New Real Estate License Laws and Rules Effective January 1

September 2025

The passage of House Bill (HB) 3137 and HB 2373 by the 2025 Oregon Legislature resulted in the most significant changes to real estate license law in the last 7 years. These changes take effect January 1, 2026. The Oregon Real Estate Agency (OREA) is currently working through the administrative rulemaking process, with rules to be published in October.

The following outlines the highlights of each bill. Please review each bill in its entirety for complete details.

HB 2373 – Creates new timeshare sales agent license

This bill creates a new license category for individuals who want to sell timeshares without obtaining a broker license. Starting January 1, 2026, anyone selling or offering to sell timeshares in Oregon must hold a broker, principal broker, or timeshare sales agent license.

Key points:

• Timeshare sales agents are limited to selling or offering to sell timeshares.
• Timeshare sales agents must be supervised by a Managing Principal Broker.
• To become licensed as a timeshare sales agent, an individual must:
• Be at least 18 years old.
• Take the 14-hour timeshare sales agent course.
• Pass the timeshare sales agent proctored by PSI, OREA’s exam vendor.
• Timeshare sales agents will not need to take continuing education to renew a license.
• Experience as a timeshare sales agent will not count toward principal broker experience requirements.

HB 3137 – Modifies laws regulating real estate professionals

This comprehensive bill makes notable changes to Oregon Real Estate License Law.

OREA is currently developing administrative rules to implement HB 3137. The rules are expected to be published in October 2025. Updates to the rules will be posted on the Agency’s Rulemaking webpage as they become available.

Managing principal brokers (Sections 1 - 5)

Creates a new license designation called “managing principal broker” with specific supervisory responsibilities.

A managing principal broker is a principal broker who has:

• Registered a business name with OREA, or
• Assumed responsibility for a registered business name (RBN).

Key points:

• Each RBN will have only one managing principal broker.
• All licensees with an RBN will be associated with the managing principal broker.
• A managing principal broker is responsible for:
• Maintaining the RBN and associated branch offices.
• Maintaining clients’ trust accounts.
• Notifying OREA of a change in the RBN’s managing principal broker.
• Only a managing principal broker or a principal broker under a written supervisory agreement may supervise the professional real estate activity of a Broker or Principal Broker.
• Only a managing principal broker or a licensed property manager may control or supervise the management of rental real estate of a licensed property manager.

Continuing education (Section 9)

Updates the continuing education requirements for license renewal.

Key points:

• Brokers, principal brokers, and property managers renewing an active license will need to complete the State and Federal Fair Housing course prior to license renewal.
• Law and Rule Required Course (LARRC) will consist of a minimum of 2 hours and will no longer have a fair housing component.
• Licensees who take the 2024-2025 LARRC before January 1, 2026, but renew their licenses on or after that date, will not need to take the 2026-2027 LARRC. However, they will still need to take the new State and Federal Fair Housing course.
• The minimum number of hours required for Advanced Practices will be reduced from 27 to 26.
• As of July 1, 2026, the assessment of license proficiency (final exam) required for completion of the Advanced Practices courses must include the elements outlined in administrative rule.

Real estate teams (Section 13)

Recognizes and regulates "real state teams" operating under an RBN. 

A real estate team is defined as a subdivision of an RBN that:

• Conducts professional real estate activity,
• Includes one or more real estate licensees, and
• Operates under a name different from the RBN.

Key points:

• The managing principal broker must approve the formation of a real estate team.
• A real estate team must provide a disclosure to the client before entering into a buyer representation agreement or a listing agreement. A sample disclosure will be available on OREA’s website by January 1, 2026.
• Only a managing principal broker or a principal broker under a written supervisory agreement can have supervisory control and responsibility of another team member.
• Real estate team names cannot include the word “realty” or “real estate” and must not be identical to the RBN.
• Real estate teams must comply with the advertising rules found in Oregon Administrative Rule 863-015-0125, including the requirement that the RBN be immediately noticeable.
  

Compensation (Section 17)

Allows licensees to share compensation with a non-profit organization.

Key points:

• A real estate licensee can only accept compensation from the managing principal broker with whom the licensee is associated.
• A real estate licensee may offer, promise, give, pay or rebate parts of their compensation to a 501(c)(3) charitable organization.

Supervision and control (Section 20)

Managing principal brokers must implement systems for supervision and compliance.

Key points:

• The managing principal broker must establish and enforce written policies, procedures, and systems to:
• Review and manage the professional real estate activities of Brokers.
• Review and manage the use of disclosure forms and contracts.
• Ensure proper document filing and storage.
• Manage the handling of client trust funds.
• Manage the use of unlicensed assistants by Brokers;
• Educate Brokers on applicable federal, state and local laws.
• Review and inspect documents with a material effect on the rights or obligations of a party to a transaction.
• Ensure that all associated licensees hold active licenses.
• There must be a system to monitor brokers’ compliance with statutes and rules and the RBN’s policies, procedures and systems.
• The managing principal broker is ultimately responsible for the professional real estate activity of all associated brokers.

Managing principal brokers may allocate some or all of this supervisory control and responsibility to associated Principal Brokers through a written supervisory agreement. (See Written supervisory agreements below.)

This does not apply to managing principal brokers who maintains a single office and have no other real estate licensees working under their RBN.

Written supervisory agreements (Section 21)

Formal agreements that define supervisory roles and responsibilities within the RBN are required.

Managing principal broker working with principal brokers

Principal brokers may only supervise other licensees under a written supervisory agreement with the managing principal broker.

Written supervisory agreements must:

• Assign supervision duties for all real estate licensees, including licensees who join later or are omitted from the agreement.
• Include any supervisory control and responsibility of the managing principal broker over the principal brokers.
• Include any supervisory control and responsibility of one principal broker over another principal broker.
• Include a succession plan that addresses what happens if the managing principal broker dies, becomes incapacitated, or leaves.
• State clearly that the managing principal broker remains ultimately responsible for all licensees under the RBN, regardless of what the agreement says.