Every day, Oregon real estate professionals work diligently to close deals, schedule property showings, negotiate with clients, and field inquiries from a stream of prospective buyers, sellers, and renters. However, a steady course of business can grind to a halt in an instant after a consumer complaint or an alleged license violation. The Oregon Real Estate Agency (OREA) wields substantial disciplinary authority—ranging from formal reprimands and fines to license suspension or revocation.
Although real estate brokers, principal brokers, and property managers may have had successful careers, adverse action can quickly lead to the following:
- Immediate loss of income streams and ability to pay employees
- Prohibitions on working in Oregon's real estate industry
- Reputational damage that destroys one's career
Remaining a licensed professional in Oregon is paramount. Regardless of the allegations or complaints lodged, a robust defense strategy is the key to relief.
The Lento Law Firm Professional License Defense is prepared to be your partner in protecting your ability to conduct real estate business in Oregon. Even though fines and written reprimands are common, OREA will not hesitate to levy suspension or revocation. No matter what stage of the grievance process—complaint investigations, disciplinary hearings, or filing appeals—we have the experience you need to protect your livelihood. Call the Lento Law Firm Professional License Defense Team at 888-535-3686 now or fill out our confidential consultation form.
Oregon Real Estate Agency Licensees
OREA authorizes individuals to list, buy, sell, lease, manage, or conduct transactional negotiations for properties. Oregon also maintains a Real Estate Board, but it only works in a capacity to establish rules and regulations for the industry. OREA oversees the licensing process and monitors licensees for compliance with real estate regulations. The state requires the following to have a license:
- Brokers: someone engaging in professional real estate activities on behalf of a real estate firm, such as listing, selling, purchasing, renting, or exchanging real property for compensation
- Property Managers: those who manage real property on behalf of an owner
- Principal Brokers: individuals authorized to supervise real estate brokers or property managers
- Escrow Agents: individuals who handle critical paperwork such as property deeds, title documents, and closing instructions, including safeguarding funds
Anyone collecting rent, negotiating leasing terms, or planning property maintenance must have a property manager license. Individuals may also carry out the same duties with a principal broker license. However, certain employees and direct agents of property owners may be exempt if they do not engage in broader real estate services.
There are certain exemptions where an individual does not need a real estate license. For instance, designated caretakers, on-site managers, or employees of a property manager when their duties are strictly limited and overseen by a licensee. Also, those transacting with their own property.
Real Estate Marketing Organizations
There is a big distinction between carrying out brokerage activities and advertising or marketing them. While anyone transacting real property needs a traditional license, an entity providing advertising, promotional, or other marketing services related to real estate for compensation requires a separate license.
Entities that carry a real estate marketing organization license have two types of interests in carrying out duties:
- Principals or Principal Persons: owners of the organization with more than ten percent ownership interest and on-site managers providing direct supervision of employees
- Telemarketing Independent Contractor Employees: individuals employed under an agreement to carry out real estate marketing on behalf of the organization
Although employees do not need a license, they must register with the Oregon Real Estate Commissioner. Critically, real estate licensees, such as brokers, may not work at a marketing organization unless their license is placed on inactive status.
OREA's rules require marketing organizations to keep clear and accurate records of advertising agreements, transaction logs, and evidence of compliance with consumer protection laws. Marketing materials in any medium may not be false, misleading, or otherwise violate state and federal advertising regulations. Fees or commissions charged to property owners or real estate licensees must be disclosed transparently.
OREA Prohibited Acts for Real Estate Licensees
Whether licensees are seasoned principal brokers or newly licensed brokers, understanding the practices expressly forbidden by OREA regulations is essential. Even unintended mistakes can induce hefty fines, licensure repercussions, and severe reputational damage.
All involved with real estate activities and transactions have explicit duties to clients. To safeguard public trust, OREA will levy disciplinary actions for the following:
- Material misrepresentations or false promises that create a reasonable probability of damage or injury
- Accepting compensation from an unassociated principal real estate broker
- Knowingly or recklessly publishing misleading or untruthful advertising materials
- Acting as an agent or an undisclosed principal in any transaction
- Interfering with the contractual relations of others
- Impeding with the exclusive representation brokerage relationship of another
- Failing to disclose receipts, adjustments, and disbursements
- Criminal convictions related to or demonstrations of incompetence or untrustworthiness
- Fraudulent or dishonest conduct substantially related to the fitness of the licensee to conduct professional activities
- Accepting work or pay for preparing a competitive market analysis contingent upon reporting a predetermined value for which the licensee has an undisclosed interest
The Agency typically acknowledges prohibited conduct through consumer complaints, but they can also come from other licensees. Upon receipt of the complaint, OREA reviews the allegations to determine whether there are reasonable grounds to conduct an investigation.
Agency Investigations and Progressive Discipline
OREA assigns a staff member to investigate the complaint and gather all relevant facts. The scope of an investigation is limited to the complaint; however, if there are reasonable grounds to believe that additional violations occurred, OREA may expand the scope or authorize additional investigations. Agency staff members review the investigation report to determine whether the evidence supports charging them with a violation.
The Agencyuses "progressive discipline" to correct a licensee's inappropriate behavior, deter them from re-offense, and improve compliance. OREA's Commissioner decides whether to issue a non-disciplinary educational letter of advice or to discipline a licensee through reprimand, suspension, or revocation using the following qualifiers:
- Whether the conduct was inadvertent, intentional, or caused harm
- The licensee's experience and education, including their volume of transactions
- Any aggravating or mitigating factors
- The licensee's cooperation with the investigation and prior disciplinary history
The Commissioner may also levy civil fines for escrow misconduct. For first offenses, fines are between $500 and $1,000; subsequent offenses are no less than $1,000 and no more than $3,000 per violation.
Critically, OREA's Commissioner may not impose a suspension or license revocation unless the following are established in the investigation:
- The conduct led to significant damage or injury
- The licensee exhibited incompetence, dishonesty, or fraudulent conduct
- Acts were repeated violations which the Agency has already disciplined
The Agency sends the respondent a written Notice of Proposed Action outlining the alleged violations or reasons behind the decision. Licensees are required to sign an Agency Order that officializes the disciplinary record. However, individuals may challenge OREA's determination through a contested case hearing.
Contested Case Hearings
Through Oregon's Office of Administrative Hearings (OAH), licensees can retain legal counsel to respond and present evidence before an Administrative Law Judge (ALJ). The ALJ may schedule an administrative hearing—sometimes called a prehearing conference—to clarify issues, address procedural matters, and provide a chance for both parties to reach an informal settlement with stipulations.
After the OAH receives a petition for a hearing, it sends each party a notice that includes the following information:
- The time and place of the hearing
- The authority and jurisdiction under which the hearing is to be held
- A reference to the particular sections of the statutes and rules involved
- A short statement of the matters charged by OREA
Contested case hearings work similarly to trials but are truncated. At the beginning, the ALJ will open proceedings by allowing both parties to make an open statement. Then, OREA's representative will present an overview of the Agency's case, and then the licensee (respondent) lays out their argument, or their attorney will. Along with evidence presentation, both parties may call witnesses and perform direct and cross-examination. Lastly, each may make a closing argument summarizing why the ALJ should rule in their favor.
While OREA has the burden of proof, it must only prove the licensee was responsible for the violation through a preponderance of the evidence. This means the facts supporting the Agency's position are more likely true than not.
The ALJ will issue a Recommended Order detailing their decision, which affirms, denies, or modifies the Agency's sanctions. After reviewing the order, OREA issued a decision on the matter, and the case was considered closed.
Consequences of License Suspension and Revocation
When OREA suspends or revokes a real estate license, there is a windfall of negative effects. Even though a licensee cannot conduct business, certain financial obligations may continue. For instance, brokerage fees or marketing organization costs accrue, and if licensees lease space for employees, they remain liable for contractual expenses. These cumulative costs can quickly add up, compounding the financial impact of lost commissions and repeat business.
Disciplinary action is a matter of public record and is accessible through OREA's website and other professional databases. This significantly affects one's standing in the community—personally and professionally. Prospective clients may be hesitant to engage with someone who has had their credentials suspended or revoked. Reputational harm endures long after licensees pay fines, serve suspensions, and meet reinstatement requirements.
Oregon Real Estate Discipline Appeals Process
Licensees who wish to challenge the Agency's determination and sanctions can appeal. They must petition the circuit court within 60 days of the original decision. However, appeals are not a re-adjudication of the case. Instead, they inquire whether the OAH proceedings were conducted fairly and upheld the respondent's due process rights.
Petitioners submit briefs explaining why the court should reverse or modify the sanctions. Eligibility for appeals is limited to:
- Procedural errors led to incorrect conclusions
- Insufficient evidence to support sanctions
- Errors in the application of OREA's rules or administrative authority
- Bias or conflict of interest from the OREA Commissioner
In some cases, the court may allow or request oral arguments, during which both sides can present their positions. The circuit court examines whether OREA's factual findings are supported by substantial evidence. If the court finds the Agency's conclusions incorrect, it can remand the matter for further proceedings or overturn the decision. If the licensee or the Agency disagrees, they may seek further review with superior courts.
Even though licensees can defend themselves against agency-issued penalties, it's too risky without professional legal representation. Take your real estate license with the seriousness it deserves, and get in touch with the Lento Law Firm.
Defend Your Oregon Real Estate License with the Lento Law Firm
Oregon's real estate professionals don't deserve to lose their ability to make a living when allegations or complaints arise. Even when OREA hands down civil fines and reprimands, it can severely impact their ability to conduct dealings and grow their business. Since the public can view disciplinary actions taken against a broker or other licensee, it can heavily influence how companies and individuals feel when deciding who to trust for their large property transactions. Get the help you need to protect your business, your reputation, and your livelihood.
The Lento Law Firm stands ready to be your outlet for a strong defense when consumer complaints or alleged violations with state licensure agreements surface. Even mistakes like incorrect financial disclosures, failure to declare property interests, or misleading advertising can swell into serious complications for agents, brokers, and principals.
Our Professional License Defense Team will leverage our extensive experience in helping real estate licensees throughout Oregon challenge the Agency's grounds to impose discipline. From handling OREA investigations to attending agency proceedings and opposing decisions in contested case hearings, we remain dedicated to your best outcome. Whether you are in Bend, Portland, Eugene, Hillsboro, Gresham, Salem, or elsewhere throughout the state, the Lento Law Firm Professional License Defense Team is prepared to get you on the fast track to relief now. Call us today at 888-535-3686 or fill out our confidential consultation form, and we will contact you.
