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OregonHB 31372025 Regular SessionHouseWALLET

Relating to real estate professionals.

Sponsored By: Dick Anderson (Republican), Mark Meek (Democratic), Vikki Breese-Iverson (Republican)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

15 provisions identified: 4 benefits, 6 costs, 5 mixed.

Rental managers face recordkeeping fines

Licensed property managers and managing principal brokers must keep complete records of their Oregon real estate work. Records must allow inspection and copying, and generally must stay available for at least six years under record-specific timelines. Keeping records outside Oregon requires compliance with agency rules. Rental managers who fail to produce required records for inspection face fines up to $1,000 daily, capped at $10,000.

Real estate teams must disclose roles

Real estate teams need managing principal broker approval and must disclose members and roles before written representation or listing agreements. Team names cannot use “realty” or “real estate,” or duplicate the registered business name. Only principal brokers may supervise team members; those who are not managing principal brokers need a written supervisory agreement. Teams representing clients with conflicting interests in the same deal or property must enter a disclosed limited agency agreement.

Stronger safeguards for client trust money

Managing principal brokers must keep covered client money in trust accounts, including rental funds, unless a legal exception applies. Brokers can pass along buyer or tenant checks without depositing them when payable to the owner or seller. The law ties an exception for funds handled by supervised timeshare agents to the related House Bill 2373 amendment taking effect. Managing brokers must notify the Oregon Real Estate Agency within 10 business days after opening, closing, or transferring an account. They must provide the required bank notice and keep its acknowledged copy for at least six years after closure.

Real estate licensees get free guidance

The Oregon Real Estate Agency must provide free training materials explaining the laws and rules it administers or enforces. The commissioner can develop sample ads, recordkeeping practices, property-management guides, office policies, and educational information. Licensees do not have to use these model materials. Managing principal brokers' main or branch offices with registered business names can apply for certification as continuing-education providers.

Some brokers avoid local business taxes

Cities and counties cannot charge an individual licensed real estate broker a business license tax when working solely as a managing principal broker's agent. The protection does not cover brokers doing professional real estate work in another capacity.

Real estate licensees face education requirements

Active-license renewal or first reactivation since renewal to inactive status requires 30 hours of eligible classes during the previous two years. At least two hours must cover recent real estate law and rule changes, and two must cover fair housing laws. Covered licensees must also pass an Agency-approved proficiency assessment at first active-license renewal or first reactivation since renewal to inactive status. The law ties timeshare-agent exclusions from both requirements to the related House Bill 2373 amendment taking effect.

Broker businesses must identify responsible managers

A managing principal broker is a principal broker who registers or assumes responsibility for a business name. Property-management definitions recognize that broker and the brokers working under their supervision. Managing brokers must follow real estate laws during professional work and covered personal transactions, including sales, purchases, and lease options. The Agency's registration system must require notice when a business's responsible managing broker or licensed property manager changes.

Broker offices need written supervision plans

Only managing brokers, licensed property managers, or principal brokers with written authority may supervise work under a registered business name. Principal brokers with written authority may supervise offices, maintain branches, and oversee work across offices. When multiple principal brokers supervise under one business name, written agreements must assign duties, cover future assignments, and plan succession. Those agreements cannot limit the managing broker's responsibility and must address broker-to-broker supervision. Covered property-manager arrangements also need written plans for rental duties, trust accounts, supervision, and succession; agreements need updates when specified affiliations change.

Managing brokers face stronger oversight duties

Managing principal brokers must reasonably supervise associated brokers and take responsibility for their professional work. They must establish written policies and systems and monitor compliance. The supervision requirement excludes a broker with one office and no other associated licensees. Failure to supervise can lead to reprimand, license suspension or revocation, or denial of a license or renewal.

Linked law extends timeshare agent duties

The law ties its timeshare-agent changes to the related House Bill 2373 amendment taking effect. Under that linked text, active or active limited timeshare sales agents count as real estate licensees. They must follow the specified real estate laws when selling or offering timeshares. This status does not make them real estate brokers, principal brokers, or managing principal brokers.

Brokers face supervised practice and transfers

The commissioner can restrict a license to work supervised by a named managing principal broker. A person with a revoked license can receive a limited license when the commissioner finds it serves the public interest. When a managing broker's license is suspended or revoked, brokers engaged by that broker become inactive pending transfer. The Agency must transfer a license when the broker requests it within 30 days after the discipline takes effect and pays the transfer fee.

Brokers face payment limits and options

Associated licensees can accept compensation only from their current managing principal broker; other brokers must route payments through that broker. Only the managing broker associated with the licensee when a client compensation claim arose can pursue that claim. Associated licensees can form a business to receive compensation, but that business cannot provide professional real estate services. The law ties a timeshare-agent exclusion from this business option to the related House Bill 2373 amendment taking effect. Licensees can give some or all transaction compensation to a qualifying 501(c)(3) charity; this creates no household tax credit or deduction.

Out-of-state brokers gain supervised commercial access

Out-of-state licensees can participate in Oregon showings or negotiations for cooperative nonresidential transactions. A cooperating Oregon managing broker or associated licensee can accompany the out-of-state licensee and client. Before professional work begins, the parties must agree in writing to Oregon law and supervision by the cooperating Oregon managing broker. The activity must remain under that broker's supervision and control. The law ties exclusion of timeshare agents from the accompanying-licensee role to the related House Bill 2373 amendment taking effect.

Rental managers can delegate limited tasks

Managing principal brokers handling rentals and licensed property managers can give unlicensed workers written authority for listed rental-management tasks. The licensing exemption covers employees performing those tasks under written authority and agency rules. Tasks include negotiating rental agreements, collecting rent, and handling client trust funds. Delegation is limited to the listed activities, and the broker or property manager remains liable for the worker's conduct.

Clearer broker representation and liability rules

The law recognizes managing principal brokers with covered buyer or seller agreements, and authorized supervised brokers, as agents. When separate brokers under one managing broker represent opposite sides, only the managing broker represents both as a limited agent. Other brokers represent only their own client unless all parties agree otherwise in writing; their legal duties remain. Managing brokers remain subject to liability and rules about facts known by supervised licensees. A licensee is liable for a client's or that client's unrelated agent's conduct only when participating in or approving it.

Sponsors & Cosponsors

Sponsors

  • Dick Anderson

    Republican • Senate

  • Mark Meek

    Democratic • Senate

  • Vikki Breese-Iverson

    Republican • House

Cosponsors

  • Boomer Wright

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 135 • No: 2

House vote • 6/13/2025

House concurred in Senate amendments and repassed bill.

Yes: 40 • No: 0

Senate vote • 6/11/2025

Third reading. Carried by Anderson. Passed.

Yes: 21 • No: 2

Senate vote • 5/14/2025

Housing and Development: Heard and Reported Out with Amendments

Yes: 5 • No: 0

House vote • 3/4/2025

Third reading. Carried by Breese-Iverson. Passed.

Yes: 57 • No: 0

House vote • 2/19/2025

Housing and Homelessness: Heard and Reported Out with Amendments

Yes: 12 • No: 0

Actions Timeline

  1. Chapter 389, (2025 Laws): Effective date January 1, 2026.

    7/25/2025House

  2. Governor signed.

    6/24/2025House

  3. President signed.

    6/17/2025Senate

  4. Speaker signed.

    6/17/2025House

  5. House concurred in Senate amendments and repassed bill.

    6/13/2025House

  6. Third reading. Carried by Anderson. Passed.

    6/11/2025Senate

  7. Carried over to 06-11 by unanimous consent.

    6/10/2025Senate

  8. Carried over to 06-10 by unanimous consent.

    6/9/2025Senate

  9. Carried over to 06-09 by unanimous consent.

    6/5/2025Senate

  10. Carried over to 06-05 by unanimous consent.

    6/4/2025Senate

  11. Carried over to 06-04 by unanimous consent.

    6/3/2025Senate

  12. Carried over to 06-03 by unanimous consent.

    6/2/2025Senate

  13. Carried over to 06-02 by unanimous consent.

    5/29/2025Senate

  14. Carried over to 05-29 by unanimous consent.

    5/28/2025Senate

  15. Carried over to 05-28 by unanimous consent.

    5/27/2025Senate

  16. Carried over to 05-27 by unanimous consent.

    5/23/2025Senate

  17. Second reading.

    5/22/2025Senate

  18. Recommendation: Do pass with amendments to the A-Eng. bill to resolve conflicts. (Printed B-Eng.)

    5/21/2025Senate

  19. Work Session held.

    5/14/2025Senate

  20. Public Hearing held.

    4/21/2025Senate

  21. Referred to Housing and Development.

    3/6/2025Senate

  22. First reading. Referred to President's desk.

    3/6/2025Senate

  23. Third reading. Carried by Breese-Iverson. Passed.

    3/4/2025House

  24. Rules suspended. Carried over to March 4, 2025 Calendar.

    2/27/2025House

  25. Second reading.

    2/25/2025House

Bill Text

  • SHDEV Amendment -A3 (Adopted)

    5/14/2025

    PDF

  • HHOUSH Amendment -2 (Adopted)

    2/19/2025

    PDF

  • A-Engrossed

    PDF

  • B-Engrossed

    PDF

  • Enrolled

    PDF

  • House Amendments to Introduced

    PDF

  • Introduced

    PDF

  • Senate Amendments to A-Engrossed

    PDF

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