8) “Offering price” is the amount expressed in dollars specified in an offer to purchase for which the buyer is willing to buy the real property.

(9) “Principal” means the person who has permitted or directed an agent to act on the principal’s behalf. In a real property transaction, this generally means the buyer or the seller.

(10) “Real property” means any estate in real property, including a condominium as defined in ORS 100.005, a timeshare property as defined in ORS 94.803 and the granting of an option or right of first refusal. “Real property” also includes a mobile home or manufactured dwelling owned by the same person who owns the land upon which the mobile home or manufactured [home] dwelling is situated. “Real property” does not include a leasehold in real property.

(11) “Real property transaction” means a transaction regarding real property in which an agent is employed by one or more of the principals to act in that transaction and includes but is not limited to listing agreements, buyer’s service agreements, exclusive representation contracts and offers to purchase.

(12) “Sale” or “sold” refers to a transaction for the transfer of real property from the seller to the buyer and includes:

(a) Exchanges of real property between the seller and the buyer and third parties; and

(b) Land sales contracts.

(13) “Seller” means a potential transferor in a real property transaction and includes an owner:

(a) Who enters into a listing agreement with a real estate broker or principal real estate broker, whether or not a transfer results; or

(b) Who receives an offer to purchase real property, of which the seller is the owner, from an agent acting on behalf of a buyer.

SECTION 14. ORS 696.800, as amended by section 84, chapter 655, Oregon Laws 2003, is amended to read: