Chapter 696 — Real Estate and Escrow Activities

696.005 [1963 c.580 §39; repealed by 1965 c.617 §8]

REAL ESTATE LICENSEES (Generally)

696.007 Statement of legislative purpose

The Sixty-second Legislative Assembly recognizes that notwithstanding amendments made to ORS chapter 696 by sections 9, 17, 19, 23, 25, 27 to 30, 32 and 40 to 43, chapter 649, Oregon Laws 1977, section 40, chapter 617, Oregon Laws 1981, and amendments made to ORS chapter 656 by chapter 864, Oregon Laws 1979, section 1, chapter 725, Oregon Laws 1981, and sect…

696.010 Definitions

As used in ORS 696.010 to 696.495, 696.600 to 696.785, 696.650 to 696.670, 696.800 to 696.870, 696.990, 696.995 and 696.997, unless the context requires otherwise: “Associated with” means to be employed, engaged or otherwise supervised by, with respect to the relationship between: A real estate broker and a managing principal broker; A licensed real estat…

696.015 Legislative finding; short title

The Legislative Assembly finds the activity of persons seeking to assist others, for compensation, to deal in real estate in this state to be a matter of public concern. The provisions of ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to 696.870, 696.990 and 696.995 are enacted to assist in creating for the public a healthy real estate market atmosphere…

696.020 License required for individuals engaged in professional real estate activities; exception; rules

The Real Estate Agency may issue a real estate license only to an individual. An individual may not engage in, carry on, advertise or purport to engage in or carry on professional real estate activity, or act in the capacity of a real estate licensee, within this state unless the individual holds an active license as provided for in this chapter. Real esta…

696.022 Licensing system for real estate professionals; rules

The Real Estate Agency shall establish by rule a system for licensing real estate brokers, principal real estate brokers, licensed real estate property managers and timeshare sales agents. The system shall establish, at a minimum: The form and content of applications for licensing under each category of real estate professional licensed by the agency; A li…

696.024 Payments due and owing to Real Estate Agency

To qualify for a real estate license under ORS 696.022 or to renew an active or inactive real estate license, the applicant must make full payment of any unpaid moneys due and owing to the Real Estate Agency, including any unpaid civil penalties assessed under a final order of the Real Estate Commissioner. Note: See note under 696.022.

696.025 [1977 c.649 §8a; 1981 c.617 §3; 1987 c.468 §2; 1987 c.611 §13; 1989 c.724 §2; 1991 c.5 §27; repealed by 2001 c.300 §84]

696.026 Registration and renewal of business names; rules

The Real Estate Agency shall establish by rule systems for the registration and renewal of business names. The registration system must: Require the physical address associated with a registered business name to be the main office of a managing principal broker or licensed real estate property manager; Require the registered business name to be: The corp…

696.028 [2001 c.300 §30; repealed by 2009 c.324 §10]

696.030 Exemptions

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: A nonlicensed individual who is a full-time employee of an owner of real estate and whose real estate activity: Involves only the real estate of the employer; and Is incidental to the employee’s normal, nonreal estate activities; or Is t…

696.040 Single act sufficient to constitute professional real estate activity

One act or transaction of professional real estate activity is sufficient to constitute engaging in professional real estate activity, within the meaning of this chapter.

696.050 [Amended by 1955 c.322 §9; 1961 c.471 §1; 1963 c.412 §1; 1969 c.515 §1; 1969 c.674 §3; 1971 c.671 §1; 1973 c.416 §3; 1973 c.827 §78; 1974 c.36 §21; 1975 c.746 §3; 1977 c.191 §1; 1977 c.649 §13; 1981 c.617 §5; 1983 c.258 §1; 1989 c.532 §6; 1989 c.724 §3; 1991 c.5 §29; repealed by 2001 c.300 §84]

696.060 [Amended by 1975 c.746 §4; 1977 c.649 §14; 1981 c.617 §6; repealed by 2001 c.300 §84]

696.070 [Amended by 1963 c.412 §2; repealed by 1977 c.649 §53 and 1977 c.842 §17]

696.080 [Amended by 1975 c.746 §5; 1977 c.649 §15; 1981 c.617 §6a; 1987 c.611 §14; repealed by 2001 c.300 §84]

696.085 [1991 c.462 §2; repealed by 2001 c.300 §84]

696.090 [Amended by 1955 c.322 §10; repealed by 1977 c.649 §16 and 1977 c.842 §17 (694.169 enacted in lieu of 696.090)]

696.100 [Amended by 1963 c.412 §3; 1977 c.649 §17; repealed by 2001 c.300 §84]

696.110 Exclusive nature of regulation of real estate licensees

The provisions of ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to 696.870 and 696.995 shall be exclusive and no political subdivision or agency of this state shall require or issue any license or charge any fee for licensing or regulation of individuals licensed under ORS 696.022. Nothing in this section shall limit the authority of a county, city or …

696.120 [Amended by 1977 c.649 §18; repealed by 2001 c.300 §84]

696.125 Limited license

The Real Estate Commissioner may issue a limited license to an applicant for a license as a real estate broker, principal real estate broker, real estate property manager or timeshare sales agent if the commissioner determines that the issuance is in the public interest. The commissioner may limit a license issued under this section: By term; To acts subje…

696.130 Effect of revocation of license; limited license

If the license of a real estate broker, principal real estate broker or timeshare sales agent is revoked by the Real Estate Commissioner on grounds related to professional real estate activity other than the management of rental real estate, the commissioner may not issue a new license until the individual complies with the provisions of ORS 696.010 to 696.4…

696.140 [Amended by 1961 c.471 §2; 1963 c.412 §4; 1973 c.416 §5; repealed by 1975 c.746 §10 (696.141 enacted in lieu of 696.140)]

696.141 [1975 c.746 §11 (enacted in lieu of 696.140); 1977 c.649 §51; 1979 c.243 §1; repealed by 2001 c.300 §84]

696.150 [Amended by 1977 c.649 §20; repealed by 2001 c.300 §84]

696.160 [Amended by 1969 c.674 §5; 1975 c.746 §12; 1977 c.649 §21; 1987 c.611 §16; 1989 c.724 §4; 1991 c.5 §31; repealed by 2001 c.300 §84]

696.162 [1975 c.746 §8; 1977 c.190 §1; 1977 c.649 §22; 1981 c.617 §8; 1987 c.468 §3; repealed by 1991 c.5 §46]

696.165 [1953 c.166 §4; 1969 c.674 §6; 1977 c.649 §23; 1981 c.617 §8a; 1991 c.5 §32; repealed by 2001 c.300 §84]

696.167 [1975 c.746 §9; 1977 c.649 §24; repealed by 1981 c.617 §41]

696.169 [1977 c.649 §16a (enacted in lieu of 696.090); 1989 c.724 §5; repealed by 2001 c.300 §84]

696.170 [Amended by 1955 c.322 §13; repealed by 1969 c.674 §20]

696.172 [1969 c.674 §9; repealed by 1975 c.746 §34]

696.174 License renewal; reactivation; continuing education courses; rules

To renew an active license or to reactivate a license for the first time since the license was renewed to an inactive status, a real estate licensee, other than a timeshare sales agent, must complete 30 hours of real estate continuing education courses that are eligible for credit under ORS 696.182 during the two years preceding the renewal or reactivation. …

696.176 [1969 c.674 §10; 1975 c.746 §13; 1977 c.649 §26; repealed by 2001 c.300 §84]

696.180 [Amended by 1977 c.649 §27; repealed by 2001 c.300 §84]

696.182 Continuing education; rules

The Real Estate Agency, with advice from real estate professionals and educators, shall establish by rule a system for certification and renewal of real estate continuing education providers. The agency shall include in the rules that an applicant for certification under this section must be: A main office or branch office, with a registered business name …

696.184 Duties of continuing education provider; rules

A real estate continuing education provider shall: Ensure that the courses offered by the continuing education provider meet the learning objectives adopted under ORS 696.182 (4)(b); Ensure that instructors who teach a real estate continuing education course meet the requirements set forth in ORS 696.186; and Keep records of each course offered, for at le…

696.186 Qualifications of continuing education instructors; rules

A person must have one of the following qualifications to teach a real estate continuing education course that is eligible for credit required under ORS 696.174: A bachelor’s degree and two years of experience working in a field related to the topic of the course; Six years of experience working in a field related to the topic of the course; A total of si…

696.190 [Amended by 1977 c.649 §28; repealed by 1981 c.617 §41]

696.200 Main office; branch offices; change of business location

A licensed real estate property manager or managing principal broker shall: Establish and maintain in this state a place of business designated as the real estate licensee’s main office; Register the main office with the Real Estate Agency under a registered business name as provided in ORS 696.026; Designate the main office by a sign that contains the na…

696.205 Death or incapacity of sole principal real estate broker or sole licensed real estate property manager; temporary license; rules

If a real estate licensee who is the sole principal real estate broker or sole licensed real estate property manager of a registered business name 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 real estate licensee or to the cour…

696.210 [Amended by 1977 c.649 §30; repealed by 2001 c.300 §84]

696.220 [Repealed by 1955 c.322 §15]

696.221 [1955 c.322 §4; 1969 c.674 §12; 1977 c.649 §31; 1983 c.258 §2; 1991 c.5 §34; 2001 c.300 §18; repealed by 2005 c.116 §24]

696.224 [1955 c.322 §5; 1969 c.674 §13; 1977 c.649 §32; 1983 c.258 §3; 1989 c.724 §12; 1991 c.5 §35; repealed by 2001 c.300 §84]

696.226 [1955 c.322 §2; 1977 c.649 §33; 1983 c.258 §4; 1991 c.5 §36; 2001 c.300 §19; repealed by 2005 c.116 §24]

696.228 [1969 c.674 §8; 1977 c.649 §34; 1983 c.258 §5; repealed by 2001 c.300 §84]

696.230 [Repealed by 1969 c.674 §21]

696.232 License status of employee of agency; reissuance upon termination of employment

The license status of a real estate licensee employed by the Real Estate Agency shall be placed on hold at the time that the real estate licensee commences employment with the agency. At the termination of the employment, the license may be returned to the real estate licensee as an active or inactive license. The agency shall activate a license placed on ho…

696.235 [1975 c.746 §15; 1977 c.649 §36; 1981 c.617 §11; 1989 c.724 §7; 1995 c.335 §2; 2001 c.300 §20; repealed by 2005 c.116 §24]

696.237 Managing principal broker supervision and control

A managing principal broker shall exercise reasonable supervision and control over the activities of real estate brokers and principal real estate brokers associated with the managing principal broker. Reasonable supervision and control includes the establishment and enforcement of written policies, procedures and systems to: Review and manage professional …

696.240 [Amended by 1957 c.383 §1; 1963 c.580 §49; repealed by 1975 c.746 §17 (696.241 enacted in lieu of 696.240)]

(Client Trust Fund Accounts)

696.241 Clients’ trust accounts; commingling of funds; branch trust account; interest earnings on trust account; when broker entitled to earnest money; funds not subject to execution; rules

As used in this section, “trust funds” means money belonging to others that is received or handled by a licensed real estate property manager or principal real estate broker in the course of conducting professional real estate activity and in the real estate licensee’s fiduciary capacity. A licensed real estate property manager, or a managing principal brok…

696.243 Substituting copy for original canceled check allowed; electronic fund transfers

Any principal real estate broker, licensed real estate property manager or escrow agent who is required by the Real Estate Commissioner to maintain the canceled checks used to disburse moneys from the real estate licensee’s clients’ trust account may substitute a copy of the original canceled check, if the copy is provided by a bank and is produced by optica…

696.245 Clients’ trust accounts; notice to bank and agency; retention of copy

Each licensed real estate property manager and managing principal broker, at the time a clients’ trust account is opened as required under ORS 696.241, shall provide the bank in which the account is opened with a notice, acknowledged by the real estate licensee and the bank, in substantially the following form: ______________________________________________…

696.247 [1989 c.916 §1; 1991 c.716 §1; repealed by 1997 c.801 §37]

696.249 [1989 c.916 §2; 1991 c.716 §2; repealed by 1997 c.801 §37]

696.250 [Amended by 1953 c.202 §2; 1961 c.675 §1; 1965 c.367 §2; 1969 c.674 §14; 1975 c.746 §19; 1977 c.649 §37; 1981 c.617 §12; repealed by 1989 c.532 §10]

696.251 [1989 c.916 §2a; repealed by 1997 c.801 §37]

696.253 [1989 c.916 §3; repealed by 1997 c.801 §37]

696.254 [1989 c.916 §7; 1991 c.716 §4; 1993 c.744 §176; repealed by 1997 c.801 §37]

(Nonresident and Reciprocal Real Estate Broker and Salesperson Licensing)

696.255 Nonresident license equivalent to appointment of commissioner as agent for service of process; service on commissioner; fee

The acceptance by a nonresident of a real estate license shall be considered equivalent to an appointment by the nonresident of the Real Estate Commissioner as the nonresident licensee’s true and lawful attorney, upon whom may be served any lawful summons, process or pleading in any action or suit against the nonresident licensee in any court of this state, …

696.258 [1989 c.532 §1; repealed by 2001 c.300 §84]

696.260 [Repealed by 1977 c.649 §53 and 1977 c.842 §17]

696.262 [1989 c.532 §§2,3; repealed by 1999 c.470 §4]

696.265 Recognition of nonresident real estate licensee; rules

Notwithstanding ORS 696.040 to 696.232 and 696.255, the Real Estate Commissioner may prescribe by rule the terms and conditions for license recognition of a nonresident real estate broker or salesperson and for reciprocity agreements with other states and countries, including but not limited to application procedures, license qualifications, license maintena…

696.270 Fees

The Real Estate Commissioner, with the approval of the Oregon Department of Administrative Services, shall prescribe the fees that the Real Estate Agency may charge for activities listed under this section, subject to the following maximum amounts: For each licensing examination applied for, $75. For each applicant for a real estate broker, principal real …

696.275 [1977 c.873 §18; repealed by 1987 c.58 §15]

696.280 Records of licensed real estate property managers and managing principal brokers; rules

A licensed real estate property manager or managing principal broker shall maintain within this state, except as provided in subsection (6) of this section, complete and adequate records of all professional real estate activity conducted by or through the licensed real estate property manager or managing principal broker. The Real Estate Agency shall specify…

696.290 Sharing compensation with or paying finder’s fee to unlicensed person prohibited; exceptions

Except as provided in this subsection, a real estate licensee may not offer, promise, allow, give, pay or rebate, directly or indirectly, any part or share of the licensee’s 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 696.022, including a nonlicense…

696.292 Limitation on demand for compensation

An individual listed in ORS 696.030 may not make a demand for the compensation of a real estate licensee under ORS 696.290. Note: 696.292 was added to and made a part of ORS chapter 696 by legislative action but was not added to any smaller series therein. See Preface to Oregon Revised Statutes for further explanation.

696.294 Letter opinion; rules

As used in this section, “letter opinion” means: A document that expresses a real estate broker’s, principal real estate broker’s, managing principal broker’s or licensed real estate property manager’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 lic…

696.300 [Amended by 1959 c.585 §1; 1961 c.670 §3; 1969 c.674 §17; 1971 c.743 §409; 1973 c.421 §50; 1974 c.1 §25; repealed by 1975 c.746 §22 (696.301 enacted in lieu of 696.300)]

696.301 Grounds for discipline

Subject to ORS 696.396, the Real Estate Commissioner may suspend or revoke the real estate license of any real estate licensee, reprimand any real estate licensee or deny the issuance or renewal of a license to an applicant who has: Created a reasonable probability of damage or injury to a person by making one or more material misrepresentations or false pr…

696.310 Intracompany supervision and control

Two or more principal real estate brokers may supervise real estate activities of real estate licensees associated with the same registered business name, only if a managing principal broker and a principal real estate broker: Execute one or more written supervisory agreements between the managing principal broker and principal real estate broker that: All…

696.315 Prohibition against licensee permitting nonlicensed individual to engage in activity with or on behalf of licensee; exception

Except as provided in subsection (2) of this section, a real estate licensee may not knowingly permit a nonlicensed individual to engage in professional real estate activity, with or on behalf of the licensee. A managing principal broker engaging in the management of rental real estate or a licensed real estate property manager may delegate to a person who …

696.320 Effect of suspension or revocation of principal broker license on associated licensees

The suspension or revocation of a managing principal broker’s license renders inactive every license of the real estate brokers and timeshare sales agents engaged by the managing principal broker pending a transfer of the license. The Real Estate Agency shall transfer a license rendered inactive under this section if the real estate licensee requests a trans…

696.323 Effect of violations by real estate licensee on associated licensees; contested case hearing

A violation of a provision of ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to 696.870 or 696.890, or a rule adopted pursuant to those sections, by a real estate licensee is not cause for the suspension or revocation of the license of another real estate licensee who is associated with the real estate licensee who committed the violation unless the Rea…

696.325 [1975 c.746 §36; 1977 c.649 §44; repealed by 1981 c.617 §41]

696.330 [Amended by 1967 c.206 §1; repealed by 1971 c.734 §21]

696.340 [Repealed by 1971 c.734 §21]

696.345 [1977 c.649 §4; repealed by 1991 c.5 §46]

696.350 [Repealed by 1971 c.734 §21]

696.355 [1977 c.649 §6; 1987 c.468 §4; 1991 c.5 §42; repealed by 2001 c.300 §84]

696.359 [1981 c.617 §39; repealed by 2001 c.300 §84]

696.360 [Amended by 1967 c.206 §2; repealed by 1971 c.734 §21]

696.361 [1987 c.611 §18; 1989 c.724 §17; 1991 c.5 §43; 2001 c.300 §33; repealed by 2013 c.145 §17]

696.363 Relationship between licensees as independent contractors or employer and employee

Nothing contained in ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to 696.870, 696.990 and 696.995 prevents the establishment of an independent contractor relationship between real estate licensees or requires the establishment of an employer-employee relationship.

696.365 City or county business license tax

A city or county may not impose a business license tax on or collect a business license tax from an individual licensed as a real estate broker or a timeshare sales agent who engages in professional real estate activity only as an agent of a managing principal broker. As used in this section, “business license tax” has the meaning given that term in ORS 701…

696.368 Future right to list; definition; limits; exceptions

As used in this section, “future right to list contract” means a contract granting a right to list, or to refer to another for listing, residential real estate for sale in the future and includes, but is not limited to, any document recorded in the county where the real estate is located relating to the contract, including the contract itself, a memorandum c…

696.370 Real estate teams; rules

As used in this section, “real estate team” means a subdivision of a registered business that performs professional real estate activities and is comprised of one or more real estate licensees operating under a name other than the registered business name. Upon approval of the managing principal broker, some or all associated real estate licensees in the ma…

696.375 Real Estate Agency; Real Estate Commissioner; confirmation, salary and security of commissioner

The Real Estate Agency is established. The Real Estate Agency shall be under the supervision and control of an administrator who shall be known as the Real Estate Commissioner. The Governor shall appoint the Real Estate Commissioner who shall have been, before the date of appointment, for five years a real estate broker or principal real estate broker activ…

696.380 [Repealed by 1963 c.580 §103]

696.385 Power of agency; rulemaking procedures

The Real Estate Agency shall have the power to: Adopt a seal by which it shall authenticate its proceedings. From time to time, circulate among the real estate licensees of Oregon any material that the agency may deem helpful or educational or proper for the guidance and welfare of the real estate licensees. Make and enforce rules as necessary to administ…

696.390 [Repealed by 1963 c.580 §103]

696.392 Power of commissioner to administer oaths, take depositions and issue subpoenas

The Real Estate Commissioner may administer oaths, take depositions and issue subpoenas to compel the attendance of witnesses and the production of books, papers, records, memoranda or other information necessary to the carrying out of the laws the commissioner is charged with administering. If any person fails to comply with a subpoena issued under this se…

696.395 Power of commissioner

The Real Estate Commissioner shall have the power to: For the purpose of administration, organize and reorganize, as necessary, the Real Estate Agency in the manner that the commissioner deems necessary to properly conduct the work of the agency. Appoint all subordinate officers and employees of the agency, or such other agents or representatives, and pres…

696.396 Investigation of complaints and progressive discipline; rules

The Real Estate Commissioner shall provide by rule for the progressive discipline of real estate licensees and an objective method for investigation of complaints alleging grounds for discipline under ORS 696.301. The rules adopted by the commissioner under this section: Must establish procedures for the discovery of material facts relevant to an investiga…

696.397 Cease and desist order

If the Real Estate Agency has reason to believe that a person has engaged, is engaging or is about to engage in a violation of ORS 696.020 (2) or 696.603 (1), the agency may, subject to ORS chapter 183, issue an order directing the person to cease and desist from the violation or threatened violation. A cease and desist order issued under subsection (1) of …

696.398 Delegation by commissioner to employees; requirements

The Real Estate Commissioner may delegate to any of the officers and employees of the Real Estate Agency to exercise or discharge in the commissioner’s name any power, duty or function vested in or imposed upon the commissioner under this chapter. The power to administer oaths and affirmations, subpoena witnesses, take evidence and require the production of …

696.400 [Repealed by 1963 c.580 §103]

696.405 Real Estate Board; appointment; term; qualifications; compensation; expenses

The Real Estate Board is established within the Real Estate Agency. The board shall consist of nine members appointed by the Governor to hold office for a period of four years, but to serve at the pleasure of the Governor. Seven members of the board appointed by the Governor must have been, before the date of their appointment, real estate licensees actively…

696.410 [Repealed by 1963 c.580 §103]

696.415 Officers; meetings; quorum

The Real Estate Board shall annually select one of its members as chairperson, who shall preside at the meetings of the board. In the absence of the chairperson some other member of the board may serve as chairperson. The board shall meet at such times and places as determined by the board and may also meet upon call of the chairperson. A majority of the bo…

696.420 [Repealed by 1963 c.580 §103]

696.425 Powers and duties of board; expenses

The Real Estate Board is authorized to inquire into the needs of the real estate licensees of Oregon, the functions of the Real Estate Agency and the matter of the business policy thereof, to confer with and advise the Governor as to how the agency may best serve the state and the licensees, and to make recommendations and suggestions of policy to the agency…

696.430 Records of commissioner as evidence; records open to inspection; rules

Copies of all records and papers in the office of the Real Estate Commissioner duly certified and authenticated by the seal of the commissioner shall be received in evidence in all courts equally and with like effect as the original. Except for records of open investigations, all records kept in the office of the commissioner under authority of ORS 696.010 t…

696.435 [1963 c.546 §5; 1965 c.617 §6; repealed by 2001 c.300 §84]

696.440 [Repealed by 1963 c.580 §103]

696.445 Advancement of education and research; Oregon Real Estate News Journal; content as to disciplinary actions

Pursuant to ORS 696.385 (2), the Real Estate Agency shall provide for the advancement of education and research in connection with the educational requirements for the securing of licenses for real estate licensees under ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to 696.870 and 696.995. The Real Estate Commissioner may assign and reassign staff in …

696.450 [Repealed by 1963 c.580 §103]

696.460 [Repealed by 1963 c.580 §103]

696.470 [Repealed by 1963 c.580 §103]

696.480 [Amended by 1977 c.649 §49; repealed by 1981 c.617 §41]

696.490 Real Estate Account; disposition of receipts

There is established in the General Fund of the State Treasury the Real Estate Account. All moneys, fees and charges collected or received by the Real Estate Agency shall be deposited in the account. The moneys in the Real Estate Account are continuously appropriated for the payment of the expenses of the agency in carrying out the provisions of ORS 92.305 …

696.495 Revolving fund; amount; use; procedure for repayment

Upon written request by the Real Estate Agency, the Oregon Department of Administrative Services shall draw a warrant on the Real Estate Account, established by ORS 696.490, for use as a revolving fund. Warrants drawn to establish or increase the revolving fund, rather than to reimburse the revolving fund, may not exceed the aggregate sum of $1,500. The Stat…

696.500 [Amended by 1959 c.27 §1; repealed by 1961 c.309 §5]

ESCROWS AND ESCROW AGENTS (Generally)

696.505 Definitions for ORS 696.505 to 696.590

As used in ORS 696.505 to 696.590: “Business day” means a day other than Saturday or Sunday or a federal or State of Oregon legal holiday. “Close an escrow” means the final disbursement of all funds, property and documents in an escrow as directed by written escrow instructions from the principals. “Collection escrow” means an escrow in which the escrow a…

696.508 Legislative finding; short title

The Legislative Assembly finds the activity of escrow agents in handling large sums of money and important rights of clients to be of public concern. In order to permit uniform and equitable regulation of all escrow agents and to improve the standards of escrow conduct, the provisions of ORS 696.505 to 696.590 shall be construed to grant the Real Estate Comm…

696.510 [Repealed by 1961 c.309 §6]

(Licensing)

696.511 License requirement; licensing system; rules

A person may not directly or indirectly engage in or carry on, or purport to engage in or carry on, within this state, the business of an escrow agent, or act in the capacity of an escrow agent, unless the person holds an active license as an escrow agent under the provisions of ORS 696.505 to 696.590. The Real Estate Commissioner shall establish by rule a …

696.515 [1963 c.440 §3; repealed by 1981 c.617 §41]

696.520 Application of ORS 696.505 to 696.590

The provisions of ORS 696.505 to 696.590 do not apply to and the term “escrow agent” does not include: Any person doing business under the laws of this state or the United States relating to banks, mutual savings banks, trust companies, savings and loan associations, consumer finance companies, or insurance companies except to the extent that the person pro…

696.523 Application of ORS 696.505 to 696.590 to title insurance activities

The provisions of ORS 696.505 to 696.590 apply to those escrow activities of a title insurance company, or an insurance producer of a title insurance company which prepares abstracts or makes searches of title which are used as a basis for the insurance of titles by a title insurance company.

696.525 Bond for escrow agents

At the time of filing an application for an escrow agent license, the applicant shall deposit with the Real Estate Commissioner a corporate surety bond running to the State of Oregon, executed by a surety company satisfactory to the commissioner, in the amount required by this section. If the total annual receipts of client trust funds, as reported in the r…

696.527 Deposits in lieu of bond; payment of claims; waiver

Any escrow agent may satisfy the requirements of ORS 696.525 by depositing with the State Treasurer, in an amount equal to the surety bond required, a deposit consisting only of the following: Cash; Ample secured obligations of the United States, a state or a political subdivision thereof; Certificates of deposit, assignments of certificates of deposit or…

696.530 Expiration and renewal of license; fees; rules

The license of an escrow agent expires on the June 30 after the date of issuance or on a date specified by rule of the Real Estate Commissioner. A license may be renewed as prescribed by rule of the commissioner, which may include paying any required fees. The filing fees are: For filing an original or a renewal application, $450 for the main office and $2…

696.532 Limited license

The Real Estate Commissioner may issue or renew a limited escrow agent license if the commissioner determines it is in the public interest. The commissioner may limit a license issued under this section: By term; To activities subject to supervision by a specific escrow agent; By conditions to be observed in the exercise of the privileges granted; or In…

696.534 Records of escrow agents; rules

An escrow agent shall keep and maintain at all times in the licensed office of the agent, complete and suitable records of escrow transactions made by the agent and of the business of the agent including, but not limited to, books, papers and data clearly reflecting the financial condition of the business of the agent. The records must be open for inspection…

696.535 Grounds for refusing, suspending or revoking license or reprimanding licensee

The Real Estate Commissioner may suspend or revoke the license of an escrow agent, reprimand an escrow agent who is licensed, refuse to issue an escrow agent license to an applicant or refuse to renew the license of an escrow agent, if the escrow agent or applicant: Is insolvent under generally accepted accounting principles; Demonstrated untrustworthiness…

696.540 [1963 c.440 §8; repealed by 1977 c.351 §11 and 1977 c.842 §17 (696.541 enacted in lieu of 696.540)]

696.541 Authority of commissioner over escrow agents; rules

The Real Estate Commissioner shall have general supervision and control over all escrow agents doing business in this state. Subject to ORS chapter 183, the commissioner may adopt such rules as reasonably necessary for the administration and enforcement of ORS 696.505 to 696.590. All escrow agents are subject to audits or examinations by the commissioner, o…

696.545 Investigation; injunction; jurisdiction

The Real Estate Commissioner may investigate either upon complaint or otherwise whenever it appears that an escrow agent has violated ORS 696.505 to 696.590 or that any person is engaging in the escrow business without being licensed under the provisions of ORS 696.505 to 696.590. If upon investigation it appears that such agent is so conducting business th…

696.550 [1963 c.440 §10(1), (2); repealed by 1971 c.734 §21]

696.555 Commissioner to take possession of property and assets of escrow agent when assets or capital impaired; appointment of receiver

When the Real Estate Commissioner ascertains by examination or otherwise that the assets or capital of any agent are impaired, as described in ORS 696.535 (1)(a), the commissioner may immediately take possession of all the property, business and assets of the agent which are located in this state and retain possession of them pending the further proceedings …

696.560 [1963 c.440 §11; 1975 c.746 §31; 1981 c.617 §30; 1985 c.589 §5; renumbered 696.578]

696.565 [1963 c.440 §12; renumbered 696.579]

696.570 Hearings procedure under ORS 696.505 to 696.590; subpoena

All hearings before the Real Estate Commissioner or the commissioner’s authorized representative conducted under the authority of ORS 696.505 to 696.590 shall be conducted in accordance with the provisions of ORS chapter 183. The commissioner, or anyone authorized by the commissioner, shall have the power to subpoena witnesses and administer oaths in connec…

696.575 Civil or criminal actions not limited by ORS 696.505 to 696.590

Nothing in ORS 696.505 to 696.590 shall limit any statutory or common law right of any person to bring any action in any court for any act involved in the transaction of the escrow business or the right of the state to punish any person for any violation of any law.

696.577 Commissioner’s order against unlicensed agent

Whenever the Real Estate Commissioner finds that any person is offering to engage in or engaging in the business of an escrow agent without a license as an escrow agent as required under ORS 696.505 to 696.590, the commissioner may order the person to cease and desist from offering to engage in or engaging in the business of an escrow agent. Any proceeding u…

696.578 Deposit and designation of funds held in escrow; treatment of earnings on escrow account; notice

All funds received by an escrow agent to be delivered upon the close of the escrow or upon any other contingency are trust funds that must be deposited and maintained in a bank authorized to do business within this state. The funds must be deposited in a federally insured account designated as an escrow trust account and kept separate, distinct and apart fro…

696.579 Funds exempt from execution or attachment; designation of funds

Escrow or trust funds are not subject to execution or attachment on any claim against the escrow agent. No person shall knowingly keep or cause to be kept any funds or money in any bank under the heading of “trust funds” or “escrow accounts” or any other name designating such funds or money as belonging to the clients of any escrow agency, except actual esc…

696.580 [1963 c.440 §15; repealed by 1973 c.794 §34]

696.581 Written escrow instructions or agreement required; statement; instructions containing blank prohibited; one-sided escrow; exceptions

An escrow agent may not accept funds, property or documents in any escrow transaction without dated, written escrow instructions from the principals to the transaction or a dated executed agreement in writing between the principals to the transaction. Except as provided in this section, an escrow agent must follow dated, written escrow instructions executed…

696.582 Escrow agent to hold certain compensation; conditions; notice of demand; disbursement of money; copy of notice to principal

An escrow agent shall hold, as provided in subsection (3) of this section, the amount of money or other property agreed to as compensation in a written real estate broker’s or principal real estate broker’s compensation agreement, if the escrow agent has at the office at which the escrow is being closed, before the date of closing: A written notice of compe…

696.585 Civil penalties

Any person who violates any provision of ORS 696.505 to 696.590, or any lawful rule or final order of the Real Estate Commissioner or any final judgment made by any court upon application of the commissioner, may be required to forfeit and pay to the General Fund of the State Treasury, a civil penalty in an amount determined by the commissioner of not more t…

696.590 Penalty amounts

Any person who violates ORS 696.511 (1) may be required by the Real Estate Commissioner to forfeit and pay to the General Fund of the State Treasury a civil penalty in an amount determined by the commissioner of: Not less than $500 nor more than $1,000 for the first offense of unlicensed professional escrow activity; and Not less than $1,000 nor more than …

696.600 Definitions for ORS 696.392, 696.600 to 696.785 and 696.995

As used in ORS 696.392, 696.600 to 696.785 and 696.995: “Employee” includes an individual who has an independent contractual relationship with a real estate marketing organization and performs real estate marketing activity. “Real estate marketing activity” means procuring or offering to procure prospects to purchase, sell, lease or rent real estate by tel…

696.603 License requirement

A person may not engage in real estate marketing activity unless that person is: Licensed under ORS 696.606; Licensed under ORS 696.022; or Registered by a person licensed under ORS 696.606. No person may employ an individual as a real estate marketing employee unless the person registers the individual with the Real Estate Commissioner as the employee o…

696.606 Real estate marketing organization license; requirements; deposit required; claims against deposit; rules

In accordance with any applicable provisions of ORS chapter 183, the Real Estate Commissioner shall establish by rule a system to license real estate marketing organizations. Such a system shall include but need not be limited to prescribing: The form and content of and the times and procedures for submitting an application for the issuance or renewal of a …

696.609 Exemptions from ORS 696.392, 696.600 to 696.785 and 696.995

ORS 696.392, 696.600 to 696.785 and 696.995 do not apply to an individual licensed under ORS 696.022 or to those persons exempt under ORS 696.030 from licensing under ORS 696.020.

696.610 [Repealed by 1981 c.617 §41]

696.612 Grounds for disciplinary action

The Real Estate Commissioner may suspend or revoke the license of any real estate marketing organization or reprimand any licensee, or may deny the issuance or renewal of a license to an applicant who has done any of the following: Knowingly or negligently pursued a course of material misrepresentation in matters related to real estate marketing activity, w…

696.615 Publication of sanctions imposed for violations

The Real Estate Commissioner shall publish information in local newspapers pertaining to sanctions imposed for violations of ORS 696.603, 696.606 or 696.612 in a manner allowed under ORS 696.430 and 696.445 (3).

696.618 Denial of right to court action for unlicensed real estate marketing organization

No person carrying on, conducting or transacting any real estate marketing activity may maintain any suit or action in any of the courts of this state to enforce any claim arising out of real estate marketing activity without alleging and proving that the person was licensed under ORS 696.606 at the time of performing such activities.

696.620 [Amended by 1975 c.491 §7; repealed by 1981 c.617 §41]

696.621 Real Estate Marketing Account

The Real Estate Marketing Account is established as an account in the General Fund of the State Treasury. All moneys received by the Real Estate Agency pursuant to ORS 696.392, 696.600 to 696.785 and 696.995 shall be paid into the State Treasury and credited to the account. All moneys in the account are appropriated continuously to the Real Estate Agency to …

696.624 Consent by nonresident real estate marketing organization to service of summons or process required

Every nonresident real estate marketing organization, at the time of licensing, shall file with the Real Estate Commissioner an irrevocable consent that if, in any suit or action commenced against the nonresident organization in this state arising out of a violation of any provision of ORS 696.603, 696.606 or 696.612, personal service of summons or process u…

696.627 On-site inspection allowed; deposit

The Real Estate Commissioner may make an on-site inspection of any real estate marketing organization. When an on-site inspection under subsection (1) of this section is to be made, the commissioner may require the organization to advance a deposit not to exceed $200 per day, in addition to any other fee, for making the on-site inspection. Any unexpended po…

696.630 [Repealed by 1981 c.617 §41]

696.640 [Repealed by 1981 c.617 §41]

RESIDENTIAL PROPERTY WHOLESALING

696.650 Definitions

As used in ORS 696.650 to 696.670 and 696.997: “Market” means to advertise, or contract with another person or entity to advertise, or to solicit purchasers for the purchase of property either publicly or privately. “Residential property” means real property zoned for residential use, or an existing condominium unit as defined in ORS 100.005. “Residential…

696.653 Registration requirement; exemptions; rules

Except as provided in subsections (4) and (6) of this section, a person may not engage in residential property wholesaling unless that person, or, if that person is an entity, the individual conducting residential property wholesaling activity on that person’s behalf, is registered as a residential property wholesaler under ORS 696.656. This section applies…

696.656 Residential property wholesaler registration; requirements; rules

The Real Estate Agency may issue a residential property wholesaler registration only to an individual. In accordance with any applicable provisions of ORS chapter 183, the Real Estate Commissioner shall establish by rule a system to register residential property wholesalers. Such a system shall include but need not be limited to prescribing: The form and c…

696.659 Fees

The Real Estate Commissioner, with the approval of the Oregon Department of Administrative Services, may prescribe the fees that the Real Estate Agency may charge for activities listed under this section, subject to the following maximum amounts: For initial issuance of residential property wholesaler registration under ORS 696.656, $300; and For renewal o…

696.662 Disclosure requirements; rules

Residential property wholesalers shall provide a residential property wholesaler written disclosure: To any potential buyers and sellers before entering into a written contract for a residential property wholesale transaction; To any individual licensed under ORS 696.022 who is engaged to assist the residential property wholesaler in marketing or listing t…

696.665 Grounds for disciplinary action

The Real Estate Commissioner may suspend or revoke registration of any residential property wholesaler, deny the issuance or renewal of registration to an applicant, or prohibit an individual licensed under ORS 696.022 from engaging in residential property wholesaling as otherwise provided in ORS 696.653 (4) if the wholesaler, applicant or individual has don…

696.668 Investigation

The Real Estate Commissioner may investigate either upon complaint or otherwise whenever it appears that a person has conducted residential property wholesaling in violation of ORS 696.653 to 696.665. If upon investigation it appears that the person has violated a provision of ORS 696.653 to 696.665, the commissioner may, in addition to any other remedies, …

696.670 Commissioner’s order against unregistered residential property wholesaler

Whenever the Real Estate Commissioner finds that a person is offering to engage in residential property wholesaling activity without registering as a residential property wholesaler and the person is required to register under ORS 696.653, the commissioner may, subject to ORS chapter 183, issue an order directing the person to cease and desist from offering …

696.710 Necessity of alleging license in action to collect compensation

A real estate broker or principal real estate broker conducting professional real estate activity within this state may not bring or maintain any action for the collection of compensation without alleging and proving that the individual was a real estate licensee when the alleged cause of action arose. An action for collection of compensation from a client …

696.720 Remedies are concurrent

The remedies provided for in ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to 696.870 and 696.995 are in addition to and not exclusive of any other remedies provided by law.

696.730 Jurisdiction of courts for violations; revoking license upon conviction; copy of order to commissioner

Any court of competent jurisdiction, including a justice court, has full power to hear any violation of ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to 696.870 and 696.995 by an individual licensed under ORS 696.022, 696.650 to 696.670 and 696.997, and, upon finding a violation, the court may, at its discretion and in addition to the other penalties i…

696.740 [1971 c.734 §161; repealed by 1981 c.617 §41]

696.745 [1975 c.746 §33; 1977 c.649 §56; repealed by 1981 c.617 §41]

696.775 Authority of commissioner when license lapsed, expired, revoked, suspended or surrendered

The lapsing, expiration, revocation or suspension of a real estate license, whether by operation of law, order of the Real Estate Commissioner or decision of a court of law, or the inactive status of the license or voluntary surrender of the license by the real estate licensee, does not deprive the commissioner of jurisdiction to: Proceed with an investigat…

696.785 Commissioner duties when illegal commingling of funds found; receivership procedure

When the Real Estate Commissioner ascertains by audit, investigation or otherwise that a real estate licensee has commingled trust funds with personal funds or has embezzled trust funds and that such activity is likely to cause significant financial loss to others as a result of professional real estate activity engaged in by such licensee, the commissioner …

696.790 Authority of commissioner to require fingerprints

For the purpose of requesting a state or nationwide criminal records check under ORS 181A.195, the Real Estate Commissioner may require the fingerprints of an individual who: Is applying for a license, or renewal of a license, under this chapter; or Is employed or applying for employment by the Real Estate Agency; or Provides services or seeks to provide …

696.793 [1989 c.724 §15; repealed by 2005 c.730 §77]

696.795 Authority of commissioner to conduct investigations and proceedings

For the purpose of an investigation or proceeding under this chapter, the commissioner may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence and require the production of books, papers, correspondence, memoranda, agreements or other documents or records which the commissioner deems relevant or material to the inqui…

696.800 Definitions

As used in ORS 696.392, 696.600 to 696.785, 696.800 to 696.870 and 696.995, unless the context requires otherwise: “Agent” means: A managing principal broker who has entered into: A listing agreement with a seller; A representation agreement with a buyer to represent the buyer; or A disclosed limited agency agreement; or A real estate broker or princip…

696.805 Real estate licensee as seller’s agent; obligations

A real estate licensee representing a seller in a transaction is required to act under a written listing agreement with the seller. The listing agreement must: Be entered into before the real estate licensee begins offering the property for sale or making efforts to find or obtain a buyer for the property; State whether the agreement is exclusive or nonexc…

696.810 Real estate licensee as buyer’s agent; obligations

A real estate licensee representing a buyer is required to act under a written representation agreement with the buyer. The representation agreement must: Be entered into before, or as soon as reasonably practicable after, the licensee has commenced efforts to assist the buyer in purchasing real property or in identifying real property for purchase; State …

696.815 Representation of both buyer and seller; obligations

A real estate licensee may represent both the seller and the buyer in a real estate transaction as a disclosed limited agent under a disclosed limited agency agreement, with full disclosure of the relationship under the agreement. The real estate licensee must also have a written listing agreement with the seller that meets the requirements of ORS 696.805 an…

696.820 Agency disclosure pamphlet; rules

The Real Estate Commissioner shall prescribe by rule the format and content of an initial agency disclosure pamphlet. The rules must provide that the initial agency disclosure pamphlet is informational only and may not be construed to be evidence of intent to create an agency relationship. An agent shall provide a copy of the initial agency disclosure pamph…

696.822 Liability of principal for act, error or omission of agent or subagent

A principal is not liable for an act, error or omission by an agent or subagent of the principal arising out of an agency relationship established under ORS 696.805, 696.810, 696.815 or 696.820: Unless the principal participates in or authorizes the act, error or omission; and Only to the extent that: The principal benefited from the act, error or omissio…

696.825 [1993 c.570 §7; repealed by 2001 c.300 §84]

696.830 [1993 c.570 §8; repealed by 2001 c.300 §84]

696.835 Buyer and seller responsibilities

None of the affirmative obligations of a real estate licensee or agent in a real estate transaction under ORS 696.805, 696.810 or 696.815 relieves a seller or a buyer from the responsibility to protect the seller’s or buyer’s own interests respectively. Note: See note under 696.800.

696.840 Compensation and agency relationships

The payment of compensation or the obligation to pay compensation to a real estate licensee by the seller or the buyer is not necessarily determinative of a particular agency relationship between a real estate licensee and the seller or the buyer. After full disclosure of agency relationships, a listing agent, a selling agent or a real estate licensee or any…

696.845 Acknowledgment of existing agency relationships form; rules

When signing an offer to purchase, each buyer shall acknowledge the existing agency relationships, if any. When a seller accepts or rejects an offer to purchase in writing, each seller shall acknowledge the existing agency relationships, if any. An agent to the real property transaction shall obtain the signatures of the buyers and the sellers to the acknowl…

696.855 Common law application to statutory obligations and remedies

ORS 696.301, 696.392, 696.600 to 696.785, 696.890 and 696.995 do not directly, indirectly or by implication limit or alter any preexisting common law or statutory right or remedy including actions for fraud, negligence or equitable relief. Common law and statutory remedies are not affected by ORS 696.301, 696.392, 696.600 to 696.785, 696.890 and 696.995. N…

696.870 Duties of real estate licensee under ORS 105.462 to 105.490, 696.301 and 696.870

A real estate licensee representing a seller of real property has a duty to inform each represented seller of the seller’s duties created by this section and ORS 105.462 to 105.490 and 696.301. A real estate licensee representing a buyer of real property has a duty to inform each represented buyer of the buyer’s rights under this section and ORS 105.462 to …

696.880 Licensee not required to disclose proximity of registered sex offender

Nothing in ORS 163A.005 to 163A.235, 696.301, 696.805, 696.810, 696.815 or 696.855 creates an obligation on the part of a person licensed under this chapter to disclose to a potential purchaser of residential property that a sex offender registered under ORS 163A.010, 163A.015, 163A.020 or 163A.025 resides in the area. Note: 696.880 was added to and made a …

696.890 Duties of real estate property managers

As used in this section: “Management of rental real estate” has the meaning given that term in ORS 696.010. “Property management agreement” has the meaning given that term in ORS 696.010. “Real estate property manager” has the meaning given that term in ORS 696.010. A real estate property manager who represents a property owner, for compensation, in the …

696.990 Penalties

Violation of any provision of ORS 696.010 to 696.130, 696.200, 696.205, 696.241 to 696.375, 696.392, 696.395 to 696.430, 696.490, 696.600 to 696.785 and 696.995 is a Class A misdemeanor. Any officer, director or shareholder or agent of a corporation, or member or agent of a partnership or association, who personally participates in or is an accessory to any…

696.995 Civil penalties for violation of ORS 696.603, 696.606 or 696.612

Any person who violates ORS 696.603, 696.606 or 696.612 may be required by the Real Estate Commissioner to forfeit and pay to the General Fund of the State Treasury a civil penalty in an amount determined by the commissioner of: Not less than $100 nor more than $500 for the first violation of ORS 696.603, 696.606 or 696.612 or a rule adopted pursuant theret…

696.997 Penalties for violation of ORS 696.653, 696.662 or 696.665

Knowingly violating any of the provisions of ORS 696.653, 696.662 or 696.665 is a Class A misdemeanor. Any officer, director, shareholder, member, manager or agent of a corporation, limited liability company, partnership or association, who personally participates in or is an accessory to any violation of ORS 696.653, 696.662 or 696.665 by the corporation, …