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Buyer Agreements and Listing Agreements -- A Law and Rule Overview

Effective January 1, 2025

December 2024

Earlier this year the Oregon Legislature passed House Bill 4058 (Chapter 3, 2024 Laws). The bill established written buyer representation agreements and made changes to listing agreements. The Oregon Real Estate Agency (OREA) has completed rulemaking to implement the new law. The following is an overview of the law and rule changes.

Buyer Representation Agreements

A broker or principal broker representing a buyer in a residential transaction of land or one to four units must enter into a written representation agreement with the buyer. The agreement is a contract between an agent and buyer that allows the agent, in exchange for compensation, to act on behalf of the buyer in purchasing or identifying property for purchase.

If you intend to represent a buyer, a written agreement must be entered into before, or as soon as possible after, you have started assisting the buyer in purchasing property or identifying property for purchase

The agreement must include:

  • Your license number.
  • Contact information, including telephone number, for the principal broker who supervises you.
  • The term of the contract, including effective date and expiration date. The duration of the contract, including any automatic renewals, may not exceed 24 months.
  • A description of the legal obligations of a buyer's agent as described in Oregon Revised Statutes (ORS) 686.810. This can also be satisfied by referencing the initial agency disclosure pamphlet provided to the buyer.
  • The buyer's general search criteria, which may include the price range and the location of desired property.
  • An explanation of how you may be compensated.
  • Termination rights for both buyer and licensee.
  • A statement of whether the agreement is exclusive or nonexclusive.

If you are under a representation agreement with a buyer, you cannot also represent the seller in the transaction unless the buyer agrees in writing that you can be a disclosed limited agent under ORS 696.815.

Listing Agreements

Brokers and principal brokers representing a seller in a residential transaction must have a written listing agreement with the seller before offering the property for sale or trying to find a buyer for the property. The administrative rules pertaining to listing agreements were modified to align with the buyer agreements.

A listing agreement must include all the following:

  • An expiration date.
  • Your license number. (NEW)
  • A statement of whether the agreement is exclusive or nonexclusive. (NEW)
  • Contact information, including telephone number, for a principal broker who supervises you. (NEW)
  • Signatures by all parties to the agreement.
  • A description of the legal obligations of a seller's agent as described in ORS 686.805. This can also be satisfied by referencing the initial agency disclosure pamphlet provided to the buyer. (NEW)
  • The term of the agreement, not to exceed 24 months including automatic renewals. (NEW)

A listing agreement may NOT include:

  • Any provision requiring the seller to notify you of their intention to cancel the listing expiration date.
  • Any provision subjecting the seller to the payment of two or more commissions for one sale if the seller lists the same property with a second or subsequent real estate broker or principal broker after the first or preceding listing agreement expires or is terminated by mutual agreement.

If you are under a listing agreement with the seller, you are only the seller's agent in the transaction unless the seller agrees in writing that you can be a disclosed limited agent pursuant to ORS 696.815.

A listing agreement is not required for property that is improved or available for improvement by commercial structures of five or more residential dwelling units.

Disclosed Limited Agency

You can represent both the buyer and the seller in a real estate transaction. To do so, you must have all the following in place:

  • A written listing agreement under ORS 696.805 with the seller.
  • A written buyer representation agreement under ORS 696.810 with the buyer.
  • A disclosed limited agency agreement under ORS 696.815 with both the buyer and the seller.

You can review the new law at https://www.oregonlegislature.gov/bills_laws/lawsstatutes/2024orLaw0003.pdf. The new and amended administrative rules will be available January 1, 2025, at https://secure.sos.state.or.us/oard/displayChapterRules.action?selectedChapter=174.