Real Estate: License Law and Disciplinary Measures Flashcards

Real Estate: License Law and Disciplinary Measures Flashcards

Violations (ORS 696.301)In Oregon, conduct considered grounds for disciplinary

action includes the following actions:-Making

misrepresentations or false promises related to a real estate transaction-Accepting compensation from anyone other than the associated principal broker-Circulating misleading or untruthful advertisingActing as both an agent and an undisclosed principal in a transaction-interfering intentionally with another licensee's exclusive representation agreement-Preparing a competitive market analysis for compensation that's contingent upon reporting a prearranged value or for real property-Neglecting to make certain both parties received a detailed closing statement at closingCommitting fraud related to professional real estate activity-The Oregon Real Estate Agency uses brokerage audits to help ensure that licensees comply with Oregon's real estate license laws. These audits often focus on

finances: commingling trust funds with other funds or fund

embezzlement.-An audit may occur as a routine procedure, or stem from a complaint brought to the agency. Most audits take a few hours, but they can take several days, depending on the size of the firm.-In case of mishandled funds, before the agency gets the courts involved, it will conduct an internal investigation. The investigator will provide a report of the investigation's findings to the agency manager for review. The results are confidential within the agency and will not be shared with the licensee under investigation or with the public.When a complete audit shows that any sort of fund mishandling occurred, the agency may bring a court action against the licensee. The commissioner may contact the attorney general, who will assist the agency with any legal proceedings.If a license has beeninactivefor two consecutive years or

longer, the license holder may reactivate it by:

Completing required CE courses and reporting the courses in eLicense-Passing the reactivation examination-Paying associated fees-Asking the principal broker or licensed property manager with whom the licensee is affiliated with to add the license to the RBN in eLicense-The license will become active again when the reactivation requirements have been met, including transferring to a business where you're affiliated with a principal broker.A suspended licenseA suspended license may not be renewed until after the close of the suspension period. The agency may reissue an

unexpired real estate license that has been suspended by order of the commissioner if the licensee makes a written request to the agency that such license be reissued and pays the required fee within 30 days after the close of the suspension period.

Property Management ExemptionsIn Oregon, property manager licensees can manage rental real estate either individually, with principal brokers, or with other property managers.However, as with broker licenses, there are certain duties that may be performed byunlicensedindividuals.For example, someone who lives in an apartment building and gets reduced rent for performing property management duties doesn't need a

property manager license. Some others include:Anyone

who works on the behalf of a broker, principal broker or licensed property manager and performs activities

like:-Negotiating rental or lease agreements-Checking

potential tenant references-Maintaining the property and facilities-Managing tenant relations, administrative, and support tasks-Collecting rent-Discussing property management financial matters with the property owner-Collecting and distributing trust funds in a clients' trust account Categories of LicensureA licensee may only hold one license designation at a time, whether broker, principal broker, or property manager.lapsedA real estate license that has expired for more than one year islapsed. The former licensee must reapply and meet all the licensing qualifications required of new license applicants. The applicant must submit a new application, complete 150 hours of coursework, pass the exam, pass the background check, and pay the fees.Property managerProperty manager- holds an active property management license and manages real estate for another for

compensation.A property manager must:-Be at least 18

years old-Have a high school diploma, GED, or international equivalent-Have completed 60 hours property manager pre-licensing education from an agency-approved real estate school-Pass the property management license exam-Submit fingerprints and background check applicationPay an application fee to the agency and an exam feeA Property Manager may work for another property manager or principal broker who has an RBN for property management or property managers can provide professional property management services independently under their own RBN.Licensing ExemptionsThe following individuals are exempt from the real estate

license requirement in Oregon:-People selling their own

property without engaging a real estate broker-Employees conducting real estate activities for their employer, whose business isn't related to real property sales, acquisitions, exchanges, or lease options-Attorneys at law, provided the

real estate services are part of normal attorney-client relations, and the attorneys have not represented themselves as real estate professionals-Receivers, trustees, conservators, regular salaried employees of trustees, or persons acting under court order-Government employees-Anyone who gives an opinion on real property values for taxation purposes in an administrative or judicial proceeding License Maintenance and Renewal

(Reinstatement/Reactivation):

An important part of maintaining a license, whether the license is active, inactive, or expired, is keeping the Real Estate Agency informed of any changes to contact information.