Real Estate Law

Agency Representation

Agents in Oregon are required by law to provide the Oregon Real Estate Agency Disclosure Pamphlet to their prospective clients.  They are also required to disclose whom they represent and the terms of that representation.

Understanding the different agency roles will assist you in choosing whom to work with and how comfortable you feel with their particular representation.  I, for example, will not represent both a buyer and a seller on the same transaction.  I don’t believe the advantages of my services can act in the best interest of both parties concurrently.  I also believe a conflict of interest is inevitable.  In the event I have clients who wish to work with me on a home I am listing I often refer them to another agent with whom I feel they will be effectively served.  For more information on my approach, please feel free to contact me and/or read my Service Overviews.

Oregon Real Estate Agency

The mission of the Oregon Real Estate Agency is to provide quality protection for Oregon consumers of real estate, escrow, and land development services, balanced with a professional environment conducive to a healthy real estate market

The Agency has adopted performance measures to help determine achievement of its mission.

The Agency oversees the education, examination, licensure, and regulation of Oregon's real estate professionals. Its major programs and activities are:

Office of the Real Estate Commissioner
Oregon Real Estate Commissioner provides leadership and policy direction to the various divisions of the Agency. The Commissioner's office is responsible for the drafting of legislation and rules, and coordination of contested case hearings.

The Office is also responsible for the following programs and activities:

• Land Development Programs - Subdivision, condominium, time share and campground registrations, telemarketing organization licensing, on-site inspections, and Public Report issuance.
• Telemarketing Organizations - Licenses and regulates real estate telemarketing organizations.
• Real Estate Board - The Board advises the Governor and the Real Estate Commissioner on real estate industry matters, reviews rulemaking proposals and oversees the examination of real estate license applicants. Board members are appointed by the Governor for four year terms.
• Licensing Section – The licensing section is responsible for issuing licenses to real estate brokers, and property managers; for registration of campground contract brokers and providing information to the public.
• Education and Research Section – The Education and Research Section, develops and administers all real estate examinations; develops pre-licensing curriculum requirements, and approves instructors and courses of private schools. The Division oversees publications including Questions and Answers in Real Estate, Real Estate News-Journal, Escrow Newsletter, and the Oregon Real Estate Manual. It performs educational research activities through these mediums.
• Information Systems Section – The Information Systems Section manages the Agency's information systems and telecommunications.
• Regulation Division – The Regulation Division investigates complaints, conducts stipulation processing to resolve matters without a contested case hearing, and assists in contested case preparation. The Division is also responsible for the following programs and activities:
• Audit Program - Conducts financial/trust account audits and records audits of real estate, escrow, property management, and land development offices.
• Escrow Program - Licenses, reviews bonding and securities on deposit, audits, and investigates Oregon's escrow agency complaints.
• Administration Services Section – The Administrative Service section manages daily operations related to budgeting, accounting, human resources and purchasing.

The Oregon Real Estate Agency’s Authority governs the following laws:

Statutes

• Real Estate, Property Management and Escrow, ORS Chapter 696
• Oregon Subdivision and Series Partition Control Statutes, ORS 92.305 to 92.990
• Condominiums, ORS 100.005 to 100.990
• Timeshare estates, Membership Campgrounds, ORS 94.803 to 94.989
• Telemarketing Organization, ORS 696.392, 696.600 to 696.785, 696.995
• Manufactured Dwelling Park Subdivision Statutes, ORS 92.830 to 92.845

Other pertinent statutes that are not administered by the Agency are:

• Seller's Property Disclosure Statement, ORS 105.465 to 105.490
• Residential Landlord and Tenant, ORS Chapter 90.
• Oregon Subdivision Plat and Partition law, ORS 92.010 to 92.285

Administrative Rules
Oregon Administrative Rules Chapter 863. The administrative rules administered by the Agency are contained in Oregon Administrative Rules, Real Estate Agency Chapter 863, Divisions 1-60. The rules are available online at Oregon Administrative Rules Chapter 863.

*source: Oregon Real Estate Agency Website:  http://www.oregon.gov/REA/about_us.shtml

The Issue of Fairness

Under Federal and Oregon law, a homeowner may not discriminate on the basis of race, color, sex, marital status, familial status, handicap, religion or national origin when negotiating price, terms or other conditions. 

In some cases cities and counties may also provide additional protection under the law.

Other General Information

Under Oregon law, the seller has a legal duty to disclose all known information about their property.  As part of this obligation the seller is required to provide a property disclosure to the buyer.  Until 2004 the seller had the option of a Property Disclosure or Property Disclaimer.  Upon receipt of the Property Disclosure the buyer has five business days to revoke his or her offer based on the information provided.  It is important to note that a seller can be held liable for any intentional misrepresentation or omission made on the disclosure.