Oregon Real Estate
Ofﬁcial Publication of the Oregon Real Estate Agency Volume 62, Number 2, July 2008
Transitions in the Agency
Gene Bentley, Real Estate Commissioner
I’m pleased to report about the to Regulation Division Manager. She was
exciting changes taking place here at previously the manager of the Licensing
the Oregon Real Estate Agency. Division.
In May, Mesheal Heyman ac- Selina has been with the Agency for over
cepted the opportunity to man- ﬁve years, and has worked previously as an
age the new Education Division. Investigator/Auditor for the Agency. Prior to
Mesheal has been with the Agency joining the Agency, Selina served over eight
since January 2001. years with the Salem Police Department, in-
The previous Education Section cluding four years as a detective conducting
was responsible for coordinating complex, multi-jurisdictional investigations.
license examinations, approving pre- The new Licensing Division Manager will
license and post-license courses and be hired by the time you receive this issue.
Commissioner Gene Bentley instructors, developing and publish- Licensing Compliance Specialist Laurie Hall
ing Agency publications and brochures, and has agreed to manage the division until then.
managing the Agency’s website. The new Watch for the announcement on the Agen-
division will continue those duties, but will cy’s website at www.rea.state.or.us.
take on the additional responsibilities of con- Investigator/Auditor Virginia Grosso
ducting compliance reviews and mail-in au- has announced that she will be leaving the
dits, researching the educational needs of real Agency in August to ﬁnish her last year at
estate licensees, and encouraging additional Willamette University’s College of Law. We
educational opportunities for licensees. wish her well in her endeavors.
Agency staff members Gae Lynne Cooper, At the time of printing, the Agency plans
Judi Parker, and Danette Rozell have joined to have hired three new Investigator/Audi-
Mesheal in the new division. The ﬁrst task tors for the Regulation Division. This will
faced by the new team will be to research bring the division up to full staff.
cost-effective ways to get the same informa- Available job opportunities with the
tion given in one-on-one compliance reviews Agency can be found on our website at www.
to more licensees. rea.state.or.us.
In June, Selina Barnes was promoted
IN THIS ISSUE
Oregon Real Estate Oregon - 150 Years of History ............... 2 Administrative Actions ........................... 4
Agency Renewing Online? A Green Bar Continuing Education for Real Estate
1177 Center Street NE Means Go ............................................ 2 Licensees .............................................. 7
Salem, Oregon 97301 Enhancing Education............................. 3 Lands Next to Oregon’s Scenic
(503) 378-4170 Governor Re-Appoints Medford, Waterways ............................................ 7
(503) 378-3256 Fax Hermanski to Board ............................ 3 Permanent Advertising and Background
www.rea.state.or.us Check Rules Effective 7/1/08 ............... 8
Oregon - 150 Years of History
If someone asked you what your idea of http://www.oregon150.org/oregon-stories.
an Oregonian is, what would you tell them? Oregon 150 is the non-proﬁt group organiz-
Oregon celebrates its 150th birthday next year, ing many sesquicentennial events. They are
and we want to hear your take on being an asking you to share anything from written
Oregonian! family histories, audio ﬁles, photographs, po-
The Real Estate Agency would love any ems, and even cherished family recipes. Their
real estate-related stories you want to share. webpage has some excellent tips to get your
Whether stories of the land your family story started.
has held since the pioneering days or your Starting in the December 2008 edition of
experiences as a real estate broker or property Oregon Real Estate News-Journal, we explore
manager, we want to hear from you. What the history of land and real estate in Oregon.
changes have you seen in the industry while We will have stories in four editions, each
you’ve been licensed? Please e-mail your involving a different time period from Lewis
stories with contact information to us at orea. and Clark’s arrival through today. The stories
email@example.com. highlight some of the interesting events that
You can also share your stories at shaped our state and the real estate industry.
Renewing Online? A Green Bar Means Go.
Real estate licensees renewing their license What is Extended Validation SSL?
online using Internet Explorer 7.0 may see Extended Validation (EV) SSL Certiﬁcates
something different: their internet browser bar represent the highest standard for authentica-
turning green. tion approved by the CA/Browser Forum, a
Why did the address bar turn green? group of leading SSL Certiﬁcate Authorities
You are visiting a site secured with Extended (CAs) and browser vendors. The standard re-
Validation (EV) SSL, the highest standard for quires that every Web site secured with EV SSL
Web site authentication. EV SSL signiﬁes that pass a certiﬁed process for rigorously verifying
our organization has passed a rigorous identity the identity of the organization responsible for
authentication process. In high-security brows- that Web site.
ers, an EV SSL Certiﬁcate triggers the browser Why does rigorous authentication matter?
address bar to turn green, display https://, and When you follow a link to a Web site, how
show the name of the organization that owns do you know it is real? There are criminals who
this Web site and VeriSign, the certiﬁcate au- create Web sites that look familiar in order
thority that veriﬁed the owner’s identity using to trick visitors into revealing personal and
a rigorous authentication process. When your ﬁnancial information. These “phishing” web
address bar turns green, be sure to look to see sites can be very difﬁcult to distinguish from
that the owner of this Web site is the organiza- legitimate Web sites. An Extended Validation
tion you intended to visit. SSL Certiﬁcate displays the authenticated
What does SSL mean? name of the organization that purchased the
Secure Sockets Layer (SSL) Certiﬁcates are SSL Certiﬁcate.
the standard method used on the Internet to Why did you choose Extended Validation
secure communications between Web users for this Web site?
and Web sites. This technology both authen- We chose Extended Validation (EV) SSL to
ticates the identity of a Web site and encrypts secure your online transaction with us because
communications between the user and the we take your online security very seriously. EV
Web site. SSL signiﬁes that our organization has passed
the strict EV identity authentication process.
2 July 2008 Oregon Real Estate News-Journal
Marianne Wood, Oregon Real Estate Board
The Real Estate Agency and the Oregon As- both multiple choice and critical decision-
sociation of Realtors® are working together making questions. Some states use a combi-
to improve the education standards for nation of multiple choice questions
Oregon licensees. and a broker simulation examina-
A Joint Education Task Force was formed tion. The task force researched many
to address issues related to pre- and post- of the available options for testing.
license education for real estate brokers and Comments leading to the ap-
property managers. pointment of the original Education
From this group, subcommittees were Work Group in 2006 indicated that
appointed to study and prepare recommen- the teaching materials for pre-license
dations to be presented to the Oregon Real courses were focused more on pass-
Estate Board. The subcommittees met and ing the examination than preparing
discussed pre-license education, advanced the licensee for the actual responsi-
practices, continuing education, property bilities of being a licensed Real Estate
management and distance learning. Broker working with the public.
The Joint Task Force recommendations
were also presented at the Oregon Association Continuing Education
of Realtors® 2008 Legislative Conference in
Salem. To view the recommendations, go to The work group recommended that all the Marianne Wood
http://www.oregonrealtors.org/Advocacy/ elective courses be eliminated and the current
and click on the link to the Legislative Con- required course topics expanded. The revised
ference white papers. The list is on that page. course topics suggested cover 28 categories
Some of the bullet points of the recom- and include one three-hour rule and law
mendations and discussions coming from the update certiﬁed annually by the Real Estate
task force include the following comments: Board. The course materials and course pro- Board Meeting
viders will be certiﬁed. Schedule
From the combined efforts of the Real August 4, Boardman
In comparing pre-license education in Estate Agency and Oregon Association of October 6, Salem
Oregon with other states, it is interesting to Realtors®, it is clear that Oregon is raising December 1, Salem
note that Oregon currently ranks as one of the real estate education standards for current
only six other states that require more than and future licensees. Visit www.rea.state.
100 hours of pre-license education. Colorado All licensees are encouraged to contribute or.us for more infor-
(168 hours) was the only state to require ideas and comments to any member of the mation.
more than the 150 hours currently required Joint Task Force or send suggestions to the
for pre-license education in Oregon. Real Estate Board, 1177 Center Street N.E.,
Another recommendation from the task Salem, Oregon 97301. You can also e-mail
force was to develop a test that would include to firstname.lastname@example.org.
Governor Re-Appoints Medford, Hermanski to Board
Governor Ted Kulongoski has re-appointed two public members of the Board. Her term
Kim Medford and Christopher Hermanski expires January 31, 2012.
to the Oregon Real Estate Board. Hermanski is founder of Mainlander
Medford is an attorney with Karnopp Property Management in Lake Oswego. His
Petersen, LLP in Bend. She serves as one of term expires July 31, 2012.
Oregon Real Estate News-Journal July 2008 3
February 27, 2008 through June 30, 2008, 2008
Revocations the listing had been cancelled in April 2006
and without the permission or consent of the
The Agency is McKenna, D. Michael (Portland) Broker owner.
required by Oregon #890500223 Violations: ORS 696.810(2)(a); OAR
Real Estate License Stipulated order dated June 30, 2008, effec- 863-015-0255(2) (2003 Edition); ORS
Law to publish dis- tive June 30, 2008, resulting in a revocation. 696.280, 696.301(14); OAR 863-015-
ciplinary actions. A Violation: ORS 696.301 0125(5)(e); 863-015-0145(5) (2005 Edi-
list of those actions,
a brief description Sasaki, S. Alan (Portland) Broker
of the situation, #780401503 Yehia, Elliot (Beaverton) Broker
and the grounds for Stipulated order dated March 27, 2008, ef- #200209031
the Commissioner’s fective March 27, 2008. Sasaki plead guilty Hearing order dated March 10, 2008, effec-
action follows. to a charge of Aggravated Theft in the First tive April 1, 2008. Yehia failed to disclose
Please note, there are Degree, a Class B Felony. in the RMLS listing statement that he was
individuals with real Violation: ORS 696.301(11) a real estate licensee and had an owner-
estate licenses that
ship interest in the property; Yehia failed
may have similar or Steiner, Judy K. (McMinnville) Property to exercise reasonable care and diligence
the same names as Manager #940600190 by recommending that buyers rely on his
those listed herein, Stipulated order dated May 1, 2008, effec- (Yehia) inspection report and his (Yehia)
or even work in the tive June 1, 2008, resulting in a revocation. inspector rather than advising buyers to ob-
same market area. If Violation: ORS 696.301 tain an independent inspection report; Yehia
you are in doubt if an
altered transaction documents by modifying
individual listed here Truong, April (Portland) Broker the documents after execution without the
is someone you know #990700101 consent of the buyers; Yehia acted in the dual
or with whom you Default Order dated April 1, 2008, effec- capacity of agent and undisclosed principal
are dealing, please tive April 1, 2008. Truong failed to submit in more than one transaction; Yehia failed to
contact the Agency transaction documents to her principal bro- disclose his ﬁnancial interest in a property to
for veriﬁcation. ker until after the transaction closed; Truong the buyers; Yehia conducted professional real
Finally, please allowed the buyer to enter into a seller-car- estate activity after his license expired and
note that stipulated ried contract and a contract of sale and failed prior to its renewal; and Yehia falsely ad-
settlements do not to provide documentation that the lender vised OREA that he had not conducted any
necessarily reﬂect all was aware of the seller carried contract of professional real estate activity during the
the factual violations sale; Truong entered into a verbal agreement period in which is license was expired and
initially alleged by to purchase buyer’s properties in Hillsboro not renewed.
the Agency, and the and Portland without preparing paperwork, Violations: ORS 696.301(1), (15), (28)
sanction(s) may have by improperly obtaining quitclaim deeds & (31), 696.805(2)(a) & (c), 696.810(2)(a),
been adjusted as on these properties and failing to return the 696.810(3)(a), (c) & (d); OAR 863-015-
part of the nego- quitclaim deeds or reconvey the proper- 0050(2), 863-015-0145 (2003 Edition)
tiation process. Such ties; Truong failed to provide her principal
settlements may not, broker with transaction documents when she Suspensions
therefore, directly obtained quitclaim deeds on two of buyer’s
compare in severity/ properties and failed to maintain documen- Daugherty, Sheila Lynne (Lincoln City)
sanction with other tation that she made mortgage payments on Broker #200602296
cases. behalf of Buyer for the two properties; and Stipulated order dated March 10, 2008,
Truong placed a property back in the RMLS issuing a 30-day suspension effective April
system from June to September 2006 after 1, 2008. Daugherty failed to inform sellers,
whom she represented through her course
4 July 2008 Oregon Real Estate News-Journal
of conduct, of the sellers’ duty under ORS of employees or businesses in which he has a
105.462 to 105.490, regarding the sellers’ pecuniary interest, and (5) a statement that
property disclosure; Daugherty failed to the broker shall disclose use of employees or
inform the buyer, whom she represented businesses where the broker has a pecuniary
through her course of conduct, of the buyer’s interest; Kern’s property management agree-
rights under ORS 105.462 to 105.490, ment described quarterly owner statements
pertaining to the seller’s property disclosure; instead of monthly; Kern failed to include
Daugherty failed to provide the sellers with an identifying code on the property manage-
an initial agency disclosure pamphlet at the ment addendum; and Kern failed to main-
ﬁrst contact; Daugherty failed to obtain the tain written company policies for real estate
signature of the buyer or sellers on a ﬁnal and property management.
agency acknowledgement form when execut- Violations: OAR 863-015-0125(1), (2) &
ing the offer to purchase; Daugherty failed (3), 863-025-0015(1), 863-025-0020(1), (2)
to obtain signed disclosed limited agency (f )-(k) & (4), 863-025-0055(1), 863-025-
agreements from the sellers and buyer, when, 0065(1)
through her course of conduct, she repre-
sented both sellers and buyer; Daugherty Martin, Troy W. (Portland) Broker
failed in a timely manner to account to the #891200213
sellers for the $65 she received from the Stipulated order dated June 30, 2008, issuing
sellers for the purpose of recording the deed; a 45-day suspension effective July 1, 2008.
Daugherty failed to transmit to her prin- Martin signed the closing statements in two
cipal broker the $65 she received from the transactions when he knew that funds would
sellers for the purpose of recording the deed; go to the buyer.
Daugherty failed to transmit to her princi- Violation: ORS 696.301(1)
pal broker the real estate contract that she
executed on behalf of the sellers and buyer; Mitzel, Debra K. (Molalla) Property Man-
and Daugherty failed to disclose to the sellers ager #980700051
in a timely manner a conﬂict of interest, that Stipulated order dated March 10, 2008,
the buyer was her son. issuing a 2-year suspension effective April 1,
Violations: ORS 696.815(2)(a), 2008.
696.820(2), 696.845, 696.870(1)(a) & (b), Mitzel allowed an employee to issue a second
OAR 863-015-0205(1), 863-015-0255(2) check to a vendor without recording the
invoice number; Mitzel failed to authorize,
Kern, Don R. (Roseburg) Broker in writing, an employee to review and ap-
#921200044 prove the reconciliations of the clients’ trust
Stipulated order dated June 16, 2008, issuing account; Mitzel misrepresented the nature
a 60-day suspension effective June 30, 2008. of a payment to a property owner; Mitzel
Kern advertised property for sale that did took a management commission before the
not include his registered business name; end of the rent cycle; Mitzel failed to notify
Kern failed to review and be responsible for the Agency of a new clients’ trust account;
all advertising concerning professional real Mitzel failed to maintain active and inactive
estate or property management activity; Kern records as required; Mitzel failed to reconcile
failed to deposit property management funds the clients’ trust account February through
into a clients’ trust account; Kern failed to April 2006 at lease once a month; Mitzel
establish and maintain a clients’ trust ac- issued checks from an owner’s ledger ac-
count for property management; Kern failed count in excess of the actual credit balance
to establish and maintain owner ledgers of the account; Mitzel failed to deposit into
for each property management agreement; a clients’ trust account funds received in the
Kern failed to include in a property manage- course of her property management business;
ment agreement: (1) an identifying code, (2) Mitzel allowed outstanding adjustments
disposition of records upon termination, (3) to remain on the accounting records for
all management fees and other compensation extended periods of time; Mitzel conducted
to be paid, (4) a disclosure regarding the use Please see Administrative Actions on Page 6
Oregon Real Estate News-Journal July 2008 5
The complete order Continued from Page 5
for each admin-
can be found as a
supplement to the
property management for an owner without
a valid property management agreement;
electronic version Mitzel allowed an employee to enter into Carlson, Jared Douglas (Bandon) Prop-
of the OREN-J on a property management agreement; Mitzel erty Manager #200601202
the Agency’s web- failed to initial and date a property manage- Stipulated order dated April 28, 2008.
site. Visit www.rea. ment agreement memorializing her approval Carlson failed to reconcile the bank balance
state.or.us, and select and acceptance; Mitzel failed to assure that with the check register and all positive owner
“News-Journal” from the label included the language “clients’ trust ledgers; Carlson issued checks against owner
the menu. account” on more than one clients’ trust ledgers in excess of the balance on the owner
accounts; Mitzel failed to provide an owner ledger; Carlson failed to maintain owner and
with a ﬁnal accounting and the unobligated tenant ledgers; and Carlson failed to back up
funds timely; Mitzel allowed an employee data stored on the computerized system at
to make a telephone transfer without prior least once every month.
written authorization; Mitzel issued a clients’ Violations: OAR 863-025-0025(11) &
trust account check prior to the existence (19), 863-025-0035(1)(j) & (2)(a)
of a sufﬁcient credit balance in the owner’s
ledger to cover the check on more than Hall, Terri L. (Lake Oswego) Broker
one occasion; Mitzel failed to note a check #990300060
number issued and date paid for a vendor Stipulated order dated March 28, 2008.
invoice and thereby failed to retain all paid Hall failed to present seller with transaction
bills and receipts explaining the amount of documents in a timely manner; Hall allowed
and purpose for the disbursement; Mitzel seller to sign an addendum after the contract
maintained ledgers that contained erroneous terminated; Hall changed the status of the
and incomplete information; Mitzel used subject property on RMLS from “pending”
checks that were not numbered consecutively to “active” prior to the termination agree-
as they were issued; Mitzel failed to transfer ment being signed by both parties; and Hall
existing client operating funds into a newly paid for a home warranty.
opened clients’ trust accounts in a timely Violations: ORS 696.805(2)(b) & (c),
manner; Mitzel charged an owner the rate 696.290; OAR 863-015-0125
of $40 per hour for repairs and maintenance
work when the management agreement Ngo, Moon (Portland) Broker
called for the rate of $35 per hour; Mitzel #200407120
charged owners for maintenance and repairs Default order dated March 19, 2008. Ngo
without any supporting documentation or misrepresented LP siding as cedar siding.
explanation of the charges; and Mitzel al- Violation: ORS 696.301(1)
lowed a check to be drawn which resulted in
a negative balance. Richardson, Dale Alex (Portland) Broker
Violations: ORS 696.241(2), 696.301(1) & #200503082
(28); OAR 863-025-0020(2), (4), (5) & (6); Stipulated order dated June 30, 2008.
863-025-0025(1), (3)(a), (e) & (f), (5) & (6); Richardson performed a competitive market
863-025-0030(1); 863-025-0035(3); 863- analysis without ﬁrst examining the inside of
025-00402)(5); 863-025-0055(2); 863-025- the subject property; and Richardson omit-
0065(1); 863-015-0255(4) (2003 Edition); ted language requested by the buyers from an
863-025-0025(3)(a) ,(7) & (10); 863-025- addendum he prepared.
0035(3); 863-025-0070(3) (2005 Edition) Violations: ORS 696.301(12) & (15)
6 July 2008 Oregon Real Estate News-Journal
Continuing Education for Real Estate Licensees Education
• Trust Accounts
Thirty hours of continuing education are Continuing education must be “real • Anti-Trust
required to renew a real estate license in estate-oriented.” It must be a minimum of • Rule and Law Up-
Oregon. Principal brokers approve education one hour in length. date
for themselves and their afﬁliated licensees. Continuing education taken out-of-state • Property Manage-
Sole practitioner brokers and property man- may be approved by the approving licensee ment
agers approve their own education. The Or- if the content applies to Oregon. Online or • Commercial Bro-
egon Real Estate Agency does not approve distance education classes may also be ap- kerage and Leasing
continuing education. The Agency does proved. • Real Estate Taxation
not maintain a list of continuing education A principal broker may let afﬁliated bro- • Agency
course providers. kers use the Advanced Real Estate Practices • Fair Housing
Licensees who approve education decide course for continuing education (Certiﬁcates • Contracts
whether a course is in required or elective of attendance must be kept by the approving • Evaluation of Prop-
topics. OAR 863-015-0055 requires that licensee for six years erty
at least 15 hours of continuing education Visit the Agency’s website at www.rea. • Brokerage Manage-
taken by a licensee must be taken within the state.or.us for more information, or call the ment
required topics (see sidebar). The rest of the Agency at (503) 378-4170. • Land
hours can be either required or elective. • Business Ethics
Lands Next to Oregon’s Scenic Waterways
Do you represent an owner or buyer of prop- • North Fork of Middle Fork of
erty along a Designated Oregon Scenic Water- Willamette River Editor’s Note: This
way? The property may have land use require- • Owyhee River article was printed
ments that are not shown in title reports. • Rogue River at the request of the
The Scenic Waterways Program balances • Sandy River Oregon Parks and
the protection of the rivers’ natural resources • North Santiam River Recreation Depart-
and the lives and plans of property owners • North Umpqua ment.
who live along them. Under current Oregon • Walker Creek
Administrative Rules and Oregon Revised • Wallowa River
Statutes, landowners are required to notify the • Waldo Lake
Oregon Parks and Recreation Department
(OPRD) of certain activities proposed within Activities that require notiﬁcation may
one-quarter mile of the bank of a designated include tree cutting; mining; and construction
scenic waterway. of roads, railroads, utilities, buildings or other
Designated Scenic Waterways include por- structures. Other activities also may require
tions of the: notiﬁcation. The proposed uses or activities
• Clackamas River may not be started until the written notiﬁca-
• Deschutes River tion is approved, or until one year after the
• Elk River notice is accepted.
• Grand Ronde River For more information about the program
• Illinois River and to download a copy of the Scenic Wa-
• John Day River terways Landowners Guide, please visit the
• Klamath River OPRD web site at http://www.oregon.gov/
• McKenzie River OPRD/PARKS/index.shtml. A list of staff
• Metolius River contacts are listed on the web site. For ad-
• Minam River ditional information, call Jan Houck, (503)
• Nestucca River 986-0742.
Oregon Real Estate News-Journal July 2008 7
Permanent Advertising and Background Check Rules
The Real Estate Board approved the rule, so the permanent rule continues the
permanent rule for advertising (OAR 863- requirements that have been in place since
015-0125) and the new rules deﬁning the January 18.
criminal background check process for The full text of both rules can be found
license applicants. There were no changes in on the Agency’s website at www.rea.state.
the language of the temporary advertising or.us.
OREGON REAL ESTATE
NEWS-JOURNAL OREGON REAL ESTATE NEWS-JOURNAL, SALEM, OREGON 97301
(USPS 905-220) Periodicals Postage Paid at Salem, Oregon
Oregon Real Estate Agency
1177 Center St. N.E.
Salem, Oregon 97301-2505
Telephone: (503) 378-4170
(503) 378-3256 Licensing
(503) 373-7153 Regulation
(503) 378-2491 Administration
OREGON REAL ESTATE
Theodore R. Kulongoski,
Gene Bentley, Commissioner
REAL ESTATE BOARD
Michael Graeper, Chairperson,
Troy Costales, Vice Chairper-
Warren L. (Lee) Dunn,
Byron Hendricks, Salem
Arthur Kegler, Boardman
Robert LeFeber, Lake Oswego
Kim Medford, Bend
Marianne Wood, Eugene
The Oregon Real Estate News-
Journal is published four times a
year by the Oregon Real Estate
Agency as an educational service
to all real estate licensees in the
state under the provisions of
Section 696.445 of the Oregon
Revised Statutes. $4.00/bienni-
um subscription fee included in
real estate license fee. All other
subscriptions $2.00 per year.
POSTMASTER: Send address
changes to Oregon Real Estate
News-Journal, 1177 Center St.
N.E., Salem, OR 97301-2505.
Mesheal Heyman, Editor
Vol. 62, No. 2
Periodicals postage paid at
8 July 2008 Oregon Real Estate News-Journal