Introduction to Real Estate Licensing
|Regulation of License Law|
|Oregon Real Estate Agency |
The Oregon Real Estate Agency is a state government agency. It licenses real estate brokers, principal brokers and property managers. The Agency administers the laws and rules that apply to people who conduct professional real estate activity in Oregon.
The Real Estate Commissioner is appointed by the Governor to provide leadership to the Agency.
Oregon Real Estate Board members are appointed by the Governor to advise the Commissioner and the Governor on real estate industry matters.
Statutes and Rules
Through out this website you will see references to Oregon Revised Statutes (ORS) and Oregon Administrative Rules (OAR). ORS chapter 696 are the laws passed by the legislature that give the Agency its responsibility and authority. The portion of the statute that apply to real estate licensing in Oregon is called Oregon Real Estate License Law.
OAR chapter 863 is written by the Agency to implement the statute. These rules have the same effect as law.
|Do You Need a License?|
|Generally, if you want to assist someone in buying or selling real estate for a fee, or you want to manage rental real estate for someone else for a fee, you need a real estate license. |
Oregon Real Estate License Law says a real estate license is required for someone to conduct professional real estate activity (ORS 696.020
). Professional real estate activity (ORS 696.010
“. . . any of the following actions, when engaged in for another and for compensation or in the expectation or upon the promise of receiving or collecting compensation, by any person who:
There are some circumstances in which an individual is not required to be licensed. These exemptions to licensing can be found in ORS 696.030. The Agency cannot say if an exemption applies to a certain situation. If you need help in determining if you need a real estate license in Oregon, please seek the advice of an attorney.
(a) Sells, exchanges, purchases, rents or leases real estate;
(b) Offers to sell, exchange, purchase, rent or lease real estate;
(c) Negotiates, offers, attempts or agrees to negotiate the sale, exchange, purchase, rental or leasing of real estate;
(d) Lists, offers, attempts or agrees to list real estate for sale;
(e) Offers, attempts or agrees to perform or provide a competitive market analysis or letter opinion, to represent a taxpayer under ORS 305.230 or 309.100 or to give an opinion in any administrative or judicial proceeding regarding the value of real estate for taxation, except when the activity is performed by a state certified appraiser or state licensed appraiser;
(f) Auctions, offers, attempts or agrees to auction real estate;
(g) Buys, sells, offers to buy or sell or otherwise deals in options on real estate;
(h) Engages in management of rental real estate;
(i) Purports to be engaged in the business of buying, selling, exchanging, renting or leasing real estate;
(j) Assists or directs in the procuring of prospects, calculated to result in the sale, exchange, leasing or rental of real estate;
(k) Assists or directs in the negotiation or closing of any transaction calculated or intended to result in the sale, exchange, leasing or rental of real estate;
(L) Except as otherwise provided in ORS 696.030(1)(L), advises, counsels, consults or analyzes in connection with real estate values, sales or dispositions, including dispositions through eminent domain procedures;
(m) Advises, counsels, consults or analyzes in connection with the acquisition or sale of real estate by an entity if the purpose of the entity is investment in real estate; or
(n) Performs real estate marketing activity as described in ORS 696.600.”
|Types of Licenses|
|The Oregon Real Estate Agency issues three real estate licenses (ORS 696.022). |
Real Estate Broker License
The broker license is the entry-level license in Oregon. A licensed real estate broker can conduct professional real estate activity as defined in ORS 696.010 while supervised by a principal broker.
Principal Real Estate Broker License
A principal broker licensee can engage in professional real estate activity individually or with other real estate licensees.
Real Estate Property Manager License
A property manager licensee can engage in the management of rental real estate as defined in ORS 696.010 individually, with principal brokers, or with other property managers.
|Costs of Becoming Licensed|
|Disclaimer: These may not be all costs someone may have to pay while becoming, or after becoming, a real estate licensee in Oregon. The Agency provides this information as a planning tool only. |
The Agency charges the following fee:
- License Application Fee - $230
There are other costs/fees associated with getting a license:
- Pre-license Education - Approximately $400 to $1200, depending on the type of school and method of delivery.
- Licensing Examination Application Fee (paid to PSI) - $75
- Background Check Application Fee (paid to PSI) - $47.25
- Fingerprint fees (paid to PSI) - $15
Some of the costs after licensing:
- License renewal fee (generally every two years, althought your first license period may be shorter) - $230
- Industry organization membership fees (for example, Realtors)
- Errors and omissions (E&O) insurance
- Transportation expenses
- Desk fees
- Marketing, including business cards
- Multiple listing service
- Tax specialists
- Commission sharing
- Business registration
- Local business licenses or permits
|The United States Department of Labor's Bureau of Statistics produces the Occupational Outlook Handbook. It is a great resource containing information on earnings, job prospects, job duties and working conditions. |
|Reciprocal Licensing |
Oregon has nonresident license recognition agreements with Alabama, Alberta, Georgia, Nebraska, and South Dakota. Contact the Licensing Division at (503) 378-4170 for more information and the necessary forms.