Real Estate and Escrow Activities
Real estate marketing organization license
- deposit required
- claims against deposit
(1)In accordance with any applicable provisions of ORS chapter 183, the Real Estate Commissioner shall establish by rule a system to license real estate marketing organizations. Such a system shall include but need not be limited to prescribing:
(a)The form and content of and the times and procedures for submitting an application for the issuance or renewal of a license.
(b)The term of the license and the fee for the original issue and renewal in an amount that does not exceed the cost of administering the licensing system.
(c)The requirements and procedures to register the names of and other information regarding the real estate marketing employees employed by applicants or licensees.
(d)Those actions or circumstances that constitute failure to achieve or maintain licensing or competency or that otherwise constitute a danger to the public interest and for which the commissioner may refuse to issue or renew or may suspend or revoke a license or registration or may impose a penalty.
(e)Those activities of principals of the organization that constitute a danger to the public interest and for which the commissioner may refuse to issue or renew or may suspend or revoke a registration or may impose a penalty.
(2)Licenses for real estate marketing organizations shall be granted only if the principal persons of the organization are trustworthy and competent to conduct real estate marketing activity in such manner as to safeguard the interests of the public and only after satisfactory proof has been presented to the commissioner. As used in this subsection, “satisfactory proof” includes but is not limited to the fingerprints and a criminal records check of the applicant. For the purpose of requesting a state or nationwide criminal records check under ORS 181A.195 (Criminal records check), the commissioner may require the fingerprints of the applicant.
(3)At the time of filing an application for a license as a real estate marketing organization, the applicant shall deposit with the commissioner a corporate surety bond running to the State of Oregon, executed by a surety company satisfactory to the commissioner, in the amount of $35,000 in a form and under terms and conditions established by the commissioner.
(4)Any real estate marketing organization may satisfy the requirements of subsection (3) of this section by depositing with the commissioner, in an amount equal to the surety bond required, a deposit consisting of any of the following:
(b)Ample secured obligations of the United States, a state or a political subdivision thereof;
(c)Certificates of deposit or other investments described in ORS 733.650 (Investment of funds in certain obligations and other specified items) (4) to the extent that such investments are insured by the Federal Deposit Insurance Corporation; or
(d)Any combination of paragraphs (a), (b) and (c) of this subsection.
(5)Any real estate marketing organization making a deposit with the commissioner shall assign in trust, to the Real Estate Commissioner, and the commissioner’s successors in office, all cash, certificates or securities deposited in accordance with this section.
(6)The deposit shall be accepted and held by the commissioner for the faithful performance of real estate marketing activity by the real estate marketing organization. No claimant or judgment creditor of the real estate marketing organization shall have the right to attach or levy upon any of the assets or securities held on deposit.
(7)The commissioner, by order, may use such deposit under subsection (3) or (4) of this section, as follows:
(a)To satisfy any final judgment entered against the real estate marketing organization for actual damages suffered by any person by reason of the violation of this section or ORS 696.603 (License requirement) or 696.612 (Grounds for disciplinary action) or a rule adopted pursuant thereto, or by reason of any fraud, dishonesty, misrepresentation or concealment of material fact growing out of any real estate marketing activity.
(b)To satisfy an order of the commissioner if the commissioner determines that a violation of this section or ORS 696.603 (License requirement) or 696.612 (Grounds for disciplinary action) or a rule adopted pursuant thereto has occurred and directs the payment of a claim from the deposit provided the following conditions have been met:
(A)The amount of actual damages claimed, excluding attorney fees, by the consumer is $1,000 or less.
(B)The consumer has first contacted the real estate marketing organization involved and, in writing, has made demand for payment of actual damages.
(C)The real estate marketing organization has had 30 calendar days from the date of the consumer’s written demand to deal with the demand.
(D)The claim is only for actual damages sustained by the consumer.
(8)All claims against the deposit under subsection (3) or (4) of this section of a real estate marketing organization, other than those described in subsection (7) of this section, must be paid by the commissioner only upon the receipt of a final court judgment against the real estate marketing organization and only in the amount of actual damages as ordered by the court. [1995 c.217 §4; 1999 c.107 §12; 2005 c.730 §39; 2011 c.9 §89]
Atty. Gen. Opinions
Sales of subdivision lots by mobile home salespeople, (1975) Vol 37, p 865; sales or offers of interests in limited partnerships to invest in real estate, (1978) Vol 38, p 1971