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Oregon Bulletin

September 1, 2012

Real Estate Agency, Chapter 863

Rule Caption: Amend pre-license and continuing education rules to comply with statutory changes.

Adm. Order No.: REA 1-2012(Temp)

Filed with Sec. of State: 8-14-2012

Certified to be Effective: 8-15-12 thru 2-1-13

Notice Publication Date:

Rules Adopted: 863-022-0022

Rules Amended: 863-020-0000, 863-020-0005, 863-020-0007, 863-020-0010, 863-020-0015, 863-020-0020, 863-020-0025, 863-020-0030, 863-020-0035, 863-020-0040, 863-020-0045, 863-020-0050, 863-020-0055, 863-020-0060, 863-020-0065, 863-022-0000, 863-022-0005, 863-022-0010, 863-022-0015, 863-022-0020, 863-022-0025, 863-022-0030, 863-022-0035, 863-022-0045, 863-022-0050, 863-022-0055, 863-022-0060

Rules Suspended: 863-020-0008, 863-022-0040

Subject: These amendments to division 20, the continuing education rules, and division 22, the license applicant course requirements and course approval rules are needed to update the rules based on the extensive job analysis for all licensees and the subsequent updates to the examination for license applicants. In addition, a new property manager advanced practices course will be required of all property manager who are renewing their license for the first time.

Rules Coordinator: Laurie Skillman—(503) 378-4630

863-020-0000

Applicability and Purpose

(1) This division applies to licensed real estate brokers, principal real estate brokers, real estate property managers, continuing education providers, and instructors who teach courses for continuing education providers.

(2) For all real estate licensees, the purposes of this division are to set forth continuing education requirements for licensee renewals, including:

(a) Courses eligible for continuing education credit completed before January 1, 2011, and

(b) Courses eligible for continuing education credit completed on or after January 1, 2011 taken from continuing education course providers, including:

(A) Courses that meet the requirements for course topics and learning objectives in this division 20,

(B) A Board-approved three-hour law and rule required course on recent changes in rule and law, described in OAR 863-022-0055, required for all licensees,

(C) A 27-hour advanced course in real estate practices described in OAR 863-022-0020 required for real estate brokers before the first active renewal of the broker’s license or before the first license reactivation following an inactive first renewal,

(D) A 27-hour property manager advanced practices course described in OAR 863-022-0022 required for licensed real estate property managers before the first active renewal of the property manager’s license or before the first license reactivation following an inactive first renewal,

(E) The 40-hour brokerage administration and sales supervision course described in OAR 863-022-0025 for an initial principal real estate broker license application, and

(F) Continuing education record-keeping requirements for all licensees.

(3) For continuing education providers, the purposes of this division are to set forth:

(a) The application requirements for certification as a real estate continuing education course provider, and

(b) The responsibilities of continuing education course providers, including:

(A) Ensuring that courses offered by the provider meet the eligible course topics, learning objectives, and length of course requirements,

(B) Maintaining required records,

(C) Providing real estate licensees with certificates of completion for each course that meet the requirements for certificates of completion, and

(D) Ensuring that each instructor who will teach a course offered by a provider meets instructor qualifications and completes a continuing education instructor form.

(4) For instructors who teach courses for continuing education providers, the purposes of this division are to set forth the instructor qualifications set out on the instructor form that is completed by the instructor and given to the continuing education provider.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.010, 696.174, 696.182, 696.184 & 696.186
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-020-0005

Definitions

As used in this division, unless the context requires otherwise:

(1) “Agency” means the Oregon Real Estate Agency.

(2) “Applicant” means either an individual as defined in section (7) of this rule, or a person as defined in section (9) of this rule.

(3) “Board” means the Oregon Real Estate Board.

(4) “Commissioner” means the Real Estate Commissioner.

(5) “Continuing education provider” means a person certified by the Agency under OAR 863-020-0030 to offer real estate continuing education courses that are eligible for credit. The continuing education courses are taught by an instructor.

(6) “Course identification number” means a unique four-digit identifying course number assigned by a continuing education provider.

(7) “Individual” means a human being, not a legal entity.

(8) “Instructor” means an individual who teaches, for a continuing education provider, a real estate continuing education course that is eligible for credit. An instructor must meet the qualifications in ORS 696.186 and OAR 863-020-0060. The Agency does not certify instructors.

(9) “Licensed real estate property manager” is defined in ORS 696.010.

(10) “Person” means any individual, partnership, corporation, association, governmental subdivision, or public or private organization of any character other than a government agency.

(11) “Principal real estate broker” is defined in ORS 696.010.

(12) “Provider number” means a unique identifying number assigned by the Agency to a certified continuing education provider under OAR 863-020-0030.

(13) “Real estate broker” is defined in ORS 696.010.

(14) “Real estate licensee” is defined in ORS 696.010 and includes a real estate broker, principal real estate broker, and a real estate property manager.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.174, 696.182, & 696.186
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-020-0007

Length of Continuing Education Courses

(1) This rule applies to courses offered by certified continuing education providers.

(2) The minimum length of each continuing education course offered by a continuing education provider is one hour.

(3) A continuing education provider or course instructor may allow a break of no more than 10 minutes as part of each hour of instruction.

(4) A provider may offer a course that is longer than one hour, in additional half hour increments.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.182
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-020-0008

License Renewal Continuing Education Requirements Until December 31, 2010

(1) This rule applies to all real estate licensees and is effective only until December 31, 2010. Beginning January 1, 2011, the requirements under OAR 863-020-0010 apply.

(2) To renew an active license, a real estate licensee must have completed at least 30 clock-hours of certified real estate oriented continuing education during the preceding two license years. Except as provided in section (3) of this rule:

(a) A licensee must complete 15 clock-hours of continuing education in one or more of the following required topics:

(A) Trust Accounts;

(B) Misrepresentation;

(C) Anti-Trust;

(D) Rule and Law Update;

(E) Property Management;

(F) Commercial Brokerage and Leasing;

(G) Real Estate Taxation: Federal, State, and Local;

(H) Agency;

(I) Fair Housing;

(J) Contracts;

(K) Property Evaluation;

(L) Brokerage Management;

(M) Land;

(N) Business Ethics; or

(O) Compliance Review.

(b) A licensee must complete the remaining 15 hours in any combination of the above course topics or in other elective real estate oriented continuing education courses.

(c) Courses related to personal skills, such as time management, and routine meetings and luncheons are not considered real estate oriented continuing education courses and do not qualify as such.

(d) Courses must be a minimum of one clock-hour in length. A clock-hour is measured in 60-minute increments, excluding meal or rest breaks.

(e) Credit will not be given for repeating a continuing education course with the same content during a two-year renewal period.

(3) Continuing education courses taken from a certified continuing education provider on or after July 1, 2010 through December 31, 2010 that meet the requirements of ORS 696.174 and OAR 863-020-0035 are eligible for continuing education credit.

(4) As provided in sections (5), (6), and (10) of this rule, a licensee or certifying licensee must complete a standard Certificate of Attendance developed by the Agency for each course completed.

(5) “Certifying licensee” for real estate brokers means a principal real estate broker who certifies on an Agency-approved form that a real estate broker completed the continuing education requirements.

(6) “Certifying licensee” for property managers associated with a principal real estate broker means the principal real estate broker who certifies on an Agency-approved form that the property manager completed the continuing education requirements.

(7) In completing the standard Certificate of Attendance, the certifying licensee must decide:

(a) Whether a continuing education course meets the continuing education requirements; and

(b) Whether to classify the course as a required topic or an elective topic.

(8) A certifying licensee may approve continuing education courses completed outside of Oregon. However, for courses completed outside of Oregon, the number of approved credit hours must reflect the clock-hours of course content related to the practice of real estate in Oregon. Credit hours will not be approved for courses with content specific to another state or jurisdiction.

(9) The certifying licensee must retain the Certificate of Attendance in its records as prescribed in OAR 863-015-0260. The certifying licensee must produce a copy of the Certificate of Attendance if the associated licensee or the Agency so requests.

(10) Principal real estate brokers and property managers not associated with a principal broker must:

(a) Self-certify that they have completed their continuing education requirements;

(b) Retain their Certificate of Attendance as prescribed in OAR 863-015-0260; and

(c) Produce a copy of the Certificate of Attendance if the Agency so requests.

(11) Providing false information on an Agency license renewal form or Certificate of Attendance or falsely certifying such information is prima facie evidence of a violation of ORS 696.301.

(12) In certifying a continuing education course, the certifying licensee must consider the totality of the information provided and the class content and may consider additional criteria including, but not limited to:

(a) Evidence of the instructor’s qualifications to teach the course;

(b) Whether the course content is current and accurate, the learning objectives for the course, and whether the course content fulfills the learning objectives;

(c) Whether the course includes ways of measuring learning outcome, such as a final examination; and

(d) Whether students get to evaluate the course and instructor.

(13) A real estate broker first licensed on or after July 1, 2002 must complete the 30-hour advanced course in real estate practices that meets the requirements in OAR 863-022-0020 before the first active renewal of the real estate broker’s license or before the first license reactivation following an inactive first renewal. This requirement does not apply to principal real estate brokers. An approved advanced course in real estate practices satisfies the continuing education requirements for a real estate broker licensee’s renewal.

(14) Certifying licensees may approve continuing education courses completed through alternative delivery methods. “Alternative delivery” means presentation of continuing education material in a method other than classroom lecture. This includes, but is not limited to, correspondence and electronic means such as satellite broadcast, videotape, computer disc, and Internet.

(a) In addition to the certification criteria in section (12) of this rule, in determining whether to certify an alternative delivery method course, the certifying licensee may consider:

(A) Whether the course offers operational or electronic security measures;

(B) The students’ ability to interact with an instructor or access other resources to support their learning;

(C) Whether the learning environment and technical requirements are explained to students in advance of the course; and

(D) Whether the course includes a proctored final examination.

(b) In determining the number of credit hours to approve for an alternative delivery course, the certifying licensee may consider:

(A) The number of questions in the examination, with a minimum standard of 10 questions per hour of credit;

(B) The number of pages for Internet, Computer-Based Training, CD-ROM, and book courses, with a minimum standard of 10 pages per hour of credit; and

(C) The clock hours elapsed for videocassette, audiotape, or teleconference courses.

(15) Continuing education course sponsors may:

(a) State in their advertising that the licensee’s principal broker must approve the continuing education requirements, e.g., course content, topics, and hours; and

(b) Complete the following information on a Certificate of Attendance:

(A) Real estate licensee’s name;

(B) Continuing education course title and date of completion;

(C) Instructor’s name and location of course; and

(D) Method of course delivery and whether a final examination was administered.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.174 & 696.301
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; Suspended by REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-020-0010

License Renewal Continuing Education Requirements Effective January 1, 2011

(1) This rule applies to all real estate licensees.

(2) To renew an active license, a real estate licensee must truthfully certify on an Agency-approved form under OAR 863-014-0050 (for real estate brokers and principal brokers) or 863-024-0050 (for licensed real estate property managers) that the licensee:

(a) Has completed at least 27 hours of real estate continuing education that are eligible for credit under OAR 863-020-0035 and 863-020-0040 during the two years preceding renewal and,

(b) Has completed the Board-approved three-hour law and rule required course on recent changes in real estate rule and law as provided in OAR 863-022-0055.

(3) To renew an active license for the first time or before the first license reactivation following an inactive first renewal, a real estate broker and a licensed real estate property manager must comply with the following:

(a) A real estate broker must complete the 27-hour advanced course in real estate practices described in OAR 863-022-0020. A real estate broker must also take the three-hour law and rule required course on recent changes in real estate rule and law.

(b) Effective January 1, 2013, a licensed real estate property manager must complete the 27-hour property manager advanced practices course described in OAR 863-022-0022. A licensed real estate property manager must also take the three-hour law and rule required course on recent changes in real estate rule and law.

(4) A real estate licensee will not be given credit for repeating a continuing education course with the same content during a two-year renewal period.

(5) Falsely certifying that the licensee has completed the required continuing education is a violation of section (2) of this rule and is grounds for discipline under ORS 696.301.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.022, 696.174, 696.301
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-020-0015

Licensee Records

(1) Effective January 1, 2011, a real estate licensee must maintain the licensee’s own continuing education records described in sections (3) and (4) of this rule for three years after the renewal date for which the continuing education credit applies.

(2) Beginning January 1, 2011, a principal broker is not required to maintain the continuing education records of a real estate broker or a property manager associated with the principal broker. However, the principal broker must maintain the continuing education records that pre-date January 1, 2011 as required by OAR 863-015-0260 and produce a copy of such records if the associated licensee or the Agency so requests.

(3) A real estate licensee must complete and maintain an Agency-approved form that contains the following information, taken from the certificate of completion provided by the continuing education provider:

(a) The licensee’s name and license number;

(b) The name of the course;

(c) The name of the certified course provider and the provider number;

(d) The course identification number assigned by the course provider;

(e) The course eligibility for continuing education credit as one of the following:

(A) The specific course topic(s) that is eligible under OAR 863-020-0035,

(B) The course is the three-hour law and rule required course under 863-022-0055,

(C) The course is the advanced course in real estate practices under 863-022-0020,

(D) The course is the property manager advanced practices course under OAR 863-022-0022, or

(E) The course is the brokerage administration and sales supervision course under 863-022-0025; (f) The date and location of the course;

(g) The length of time of the course; and

(h) The name of the instructor who taught the course.

(4) A licensee must maintain all certificates of completion the licensee received from continuing education providers.

(5) Upon request by the Agency, a licensee must produce a copy of the records required under this rule.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.174
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-020-0020

Continuing Education Provider Qualifications

(1) An applicant for certification as a continuing education provider must be one of the following:

(a) A main or branch office with a registered business name registered with the Agency under ORS 696.026 and OAR 863-014-0095 or 863-024-0095;

(b) A licensed title or escrow company conducting business in this state;

(c) A real estate trade association as defined in section (2) of this rule or a trade association in a related field as defined in section (3) of this rule, but not the individual members of those associations;

(d) A real estate multiple listing service;

(e) An attorney admitted to practice in this state

(f) A private career school approved by the Agency to teach continuing education courses as defined in section (4) of this rule;

(g) An accredited community college, an accredited public university listed in ORS 352.002 or a private and independent institution of higher education as defined in ORS 352.720

(h) A distance learning provider approved by the Agency as defined in section (5) of this rule; or

(i) A person who does not meet the requirements of section (1)(a) through (h) of this rule but whose qualifications have been approved by the Real Estate Board under OAR 863-020-0025.

(2) “Real estate trade association,” as used in section (1) of this rule, means a local, state, regional, or national organization with members that include real estate licensees, licensed escrow agents, or licensed title companies.

(3) “Trade association in a related field,” as used in section (1) of this rule, means a local, state, regional, or national organization with members that include licensed, certified, or registered:

(a) Appraisers,

(b) Architects,

(c) Attorneys,

(d) Contractors,

(e) Home inspectors,

(f) Mortgage bankers,

(g) Mortgage brokers,

(h) Professional engineers,

(i) Securities broker-dealers or salespersons,

(j) Surveyors, or

(k) Tax professionals.

(4) “Private career school approved by the Agency to teach continuing education courses,” as used in section (1) of this rule, means a private career school licensed by the Department of Education and approved by the Agency to provide the basic real estate broker’s or property manager’s educational courses required under ORS 696.022.

(5) “Distance learning provider approved by the Agency,” as used in section (1) of this rule, means a person whose course has been certified by the Association of Real Estate License Law Officials.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.182
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-020-0025

Board Approval of Continuing Education Provider Qualification

(1) A person not otherwise qualified under OAR 863-020-0020(1)(a) through (h) seeking the Board’s approval as an applicant for certification must petition the Board under this rule.

(2) The person must submit a petition for approval to the Agency on an Agency-approved form at least 21 days before the scheduled Board meeting at which the applicant wishes the Board to act. The petition must include the following:

(a) The petitioner’s name, address, and phone number.

(b) Sufficient information about the petitioner named in the application to allow the Board to determine whether the petitioner qualifies for certification, including specifics about one or both of the following:

(A) Petitioner’s demonstrated expertise and experience in providing educational courses to real estate licensees;

(B) Petitioner’s demonstrated experience and expertise in at least two course topics eligible for continuing education credit under OAR 863-020-0035(4)(a)–(gg).

(c) Attestation by the petitioner that the petitioner knows and understands:

(A) The responsibilities of a continuing education provider under OAR 863-020-0050;

(B) The requirements of an instructor under ORS 696.186 and the information required on a continuing education instructor form under OAR 863-020-0060.

(3) The Agency will mail a letter to the petitioner stating the Board’s determination. If the Board approves the petition, the petitioner may apply for certification as a course provider under OAR 863-020-0030.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.182
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2011(Temp), f. 2-3-11, cert. ef. 2-4-11 thru 8-3-11; REA 2-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 5-2011, f. 8-15-11, cert. ef. 9-1-11; REA 9-2011, f. & cert. ef. 11-15-11; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-020-0030

Application for Continuing Education Provider Certification and Renewal

(1) An applicant for certification as a continuing education provider must submit to the Agency an application on an Agency-approved form containing the following information. No application fee is required.

(a) The applicant’s name, mailing address, physical address, and phone number;

(b) The date of the application;

(c) The applicable qualification listed in OAR 863-020-0020(1) and, if the Real Estate Board approved the applicant’s qualifications under OAR 863-020-0025, the applicant must also submit the Agency’s confirmation letter;

(d) The name and signature of the individual authorized by the applicant to submit the application;

(e) The applicant’s authorized contact person, title, phone number, and e-mail address;

(f) The applicant’s website address;

(g) Information concerning the course presentation formats, such as classroom instruction, online, etc.; and

(h) An affirmation that the applicant:

(A) Will comply with the statutory and administrative rule provisions applicable to continuing education providers, and

(B) Understands that the continuing education provider certification does not authorize the provider to offer an advanced course in real estate practices, the property manager advanced practices course or the brokerage administration sales and supervision course. If the provider wishes to offer those courses, the provider may seek separate approval of the course under OAR chapter 863, division 22.

(2) The Agency will assign a provider number and mail a confirmation of certification to the applicant after review and approval of an application.

(3) The Agency will publish on its website and have available at the Agency a list of certified course providers and include the following information:

(a) The provider’s name, mailing address, physical address, and phone number;

(b) The provider’s authorized contact person, title, phone number, and e-mail address;

(c) The provider’s website address;

(d) The course presentation formats offered by the provider, such as classroom instruction, online, etc.; and

(e) The date of certification and provider number.

(4) Once certified, the continuing education provider must submit on an Agency-approved form any changes in the information provided on the application.

(5) If a provider no longer wishes to be certified or no longer meets the qualifications contained in OAR 863-020-0020, it must inform the Agency in writing within five business days.

(6) A continuing education provider certification expires on December 31, 2013 and is subject to renewal by submitting an application for renewal on an Agency-approved form at least 60 days before the certification expires.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.182
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-020-0035

Courses Offered by Continuing Education Providers

(1) This rule applies to continuing education courses offered by continuing education providers except for the advanced course in real estate practices, the property manager advanced practices course and the brokerage administration sales and supervision course. If the provider wishes to offer those courses, the provider may seek separate course approval under OAR chapter 863, division 22.

(2) A continuing education provider must ensure that a specific class or course offered is within the scope of one or more course topics listed in section (4) or (5) of this rule. The provider must also identify to real estate licensees which course topic(s) is covered by the course. The Agency will not determine whether individual courses or classes are within the scope of an eligible course topic.

(3) Each course offered for continuing education credit:

(a) Must meet all course requirements under this rule,

(b) Must meet the requirements for the length of the course under OAR 863-020-0007,

(c) Must meet the requirements for learning objectives in OAR 863-020-0045, and

(d) May be presented in a classroom setting, online, or in another format of the provider’s choosing.

(4) The following course topics are eligible for real estate continuing education credit required by ORS 696.174 and OAR 863-020-0010:

(a) Principal broker or property manager record-keeping.

(b) Principal real estate broker supervision responsibilities.

(c) Principal broker or property manager clients’ trust accounts.

(d) Agency relationships and responsibilities for brokers, principal brokers, or property managers.

(e) Misrepresentation in real estate transactions.

(f) Property management.

(g) Advertising regulations.

(h) Real estate disclosure requirements.

(i) Real estate consumer protection.

(j) Anti-trust issues in real estate transactions.

(k) Commercial real estate.

(l) Real estate contracts.

(m) Real estate taxation.

(n) Real estate property evaluation, appraisal, or valuation.

(o) Fair Housing laws or policy.

(p) Managing a real estate brokerage.

(q) Business ethics.

(r) Risk management.

(s) Dispute resolution.

(t) Real estate finance.

(u) Real estate title.

(v) Real estate escrows.

(w) Real estate development.

(x) Condominiums.

(y) Subdivisions.

(z) Unit owner or home owner associations.

(aa) Timeshares.

(bb) Water rights.

(cc) Environmental protection issues in real estate.

(dd) Land use planning, zoning, or other public limitations on use.

(ee) Real estate economics.

(ff) Real estate law or regulation.

(gg) Negotiation.

(5) A three-hour law and rule required course on recent changes in real estate rule and law under OAR 863-022-0055 is eligible for three hours of continuing education credit.

(6) The following do not fall within the scope of an eligible continuing education course topic listed under section (4) of this rule:

(a) Real estate broker or property manager pre-licensing courses.

(b) Examination preparation classes.

(c) Sales meetings.

(d) Motivational classes or seminars.

(e) Time management classes or seminars.

(f) Sales and marketing classes or seminars.

(g) Psychology classes or seminars.

(h) Trade association orientation courses.

(i) Courses in standardized computer software programs not specifically related to the topics listed in section (4) of this rule.

(j) Courses with content that is specific to another state or jurisdiction.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.174 & 696.184
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-020-0040

Certain Courses Required for License Renewal that are Also Eligible for Continuing Education Credit

(1) Effective January 1, 2011, in addition to the eligible courses under OAR 863-020-0035 completed on or after July 1, 2010, the following courses are eligible for continuing education credit:

(2) For a real estate broker who is renewing an active license for the first time or who is reactivating a license following an inactive first renewal, an Agency-approved 27-hour advanced course in real estate practices that meets the requirements of OAR 863-022-0020.;

(3) Effective January 1, 2013, for a licensed real estate property manager who is renewing an active license for the first time or who is reactivating a license following an inactive first renewal, an Agency-approved 27-hour property manager advanced practices course that meets the requirements of OAR 863-022-0022.

(4) For an initial principal real estate broker license, an Agency-approved 40-hour brokerage administration and sales supervision course that meets the requirements of OAR 863-022-0015; and

(5) A continuing education course completed between January 1, 2009 and December 31, 2010 that is in one of the following topics or combination of course topics:

(a) Trust Accounts.

(b) Misrepresentation.

(c) Anti-Trust.

(d) Rule and Law Update.

(e) Property Management.

(f) Commercial Brokerage and Leasing.

(g) Real Estate Taxation: Federal, State, and Local.

(h) Agency.

(i) Fair Housing.

(j) Contracts.

(k) Property Evaluation.

(l) Brokerage Management.

(m) Land.

(n) Business Ethics.

(o) Compliance Review.

(p) Real estate oriented continuing education.

(6) Courses taken under section (5) of this rule:

(a) May not be related to personal skills, such as time management or routine meetings and luncheons;

(b) Must be a minimum of 60 minutes, excluding meal or rest breaks; and

(c) May not be a course with the same content as another course taken during the renewal period.

(7) Certification as a continuing education provider does not authorize the provider to offer an advanced course in real estate practices, the property manager advanced practices course or the brokerage administration sales and supervision course. If the provider wishes to offer those courses, the provider may seek separate course approval under OAR chapter 863, division 22.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.022, 696.174, & 696.184
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-020-0045

Course Learning Objectives

(1) The Agency does not review or approve a continuing education provider’s learning objectives.

(2) As used in ORS Chapter 696 and this division 20, the term “learning objective” means a statement of a continuing education provider’s goal for what a licensee will know or be able to do when the course is completed.

(3) In addition to any other learning objectives a continuing education provider may develop for a course, the provider must ensure that each course within a course topic offered under OAR 863-020-0035(4) and (5) meets at least one of the learning objectives contained in section (6) of this rule.

(4) For course learning objectives relating to laws, statutes, and rules, only existing laws, statutes, and rules or those that have been adopted or enacted but are not yet in effect meet the requirements of this rule. Learning objectives related to proposed legislation or proposed regulations do not meet the requirements of this rule.

(5) At the end of the course, the licensee will be able to describe and, where appropriate, identify:

(a) Provisions in laws, statutes or administrative rules relevant to the course topic;

(b) The licensee’s responsibilities under laws, statutes or administrative rules relevant to the course topic;

(c) Consumer protections relevant to the course topic;

(d) Governmental agencies with primary responsibility for regulating the course topic and the agencies’ role in relation to consumers and licensees; or

(e) The principles, practices, or procedures relevant to the course topic and their impact on at least one of the following:

(A) Licensees;

(B) Consumers;

(C) Parties to the real estate transaction or property management agreement;

(D) The real estate marketplace;

(E) Real estate brokerage or property management practices;

(F) The licensees’ real estate business; or

(G) A licensee’s professional competence.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.182
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-020-0050

Continuing Education Provider Responsibilities

(1) For each course offered, a continuing education provider must:

(a) Ensure that a course offered for continuing education credit is within the scope of one or more course topics listed in OAR 863-020-0035(3) or is a three-hour law and rule required course on recent changes in real estate rule and law under OAR 863-022-0055;

(b) Identify to real estate licensees the course eligibility for continuing education credit as one of the following:

(A) A continuing education course under OAR 863-020-0035and which course topic(s) the offered course covers,

(B) The course is a three-hour rule and law required course under OAR 862-022-0055,

(C) The course is the advanced course in real estate practices course under OAR 863-022-0020,

(D) The course is the property manager advanced practices course under OAR 863-022-0022, or

(E) The course is the brokerage administration and sales supervision course under OAR 863-022-0025;

(c) Ensure that the course meets the requirements for the length of a course under OAR 863-20-0007;

(d) Assign to each course a four-digit identifying course number;

(e) Ensure that courses offered under OAR 863-020-0035 meet the learning objective requirements contained in OAR 863-020-0045; and

(f) Ensure that the instructor who teaches a continuing education course offered for credit:

(A) Meets the requirements set forth in ORS 696.186, and

(B) Completes and signs the form required by OAR 863-020-0060.

(2) A continuing education provider may provide the advanced course in real estate practices, the property manager advanced practices course or the brokerage administration and sales supervision course only if the provider and the course have been approved under OAR 863, division 22.

(3) A continuing education provider must keep records as required by OAR 863-020-0055; and

(4) A continuing education provider must give each licensee who completes a course a completed certificate of completion that includes:

(a) The licensee’s name and license number;

(b) The name of the course;

(c) The name of the certified course provider and provider number;

(d) The course identification number assigned by the course provider;

(e) Identification of the course eligibility for continuing education credit as one of the following:

(A) A continuing education course under OAR 863-020-0035and which course topic(s) the offered course covers,

(B) The course is a three-hour rule and law required course under OAR 862-022-0055,

(C) The course is the advanced course in real estate practices course under OAR 863-022-0020,

(D) The course is the property manager advanced practices course under OAR 863-022-0022, or

(E) The course is the brokerage administration and sales supervision course under OAR 863-022-0025;

(f) The date and location of the course;

(g) The length of time of each course; and

(h) The name of the instructor who taught the course.

(f) The date and location of the course;

(g) The length of time of each course; and

(h) The name of the instructor who taught the course.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.174, 696.182, & 696.184
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-020-0055

Continuing Education Provider Record-keeping Requirements

(1) A real estate continuing education provider must keep records of each course provided for three years from the date the course was provided. These records must include:

(a) The name of the course,

(b) The course identification number assigned by the course provider,

(c) Identification of the course eligibility for continuing education credit as one of the following:

(A) A continuing education course under OAR 863-020-0035and which course topic(s) the offered course covers,

(B) The course is a three-hour rule and law required course under OAR 862-022-0055,

(C) The course is the advanced course in real estate practices course under OAR 863-022-0020,

(D) The course is the property manager advanced practices course under OAR 863-022-0022, or

(E) The course is the brokerage administration and sales supervision course under OAR 863-022-0025;

(d) The date and location of the course,

(e) The length of time of each course,

(f) The name of the instructor who taught the course,

(g) The signed form required by OAR 863-020-0060 containing the statement of instructor qualifications, and

(h) The licensee’s name and license number for each licensee attending the course on that date.

(2) All continuing education providers, whether located within or outside of this state, must keep the required records at the address provided on the application form.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.184
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

cert, ef, 8-15-12

863-020-0060

Continuing Education Instructor Form

(1) As provided in OAR 863-020-0050, a continuing education provider must ensure that the instructor who teaches a continuing education course offered for credit meets the requirements contained in ORS 696.186. The Agency does not certify instructors.

(2) A continuing education provider must ensure that the instructor completes and signs a form containing the following information:

(a) The instructor’s name, address, and phone number;

(b) The continuing education provider name and provider number;

(c) A description of the instructor’s qualifications in sufficient detail that would enable the reader to know how the instructor has met those qualifications; and

(d) An attestation signed and dated by the instructor, identifying the instructor’s qualifications under section (4) of this rule and affirming that the instructor:

(A) Has not had a professional or occupational license related to the topic of the course revoked for disciplinary reasons;

(B) Has not had a professional or occupational license related to the topic of the course that is currently suspended for disciplinary reasons; and

(C) Has not been determined by a state court, an administrative law judge, or a final agency order to have violated any statute, rule, regulation, or order pertaining to real estate activity in this or any other state in the preceding five years.

(3) The instructor must indicate on the form which of the following qualifications applies to the instructor:

(a) A bachelor’s degree and two years of experience working in a field related to the course topic;

(b) Six years of experience working in a field related to the topic of the course;

(c) A total of six years of any combination of college-level coursework and experience working in a field related to the topic of the course:

(d) A designation by a professional real estate organization, as defined in section (5) of this rule, and two years of college-level coursework;

(e) A designation as a Distinguished Real Estate Instructor by the Real Estate Educators’ Association;

(f) Successful completion of an instructor training course approved by the Board and two years of experience working in a field related to the topic of the course; or

(g) Certification or approval in good standing as a real estate instructor for the same or a similar course topic in any other state or jurisdiction.

(4) “Professional real estate organization,” as used in section (4) of this rule, means a group of individuals with a formal membership whose membership includes real estate licensees or licensed escrow agents.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.184 & 696.186
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-020-0065

Certification Revocation

The Agency may revoke the continuing education provider’s certification if the provider disregards or violates any applicable provision of ORS chapter 696 or this rule division. Such revocation is an agency order subject to the contested case provisions contained in ORS chapter 183.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.182
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-022-0000

Applicability and Purpose

(1) This division applies to:

(a) Real estate license applicants,

(b) Real estate licensees,

(c) Persons seeking Agency approval of the following courses:

(A) The education courses for real estate broker license applicants and

(B) The education course for property manager license applicants.

(d) Certified continuing education providers seeking approval of the following courses:

(A) The brokerage administration and sales supervision course for principal broker license applicants,

(B) The advanced practices course required for real estate brokers seeking their first active license renewal, or

(C) The property manager advanced practices course for licensed real estate property managers seeking their first active renewal.

(e) Certified continuing education providers who offer the Board-approved three-hour course on recent changes in real estate law and rule.

(2) This division sets forth the following course requirements for license applicants and licensees:

(a) The course of study required by OAR 863-014-0035 for real estate broker license applicants;

(b) The course required by OAR 863-024-0045 for property manager license applicants;

(c) The brokerage administration and sales supervision course required by OAR 863-014-0040 for principal broker license applicants;

(d) The advanced practices course required by OAR 863-020-0010 for real estate brokers seeking their first active license renewal; and

(e) The property manager advanced practices course required by OAR 863-020-0010 for licensed real estate property managers seeking their first active renewal.

(3) This division sets forth the application processes for Agency approval of the following:

(a) The course of study required by OAR 863-014-0035 for real estate broker license applicants or the course required by OAR 863-024-0045 for property manager license applicants;

(b) The brokerage administration and sales supervision course required by OAR 863-014-0040 for principal broker license applicants;

(c) The advanced practices course required by OAR 863-020-0010 for real estate brokers seeking their first active license renewal;

(d) The property manager advanced practices course required by OAR 863-020-0010 for licensed real estate property managers seeking their first active renewal; and

(e) The three-hour course on recent changes in law and rule required for all renewing licensees under OAR 863-020-0010.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.174, 696.182, & 696.184
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-022-0005

Definitions

As used in this division, unless the context requires otherwise:

(1) “Agency” means the Oregon Real Estate Agency.

(2) “Associated broker” means a broker that is “associated with,” as that term is defined in ORS 696.010, a principal real estate broker.

(3) “Board” means the Oregon Real Estate Board.

(4) “Certified continuing education provider” means a person certified by the Agency under OAR 863-020-0030 to offer real estate continuing education courses that are eligible for credit under OAR 863-020-0035 and 863-020-0040. The continuing education courses are taught by an instructor.

(5) “Clock-hour” is a 60-minute hour, excluding meal or rest breaks.

(6) “Commissioner” means the Real Estate Commissioner.

(7) “Individual” means a human being, not a legal entity.

(8) “In-state community colleges, colleges, and universities” means:

(a) Campuses and centers that are part of an accredited public university listed in ORS 352.002;

(b) Oregon community colleges established and operated under ORS Chapter 341; and

(c) Accredited private and independent institutions of higher education, as that term is defined in ORS 352.720, that are located in Oregon.

(9) “Person” means any individual, partnership, corporation, association, governmental subdivision, or public or private organization of any character other than a government agency.

(10) “Private career schools” means private career schools licensed by the Oregon Department of Education and approved by the Agency to provide the 150-hour real estate license applicant course of study under OAR 863-022-0010, the 60-hour property manager license applicant courses under OAR 863-022-0015, or both.

(11) “Principal broker” means “principal real estate broker,” as defined in ORS 696.010.

(12) “Property manager” means “licensed real estate property manager,” as defined in ORS 696.010.

(13) “Real estate broker” is defined in ORS 696.010.

(14) “Real estate licensee” is defined in ORS 696.010.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.174, 696.182, & 696.184
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-022-0010

Course Requirements for Real Estate Broker License Applicants

(1) The real estate broker license applicant course of study required by OAR 863-014-0035 must include 150 clock-hours in the seven courses listed in section (2) of this rule.

(a) Courses offered by private career schools must be approved by the Agency under OAR 863-022-0030.

(b) Courses offered by in-state community colleges, colleges, and universities must be approved by the Agency under OAR 863-022-0035.

(c) To be eligible for credit, a course provider must:

(A) Present each course for the designated number of clock- hours stated in section (2) of this rule,

(B) Include specific course topics required by the Agency as provided in section (3) of this rule, and

(C) Give each student a final examination for each course consisting of the number of questions stated in section (2) of this rule.

(2) The courses required for real estate broker license applicants are:

(a) Real Estate Law: 30 clock-hours and 60 questions on a final examination.

(b) Oregon Real Estate Practice: 30 clock-hours and 60 questions on a final examination .

(c) Real Estate Finance: 30 clock-hours and 60 questions on a final examination.

(d) Contracts: 15 clock-hours and 30 questions on a final examination.

(e) Agency Law: 15 clock-hours and 30 questions on a final examination.

(f) Property Management: 10 clock-hours and 20 questions on a final examination.

(g) Real Estate Brokerage: 20 clock-hours and 40 questions on a final examination.

(3) An applicant must complete the required courses through Agency-approved private career schools or in-state community colleges, colleges, or universities, as those terms are defined in OAR 863-022-0005.

(4) To receive credit for courses provided by private career schools, license applicants must complete the course of study and receive a passing score of at least 75% on a final examination for each course.

(5) To receive credit for courses provided by in-state community colleges, colleges, and universities, license applicants must complete the course of study, including a final examination for each course and achieve a minimum grade of “C.”

(6) The real estate broker license applicant course of study is not eligible for continuing education credit under OAR 863-020-0010.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.174, 696.182, & 696.184
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-022-0015

Course Requirements for Property Manager License Applicants

(1) The course required by OAR 863-024-0045 for real estate property manager license applicants consists of a 60 clock-hour Agency-approved real estate property manager course. The property manager course covers the specialized area of the management of rental real estate, including Oregon’s legal requirements.

(a) A course offered by private career schools must be approved by the Agency under OAR 863-022-0030.

(b) A course offered by in-state community colleges, colleges, and universities must be approved by the Agency under OAR 863-022-0035.

(2) Effective August 15, 2012, a property manager license applicant may take the 60-hour property manager course described in section (3) or (4) of this rule. The course described in section (3) prepares the applicant for the property manager license examination that will be in effect beginning January 1, 2013. The course described in section (4) prepares the applicant for the property manager license examination that will be in effect only until December 31, 2012.

(3) This section (3) is effective August 15, 2012 and prepares the applicant for the property manager license examination that will be in effect beginning January 1, 2013. To be eligible for credit, the 60-hour course must include 60 clock-hours allocated among topics in the number of hours as follows:

(a) (12 hours) Oregon real estate license statutes and administrative rules relating to the management of rental real estate, including requirements of licensees, agency law and affirmative duties of a property manager.

(b) (12 hours) Clients’ trust accounts and three-way reconciliation of bank statements, ledgers and record of receipts and disbursements for clients’ trust accounts and security deposits accounts.

(c) (12 hours) Tenant relations and fair housing laws, including the Oregon Residential Landlord and Tenant Act and the Fair Credit Reporting Act.

(d) (7 hours) Contracts and leases.

(e) (6 hours) Risk management and maintenance.

(f) (6 hours) Economics and accounting.

(g) (5 hours) Real property law.

(4) This section (4) is effective until December 31, 2012 and prepares the applicant for the property manager license examination that will be in effect until December 31, 2012. To be eligible for credit, the 60-hour course must include 60 clock-hours allocated among topics in the number of hours and percentages as follows:

(a) (30% or 18 hours) Oregon real estate license statutes and administrative rules applicable to the management of rental real estate.

(b) (15% or 9 hours) Clients’ trust accounts and account reconciliation.

(c) (10% or 6 hours) Oregon Residential Landlord and Tenant Act, including tenants’ and landlords’ rights and obligations; evictions, forcible entry and detainer procedures.

(d) (5% or 3 hours) Economics of property management, including analysis of markets, properties, and evaluating the owner’s objectives.

(e) (5% or 3 hours) Leases, including leaseholds, types of leases and common lease clauses.

(f) (5% or 3 hours) Agency relationship between property owner and property manager and tenant relations, including maintenance.

(g) (15% or 9 hours) Management recordkeeping, including operating reports, budgets, income tax records, insurance types.

(h) (5% or 3 hours) Federal and state anti-discrimination laws and their applicability to tenant selection and advertising; the Fair Credit Reporting Act and its applicability to tenant selection.

(i) (10% or 6 hours) General real estate law applicable to property management activity, including types of estates and forms of ownership; transfer of title; taxes and assessments, including the levy and collection process, foreclosure and redemption rights, exemptions, and special assessments; land use controls, including private controls such as covenants, conditions, and restrictions, and public controls such as planning and zoning.

(5) An applicant must complete the Agency-approved course described in section (3) or (4) through a private career school or an in-state community college, college, or university, as those terms are defined in OAR 863-022-0005.

(6) To receive credit for a course provided by a private career school, an applicant must complete the course and receive a passing score of at least 75% on a final exam.

(7) To receive credit for a course provided by a community college, college or university an applicant must complete the course, including a final examination and achieve a minimum grade of “C.”

(8) The property manager license applicant course is not eligible for continuing education credit under OAR 863-020-0010

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.174, 696.182, & 696.184
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-022-0020

Advanced Practices Course Requirement for the First Active Renewal of Broker License

(1) The course required by OAR 863-020-0010 before the first active renewal of the real estate broker’s license or before the first license reactivation following an inactive first renewal is an Agency-approved advanced course in real estate practices.

(2) Effective August 15, 2012, a real estate broker who is required to take the advanced practices course may get credit for a course:

(a) Described in section (4) of this rule;

(b) Described in section (5) of this rule if the course was completed on or before December 31, 2010; or

(c) Described in section (6) of this rule if the course was completed between January 1, 2011 and before December 31, 2012.

(3) In order to renew a license, a real estate broker who completes the 27-hour course described in section (4) of this rule must also complete the three-hour course on recent changes in law and rule required under OAR 863-020-0010.

(4) Effective August 15, 2012, an Agency-approved advanced practices course must include 27 clock-hours allocated among topics in the number of hours as follows:

(a) (10 hours) Business ethics

(b) (3 hours) Review of recent administrative actions issued by the Agency

(c) (4.5 hours) Property management

(d) (3 hours) Business economics

(e) (3 hours) Advanced agency relationships, including dual representation

(f) (4.5 hours) Misrepresentation and negligence.

(5) To be eligible for credit, an advanced practices course completed on or before December 31, 2010 must:

(a) Meet the requirements under section (7) of this rule and be provided by a person whose advanced practices course has been approved by the Agency on or before June 30, 2010, or

(b) Meet the requirements under section (8) of this rule and be provided by a certified continuing education provider whose advanced practices course has been approved by the Board on or after July 1, 2010.

(6) To be eligible for credit, an advanced practices course completed on or after January 1, 2011 must meet the requirements under section (8) of this rule and be provided by a certified continuing education provider whose advanced practices course has been approved by the Board on or after July 1, 2010.

(7) A 30-hour advanced practices course approved by the Agency on or before June 30, 2010 must include 30 clock-hours allocated among topics in the number of hours and percentages as follows:

(a) (30% or 10 hours) Business ethics,

(b) (10% or 3 hours) Recent changes in real estate law and rule, including Oregon Real Estate License Law and administrative rule changes from the most recent legislative session and other legislative changes affecting real estate,

(c) (10% or 3 hours) Review of recent administrative actions issued by the Agency,

(d) (15% or 4.5 hours) Property management,

(e) (10% or 3 hours) Business economics (3 hours),

(f) (10% or 3 hours) Advanced agency relationship, including dual representation, and

(g) (15% or 4.5 hours) Misrepresentation and negligence.

(8) A 30-hour advanced practices course approved by the Board on or after July 1, 2010 must include 30 clock-hours allocated among topics in the number of hours and percentages as follows:

(a) (30% or 10 hours) Business ethics,

(b) (10% or 3 hours) A three-hour course on recent changes in real estate law and rule approved by the Board under OAR 863-022-0055,

(c) (10% or 3 hours) Review of recent administrative actions issued by the Agency,

(d) (15% or 4.5 hours) Property management,

(e) (10% or 3 hours) Business economics (3 hours),

(f) (10% or 3 hours) Advanced agency relationship, including dual representation, and

(g) (15% or 4.5 hours) Misrepresentation and negligence.

(9) To receive credit for an advanced practices course, a real estate broker must complete the course, including a final examination, and receive a passing score of at least 75% on a final examination.

(10) The licensee must obtain a certificate of course completion and maintain it as required by OAR 863-020-0015.

(11) If the advanced practices course was completed on or before December 31, 2010 and complies with section (5)(a) of this rule, the course is also eligible for continuing education credit under OAR 863-020-0010. However, licensees renewing on or after January 1, 2011 must also complete a Board-approved three-hour course on recent changes in real estate law and rule.

(12) If the advanced practices course was completed on or after July 1, 2010 and complies with section (5)(b) or section (6) of this rule, the course is also eligible for continuing education credit under OAR 863-020-0010. Because the course under section (5)(b) or section (6) of this rule includes the Board-approved three-hour course on recent changes in real estate law and rule, the licensee does not need to complete an additional course on recent changes in real estate law and rule.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.174, 696.182, & 696.184
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-022-0022

Property Manager Advanced Practices Course Requirement for the First Active Renewal of License

(1) The course required by OAR 863-020-0010 before the first active renewal of the property manager license or before the first license reactivation following an inactive first renewal is an Agency-approved 27-hour property manager advanced practices course.

(2) Effective August 15, 2012, a property manager who is required to take the advanced practices course in order to renew a license on or after January 1, 2012, must also complete the three-hour course on recent changes in law and rule required under OAR 863-020-0010.

(3) Effective August 15, 2012, an Agency-approved advanced practices course must include 27 clock-hours allocated among topics in the number of hours as follows:

(a) (2 hours) Agency law and affirmative duties in ORS 696.890

(b) (2 hours) Property management agreements

(c) (3 hours) Managing the operation of a property management company

(d) (3 hours) Clients’ trust accounts and security deposits accounts

(e) (6 hours) Property management accounting

(f) (2 hours) Oregon Residential Landlord and Tenant Act under ORS chapter 90

(g) (2 hours) Fair Housing Laws

(h) (2 hours) Property management records

(i) (2 hours) Real Estate License Law under ORS chapter 696

(j) (1.5 hours) Commercial property management

(k) (1.5 hours) Emergency plans, energy management plans, maintenance and repair

(4) To receive credit for an advanced practices course, a property manager must complete the course and receive a passing score of at least 75% on a final examination containing 60 questions.

(5) The licensee must obtain a certificate of course completion and maintain it as required by OAR 863-020-0015.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.174
Hist.: REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-022-0025

Education Course Requirements for Principal Broker License Applicants

(1) The course required by OAR 863-014-0040 for principal real estate broker license applicants is a 40-hour Agency-approved brokerage administration and sales supervision course.

(2) The brokerage administration and sales supervision course covers legal requirements unique to principal brokers and reviews the material introduced in the 150-hour real estate broker applicant course of study described in OAR 863-022-0010.

(3) Effective August 15, 2012, a principal real estate broker license applicant may take the 40-hour brokerage administration and sales supervision course described in section (4) or (5) of this rule. The course described in section (4) prepares the applicant for the property manager license examination that will be in effect beginning January 1, 2013. The course described in section (5) prepares the applicant for the principal real estate broker license examination that will be in effect only until December 31, 2012.

(4) This section (4) is effective August 15, 2012. The 40-hour brokerage administration and sales supervision course prepares the applicant for the principal real estate broker license examination that will be in effect beginning January 1, 2013. To be eligible for credit, the 40-hour course must include 40 clock-hours allocated among topics in the number of hours as follows:

(a) (15 hours) Brokerage business, supervision and legal requirements, which includes:

(A) Introduction to real estate brokerage business practices.

(B) Supervising and managing other real estate licensees, independent contractors and employees

(C) Financial records of the brokerage business.

(D) Clients’ trust accounts.

(E) Required records and maintenance.

(F) Property management.

(b) (25 hours) Review of real estate principles and practices

(A) Real Estate Law

(B) Oregon Real Estate Practice

(C) Real Estate Finance

(D) Contracts

(E) Agency Law

(F) Property Management

(G) Real Estate Brokerage

(5) This section (5) is effective until December 31, 2012 and prepares the applicant for the principal real estate broker license examination that will be in effect until December 31, 2012. To be eligible for credit, the 40-hour course must include 40 clock-hours, allocated among topics in the number of hours and percentages as follows:

(a) (10% or 4 hours) Introduction to management theory, characteristics of successful management, the functions of management, organizational formats such as corporate, partnerships, and proprietorship, various problems associated with management, and types of licenses and their legal requirements.

(b) (10% or 4 hours) Planning, including management objectives, planning under the employer-employee relationship versus independent contractor relationship, individual and office planning, budget planning, market research, growth, and anticipation of expansion, and bottom line planning.

(c) (15% or 6 hours) Selecting, training, and supervising real estate personnel, including job descriptions, recruiting, interviewing, and characteristics of a successful real estate broker; training in Oregon real estate law, real estate documents; supervising transactions, performance evaluations, commission arrangements; major theories of human motivation, for example, those of Maslow, Herzberg, and McClelland; selecting, training, and evaluating office support personnel.

(d) (5% or 2 hours) Leadership, authority, discipline; office regulations, relationships between office personnel; office policy on private transactions of licensees; effect of disciplinary action on licensees.

(e) (5% or 2 hours) Communication methods; formal versus informal; verbal versus non-verbal; reading, writing, listening, speaking; office sales meetings.

(f) (5% or 2 hours) Advertising, including supervising content, format, and layout; public relations, image development, and relations between competitors.

(g) (5% or 2 hours) Office facilities, including legal requirements for real estate offices, such as site selection, space and office layout, furniture and equipment, signs; broker license requirements; legal requirements concerning branch offices; limitations on licenses, effect of actions on licenses, and reporting of adverse litigation.

(h) (20% or 8 hours) Financial records, such as general checking account and its use for paying commissions, receipt of competitive market analysis fees; the clients’ trust account, legal requirements concerning its use, including required documentation, use of interest-bearing accounts, commingling of funds, the trust account’s use in cooperative transactions, earnest money, advance fees, and rental fees.

(i) (5% or 2 hours) Financial reports, such as income statements, balance sheets, tax returns, and payroll records.

(j) (5% or 2 hours) Non-financial records, such as listing files, transaction records, cooperative transaction records, advertising folders, showing reports, competitive market analysis records and reports; legal requirements, such as broker review of salesperson transactions.

(k) (5% or 2 hours) Office manuals that specify office policy and procedures, use of the manual in training and to set out grievance procedures.

(l) (5% or 2 hours) Office activity other than real estate sales; competitive market analyses, investment counseling, construction, and development, including supervisory requirements, and the nature of the activities relative to real estate legal requirements.

(m) (5% or 2 hours) Property management: legal requirements for accounting and record keeping, Oregon Landlord Tenant Law.

(6) License applicants must complete the course described in section (4) or (5) of this rule and receive a passing score of at least 75% on a final exam.

(7) An Agency-approved brokerage administration and sales supervision course is eligible for continuing education credit for licensees renewing under OAR 863-020-0010.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.174, 696.182, & 696.184
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-022-0030

Education Courses Provided by Private Career Schools

(1) Private career schools that wish to provide the real estate broker license applicant or property manager license applicant courses under OAR 863-022-0010 and 863-022-0015 must apply to the Agency for approval of these courses. No application fees are required.

(2) All license applicant courses under OAR 863-022-0010 and 863-022-0015 submitted by private career schools and approved by the Agency before August 15, 2012 are approved by this rule; however, the course approval expires December 31, 2012.

(3) Effective August 15, 2012, a private career school applying for Agency approval of a 150-hour course of study for real estate broker license applicants or a 60-hour course for property manager license applicants must submit an Agency-approved application form and the following documents:

(a) Proof of current licensing as a private career school with the Oregon Department of Education and an expiration date.

(b) Certificates of course completion.

(c) If the private career school wishes to provide a course through distance education, documentation that the course has been certified by the Association of Real Estate License Law Officials.

(d) If the private career school is applying for approval to use course materials owned and developed by a third-party vendor, written authorization from the vendor, on an Agency-approved form, that the course provider is authorized to use the course materials and the dates the provider is authorized to use the course.

(e) Course materials, including:

(A) Course curriculum or syllabus for the course of study.

(B) Student materials, including all course materials, textbooks and handouts.

(C) A completed Agency-approved topic checklist that lists the detailed course topics and indicates the location of the topic in the course materials. This requirement applies to all course materials, including materials developed by the course provider or materials developed by a third-party vendor.

(D) Instructor materials, if any.

(E) Final examinations.

(F) Examination answer keys, as a document that is separate from the examination.

(G) Agency-approved instructor forms for each instructor who will teach the course.

(4) The Agency will approve or deny the completed application and notify the applicant. Upon approval, the Agency will send a letter of approval. If the Agency denies the application, the applicant may seek a contested case hearing pursuant to ORS Chapter 183.

(5) If a private career school wants to provide courses other than the real estate broker or property manager license applicant courses, the school must comply with the following:

(a) To provide the advanced course in real estate practices or the property manager advanced practices course, the school must be a certified continuing education provider and apply for course approval under OAR 863-022-0045.

(b) To provide the brokerage administration and sales supervision course, the school must be a certified continuing education provider and apply for course approval under 863-022-0050.

(c) To provide the Board-approved three-hour law and rule update course under OAR 863-022-0055 required for licensee renewals, the school must be a certified continuing education provider.

(d) To provide any other continuing education course under OAR 863-020-0035 or 863-020-0040, the school must be a certified continuing education provider and comply with the requirements of OAR 863, division 20.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.174, 696.182, & 696.184
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-022-0035

Approval of Courses Provided by Community Colleges, Colleges, and Universities

(1) In-state community colleges, colleges, and universities that wish to provide the real estate broker license applicant or property manager license applicant courses under OAR 863-022-0010 and 863-022-0015 must apply to the Agency for approval of these courses. No application fees are required.

(2) All license applicant courses under OAR 863-022-0010 and 863-022-0015 submitted by in-state community colleges, colleges, and universities and approved by the Agency before August 15, 2012 are approved by this rule; however, the course approval expires December 31, 2012.

(3) Effective August 15, 2012, an in-state community college, college or university applying for Agency approval of a 150-hour course of study for real estate broker license applicants or a 60-hour course for property manager license applicants must submit an Agency-approved application form and the following documents:

(a) Certificates of course completion.

(b) If the private career school is applying for approval to use course materials owned and developed by a third-party vendor, written authorization from the vendor, on an Agency-approved form, that the course provider is authorized to use the course materials and the dates the provider is authorized to use the course.

(c) Course materials, including:

(A) Course curriculum or syllabus for the course of study.

(B) Student materials, including all course materials, textbooks and handouts.

(C) A completed Agency-approved topic checklist that lists the detailed course topics and indicates the location of the topic in the course materials. This requirement applies to all course materials, including materials developed by the course provider or materials developed by a third-party vendor.

(D) Instructor materials, if any.

(E) Final examinations.

(F) Examination answer keys, as a document that is separate from the examination.

(4) The Agency will approve or deny the completed application and notify the applicant. Upon approval, the Agency will send a letter of approval. If the Agency denies the application, the applicant may seek a contested case hearing pursuant to ORS Chapter 183.

(5) If an in-state community college, college or university wants to provide courses other than the real estate broker or property manager license applicant courses, the school must comply with the following:

(a) To provide the advanced course in real estate practices or the property manager advanced practices course, the school must be a certified continuing education provider and apply for course approval under OAR 863-022-0045.

(b) To provide the brokerage administration and sales supervision course, the school must be a certified continuing education provider and apply for course approval under 863-022-0050.

(c) To provide the Board-approved three-hour law and rule update course under OAR 863-022-0055 required for licensee renewals, the school must be a certified continuing education provider.

(d) To provide any other continuing education course under OAR 863-020-0035 or 863-020-0040, the school must be a certified continuing education provider and comply with the requirements of OAR 863, division 20.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.174, 696.182, & 696.184
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-022-0040

Agency-Approved Advanced Course in Real Estate Practices

(1) This rule applies to the 30-hour Agency-approved advanced course in real estate practices described in OAR 863-022-0020.

(2) All advanced practices courses, course providers, and instructors for those courses approved by the Agency on or before June 30, 2010 may continue to teach or provide the course through December 31, 2010 without Board approval.

(3) Except as provided in section (2) of this rule, beginning July 1, 2010, a person who seeks approval to provide the advanced practices course must be a certified continuing education provider and apply to the Board for approval under OAR 863-022-0045.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.174, 696.182, & 696.184
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; Suspended by REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-022-0045

Agency Approval of Advanced Practices Course

(1) A person seeking Agency approval of the 40-hour brokerage administration and sales supervision course described in OAR 863-022-0015 must be a certified continuing education provider.

(2) The person must submit an Agency-approved form and the following documents:

(a) Certificates of course completion.

(b) For all providers except instate community colleges, colleges and universities, that are applying for approval to use course materials owned and developed by a third party vendor, written authorization from the vendor, on an Agency-approved form, that the course provider is authorized to use the course materials and the dates the provider is authorized to use the course.

(c) For in-state community colleges, colleges and universities, that are applying for approval to use course materials owned and developed by a third party vendor, attestation that the provider must submit all revisions or updates to the Real Estate Agency for approval prior to using such materials

(d) Course materials, including:

(A) Course curriculum or syllabus for the course of study.

(B) Student materials, including all course materials, textbooks and handouts.

(C) A completed Agency-approved topic checklist that lists the detailed course topics and indicates the location of the topic in the course materials. This requirement applies to all course materials, including materials developed by the course provider or materials developed by a third-party vendor.

(D) Instructor materials, if any.

(E) Final examinations.

(F) Examination answer keys, as a document that is separate from the examination.

(G) For all providers except instate community colleges, colleges and universities, a continuing education instructor form for each instructor who will teach the course.

(3) The Agency will approve or deny the completed application and notify the applicant. Upon approval, the Agency will send a letter of approval.mpletion the private career school must use. If the Agency denies the application, the applicant may seek a contested case hearing pursuant to ORS Chapter 183.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.174, 696.182, & 696.184
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-022-0050

Agency Approval of Brokerage Administration and Sales Supervision Course and Instructors

(1) A person seeking Agency approval of the 40-hour brokerage administration and sales supervision course described in OAR 863-022-0015 must be a certified continuing education provider.

(2) The person must submit an Agency-approved form and the following documents:

(a) Certificates of course completion.

(b) For all providers except instate community colleges, colleges and universities, that are applying for approval to use course materials owned and developed by a third party vendor, written authorization from the vendor, on an Agency-approved form, that the course provider is authorized to use the course materials and the dates the provider is authorized to use the course.

(c) For in-state community colleges, colleges and universities, that are applying for approval to use course materials owned and developed by a third party vendor, attestation that the provider must submit all revisions or updates to the Real Estate Agency for approval prior to using such materials

(d) Course materials, including:

(A) Course curriculum or syllabus for the course of study.

(B) Student materials, including all course materials, textbooks and handouts.

(C) A completed Agency-approved topic checklist that lists the detailed course topics and indicates the location of the topic in the course materials. This requirement applies to all course materials, including materials developed by the course provider or materials developed by a third-party vendor.

(D) Instructor materials, if any.

(E) Final examinations.

(F) Examination answer keys, as a document that is separate from the examination.

(G) For all providers except instate community colleges, colleges and universities, a continuing education instructor form for each instructor who will teach the course.

(3) The Agency will approve or deny the completed application and notify the applicant. Upon approval, the Agency will send a letter of approval.mpletion the private career school must use. If the Agency denies the application, the applicant may seek a contested case hearing pursuant to ORS Chapter 183.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.174, 696.182, & 696.184
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-022-0055

Board Approval of Three-Hour Rule and Law Change Course

(1) The Board will develop the course content required for a course on recent changes in real estate rule and law required by ORS 696.174, and the Agency will make the course content available to the public.

(2) The Board will update the course at least biannually.

(3) To be eligible for continuing education credit required under OAR 863-020-0010, the Board-approved course must be provided by a certified continuing education provider.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.174, 696.182, & 696.184
Hist.: REA 1-2010, f. 6-14-10, cert. ef. 7-1-10; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

863-022-0060

Responsibilities of Providers of Real Estate Broker, Principal Broker and Property Manager License Application Courses

(1) For purposes of this rule, a “course provider” is:

(a) A private career school, in-state community college, college, or university that provides the 150-hour real estate broker license applicant course of study under OAR 863-022-0010, the 60-hour property manager license applicant course under OAR 863-022-0015; or the 40-hour brokerage administration and sales supervision course under OAR 863-022-0025; and

(b) A continuing education provider who provides the 40-hour brokerage administration and sales supervision course under OAR 863-022-0025.

(3) For purposes of this rule, “examination provider” means the vendor, under a contract with the Agency, which provides licensing examination services and collects the fee for such services directly from a license applicant.

(4) A course provider must certify to the examination provider that an applicant for a real estate license has successfully completed the course or courses according to the requirements and instructions of the examination provider.

(5) Before certifying that a license applicant completed a course as provided in section (4) of this rule, a course provider must obtain proof from a license applicant that the applicant has submitted a license application to the Agency.

(6) A course provider must inform each student taking a course that:

(a) The course provider will certify to the examination provider that an applicant for a real estate license has successfully completed the course or courses; and

(b) Before a course provider may certify that the applicant completed the course, a student must provide proof to the provider that the student has made application to the Agency for a real estate broker, principal broker or property manager license.

(7) In addition to the requirements under this rule, a course provider must provide a certificate of completion to each student.

Stat. Auth.: ORS 696.385
Stats. Implemented: ORS 696.020 & 696.022
Hist.: REA 3-2011(Temp), f. & cert. ef. 6-22-11 thru 12-1-11; REA 6-2011, f. 8-15-11, cert. ef. 9-1-11; REA 7-2011, f. & cert. ef. 11-15-11; REA 1-2012(Temp), f. 8-14-12, cert, ef, 8-15-12 thru 2-1-13

Notes
1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2011.

2.) Copyright 2012 Oregon Secretary of State: Terms and Conditions of Use

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