December 2024
As you may recall from a
previous issue of the Oregon Real Estate News-Journal, House Bill 4058 introduced changes to real estate practices in Oregon. To ensure a smooth transition, the Oregon Real Estate Agency (OREA) has been diligently working to implement the new regulations. Our team has collaborated closely with industry stakeholders to develop clear and practical rules that align with the law.
For those who may need a refresher, the bill addresses three areas previously discussed: written buyer service agreements, wholesaler registration, and the prohibition of future right-to-list contracts. While the earlier article provided an overview of the bill's key provisions, this update focuses on the implementation process and preparatory steps being taken by OREA.
Our rulemaking process involved convening a workgroup of stakeholders to ensure practical administrative rules focused on the buyer service agreement and residential property wholesaler registration process. Following this effort, OREA initiated the rulemaking process, which included releasing a Notice of Proposed Rulemaking and holding a rulemaking hearing.
The new rules have been filed with the Secretary of State. Those rules pertaining to the buyers representation agreements and listing agreements are effective January 1, 2025.
Rule Highlight
The newly developed rules establish specific requirements for buyer service agreements. These rules mandate the licensee's license number, the supervising principal broker's contact information, agreement term, legal obligations, search criteria, compensation explanations, and termination provisions be included in the buyer service agreement.
Additionally, the rule workgroup recognized the need to align the listing agreement rules with the new buyer agreement rules. Listing agreements must now have the licensee's license number, a statement if the agreement is exclusive or nonexclusive, and supervising principal broker's contact information, in addition to the other components previously required.
Rules establishing wholesaler registration and written disclosure requirements were also submitted, although that provision of the law is not effective until July 1, 2025. This included the disclosure requirements for real estate licensees who conduct residential property wholesaling.
As we move forward, we encourage all licensees to familiarize themselves with the new rules to ensure compliance. We are committed to providing support and guidance throughout this transition period.
Next Steps
Our immediate focus will center on strategic outreach to residential property wholesalers who do not currently hold a broker or principal broker license. We aim to ensure these individuals fully understand the new registration requirements, providing clear guidance and support through the transition
As part of operationalizing the new law, the Agency will continue to develop transparent, consistent processes. We'll continue to keep you updated as these changes unfold.