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Managing Principal Brokers

​A managing principal broker is a principal real estate broker who has registered or assumed responsibility for a registered business name (RBN).

  • Not a separate license type
  • No additional pre- or post-licensing education requirements
  • No additional fees

The managing principal broker is responsible for:

  • All professional real estate activity conducted under the registered business name
  • Supervising all brokers, principal brokers, and property managers associated with the managing principal broker
  • Acts of all associated brokers related to professional real estate activities performed while their license is associated with the managing principal broker
  • Notifying the Oregon Real Estate Agency when there is a change in the managing principal broker for the registered business name

​Managing principal brokers must establish and enforce written policies, procedures, and systems to:

  • Review and manage professional real estate activities of associated brokers
  • Review and manage use of disclosure forms and contracts
  • Manage document filing and storage
  • Manage handling of client trust funds
  • Manage use of unlicensed assistants by associated brokers
  • Educate associated brokers on federal, state, and local laws relating to real estate
  • Review and inspect documents that may have a material effect on the rights or obligations of a party to a transaction
  • Ensure all licensees hold active real estate licenses before conducting any professional real estate activity

The managing principal broker must establish a system for monitoring compliance of associated brokers with:

  • Statutes (ORS 696)
  • Administrative rules (OAR 863)
  • The brokerage's policies, procedures, and systems

​Principal brokers may only supervise other licensees under a written supervisory agreement with the managing principal broker. The managing principal broker may allocate some or all supervisory control and responsibility to a principal broker through these agreements.

Written supervisory agreements are required when two or more principal brokers supervise real estate activities within the same registered business name.

Agreements between the managing principal broker and principal broker(s) must:

  • Allocate supervisory control and responsibility for all licensees
  • Include default allocation for future or omitted brokers
  • Define supervisory control of managing principal broker over principal broker(s)
  • Define supervisory control between principal brokers (when multiple agreements exist)
  • Include a succession plan
  • Expressly state that the managing principal broker's responsibility cannot be limited by the agreement

Written supervisory agreements must be updated when:

  • Another principal broker executes an agreement with the managing principal broker 
  • A principal broker disassociates in a way affecting allocation of supervisory control or responsibility

​When there are multiple principal brokers working within the same registered business name, the managing principal broker must have a succession plan. The plan must address:

  • Scenarios where the managing principal broker becomes deceased or incapacitated
  • Scenarios where the managing principal broker's license becomes inactive, expires, or is associated with a different RBN
  • How supervisory control and responsibility will transfer to a remaining principal broker who will assume the managing principal broker role

​Managing principal brokers have two separate accounts in eLicense:

  1. A personal license account.  
  2. A Registered Business Name (RBN) account.

Processes managed under personal license account:

Processes managed under RBN account:

Property Managers

​A property manager who registers or assumes responsibility for a business name is the key contact for the registered business name.

The property manager is responsible for:

  • Opening and maintaining at least one clients’ trust account at a federally insured bank account
  • Negotiating and signing property management agreements.
  • Reconciling each clients’ trust account and security deposit account every 30 days, including signing and dating the reconciliation documents.
  • Renewing the registered business name yearly 
  • Notifying the Oregon Real Estate Agency of a change in the key contact for the registered business name
  • Supervising nonlicensed employees under a written delegation of authority 

​Each property manager must develop, maintain, and follow written policies that include:

  • The date the policy started
  • The job duties of each person
  • An explanation of who supervises whom
  • A description of what each person is allowed to do
  • An explanation of how you create and keep all reports, records, and documents required by Oregon Administrative Rule chapter 863 division 25

Who your policies must cover:

  • Other property managers you employ
  • Nonlicensed employees, including if they can:
    • Negotiate rental or lease agreements with tenants 
    • Check applicant and tenant references, including credit
    • Physically maintain the property 
    • Deal with tenant issues 
    • Collect rent 
    • Supervise premise managers
    • Discuss financial matters with property owners
  • Contractors 

Delegation of Authority

A property manager may delegate the following responsibilities under a written delegation of authority:

  • Review and approve clients’ trust account and security deposit account reconciliations
  • Receive and disburse clients’ trust account and security deposit account funds
  • Review, approve, and accept tenant rental and lease agreements

The written delegation of authority must be:

  • Dated
  • Signed by the property manager
  • Signed by the individual receiving the authority
  • Kept with written policies

IMPORTANT: Even if a property manager delegates tasks to others, they remain fully responsible for:

  •  All trust account reconciliations and transactions
  • All tenant rental and lease agreements

​Property managers working under the same registered business name with other property managers must have a succession plan. The plan must address:

  • Scenarios where the property manager becomes deceased or incapacitated
  • Scenarios where the property manager's license becomes inactive, expires, or is associated with a different RBN
  • How supervisory control and responsibility will transfer to a remaining property manager who will assume the property manager's role

Property managers have two separate accounts in eLicense:

  1. A personal license account.  
  2. A Registered Business Name (RBN) account.

Processes managed under personal license account:

Processes managed under RBN account: