NOTE: This page contains a lot of information. You may wish to bookmark this page for future reference.
E-Mail and Mailing Address
NOTE: You are required to notify the Agency of any change to your e-mail or mailing address within 10 days. (OAR 863-015-0062) Log in to eLicense to change your e-mail or mailing address with the Agency.
The Agency sends most communications, including license renewal notices, by e-mail. To avoid missing these important communications, add our e-mail addresses (email@example.com and NoReply_REA@rea.state.or.us) to your address book or safe sender list.
Active and Inactive Licenses
Real estate license law give the terms "active" and "inactive" a different meaning than commonly used.
The term "active license" means the holder is authorized to conduct professional real estate activity (including the management of rental real estate) as defined in ORS 696.010.
"Inactive license" means that the licensee still has a license, but it is being held in a status that does not allow the licensee to conduct professional real estate activity.
Main Office and Branch Offices
You must maintain in Oregon a place of business designated as a main office. By law, you must notify the Agency before you move your main office. Use your business account in eLicense to change your address. (See Managing Your Business in eLicense for more information on logging in to your eLicense business account.)
If you do business regularly at a location other than your main office, the location must be registered as a branch office in eLicense.
All main and branch offices must have signs with your first and last name as it is listed on your license or, if applicable, the exact registered business name.
Property Management Agreements
A property manager may not manage rental real estate for another for compensation without a written property management agreement between the property manager and the property owner. See OAR 863-025-0020 for additional information.
Landlord and Tenant Law
Oregon's Residential Landlord and Tenant Act outlines the rights and responsibilities of landlords and tenants. The Agency cannot provide legal advice about your responsibilities as a property manager acting on the behalf a landlord.
Clients Trust Accounts/Security Deposit Accounts
NOTE: This is just a brief description of the requirements for opening and maintaining clients' trust accounts and security deposit accounts. It is important that you read and become familiar with OAR 863 division 25.
As a property manager, you must open and maintain at least one clients’ trust account per OAR 863-025-0010. If you accept security deposits on behalf of owners, you must open and maintain a separate security deposit account. You must deposit all money received on behalf of an owner into a clients’ trust account or security deposit account.
Opening a Clients’ Trust Account:
Select a “bank” as defined in ORS 696.010(3).
Set up the account as required by ORS 696.241, including the designation as a "clients’ trust account" or "security deposit account."
Establish yourself, the property manager, as an authorized signer on the trust account. Reminder: Property owners may not be signers on clients' trust accounts or security deposit accounts per OAR 863-025-0025(9).
Prepare and have bank representative sign the Notice of Clients’ Trust Account form.
Notify the Agency of the new clients’ trust account or security deposit account using eLicense.
Have checks pre-printed with the words “clients’ trust account” or “clients’ trust account - security deposit.” Other identifying information may also be included.
Have checks for clients’ trust account prenumbered or, if computer-generated, numbered consecutively.
Arrange with bank to have any service charges paid out of your general business account or billed to you. (Example of service charges: check orders, nonsufficient funds, monthly service charges, or minimum balance charges.)
You must also use eLicense to notify the Agency when you close a clients' trust account.
Required Accounting Records for Property Management Trust Accounts:
Pre-numbered receipt in duplicate form for cash funds received under a property management agreement. You must retain a copy.
A copy of all deposit slips.
Receipts and disbursement journal or checkbook register.
Owner ledger for each property management agreement. (If you maintain a separate clients’ trust account for a property management agreement involving only one owner, you may maintain a record of receipts and disbursement in lieu of an owner’s ledger.)
Tenant ledger for each tenant. (Use of a single ledger for multiple tenant prospects who are not and do not pay funds for a particular unit is allowed. If they subsequently become a tenant, set up and post a separate tenant ledger for each.)
A record of all checks written on the trust account, including any voided checks.
A monthly reconciliation of each clients’ trust account showing your work by a three-way reconciliation (see below). You must sign and date the reconciliation. Monthly reconciliations need to be preserved in logical sequence.
A three-way reconciliation is performed by using the bank statement, the receipts and disbursements journal or checkbook register, and ledgers.
Part I- Reconciling to the bank statement. Use the ending balance on the clients’ trust account bank statement, add the outstanding deposits, and then subtract the outstanding checks.
Part II-Reconciling to the receipts and disbursements journal or check register. Obtain the ending balance from the check register or receipts and disbursement journal, using the same date as your reconciled bank statement.
Part III- Reconciling to the clients’ trust account ledgers. Total up all the ledger accounts or ledger cards to show a balance. (Owner ledgers are used for property management clients’ trust accounts, and tenant ledgers are used for security deposit clients’ trust accounts.)
All three parts must equal the same amount. If any adjustment is needed, it must be clearly identified and explained on the reconciliation documents. The property manager must take corrective action to resolve all adjustments prior to the next reconciliation, or document the licensee’s good faith efforts.
The Agency randomly audits clients’ trust accounts and security deposit accounts. If your account is selected, you must respond to the letter from the Agency with the requested information and documents. See OAR 863-025-0080 for more information.
First Active License Renewal:
As a newly licensed property manager, you must complete two specific courses from Certified Continuing Education Providers before you can renew your license active for the first time:
NOTE: Completion of the 30 hours is required to renew an active license even if the license period is shorter than two years.
Active License Renewals After First Active Renewal:
All licensees must complete a minimum of 30 clock hours of education from a Certified Continuing Education Provider during each license renewal period. Three hours must be the Law and Rule Required Course. The remaining 27 hours must be completed from Certified Continuing Education Providers in the required course topics.
Continuing Education Record Keeping Requirements:
Real estate licensees are responsible for maintaining their own continuing education records for three years after license renewal date for which the hours were earned.
Licensees are required to make these records available to the Agency upon request.
Generally, licenses are issued for two-year periods. However, your first license period will most likely be shorter.
Your license will always expire on the last day of the month of your birthday. Your first license is valid until the last day of the month of your birthday plus one year.
NOTE: The full license renewal fee is required even though the license period may be less than two years.
If you are not sure when your license expires, you can look it up by logging into your eLicense account.
The Agency will e-mail you a license renewal reminder at the beginning of the month your license expires. You cannot renew before the first day of the month in which your license expires. License renewals are done online in eLicense.
The e-mail is a courtesy reminder. You are responsible for renewing your license on time. If you are not sure about your license expiration date, you can look it up by logging into your eLicense account.
License renewal fees:
NOTE: Conducting professional real estate activity (including the management of rental real estate) with an inactive or expired license may result in civil penalties.
Statutes and Rules
Oregon Revised Statutes (ORS) chapter 696 and Oregon Administrative Rule (OAR) chapter 863 govern many aspects of your professional real estate activity, such as duties you owe to your clients, clients' trust account requirements, and record maintenance. A periodic review of the laws and rules can help you find answers to many questions that come up.
Access to the full text of ORS 696 and OAR 863 can be found at Statutes and Rules.
The Agency can be reached at (503) 378-4170, or by e-mail at firstname.lastname@example.org.
The Oregon Real Estate Agency's authority is limited to real estate license law as found in ORS 696 and OAR 863. Agency staff cannot answer questions about contract law, real estate law, or landlord and tenant law. The Agency cannot provide legal advice.