Oregon Inactive Real Estate License Rules

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					                                                       Oregon Real Estate
                                                         News-Journal
                                                                 Official Publication of the Oregon Real Estate Agency
            Vol.58                                            June 2004, Salem, Oregon                                                         No. 2



                         ADVERTISING … FOLLOW THE RULES!
                                                      Scott W. Taylor, Real Estate Commissioner
               Prior to the implementation of SB         any advertising done under its aus-
            446 in July 2002, the rules regard-          pices. Though many associates pay for
            ing advertising received a thorough          advertising on their listings as well as
            review by the Agency and the indus-          for their own personal promotion, the
            try. Subsequently, one significant           firm is still responsible for what any
            amendment has been made to clarify           advertisement says.
            requirements relative to advertising            The rules contain certain require-
            such as when someone uses an MLS             ments, including:
            member’s website to search for prop-         • Advertising must be done in the
            erties appearing in the MLS, of a par-          company’s name.
            ticular type.                                • Advertising shall not imply that a
               The rules for advertising can be             licensee associated with the firm
            found at OAR 863-015-0125 (avail-               is responsible for the operation of
            able on the Agency’s website,                   the firm unless the licensee is re-
            www.rea.state.or.us). All licensees             sponsible for the operation of the
            should be intimately familiar with              brokerage.
            these rules. In recent years, due to         • Though advertising may contain
            the Internet, personal marketing,               direct telephone numbers or other                      Commissioner Scott Taylor
            “teams,” and the like; writing rules            contact information, it shall also
            that allow for innovation, changing             include the telephone number to             OAR 863-015-0125(6) regarding
            marketing strategies, and still provide         contact the principal broker.               IDX (Internet Data Exchange)].
            sufficient oversight for consumer pro-       • A principal broker, in firms with          • The same basic rules also apply to
            tection has been a challenge.                   principal brokers, must review and          Internet       advertising.      See
               To begin with, it is important that          approve all advertising prior to use.       OAR 863-015-0125(9) for addi-
            licensees remember that listings are         • Associates must make their adver-            tional rules specific to Internet ad-
            taken in the name of the brokerage              tising immediately available to the         vertising.
            firm, and are the property of the bro-          principal broker prior to use.              It should go without saying that
            kerage firm. Therefore, the firm is          • Licensees shall not advertise prop-        advertising must be truthful and not
            ultimately responsible to the client            erties listed with another firm           misleading.
            and the consumer for the content of             without written permission [see                        ADVERTISING: continued on page 2


                                                                          IN THIS ISSUE
                Licensee Search Now Available .......................... 2 Upcoming Deadlines .......................................... 5
                Fingerprinting Services Discontinued ................. 2 Where to Find Classes ........................................ 5
                Property Manager Deadline Imminent ............... 3 Administrative Actions ....................................... 6
                Procedures for Handling Earnest                                   Escrow Continuing Education ............................ 9
                 Money Checks ................................................ 3 Building Permits Information ........................... 10
                Requirements to Keep Your License ................... 4 Forms Signature Requirements ......................... 10




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            2             June 2004                                                                                     OREGON REAL ESTATE NEWS-JOURNAL

            ADVERTISING: continued from page 1
               Many of the complaints the
                                                                                                            LICENSEE SEARCH NOW AVAILABLE
            Agency receives about advertising                                                      The Agency’s website at                checks the mailbox twice daily, pro-
            come from other licensees who often                                                 www.rea.state.or.us is frequently up-     vides an acknowledgement upon re-
            rightfully complain that their col-                                                 dated with information and tools          ceipt, and responds to the question
            leagues are not playing by the rules.                                               useful to licensees. Recent addi-         as soon as possible. The use of the
            Many of these complaints are about                                                  tions and changes include                 mailbox has been greater than ex-
            print advertising. Perhaps the biggest                                              • an online licensee search tool,         pected, with over 250 e-mails re-
            cause of complaints from other lic-                                                 • a general delivery e-mail address,      ceived in the first two months of
            ensees is competitors’ classified or                                                • new forms,                                            installation.
            other print media ads do not have the                                               • “Frequently Asked                                        Many forms can be
            name of the brokerage firm or the                                                      Questions”                                          downloaded by clicking
            principal broker contact number in-                                                 • an update of ad-                                    “Online Forms, Publica-
            cluded in the ad.                                                                      ministrative rules                                tions and Brochures” and
               Principal brokers are reminded                                                      information.                                     selecting the desired form.
            that it is their responsibility to re-                                                 The     Licensee                                The license examination ap-
            view and approve all advertising done                                               Search tool allows                                plication, license change and
            in the company name prior to use.                                                   website visitors to search                       final                  agency
               Licensees affiliated with principal                                              for both active and inactive indi-             acknowledgement, and the
            brokers are reminded that they must                                                 vidual Oregon real estate licensees       exam roster and pass list subscrip-
            have their advertising reviewed and                                                 and real estate businesses registered     tion forms were recently added to
            approved by their principal broker                                                  with the Agency. A copy of the en-        the forms available for download-
            prior to use.                                                                       tire business name database (in           ing.
                                                                                                CSV format) can also be down-                Answers to “Frequently Asked
                                                                                                loaded from the site.                     Questions” are available for both
                                                                                                   Website visitors can also send e-      consumers (click “Consumer
                                                                                                mails to the Agency’s general de-         FAQs”), and licensees and license
                                  OREGON REAL ESTATE                                            livery mailbox by clicking “how to        applicants (click “Frequently Asked
                                    NEWS-JOURNAL                                                contact us” on the home page, and         Questions”).
                                     (USPS 905-220)
                                                                                                the link under “e-mail” on the “con-         Finally, information listed under
                                Official Publication                                            tact” page. Or, you can send an e-        “Administrative Rules” was up-
                            Oregon Real Estate Agency
                 1177 Center St. N.E. - Salem, Oregon 97301-2505                                mail directly to the Agency at            dated to reflect permanent adop-
                           Telephone: (503) 378-4170                                            orea.info@state.or.us. The Agency         tion of temporarily filed rules.
                       Web Page: http://www.rea.state.or.us

                           OREGON REAL ESTATE AGENCY
                            Theodore R. Kulongoski, Governor
                              Scott W. Taylor, Commissioner                                            FINGERPRINTING SERVICE DISCONTINUED
                                                                                                                            T h e         Agency determined it will discon-
                                REAL ESTATE BOARD
                                                                                                                         Agency           tinue the service, effective July 1.
            Victor Kee, Chairperson .......................................... Astoria                                   has pro-            The nearest alternative for the
            Troy Costales ............................................................ Keizer                            vided a          Agency’s service is: Oregon State
            Michael Graeper .................................................. Portland
            Arthur Kegler ................................................... Boardman                                   finger-          Police, Identification Ser vices;
            Robert La Du ...................................................... Portland                                 printing         3772 Portland Rd NE, Salem, OR;
            Maxine Ribera-Card ................................................. Bend
            Vada Salinas ............................................................. Salem                             service          503-378-3070; Monday - Friday,
            Marianne Wood ..................................................... Eugene                                   to      li-      8 am - 4:30 pm, no appointment
            John Zupan ......................................................... Medford
                                                                                                                         cense            necessary; cost: $10.
                                                                                                                          appli-             The service is also available state-
            The Oregon Real Estate News-Journal is published four times
                                                                                                                          cants for       wide through law enforcement
            a year by the Oregon Real Estate Agency as an educational                           many years. After an analysis             agencies, through some private real
            service to all real estate licensees in the state under the provi-                  showed that the Agency’s service          estate schools, and through finger-
            sions of Section 696.445 of the Oregon Revised Statutes.
            $4.00/biennium subscription fee included in real estate li-                         is underutilized and the availabil-       printing services listed in the tele-
            cense fee. All other subscriptions $2.00 per year. POSTMAS-                         ity of good alternatives, the             phone directory yellow pages.
            TER: Send address changes to Oregon Real Estate News-Jour-
            nal, 1177 Center St. N.E., Salem, OR 97301-2505.

                             Betty Reynolds, Editor
            VOL. 58-No. 2                                    June 2004
                    Periodicals postage paid at Salem, Oregon




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            OREGON REAL ESTATE NEWS-JOURNAL                                                                        June 2004          3




                              PROPERTY MANAGER DEADLINE IMMINENT
                         Temporary property managers who have                          If proof of completion is not received
                      completed the Property Manager Transition                      or postmarked by June 30, 2004, the
                      Course must send proof of course comple-                         temporary property manager’s license
                      tion to the Agency with a postmark no                             will be cancelled. Shortly after the
                      later than June 30, 2004. Failure to do                              June 30, 2004 deadline, the Agency
                      so will result in cancellation of the                                  will mail a cancellation notice in-
                      property manager license.                                                 dicating that the license was
                         On July 1, 2002, existing prop-                                         cancelled effective July 1,
                      erty manager licenses were con-                                            2004.
                      verted to temporary property                                                 To receive a property man-
                      manager licenses. Those licens-                                          ager license after a license is can-
                      ees were given two years to com-                                        celled, a former licensee would
                      plete the Property Manager                                            need to meet all the pre-license
                      Transition Course. Any licensee                                     requirements again, including the
                      who has not completed that re-                                   background check, coursework, and
                      quirement will have their license can-                         license examination.
                      celled July 1, 2004.




                        PROCEDURES FOR HANDLING EARNEST MONEY CHECKS
                (Editor’s note: Following is an up-   a specific brokerage client’s trust ac-
             date of an article published in the      count (CTA) or escrow company
             June, 2001 OREN-J regarding              within three business days of ac-
             amendment of a rule related to ear-      ceptance      [OAR        863-015-
             nest money checks.)                      0255(3)]. The earnest money check
                OAR 863-015-0255(3), allows           should be made payable to the place
             brokers to hold earnest money            it will be deposited.
             checks until an offer is accepted or        If the offer or a subsequent
             rejected, instead of depositing the      counter offer is rejected, the broker
             funds in their client’s trust account    must return the check to the buyer             The broker must institute poli-
             or in escrow as was a prior require-     within a reasonable time, obtain a          cies regarding the handling of
             ment. There is no change to the          receipt from the buyer for the re-          checks, maintaining copies of
             rules regarding how notes are            turned check, and keep the receipt          checks received, obtaining receipts
             handled. The existing rules as they      in the broker’s records [OAR 863-           upon return of checks and keep-
             would be used in a normal transac-       015-0255(11)          and        ORS        ing appropriate record consistent
             tion are reviewed below.                 696.301(4)].                                with OAR 863-015-0260.
                A check received as earnest              If the offer or a subsequent                In each case brokers can use
             money may be held undeposited            counter offer is accepted the broker        their licensees to forward checks to
             until the offer is either accepted or    has three business days to deposit          escrow after offers are accepted or
             rejected. To hold the check, the sale    the check in escrow or in the               return them to buyers after offers
             agreement must contain a state-          broker’s CTA [OAR 863-015-                  are rejected, provided the broker
             ment that the check is being held,       0255(3)]. If the check is forwarded         allows this practice pursuant to the
             and where and when the check will        to escrow, escrow will issue a receipt      written company policy [OAR
             be deposited after the offer is ac-      for the check, [OAR 863-050-0100            863-015-0255(2)]. Brokers must
             cepted. The expectation is that the      (3)], which must be placed in the           also act appropriately to protect
             sale agreement statement specify         broker’s records.                           the checks they are holding from
             that the check will be deposited in                                                  theft, loss, or conversion.




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            4         June 2004                                                  OREGON REAL ESTATE NEWS-JOURNAL


                        REQUIREMENTS TO KEEP YOUR LICENSE
              Real estate license law changed July 2002. If you were licensed as a salesperson or property manager on June 30,
            2002, or obtained your first real estate license after July 1, 2002, you must take action to keep your license. Here is
            what you must do.

            If you were an active or inactive PROPERTY MANAGER on June 30, 2002:
                1. Take the 36-hour Property Manager Transition Course. [For a list of schools, visit our web        Deadlin
                   site at www.rea.state.or.us or call us at (503) 378-4170. The course can be used to satisfy                  e
                                                                                                                    June 30
                   continuing requirements.]                                                                                  th!
                2. After finishing the course, send the following items to the Real Estate Agency at 1177
                   Center Street NE, Salem, OR 97301:
                       - your original Property Manager Transition Course certificate; and
                       - your temporary property manager license.
                We will send you a property manager license.
                Deadline: June 30, 2004. If the Agency has not received your Property Manager Transition Course certificate
                postmarked by June 30, 2004, your license will be cancelled. For more information on cancelled licenses, see below.
            If you are an active or inactive ASSOCIATE BROKER (former SALESPERSON)*, you must:
               1. Take the 30-hour Associate Broker Transition Course. [For a list of schools, visit our web site at www.rea.state.or.us
                   or call us at (503) 378-4170. The course can be used to satisfy continuing education requirements with your
                   principal broker’s permission.]
                2. After finishing the course, send the following items to the Real Estate Agency at 1177 Center Street NE, Salem,
                   OR 97301:
                      - your original Associate Broker Transition Course certificate; and
                      - your original associate broker license.
                We will send you a broker license.
                Deadline: June 30, 2005. If the Agency has not received your Associate Broker Transition Course certificaten
                postmarked by June 30, 2005, your license will be cancelled. For more information on cancelled licenses, see below.
                Note: You do not need to complete the broker licensing exam.
                * These requirements apply if you were licensed as a salesperson on June 30, 2002. You automatically received a
                   temporary associate broker license from the Agency in July, 2002. If you supervise a licensed personal assistant,
                   additional requirements apply. Effective January 2, 2004, only principal brokers can supervise licensed personal
                   assistants.
            If you are an active BROKER ORIGINALLY LICENSED after July 1, 2002, you must:
                1. Take the 30-hour Advanced Real Estate Practices course from an approved course provider. [For a list of schools,
                   visit our web site at www.rea.state.or.us or call us at (503) 378-4170. The course can be used to satisfy continuing
                   education requirements with your principal broker’s permission.]
                2. Submit proof of completion of the Advanced Real Estate Practices course to your principal broker. Your principal
                   broker will then certify on your license renewal form that you have completed the course. Do not send proof of
                   course completion to the Real Estate Agency.
                Deadline: First license renewal. Your first license is valid from the date of issue for one year and then onto the last
                day of the month of your birthday. For example, if your first license was issued in June 2003, and your birthday is
                in July, your license would expire July 31, 2004.
            If your license is CANCELLED:
                   If you fail to complete the required transition course within the time allowed, your license will be cancelled. If
                your license is cancelled, you must immediately stop conducting licensed real estate or property management
                activity. To obtain a license again, you would need to complete all requirements for initial licensure before applying
                for a license. These requirements include pre-license education, the required license exam and a background check.
               If you have questions about license requirements, please contact the Licensing Section at (503) 378-4170, selection
            2. If you have questions about education or examination requirements, please contact the Education Section at (503)
            378-4170, ext. 251 or 260.




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            OREGON REAL ESTATE NEWS-JOURNAL                                                                         June 2004       5

                                                    UPCOMING DEADLINES
                   Many revisions made to the Oregon Real Estate License Law, ORS 696, by the 2001 Legislature became
                effective July 1, 2002. However, some of the changes are phased in, giving licensees additional time to meet
                new requirements. Licensees affected by the changes should be aware of the following deadlines and take the
                steps necessary to satisfy requirements before the effective dates. Contact the Agency at (503) 378-4170,
                menu selection 2, for questions concerning any of the following deadlines.



                  DEADLINE                FOR LICENSE CATEGORY                  ACTION NECESSARY

                      June 30, 2004       Temporary Property Managers           Submit verification for completion of "Property
                                          (those licensed prior to July 1,      Manager Transition Course." Failure to submit
                                          2002)                                 verification results in termination of license.
                                                                                (Oregon Laws 2001, Chapter 300, Section 3)
                      June 30, 2005       Associate Brokers (formerly           Submit verification for completion of "Associate
                                          known as salespersons licensed        Broker Transition Course." Failure to submit
                                          prior to July 1, 2002)                verification results in termination of license.
                                                                                Applies to inactive as well as active associate
                                                                                brokers. (Oregon Laws 2001, Chapter 300,
                                                                                Section 2)
                  First renewal of        Brokers (those originally licensed    Complete "Advanced Real Estate Practice"
                  active broker           after July 1, 2002)                   course. Failure to complete the course results in
                  license                                                       the inability to renew the license. [ORS
                                                                                696.174(3) and OAR 863-015-0055(4)]


                                                        WHERE TO FIND CLASSES
                   New courses are approved and added to the Agency’s list of approved classes regularly. Check out the
                Agency’s web site at www.rea.state.or.us for the latest list of providers approved to offer pre-license, post-
                license, and transition courses. You may also receive the list by mail by calling the Agency at (503) 378-4170,
                selection 2.
                   The following is a list of approved schools currently offering or scheduled to offer hard-to-find required
                courses:
                Brokerage Administration and Sales Supervision                 Advanced Real Estate Practices
                      American College of Real Estate (503) 247-9311             American College of Real Estate (503) 247-9311
                      First American Title and Insurance Company                 The Coaching Institute (503) 302-4846
                         (503) 219-8723                                          onlineEd www.onlineed.com or (503) 636-4580
                      Gloria Rohl (503) 390-6375                                 Quality Real Estate School (541) 389-9585
                      onlineEd www.onlineed.com or (503) 636-4580                Real Estate Institute of Greater Portland
                      ProSchools (503) 256-3645                                        (503) 665-6780
                      Quality Real Estate School (541) 389-9585                  Windermere Services Co. (503) 220-1145
                      Warren’s Real Estate School (541) 997-1142               Real Estate Property Manager (pre-license)
                Property Manager Transition Course                               Lane Community College (541) 463-5906
                      American College of Real Estate (503) 247-9311             Portland Community College (503) 977-4393
                                                                                 ProSchools (503) 256-3645
                                                                                 Warren’s Real Estate School (541) 997-1142




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            6         June 2004                                                             OREGON REAL ESTATE NEWS-JOURNAL


                                                 ADMINISTRATIVE 31, 2004
                                                     March 1, 2004 through May
                                                                               ACTIONS
                                    The Agency is required                                                  other offers on the table, ORS
                                    by Oregon Real Estate                     SUSPENSIONS                   696.815(2)(b); and failed to ob-
                                    License Law to publish              Bissonette,       Mark        A.    tain a Buyer’s Disclosed Limited
                                    disciplinary actions. A          (Redmond) Temporary Property           Agency Agreement from a buyer
                                    list of those actions, a brief   Manager #930600021                     prior to representing the sellers
                                    description of the situa-        Default order dated March 29,          and the buyer in the transaction,
                                    tion, and the grounds for        2004 issuing a 5 year suspension       OAR 863-015-0210(1)(2)(4).
            the Commissioner’s action follows. Please note           effective April 2, 2004; used an
            there are 60 days after the order date to file an        expired property management               Fleischer, Mark E. (Eugene)
            appeal, and some of the orders listed may be             agreement to manage properties         Broker #900500195
            within that appeal period. Please also note,             for two owners, used property          Stipulated order dated April 14,
            there are individuals with real estate licenses          management agreements that did         2004 issuing a 60 day suspension
            that may have similar or the same names as               not include a term for the man-        effective May 14, 2004; submit-
            those listed herein, or even work in the same            agement or an owner code, failed       ted demands for and accepted
            market area. If you are in doubt if an indi-             to recognize that the agreement        commissions from escrow, divert-
            vidual listed here is someone you know or with           he used for managing a property        ing such commissions from his
            whom you are dealing, please contact the Agency          contained conflicting informa-         principal broker, in three differ-
            for verification.                                        tion as to the security deposits       ent      transactions,       ORS
                                                                     and prepaid rents, failed to hold      696.301(2); and did not conduct
                         REVOCATIONS                                 the security deposits and last         his private transactions involving
                 Hill, William S. (Vida) Broker                      month’s rent for a property in a       his purchase of two properties
            #790500038                                               security deposit CTA according to      under the supervision of and did
            Default order dated May 28,                              the rental agreement, failed to        not transmit all documents
            2004, effective May 28, 2004;                            accurately list the tenant charges     through his principal real estate
            engaged in professional real estate                      on the tenant ledgers, and failed      broker, OAR 863-015-0145(3).
            practice while his license was sus-                      to do a final accounting for ten-
            pended, ORS 696.301(30); com-                            ants when the owner agreement                       REPRIMANDS
            m i n g l e d c l i e n t s’ m o n e y w i t h           was        terminated,        ORS          Bodtker, Lisa I. (Eugene) Bro-
            money of his own by depositing                           696.301(28); failed to record a        ker #961100243
            earnest money checks into his                            $70 screening fee on a tenant led-     Stipulated order dated April 30,
            business checking account, ORS                           ger, OAR 863-50-0050(4); failed        2004; knowing her clients
            696.301(10); did not return an                           to deposit security deposit funds      wanted to purchase the subject
            earnest money to a buyer for five                        into the security deposit CTA          property to use in part as a rental,
            months after the transaction                             prior to disbursing the funds and      failed to either take reasonable
            failed, ORS 696.301(4); depos-                           failed to disburse the funds in the    steps to verify that the property
            ited earnest money into his busi-                        same accounting period in which        would meet her clients’ stated
            ness checking account instead of                         they were received, OAR 863-           needs or failed to advise her cli-
            a CTA as set out in the earnest                          025-0025(2); failed to notify an       ents to investigate the approved
            money agreements in three trans-                         owner that he had not collected        u s a g e o f t h e p r o p e r t y, O R S
            actions, ORS 696.301(1); did                             the full amount of the security        696.810(2)(a). Sellers listed
            not obtain a Disclosed Limited                           deposit,      OAR        863-025-      their property in Junction City,
            Agency consent from the princi-                          0015(1)(a); and failed to recon-       Oregon. The property has an un-
            pals while representing both                             cile his property management           attached building that received
            seller and buyer in three transac-                       CTAs at least once each month,         county building permits in 1992
            tions, OAR 863-015-0205; and                             OAR 863-025-0025(5)(6).                as a non-residential accessory
            f a i l e d t o r e c o n c i l e h i s C TA                                                    building (shop). A part of the
            monthly from August 1998                                    Burling, Phillip R. (LaGrande)      shop was later improved to in-
            through December 1998, OAR                               Principal Broker #790400348            clude a bathroom, bedroom,
            863-010-0245 (1997 Edition).                             Stipulated order dated May 5,          kitchen sink and stove (living
                                                                     2004 issuing a 30 day suspension       quarters). None of the improve-
                                                                     effective May 5, 2004; failed to       ments to the shop received a
                                                                     advise a buyer that there were         building permit, and it was never




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            OREGON REAL ESTATE NEWS-JOURNAL                                                                                         June 2004            7

            approved for use as a residential              the buyers’ signatures on the sale                  DeGroote, Gwendolyn D. (Eu-
            living space. The information in               agreement, failed to assure that                 gene) Temporary Associate Broker
            multiple listing showed the prop-              his licensee secured the date and                #200202187
            erty as having 3 bedrooms, 3                   time of signatures on the sale                   Stipulated order dated May 5,
            bathrooms, 2,400 square feet,                  agreement, failed to assure that                 2004; knew or should have
            guest quarters and a huge shop.                his licensee produced an earnest                 known that the sellers’ disclosure
            The buyers advised Bodtker that                money promissory note as speci-                  statement was incomplete and/or
            they were interested in using the              fied in the sale agreement, ORS                  incorrect regarding the status of
            shop/guest quarters as a rental.               696.301(28); released $1,500 of                  permits for the living quarters in
            Bodtker neither took reasonable                the $2,500 earnest money from                    the shop and did not refer her
            steps to verify that the property              his CTA to an appraiser without                  clients to an attorney to review
            would meet her clients’ stated                 the written authorization of the                 the adequacy of the disclosure,
            needs nor did she advise them to               principals, and released the re-                 ORS 696.805(2)(a); knew or
            investigate the approved usage of              maining $1,000 earnest money                     should have known that the
            the portion of the property they               from his CTA to the buyers upon                  square footage, bedrooms and
            wanted to use as a rental. The                 termination of the transaction                   bathrooms attributed to the
            buyers signed an offer to purchase             without being directed in writ-                  home in the multiple listing ser-
            the subject property and the                   ing by one or more of the princi-                vice were incorrect, and failed to
            transaction closed on April 2,                 pals, OAR 863-015-0255(13).                      take reasonable actions to verify
            2003. After the transaction                                                                     the veracity of the information
            closed, the buyers learned from                  Cu r r i e , Va l y n n ( W i n s t o n )      used in the advertisements, ORS
            the county that the shop was not               Principal Broker #780303891                      696.301(6).
            approved by the county to be                   Stipulated order dated April 9,
            used as residential living space.              2004; advised her licensee to                        K r i e g , L . Pe t e r ( Ro s e b u r g )
                                                           write a letter asking for a com-                 Te m p o r a r y A s s o c i a t e Br o k e r
               Clover, Dianna L. (Eugene)                  mission and sending copies to the                #780506281
            Broker #200005105                              parties in a transaction when she                Stipulated order dated March 17,
            Stipulated order dated May 17,                 knew or should have known that                   2004, which also requires the
            2004; acting first as the sellers’             the licensee was not the procur-                 successful completion of certain
            agent and later as a disclosed lim-            ing cause of the sale, ORS                       education; failed to ensure a copy
            ited agent, failed to disclose to              696.301(28).                                     of the pest and dry rot inspection
            the sellers that her principal bro-                                                             report or a written statement
            ker was married to the buyer,                     DeGroote, Donald E. (Eugene)                  from the sellers regarding the in-
            ORS 696.805(2)(b); failed to                   Te m p o r a r y A s s o c i a t e Br o k e r    spection was attached to the sell-
            obtain a signed Disclosed Lim-                 #200202183                                       ers disclosure form as required,
            ited Agency Agreement for Buyer                Stipulated order dated May 5,                    ORS 696.805(2) (1999 Edition);
            from her principal broker’s hus-               2004; knew or should have                        failed to take steps to get an origi-
            band, OAR 863-015-0205(1).                     known that the sellers’ disclosure               nal signature on a $5,000 prom-
                                                           statement was incomplete and/or                  issory note, failed to put a buyer’s
                 Collins, Kenneth W. (Grants               incorrect regarding the status of                offer for a reduced price in writ-
            Pa s s )       Pr i n c i p a l   Br o k e r   permits for the living quarters in               i n g i n a t i m e l y m a n n e r, a n d
            #881100132                                     the shop and did not refer his cli-              treated the negotiations between
            Stipulated order dated April 28,               ents to an attorney to review the                the parties as critical to the cre-
            2004; permitted his licensees to               adequacy of the seller’s disclosure,             ation of a contract when there al-
            use listing forms that failed to               ORS 696.805(2)(a); knew or                       ready was a signed contract and
            place the forfeited earnest money              should have known that the                       the buyer’s time for disapproving
            provision immediately above the                square footage, bedrooms and                     the property’s condition had run
            seller’s signature or have it ini-             bathrooms attributed to the                      out without an extension having
            t i a l e d b y t h e s e l l e r, O R S       home in the multiple listing ser-                been             obtained,             ORS
            696.241(6); failed to assure that              vice were incorrect, and failed to               696.815(2)(b) (2001 Edition);
            his licensee secured a disclosed               take reasonable actions to verify                failed to obtain a signed and
            limited agency agreement from                  the veracity of the information                  dated disclosed limited agency
            the seller prior to undertaking to             used in the advertisements, ORS                  agreement, OAR 863-015-0210
            represent both the buyer and                   696.301(6).                                      (2001 Edition); failed to have the
            seller in the transaction, failed to                                                            seller acknowledge the existing
            assure that his licensee secured                                                                       ADMINISTRATIVE. . . : continued on page 8




OREN-J June '04.pmd                7                                                                 6/9/2004, 4:12 PM
            8         June 2004                                                             OREGON REAL ESTATE NEWS-JOURNAL

            ADMINISTRATIVE. . . : continued from page 7       agreement, lead-based paint dis-                 0065(1); failed to have a rental
            agency relationship at the time of                closure, and security deposit                    agreement, lead-based paint dis-
            presenting the offer to purchase,                 promissory        note,      ORS                 closure and security deposit
            ORS 696.845 (2001 Edition);                       696.301(29); transferred a                       promissory note signed by a ten-
            failed to promptly deliver true,                  tenant’s security deposit from his               ant, OAR 863-025-0015(1)(a);
            legible copies of the signed offer                security deposit CTA to his op-                  requested that a tenant pay rent
            to both seller and buyer, OAR                     erating CTA and paid bills, in-                  to her office after being told by
            863-015-0135(4) (2001 Edi-                        cluding his management fees and                  the owner that he was terminat-
            tion); and failed to promptly                     an owner draw after management                   ing the management agreement,
            transmit an earnest money check                   had been terminated by the                       ORS 696.301(28); and charged
            and transaction documents to his                  owner, OAR 863-025-0030(4),                      the owner for a carbon monoxide
            principal broker, OAR 863-015-                    OAR 863-025-0070(6); failed to                   detector and smoke detectors in
            0255(2) (2001 Edition).                           maintain copies of the monthly                   a dwelling when the management
               R a p p, Va l e r i e A . ( C e n t r a l      owner reports showing all receipts               agreement specified that mainte-
            Point) Broker #199911059                          and disbursements, OAR 863-                      nance was to be done by the
            Stipulated order dated May 17,                    025-0055(4); disbursed funds                     owner, ORS 696.301(28).
            2004; made repairs and alter-                     from the owner’s ledger in excess
            ations to property she purchased                  of the ledger balance and prior to                  Steiner, Judy K. (McMinnville)
            prior to closing without proper                   rent checks clearing, OAR 863-                   Property Manager #940600190
            written authorization to do so,                   025-0025(3)(a); failed to pre-                   Stipulated order dated March 9,
            ORS 696.810(2)(a); and failed to                  pare and maintain a chronologi-                  2004; failed to accurately credit
            write the earnest money check on                  cal record of receipts and dis-                  tenant rents, charged an owner
            the date of the offer for property                bursements for either CTA that                   for a pro-rated portion of the cost
            she was purchasing, as was rep-                   complies with the rules, OAR                     of checks which was not autho-
            resented; instead writing it two                  863-025-0040; failed to account                  rized in the agreement, used cred-
            days later on the date the counter                for the transfer of the tenant’s                 its on the owner ledger instead
            offer was accepted, ORS                           security deposit to the operating                of checks and deposits, applied
            696.810(2)(a)(b).                                 CTA and for its subsequent use                   $300 to late fees in the mistaken
                                                              as payment of the tenant’s rent                  belief that she was permitted to
               Shklayvel, Maria (Beaverton)                   on the tenant ledger, OAR 863-                   do so, ORS 696.301(28); failed
            Te m p o r a r y A s s o c i a t e Br o k e r     025-0050(4); did not properly                    to list funds received from the
            #200002084                                        reconcile either CTAs, OAR 863-                  rental of tables at a flea market
            Stipulated order dated March 15,                  025-0025(5)(6); and charged                      and screening fees on the tenant
            2004; removed or allowed at-                      the owner for a carbon monoxide                  ledgers, OAR 863-025-0050(1);
            tached window treatment hold-                     detector and smoke detectors in                  and failed to deposit and main-
            ers and an included wet bar re-                   a dwelling when the management                   tain all tenant security deposits
            frigerator to be removed from                     agreement specified that mainte-                 in the security deposit account,
            property in which she was the                     nance was to be done by the                      OAR 863-025-0050(1).
            seller, and failed to advise the                  owner, ORS 696.301(28) (OAR
            buyers that the irrigation system                 2002 Edition-6-15-02)                                         CIVIL PENALTIES
            could produce water in the crawl                                                                      A m e r i c a n Ti t l e Gro u p, In c .
            space, ORS 696.301(28).                               Snyder, Te resa N. (Klamath                  (Eugene)           Escrow          Agent
                                                              Falls) Temporary Associate Broker                #930800117
                Sn y d e r, L a r r y T. ( K l a m a t h      #961200113                                       Stipulated order dated April 26,
            Fa l l s )       Pr i n c i p a l        Broker   Stipulated order dated March 3,                  2004 issuing a $500 civil pen-
            #780403156                                        2004, which also requires the                    alty; paid a commission directly
            Stipulated order dated March 3,                   successful completion of certain                 to the selling agent, contrary to
            2004, which also requires the                     education; entered into a reser-                 the written escrow instructions of
            successful completion of certain                  vation agreement with a tenant                   the principals, OAR 863-050-
            education; failed to deposit a res-               prior to the time she had a man-                 0055(8) (2002 Edition / 6-15-
            e r v a t i o n d e p o s i t t i m e l y, OA R   agement agreement for the prop-                  02).
            863-025-0065(1); failed to en-                    e r t y, OA R 8 6 3 - 0 2 5 - 0 0 2 0 ( 2 ) ;
            sure that his licensee obtain a                   failed to deposit a reservation de-
            t e n a n t’s s i g n a t u re o n a re n t a l   p o s i t t i m e l y, OA R 8 6 3 - 0 2 5 -




OREN-J June '04.pmd                  8                                                                  6/9/2004, 4:12 PM
            OREGON REAL ESTATE NEWS-JOURNAL                                                                      June 2004       9

               Cascade Escrow (Eugene) Es-           January 1, 2004 through April              alty; failed to renew real estate
            crow Agent #850700128                    14, 2004, ORS 696.525(2)(c).               license for a period of time while
            Stipulated order dated March 9,                                                     continuing to conduct profes-
            2004 issuing a $1,000 civil pen-            Martin, Samuel, Jr. (Central            sional real estate activity, OAR
            alty; paid a commission directly         Point) Temporary Associate Bro-            863-15-0050(2).
            to the listing agent, contrary to        ker #200107119
            the written escrow instructions of       Stipulated order dated March 19,              Ticor Title Insurance Company
            the principals in two escrows,           2004 issuing a $350 civil pen-             ( Po r t l a n d ) E s c r ow Agent
            OAR 863-050-0055(8) (2002                alty; failed to renew real estate          #920900176
            Edition / 6-15-02).                      license for a period of time while         Stipulated order dated May 18,
                                                     continuing to conduct profes-              2004 issuing a $1,000 civil pen-
               First American Title Company          sional real estate activity, OAR           alty; failed to meet bonding re-
            of Columbia County (St. Helens)          863-15-0050(2).                            quirements for 15 days, from Feb-
            Escrow Agent #880900119                                                             ruary 23, 2004 through March 8,
            Stipulated order dated May 7,               Phillips, Steven C. (Eugene)            2004, ORS 696.525(2)(e).
            2004 issuing a $2,500 civil pen-         Broker #790600003
            alty; failed to meet bonding re-         Stipulated order dated April 28,
            quirements for 105 days, from            2004 issuing a $500 civil pen-




                                        ESCROW CONTINUING EDUCATION
               SB 207, which passed during           escrow agent should assure that
            the 2003 Session, made several           the training is provided to em-
            changes to laws regulating escrow        ployees, retain the documentation          while
            agents including a new continuing        (e.g., certificate of attendance) for      permit-
            education requirement.                   potential audit by the Agency, and         ting consid-
               ORS 696.511(6)(a) requires an         sign the certification statement on        erable latitude
            escrow agent to provide, for license     the renewal form.                          to escrow lic-
            renewal, “A certification of training,      The new law is similar to, but          ensees in best
            by which the applicant certifies         not as restrictive as, continuing edu-     fulfilling the
            that the applicant provides escrow       cation requirements for real estate        educational
            agency staff within Oregon with an       licensees. For example, the escrow         needs of em-
            average of six hours or more of train-   laws don’t authorize the Commis-           ployees.”
            ing per year per permanent, full-        sioner to specify topics, adopt rules,        P l e a s e
            time employee in subjects that bear      or waive requirements, as autho-           c o n t a c t
            directly on the administration of es-    rized in the real estate licensee laws.    Education
            crows . . . ”                            The Agency does not approve con-           Coordinators
               Escrow license renewal applica-       tinuing education courses or edu-          M e s h e a l
            tions were mailed by the Agency to       cators for either escrow or real es-       Heyman        at
            escrow agents in May and are due         tate licensees.                            (503)      378-
            June 30, 2004. The renewal ap-              Commissioner Scott Taylor               4170, exten-
            plications contain a certification       notes, “The Agency considers the           sion 251, or
            statement that the continuing edu-       continuing education requirement           Carmen Twenge at (503) 378-
            cation requirements were met. The        a positive addition to the laws,           4170, extension 260, if you need
                                                                                                additional information.




OREN-J June '04.pmd             9                                                        6/9/2004, 4:12 PM
            10        June 2004                                               OREGON REAL ESTATE NEWS-JOURNAL

                      BUILDING PERMITS INFORMATION
               The State of Oregon Building             Several entities including the
            Codes Division launched a cam-            Oregon Real Estate Agency have
            paign to inform homeowners of the         partnered with the Division in dis-
            need to obtain building permits.
            The campaign includes publi-
            cation of brochures, radio an-
                                                           tributing the information,
                                                           sponsoring radio announce-
                                                           ments and website links. You
                                                                                                              2004
            nouncements, and a website                     can view the “Permits Protect!”
            www.PermitsProtect.info.                        brochure         on       the
               The information notes that                     Agency’s      website     at
            permits protect the value of a                       www.rea.state.or.us.
            home by assuring that work                                      You can ob-
            meets the building code, that
            licensed contractors undertake
                                                                            tain    addi-
                                                                            tional infor-
                                                                                                  2004 CALENDAR
            construction and repair of                                    mation regard-          June 19          License Exams
            homes, and that certified in-                                 ing the cam-
            spectors inspect the project or                               paign and the           June 28          Real   Estate
            installation. The in-                                         need to obtain                           Board Meeting
            formation also notes                                          building per-
            that the use of permits may facili-       mits from Joan Stevens-Schwenger,           June 30          See “Upcoming
            tate a smoother home sale by in-          (503) 872-6731.            Stevens-                          Deadlines”
            suring the home is safe for future        Schwenger manages a Building                                 article (page 5)
            occupants, rather than taking time        Codes Division Tri-County Service                            for information
            for repair to bring installations up      Center in Portland.
            to code.                                                                              July 24          License Exams

                                                                                                  August 21        License Exams
                              FORM SIGNATURE REQUIREMENTS
                                                                                                  August 23        Real   Estate
                            (Editor’s note: Fol-      ensee has the authority to request                           Board Meeting
                             lowing is a reprint of   the action.
                                an article pub-          This change applies to the fol-          September 18 License Exams
                                  lished in the       lowing actions:
                                    December                                                      October 23       License Exams
                                     2 0 0 3            • transfer of a principal broker
                                     OREN-J .)             to a registered business name          October 25       Real   Estate
                Certain licensing forms filed              (RBN);                                                  Board Meeting
            with the Agency require signatures.
            The Agency adopted new signature            • changing the status of an in-           November 20 License Exams
            requirements for business name                 dividual already licensed to an
            registration and principal broker li-          RBN to principal broker sta-           December 18      License Exams
            censing to reflect the changes in li-          tus;
            cense laws.                                                                           December 20      Real   Estate
                Actions that previously required        • registration of a new or                                 Board Meeting
            signatures of two owners, officers or          changed business name;
            members of the firm now require                                                          Exam applications must be
            only the signature of one authorized        • establishment of affiliated or          postmarked by the 5th day of
            licensee. The authorized licensee              subsidiary RBNs.                       the month to register for that
            can be a principal broker, sole prac-                                                 month’s examination. Please re-
            titioner broker or sole practitioner         For more information, please con-        fer to the Real Estate License and
            property manager. The licensee            tact the Licensing Section at (503)         Examination Information book-
            must sign a statement certifying          378-4170, selection 2.                      let, available from the Agency,
            under penalty of law that the lic-                                                    for instructions on applying for
                                                                                                  a licensing examination.




OREN-J June '04.pmd               10                                                   6/9/2004, 4:12 PM
            OREGON REAL ESTATE NEWS-JOURNAL                                                                                 June 2004   11

                                            Oregon Real Estate Agency
                                            Publication Order Form
       PUBLICATIONS                                                             BROCHURES
       Oregon Real Estate Manual contains a discussion and                      Continuing Education Requirements for Oregon Real
       copies of the laws and rules administered by the Agency,                 Estate Licensees explains license renewal requirements and
       including Real Estate License Law; Property Rights; Landlord             guidelines for principal broker approval. The brochure is free
       and Tenant Act; Subdivisions; and others. Purchase the                   with a self-addressed, stamped envelope.
       Manual at the Agency for a reduced price of $20. Mail orders             Brokers’ Records of Professional Real Estate Activity is a
       are $26.                                                                 guide for maintaining listing agreements and transaction files.
       Manual Update Subscription Service provides revisions in                 The brochure is free with a self addressed, stamped
       the text of the Oregon Real Estate Manual along with                     envelope.
       changes in statutes and rules. The Service is $12 for the
       2003-2005 biennium.
       Questions and Answers in Real Estate, 9th Edition. Become
       familiar with formats of over 2,000 questions used in current
       license examinations. Questions and Answers may be
       purchased at the Agency for $12. Orders by mail are $15.



     TO ORDER, make check or money order payable to the Oregon Real Estate Agency, or complete the credit card information below, and return to:
                                   Oregon Real Estate Agency, 1177 Center St. NE, Salem, OR 97301

    Oregon Real Estate Manual
    ______# of copies X $26 each (includes postage and handling)         =           $___________ Revenue Code 41501-0427


    Manual Update Subscription Services
    ______# of copies X $12 each (includes postage and handling)         =           $___________ Revenue Code 41501-0427


    Questions and Answers in Real Estate, 9th Edition
    ______# of copies X $15 each (includes postage and handling)         =           $___________ Revenue Code 41501-0427


        Continuing Education Requirements for Real Estate Licensees Brochure
    1 copy free with a self-addressed, stamped #10 envelope        =         FREE with self-addressed, stamped #10 envelope


        Brokers’ Records of Professional Real Estate Activity Brochure
    1 copy free with a self-addressed, stamped #10 envelope          =               FREE with self-addressed, stamped #10 envelope


                                                            Total enclosed           $_________
    Name and/or Company Name: ______________________________________________________________________________________


    Shipping Address: ______________________________________________________________________________________________


    City, State and Zip: _______________________________________________ Daytime Telephone Number: (______) _________________

    Please charge my:          VISA                    MASTERCARD



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                                                                                                                                        Rev. 3/04



OREN-J June '04.pmd             11                                                         6/9/2004, 4:12 PM
            12        June 2004        OREGON REAL ESTATE NEWS-JOURNAL




OREN-J June '04.pmd               12        6/9/2004, 4:12 PM

				
DOCUMENT INFO
Description: Oregon Inactive Real Estate License Rules document sample