Bill Text: OR HB2497 | 2011 | Regular Session | Introduced

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Bill Title: Relating to real estate transaction commissions.

Spectrum: Unknown

Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2497 Detail]

Download: Oregon-2011-HB2497-Introduced.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 2226

                         House Bill 2497

Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of House Interim Committee on
  Consumer Protection and Government Accountability)

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Allows real estate broker or principal real estate broker to
pay share of commission to principal of real estate transaction.

                        A BILL FOR AN ACT
Relating to real estate transaction commissions; amending ORS
  696.290.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 696.290 is amended to read:
  696.290. (1) A real estate licensee may not offer, promise,
allow, give, pay or rebate, directly or indirectly, any part or
share of the licensee's compensation arising or accruing from any
real estate transaction or pay a finder's fee to any person who
is not a real estate licensee   { - licensed under ORS 696.022.
However, - }  { + .
  (2) Notwithstanding subsection (1) of this section, + } a real
estate broker or principal real estate broker may pay a finder's
fee or a share of the licensee's compensation on a cooperative
sale when the payment is made to a licensed real estate broker in
another state or country, provided that the state or country in
which that broker is licensed has a law permitting real estate
brokers to cooperate with real estate brokers or principal real
estate brokers in this state and that such nonresident real
estate broker does not conduct in this state any acts
constituting professional real estate activity and for which
compensation is paid. If a country does not license real estate
brokers, the payee must be a citizen or resident of the country
and represent that the payee is in the business of real estate
brokerage in the other country.
   { +  (3) + } A real estate broker associated with a principal
real estate broker may not accept compensation from any person
other than the principal real estate broker with whom the real
estate broker is associated at the time.
   { +  (4) + } A principal real estate broker may not make
payment to the real estate broker of another principal real
estate broker except through the principal real estate broker
with whom the real estate broker is associated.
   { +  (5) + }   { - Nothing in - }  This section
 { - prevents - }   { + does not prohibit + } payment of
compensation earned by a real estate broker or principal real
estate broker while licensed, because of change of affiliation or
inactivation of the broker's license.
    { - (2) - }   { + (6) + }   { - Nothing in - }  Subsection
(1) of this section
  { - prohibits - }   { + does not prohibit + } a real estate
licensee who has a written property management agreement with the
owner of a residential building or facility from authorizing the
payment of a referral fee, rent credit or other compensation to
an existing tenant of the owner or licensee, or a former tenant
if the former tenant resided in the building or facility within
the previous six months, as compensation for referring new
tenants to the licensee.
   { +  (7) Subsection (1) of this section does not prohibit a
real estate broker or principal real estate broker from rebating
or paying a share of the broker's or principal broker's
commission resulting from a real estate transaction to a
principal of the transaction. + }
    { - (3)(a) - }   { + (8)(a) + }   { - Nothing in - }
Subsection (1) of this section
  { - prevents - }   { + does not prohibit + } an Oregon real
estate broker or principal real estate broker from sharing
compensation on a cooperative nonresidential real estate
transaction with a person who holds an active real estate license
in another state or country, provided:
  (A) Before the out-of-state real estate licensee performs any
act in this state that constitutes professional real estate
activity, the licensee and the cooperating Oregon real estate
broker or principal real estate broker agree in writing that the
acts constituting professional real estate activity conducted in
this state will be under the supervision and control of the
cooperating Oregon broker and will comply with all applicable
Oregon laws;
  (B) The cooperating Oregon real estate broker or principal real
estate broker accompanies the out-of-state real estate licensee
and the client during any property showings or negotiations
conducted in this state; and
  (C) All property showings and negotiations regarding
nonresidential real estate located in this state are conducted
under the supervision and control of the cooperating Oregon real
estate broker or principal real estate broker.
  (b) As used in this subsection, 'nonresidential real estate'
means real property that is improved or available for improvement
by commercial structures or five or more residential dwelling
units.
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