ORS 696.301
Grounds for discipline


Subject to ORS 696.396 (Investigation of complaints and progressive discipline), the Real Estate Commissioner may suspend or revoke the real estate license of any real estate licensee, reprimand any real estate licensee or deny the issuance or renewal of a license to an applicant who has:

(1)

Created a reasonable probability of damage or injury to a person by making one or more material misrepresentations or false promises in a matter related to professional real estate activity.

(2)

Represented, attempted to represent or accepted compensation from a principal real estate broker other than the principal real estate broker with whom the real estate broker is associated.

(3)

Disregarded or violated any provision of ORS 659A.421 (Discrimination in selling, renting or leasing real property prohibited), 696.010 (Definitions) to 696.495 (Revolving fund), 696.600 (Definitions for ORS 696.392, 696.600 to 696.785 and 696.995) to 696.785 (Commissioner duties when illegal commingling of funds found), 696.800 (Definitions) to 696.870 (Duties of real estate licensee under ORS 105.462 to 105.490, 696.301 and 696.870) and 696.890 (Duties of real estate property managers) or any rule of the Real Estate Agency.

(4)

Knowingly or recklessly published materially misleading or untruthful advertising.

(5)

Acted as an agent and an undisclosed principal in any transaction.

(6)

Intentionally interfered with the contractual relations of others concerning real estate or professional real estate activity.

(7)

Intentionally interfered with the exclusive representation or exclusive brokerage relationship of another real estate licensee.

(8)

Accepted employment or compensation for the preparation of a competitive market analysis or letter opinion that is contingent upon reporting a predetermined value or for real estate in which the real estate licensee had an undisclosed interest.

(9)

Represented a taxpayer as described in ORS 305.239 (Qualifications of persons representing taxpayer) or 309.100 (Petitions for reduction of property value), contingent upon reporting a predetermined value or for real estate in which the real estate licensee had an undisclosed interest.

(10)

Failed to ensure, in any real estate transaction in which the real estate licensee performed the closing, that the buyer and seller received a complete detailed closing statement showing the amount and purpose of all receipts, adjustments and disbursements.

(11)

Has been convicted of a felony or misdemeanor substantially related to the real estate licensee’s trustworthiness or competence to engage in professional real estate activity.

(12)

Demonstrated incompetence or untrustworthiness in performing any act for which the real estate licensee is required to hold a license.

(13)

Violated a term, condition, restriction or limitation contained in an order issued by the commissioner.

(14)

Committed an act of fraud or engaged in dishonest conduct substantially related to the fitness of the applicant or real estate licensee to conduct professional real estate activity, without regard to whether the act or conduct occurred in the course of professional real estate activity.

(15)

Engaged in any conduct that is below the standard of care for the practice of professional real estate activity in Oregon as established by the community of individuals engaged in the practice of professional real estate activity in Oregon. [1975 c.746 §23 (enacted in lieu of 696.300); 1977 c.649 §41; 1981 c.617 §14; 1989 c.532 §8; 1991 c.5 §41; 1993 c.547 §9; 1993 c.570 §13; 1999 c.470 §2; 2001 c.300 §28; 2003 c.398 §10a; 2005 c.116 §22; 2005 c.393 §3; 2007 c.319 §10; 2007 c.337 §6; 2017 c.234 §20]

Source: Section 696.301 — Grounds for discipline, https://www.­oregonlegislature.­gov/bills_laws/ors/ors696.­html.

See also annotations under ORS 696.300 in permanent edition.

Notes of Decisions

Under former similar statute (ORS 696.300)

Breach of legally enforceable agreement by real estate broker is not requisite to finding of “bad faith,” “untrustworthiness” and “improper dealing” which include breach of moral obligation or duty owed to another. Blank v. Black, 14 Or App 470, 512 P2d 1016 (1973), Sup Ct review denied

Additional violations similar to violation charged were admissible in administrative hearing under this section to show that violation charged was deliberate. Flagg v. Layman, 16 Or App 129, 517 P2d 329 (1973)

Conduct demonstrating untrustworthiness is limited to acts by licensee in his capacity as broker or salesman, excepting where licensee is acting for himself in private capacity or he has been convicted of certain enumerated crimes. Klein v. Real Estate Commr. Holbrook, 19 Or App 646, 528 P2d 1355 (1974)

Realtor purchasing property for himself was obligated to advise seller that realtor had changed the terms of the option prepared by seller’s counsel by eliminating 10-year provision for realtor to pay the balance of contract. Macdonald v. Dormaier, 272 Or 122, 535 P2d 527 (1975)

In general

“Guilty knowledge” of a violation of this section on the part of the broker must be proved to find a violation. Vincent v. Real Estate Div., 24 Or App 913, 548 P2d 180 (1976)

Prohibition against conduct of same or different character that demonstrates “bad faith, incompetency or untrustworthiness or dishonest, fraudulent or improper dealing” is not unconstitutionally vague. Stanfill v. Real Estate Division, 35 Or App 549, 581 P2d 980 (1978), Sup Ct review denied

Evidence that real estate broker failed to disclose, and instructed another person not to disclose, that repairs, on which consummation of sale was contingent, had not been made, was sufficient to show bad faith and improper dealing in violation of this section. Stanfill v. Real Estate Division, 35 Or App 549, 581 P2d 980 (1978), Sup Ct review denied

Real Estate Commissioner erred in concluding same conduct by real estate licensee violated different subsections of this section. Pratt v. Real Estate Division, 76 Or App 483, 709 P2d 1134 (1985)

“Improper dealings” is not limited to actions taken with culpable mental state. Garton v. Real Estate Commissioner, 127 Or App 340, 873 P2d 359 (1994), Sup Ct review denied

Authority of Real Estate Commissioner to discipline licensee who “has done” any of listed acts does not allow discipline based on potential future actions. Dearborn v. Real Estate Agency, 334 Or 493, 53 P3d 436 (2002)

Act or conduct of same or different character as listed actions must be substantially related to trustworthiness, competence, honesty or good faith to engage in real estate activity. Dearborn v. Real Estate Agency, 334 Or 493, 53 P3d 436 (2002)

Under pre-2003 version of statute, Real Estate Commissioner may suspend, revoke or deny license for act or conduct substantially related to fitness of licensee, notwithstanding that act or conduct occurred before issuance of license. Kerley v. Real Estate Agency, 337 Or 309, 96 P3d 1211 (2004)

Attorney General Opinions

In general

Advertisement by real estate salesperson as member of “Million Dollar Club,” (1979) Vol 39, p 511

696.007
Statement of legislative purpose
696.010
Definitions
696.015
Legislative finding
696.020
License required for individuals engaged in professional real estate activities
696.022
Licensing system for real estate brokers and property managers
696.024
Payments due and owing to Real Estate Agency
696.026
Registration and renewal of business names
696.030
Exemptions
696.040
Single act sufficient to constitute professional real estate activity
696.110
Exclusive nature of regulation of real estate licensees
696.125
Limited license
696.130
Effect of revocation of license
696.174
License renewal
696.182
Continuing education
696.184
Duties of continuing education provider
696.186
Qualifications of continuing education instructors
696.200
Main office
696.205
Death or incapacity of sole principal real estate broker or sole licensed real estate property manager
696.232
License status of employee of agency
696.241
Clients’ trust accounts
696.243
Substituting copy for original canceled check allowed
696.245
Clients’ trust accounts
696.255
Nonresident license equivalent to appointment of commissioner as agent for service of process
696.265
Recognition of nonresident real estate licensee
696.270
Fees
696.280
Records of licensed real estate property managers and real estate brokers
696.290
Sharing compensation with or paying finder’s fee to unlicensed person prohibited
696.292
Limitation on demand for compensation
696.294
Opinion letter
696.301
Grounds for discipline
696.310
Intracompany supervision and control
696.315
Prohibition against licensee permitting nonlicensed individual to engage in activity with or on behalf of licensee
696.320
Effect of suspension or revocation of principal broker license on associated licensees
696.323
Effect of violations by real estate licensee on associated licensees
696.363
Relationship between licensees as independent contractors or employer and employee
696.365
City or county business license tax
696.375
Real Estate Agency
696.385
Power of agency
696.392
Power of commissioner to administer oaths, take depositions and issue subpoenas
696.395
Power of commissioner
696.396
Investigation of complaints and progressive discipline
696.397
Cease and desist order
696.398
Delegation by commissioner to employees
696.405
Real Estate Board
696.415
Officers
696.425
Powers and duties of board
696.430
Records of commissioner as evidence
696.445
Advancement of education and research
696.490
Real Estate Account
696.495
Revolving fund
696.505
Definitions for ORS 696.505 to 696.590
696.508
Legislative finding
696.511
License requirement
696.520
Application of ORS 696.505 to 696.590
696.523
Application of ORS 696.505 to 696.590 to title insurance activities
696.525
Bond for escrow agents
696.527
Deposits in lieu of bond
696.530
Expiration and renewal of license
696.532
Limited license
696.534
Records of escrow agents
696.535
Grounds for refusing, suspending or revoking license or reprimanding licensee
696.541
Authority of commissioner over escrow agents
696.545
Investigation
696.555
Commissioner to take possession of property and assets of escrow agent when assets or capital impaired
696.570
Hearings procedure under ORS 696.505 to 696.590
696.575
Civil or criminal actions not limited by ORS 696.505 to 696.590
696.577
Commissioner’s order against unlicensed agent
696.578
Deposit and designation of funds held in escrow
696.579
Funds exempt from execution or attachment
696.581
Written escrow instructions or agreement required
696.582
Escrow agent to hold certain compensation
696.585
Civil penalties
696.590
Penalty amounts
696.600
Definitions for ORS 696.392, 696.600 to 696.785 and 696.995
696.603
License requirement
696.606
Real estate marketing organization license
696.609
Exemptions from ORS 696.392, 696.600 to 696.785 and 696.995
696.612
Grounds for disciplinary action
696.615
Publication of sanctions imposed for violations
696.618
Denial of right to court action for unlicensed real estate marketing organization
696.621
Real Estate Marketing Account
696.624
Consent by nonresident real estate marketing organization to service of summons or process required
696.627
On-site inspection allowed
696.710
Necessity of alleging license in action to collect compensation
696.720
Remedies are concurrent
696.730
Jurisdiction of courts for violations
696.775
Authority of commissioner when license lapsed, expired, revoked, suspended or surrendered
696.785
Commissioner duties when illegal commingling of funds found
696.790
Authority of commissioner to require fingerprints
696.795
Authority of commissioner to conduct investigations and proceedings
696.800
Definitions
696.805
Real estate licensee as seller’s agent
696.810
Real estate licensee as buyer’s agent
696.815
Representation of both buyer and seller
696.820
Agency disclosure pamphlet
696.822
Liability of principal for act, error or omission of agent or subagent
696.835
Buyer and seller responsibilities
696.840
Compensation and agency relationships
696.845
Acknowledgment of existing agency relationships form
696.855
Common law application to statutory obligations and remedies
696.870
Duties of real estate licensee under ORS 105.462 to 105.490, 696.301 and 696.870
696.880
Licensee not required to disclose proximity of registered sex offender
696.890
Duties of real estate property managers
696.990
Penalties
696.995
Civil penalties for violation of ORS 696.603, 696.606 or 696.612
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