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Instructional Guidelines

Notice: The Oregon Real Estate Agency has made changes to the course content requirements and approval process. Please see the Educators' Session Packet - 7/26/2012 for more information.

 

Course Syllabus Instructions
As part of the approval process to offer pre-license, Advanced Real Estate Practices, and Brokerage Administration and Sales Supervision courses, Private Career Schools and Certified Continuing Education Providers must submit a syllabus to the Agency for each course.
 
The time frame for each topic must be indicated in the syllabus to demonstrate that time requirements in the instructional guidelines outlined in OAR 863-022-0010 and/or OAR 863-022-0015 for each topic will be met.  A variance of two to three percentage points among subjects is acceptable.

 
Instructional Guidelines for Broker Pre-License Courses
The real estate broker license applicant course of study required by OAR 863-014-0035 must include 150 clock-hours in the seven courses per OAR 863-022-0010.

Real Estate Law Course (30 hours)
This course covers general real estate law with an emphasis on Oregon real property law and includes the following topics:
  • (20% or 6 hours)  Basic real property law, types of estates and forms of ownership, such as fee simple absolute, severalty, various concurrent estates, trust, by business organizations; the nature of real property versus the nature of personal property; fixtures, emblements, water rights (riparian rights, natural drainage rights, state ownership of navigable riverbed), estoppel, condemnation, and severance.
  • (10% or 3 hours)  Ways to legally describe real property, including the proper and complete writing of legal descriptions for real estate transaction documents commonly used in Oregon.
  • (10% or 3 hours)  Transfer of title, including voluntary and involuntary transfers and proper deed conveyance (types and their requirements, statutory deed forms, recording requirements, acknowledgment).
  • (15% or 4.5 hours)  Encumbrances, including easements, such as easement appurtenant, easements in gross, easement by necessity, easements by prescription, as well as how easements are created and terminated; voluntary and involuntary encumbrances, especially statutory liens, such as mechanic's liens, tax liens, judgment liens, and federal income tax liens.
  • (10% or 3 hours) Title insurance and escrow recording, including types of coverage and exclusions in title insurance policies; escrow procedures; requirements for recording documents.
  • (10% or 3 hours) Taxes and assessments, especially the levy and collection process; foreclosure and redemption rights, exemptions, special assessments, and the Bancroft Bonding Act.
  • (25% or 7.5 hours) Land use control, including private controls such as covenants, conditions and restrictions; public controls such as planning, zoning, city and county subdivision platting, building regulations, implied warranties on new homes, consumer protection in land sales through recording land sales contracts, public reporting under Oregon Subdivision Control Law; and condominiums, including their creation and statutory obligations of condominium developers

Oregon Real Estate Practice Course (30 hours)
This course covers the requirements for Oregon real estate licensees contained in the Oregon Revised Statutes chapter 696 and the Oregon Administrative Rules chapter 863 and includes the following topics: 
  • (5% or 1.5 hours)  The basic business relationships between principal brokers and associated brokers including, for example, the agency relationship and the principal broker’s supervisory responsibilities, duties, and liabilities to third parties.
  • (25% or 7.5 hours)  The Oregon real estate license requirements and the limitations on licensing as set forth in the Oregon Real Estate License Law; also the rules and regulations, especially their applications to real estate transactional documents, advertising, competitive market analyses, property management, and licensees.
  • (20% or 6 hours) Listing agreements, specifically the Oregon administrative rules concerning marketing and advertising listed properties.
  • (20% or 6 hours)  Sale agreements, such as offers to purchase and seller's counter offers, earnest money agreements, options to buy real property, the statutes and rules affecting sale agreements.
  • (15% or 4.5 hours) The Civil Rights Act and real estate-related provisions of the Americans with Disabilities Act and their administration and enforcement.
  • (15% or 4.5 hours)  The basic roles of the real estate broker, including additional requirements, liabilities, and needs for advanced training in related activities, such as competitive market analyses, property management (including renting and leasing), exchanging, securities, business opportunities (i.e., business chance brokering.); auctions, farms, vacation homes, and campgrounds.

Real Estate Finance Course (30 hours)
This course covers real estate finance and appraisal methods, including the methods for performing mathematical computations commonly required of real estate licensees, and includes the following topics:
  • (10% or 3 hours)  Lending laws, including federal laws and regulations such as Regulation Z, the Federal Equal Credit Opportunity Act, and the Real Estate Settlement Procedures Act.
  • (10% or 3 hours)  The money market and sources of financing; private versus government sources, the primary and secondary mortgage market, the federal money market, and federal monetary controls.
  • (10% or 3 hours) Financing documents, including mortgages, trust deeds, and land sale contracts.
  • (10% or 3 hours) Foreclosure; terms, methods, procedures and remedies.
  • (10% or 3 hours) Governmental loan programs; FHA, federal VA, Oregon DVA.
  • (10% or 3 hours) Non-governmental loan programs, such as conventional loans, construction loans, and mobile home loans.
  • (10% or 3 hours) Competitive market analyses; principles, terminology, processes, and approaches commonly used.
  • (15% or 4.5 hours) Mathematical calculations used in financing real estate transactions.
  • (10% or 3 hours) Other methods of financing, including wraparound mortgages, second mortgages, sale-leasebacks, collateral assignments, and use of personal property.
  • (5% or 1.5 hours) Taxation and its impact in financing arrangements.

Contracts Course (15 hours)
This course covers the basic requirements for common real estate contracts, including listings, offers to purchase, leases, and land sales contracts.  The course highlights Oregon-specific contract requirements and includes the following topics:
  • (40% or 6 hours) Basic contract law, including the elements necessary to form a contract, breaches, and interference with an existing contract.
  • (40% or 6 hours)  Real estate contracts, especially required provisions and suggested language for listing agreements, earnest money/sale agreements, options, land sales contracts, and leases, and escrow agreements.
  • (20% or 3 hours) Special requirements and limitations on contracts for the sale of subdivided lands, condominiums, and planned developments under Oregon law.

Agency Law Course (15 hours)
This course covers agency law, both its common law aspects and Oregon’s statutory requirements for real estate licensees and includes the following topics:
  • (40% or 6 hours) The common law of agency, including an in-depth study of the fiduciary requirements and its application to real estate brokerage.
  • (60% or 9 hours) ORS 696.800 to 696.880 generally, with an emphasis on the obligations and duties of an agent to clients and others, as set out in ORS 696.805 to 696.815.

Property Management Course (10 hours)
This course covers basic property management law and includes the following topics:
  • (35% or 3.5 hours) Oregon real estate license statutes and administrative rules as applied to property management activity.
  • (10% or 1 hour) Oregon Residential Landlord and Tenant Act, including tenants' and landlords' rights and obligations; evictions, forcible entry, and detainer procedures.
  • (10% or 1 hour) Economics of property management, including analysis of markets, properties, and evaluating the owner's objectives.
  • (5% or .5 hours) Leases, including leaseholds, types of leases, and common lease clauses.
  • (10% or 1 hour) Agency relationship between property owner and property manager.
  • (5% or .5 hours) Tenant relations, including maintenance.
  • (20% or 2 hours)  Property management recordkeeping, including operating reports, budgets, income tax records, types of insurance, trust accounts, and trust account reconciliation.
  • (5% or .5 hours) Anti-discrimination statutes, federal and state, that apply to tenant selection and advertising; Fair Credit Reporting Act and its application to tenant selection.

Real Estate Brokerage Course (20 hours)
This covers basic real estate brokerage, including the legal requirements for record-keeping and clients’ trust account reconciliation and includes the following topics:
  • (10% or 2 hours) Advertising, including supervising content, format, and layout; public relations, image development, the Internet, and relations between competitors; office policy on private transactions of licensees; effect of disciplinary action on licensees.
  • (20% or 4 hours)  Financial records, such as general checking account and its use for paying commissions; receipt of competitive market analysis fees; legal requirements for the clients’ trust account, including documentation required, reconciliation, use of interest-bearing accounts, commingling of funds, the trust account's use in cooperative transactions, earnest money, advance fees, and rental fees.
  • (10% or 2 hours)  Office facilities and the regulatory requirement for real estate offices, including site selection, space and office layout, furniture and equipment; broker license requirements; regulations affecting the office, such as signs; requirements for branch offices, limitations on licenses, effect of actions on licenses, and reporting of adverse litigation.
  • (15% or 3 hours)  The legal requirements for neutral escrows and co-op transactions; the mathematics of a real estate closing, such as tax pro-rations, computing commission splits, and making closing estimates; closing procedures, such as title insurance, recording, and acknowledging documents.
  • (10% or 2 hours) Financial reports, such as income statements, balance sheets, tax returns, and payroll records.
  • (15% or 3 hours)  Non-financial records, such as listing files, transaction records, cooperative transaction records, advertising folders, showing reports, competitive market analysis records and reports; legal requirements, such as management review of broker transactions.
  • (10% or 2 hours) Office manuals that specify office policy and procedures; use of the manual in training and to set out grievance procedures.
  • (10% or 2 hours)  Office activity other than real estate sales; property management, competitive market analyses, investment counseling, construction and development, including supervisory requirements, as well as the nature of the activities in relation to real estate law and rules.

 
Instructional Guidelines for Property Manager Pre-License Courses
The course required by OAR 863-024-0045 for real estate property manager license applicants consists of a 60-hour Agency-approved real estate property manager course per OAR 863-022-0015.

Property Manager (60 hours)
The property manager course covers the specialized area of the management of rental real estate, including Oregon’s legal requirements.
  • (30% or 18 hours) Oregon real estate license statutes and administrative rules applicable to the management of rental real estate.
  • (15% or 9 hours) Clients' trust accounts and account reconciliation.
  • (10% or 6 hours) Oregon Residential Landlord and Tenant Act, including tenants' and landlords' rights and obligations; evictions, forcible entry and detainer procedures.
  • (5% or 3 hours) Economics of property management, including analysis of markets, properties, and evaluating the owner's objectives.
  • (5% or 3 hours) Leases, including leaseholds, types of leases and common lease clauses.
  • (5% or 3 hours) Agency relationship between property owner and property manager and tenant relations, including maintenance.
  • (15% or 9 hours) Management recordkeeping, including operating reports, budgets, income tax records, insurance types.
  • (5% or 3 hours) Federal and state anti-discrimination laws and their applicability to tenant selection and advertising; the Fair Credit Reporting Act and its applicability to tenant selection.
  • (10% or 6 hours) General real estate law applicable to property management activity, including types of estates and forms of ownership; transfer of title; taxes and assessments, including the levy and collection process, foreclosure and redemption rights, exemptions, and special assessments; land use controls, including private controls such as covenants, conditions, and restrictions, and public controls such as planning and zoning.

 
Instructional Guidelines for Advanced Real Estate Practices
The Advanced Real Estate Practices course required by OAR 863-020-0010 before the first active renewal of the real estate broker’s license or before the first license reactivation following an inactive first renewal is an approved 30-hour advanced course in real estate practices. It must include 30 clock-hours allocated among topics in the number of hours and percentages per OAR 863-022-0020. The Board-approved three-hour Law and Rule Required Course must be included in the 30 hours of the Advanced Real Estate Practices course per OAR 863-022-0055.

Advanced Real Estate Practices Course (30 hours)

 
Instructional Guidelines for Brokerage Admin & Sales Supervision
The course required by OAR 863-014-0040 for principal real estate broker license applicants is the 40-hour Agency-approved Brokerage Administration and Sales Supervision course.

Brokerage Administration and Sales Supervision (40 hours)
 The Brokerage Administration and Sales Supervision course covers legal requirements unique to principal brokers and reviews the material introduced in the 150-hour real estate broker applicant course of study described in OAR 863-022-0010.  To be eligible for credit, the 40-hour course must include 40 clock-hours, allocated among topics in the number of hours and percentages per OAR 863-022-0025
 
(10% or 4 hours)  Introduction to management theory, characteristics of successful management, the functions of management, organizational formats such as corporate, partnerships, and proprietorship, various problems associated with management, and types of licenses and their legal requirements.
  • (10% or 4 hours)  Planning, including management objectives, planning under the employer-employee relationship versus independent contractor relationship, individual and office planning, budget planning, market research, growth, and anticipation of expansion, and bottom line planning.
  • (15% or 6 hours)  Selecting, training, and supervising real estate personnel, including job descriptions, recruiting, interviewing, and characteristics of a successful real estate broker; training in Oregon real estate law, real estate documents; supervising  transactions, performance evaluations, commission arrangements; major theories of human motivation, for example, those of Maslow, Herzberg, and McClelland; selecting, training, and evaluating office support personnel.
  • (5% or 2 hours) Leadership, authority, discipline; office regulations, relationships between office personnel; office policy on private transactions of licensees; effect of disciplinary action on licensees.
  • (5% or 2 hours) Communication methods; formal versus informal; verbal versus non-verbal; reading, writing, listening, speaking; office sales meetings.
  • (5% or 2 hours) Advertising, including supervising content, format, and layout; public relations, image development, and relations between competitors.
  • (5% or 2 hours)  Office facilities, including legal requirements for real estate offices, such as site selection, space and office layout, furniture and equipment, signs; broker license requirements; legal requirements concerning branch offices; limitations on licenses, effect of actions on licenses, and reporting of adverse litigation.
  • (20% or 8 hours)  Financial records, such as general checking account and its use for paying commissions, receipt of competitive market analysis fees; the clients’ trust account, legal requirements concerning its use, including required documentation, use of interest-bearing accounts, commingling of funds, the trust account's use in cooperative transactions, earnest money, advance fees, and rental fees.
  • (5% or 2 hours) Financial reports, such as income statements, balance sheets, tax returns, and payroll records.
  • (5% or 2 hours)  Non-financial records, such as listing files, transaction records, cooperative transaction records, advertising folders, showing reports, competitive market analysis records and reports; legal requirements, such as broker review of salesperson transactions.
  • (5% or 2 hours) Office manuals that specify office policy and procedures, use of the manual in training and to set out grievance procedures.
  • (5% or 2 hours)  Office activity other than real estate sales; competitive market analyses, investment counseling, construction, and development, including supervisory requirements, and the nature of the activities relative to real estate legal requirements.
  • (5% or 2 hours) Property management: legal requirements for accounting and record keeping, Oregon Landlord Tenant Law.