OAR 441-175-0050
Rules of Fair Practice for Real Estate Licensees

Any real estate broker relying on exclusions in OAR 441-175-0020 (Exclusion from Definition of “Broker-Dealer”), 441-175-0030 (Exclusion from Definition of “Investment Adviser”) or 441-175-0040 (Exclusion from Definition of “Salesperson”) must comply with the following rules of fair practice:

(1)

All advertising involving securities registered under ORS 59.065 (Registration procedures) and OAR chapter 441, division 65 must be filed with the director before the advertising is used.

(2)

All customer funds and securities must be segregated from those of the real estate broker, and:

(a)

All customer funds must be deposited in a client trust account which is free from all claims, attachment or levy by creditors of the real estate broker; and

(b)

All customer securities must be held in trust in a secure depository and the securities must be free from all claims, attachment or levy by creditors of the real estate broker.

(3)

The real estate broker must create and maintain the following books and records pertaining to securities activities for a period of six (6) years:

(a)

Records of all securities sales and purchases;

(b)

Investor information records;

(c)

Trust account transactions;

(d)

Discretionary account agreements;

(e)

Investor complaints and resolution; and

(f)

Financial information of the real estate broker.

(4)

Intentionally left blank —Ed.

(a)

A real estate broker may not recommend a securities transaction to an investor unless the real estate broker has reviewed the terms of the transaction and has reasonable grounds to believe that the recommendation is suitable for the investor on the basis of information furnished by the investor, after reasonable inquiry is made by the real estate broker, concerning the investor’s investment objectives, financial situation and any other information known to and deemed relevant by the real estate broker;

(b)

The requirements of subsection (a) of this section, except for the requirement to review the transaction, may be satisfied if the investment in fact is suitable for the particular investor;

(c)

A real estate broker who is selling securities registered under OAR 441-065-0060 (Creation of Classifications) through 441-065-0240 to “sophisticated purchasers” shall comply with the suitability requirements for such purchasers instead of the requirements of subsection (a) of this section.

(5)

The responsibility for supervision of all persons engaged by a real estate broker to effect securities transactions or render advisory services is that of the Principal Real Estate broker. Supervision includes reviewing and authorizing all securities activities engaged in by Real Estate Brokers affiliated with a Principal Real Estate Broker.

Source: Rule 441-175-0050 — Rules of Fair Practice for Real Estate Licensees, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=441-175-0050.

441‑175‑0002
Fees for Licensing or Notice Filing of Firms and Individuals 441‑175‑0010
Definitions 441‑175‑0015
When Licensing Application Deemed Abandoned 441‑175‑0020
Exclusion from Definition of “Broker-Dealer” 441‑175‑0030
Exclusion from Definition of “Investment Adviser” 441‑175‑0040
Exclusion from Definition of “Salesperson” 441‑175‑0041
Exclusion from Definition of “Investment Adviser Representative” 441‑175‑0046
Federal Covered Investment Advisor Representative 441‑175‑0050
Rules of Fair Practice for Real Estate Licensees 441‑175‑0055
Rules of Fair Practice for Mortgage Banker and Mortgage Broker Licensees 441‑175‑0060
Licensing Rule Implementing, 1997 Oregon Laws Chapter 772 and the National Markets Improvement Act of 1996 441‑175‑0070
General Licensing Rules for Broker-Dealers, Investment Advisers and Salespersons, Succession and Acquisition 441‑175‑0080
Applications for Licensing of Broker-Dealers 441‑175‑0085
Limited Licensing of Canadian Broker-Dealers and Salespersons 441‑175‑0100
Applications for Licensing of Investment Advisers 441‑175‑0105
Material Changes, Amendments and Notice of Civil and Criminal Actions 441‑175‑0110
Surety Bond 441‑175‑0120
Licensing of Salespersons or Representatives to Non-FINRA Broker-Dealers, State or Federal Covered Investment Advisers, Issuers and Owners of Securities 441‑175‑0130
Licensing of Salespersons to FINRA Broker-Dealers 441‑175‑0140
Disqualification from Automatic Licensing 441‑175‑0150
Termination or Cancellation of Salesperson or Investment Adviser Representative License 441‑175‑0160
Renewal of FINRA Broker-Dealer and Salesperson Licenses 441‑175‑0165
Renewal of the Licenses of Non-FINRA Broker-Dealers or State Investment Advisers, and Their Salespersons or Investment Adviser Representatives 441‑175‑0171
Use of Trade Name or Assumed Business Name 441‑175‑0175
Internet Communications 441‑175‑0185
Errors and Omissions Coverage under ORS 59.175
Last Updated

Jun. 8, 2021

Rule 441-175-0050’s source at or​.us