that the Oregon Real Estate

Transcription

1 Oregon Real Estate News-Journal Official Publication of the Oregon Real Estate Agency Volume 64, Number 1, April 2010 Agency is Going Green to Save Resources Gene Bentley, Real Estate Commissioner Commissioner Gene Bentley In support of the Governor s vision for sustainability in state government, the Oregon Real Estate Agency continually looks for ways to save state resources and to operate more efficiently and effectively. As a result of these efforts, the Agency s building was awarded Marion County s EarthWISE certification. This designation recognizes the staff s commitment to practices such as recycling, reducing waste, and purchasing environmentally friendly office supplies. Another example of the Agency s conservational efforts is the movement from paper to electronic forms of communication. The Oregon Real Estate Manual, in its transformation into the Oregon Real Estate Reference Guide, became available online. The Commissioner s Bulletin was developed as a completely electronic publication, and all interested parties can sign-up to receive administrative rule notification by electronic mail ( ). Soon, starting with the September 2010 edition, the Oregon Real Estate News-Journal will become an electronic-only publication. Information on how to sign-up to receive the OREN-J in your inbox will be available on the Agency s website and in the final paper edition of the OREN-J in June. By instituting such changes, the Agency can reallocate resources to serve licensees more effectively. Editor s note: Licensees looking for information on making their business more green-minded may wish to checkout SustainableOregon.net ( net). This website can connect you with local agencies, organizations and businesses taking leadership roles in sustainable development. Last Printing of OREN-J in June The Oregon Real Estate Agency announces that the Oregon Real Estate News-Journal will be distributed exclusively by electronic mail beginning with the September 2010 edition. In order to receive the OREN-J by e- mail, licensees and interested parties will need to sign-up for subscription service. Information can be found on the Agency s website at Oregon Real Estate Agency 1177 Center Street NE Salem, Oregon (503) (503) Fax Identify a Contact Person for Your Company... 2 Agency Website Provides Useful Information... 2 Agency Announces Changes to Staff... 2 New CE Requirements for Brokers, Property Managers Coming Foreclosure Fraud Symposium Organized by Department of Justice... 4 IN THIS ISSUE New Requirements for Escrow Agents...5 It Is the Little Things That Make the Difference...6 New Real Estate Board Members Appointed...7 How to Avoid Disciplinary Action...8 Administrative Actions...10 The Oregon Real Estate Agency Division Reports...14

2 Identify a Contact Person for Your Company If you have a large company with multiple principal brokers, you may wish to identify a single person the Agency can contact for questions concerning your company. The Agency can identify within its database a point of contact that can answer questions for the company pertaining to licensing or regulation issues. If you are the individual within your company authorized to identify a specific contact person and would like to do so, please send the following information in an to orea.info@state.or.us: Your name, title, and license number; The registered business name (RBN) for which this person will be the contact; Whether this is a contact for licensing, regulation or both; The full name of the person to be contacted; The title of the person to be contacted; If the contact person is a licensee, include the license number; and The phone number, address and mailing address for the contact person. Agency Website Provides Useful Information The Oregon Real Estate Agency s website, contains valuable information for real estate licensees. Forms. Most Agency forms are available by choosing the Forms and Publication selection from far left menu of the Agency s website. (Editor s note: License renewal forms are printed and mailed individually for each licensee. Contact the Licensing Division at (503) , selection 2, to obtain a replacement renewal form.) Laws and Rules. Oregon statutes and administrative rules pertaining to real estate license law can be found by choosing Statutes and Rules from the far left menu. The Agency regulates Oregon Revised Statute chapter 696 and administers Oregon Administrative Rule chapter 863. It is important for licensees to know these laws. Publications. The Agency publishes the Oregon Real Estate News-Journal, the Commissioner s Bulletin, and other resources. These publications are available for viewing and printing from the Agency s Forms and Publications webpage. Subscriptions Services. The Agency offers a subscription service that delivers the Commissioner s Bulletin, administrative rule notification and, soon, the Oregon Real Estate News-Journal, into your inbox. Find out how to subscribe by visiting Frequently Asked Questions. Check out the Agency s database of frequently asked questions by selecting the Frequent Question selection from the menu on the far left side of the main webpage. Agency Announces Changes to Staff Editor s Note: See the Agency s website at for available employment opportunities. Erica Kleiner has joined the Agency as the Administrative Services Manager. Ms. Kleiner came from the Legislative Fiscal Office where she spent over two years as a Legislative Analyst. Prior to that, she was a Budget and Policy Analyst at the Department of Administrative Services. Ms. Kleiner has a master s degree in Public Policy from Oregon State University. Colleen Stutzman was hired as the new Land Development Assistant. She has more than fifteen years of experience in title and escrow, including several years in the role of title officer. Ms. Stutzman filled the position vacated by Marjorie Fernando, who left the Agency for a job opportunity with the Office for Oregon Health Policy and Research. The Agency welcomes Ms. Kleiner and Ms. Stutzman, and wishes Ms. Fernando well. 2 April 2010 Oregon Real Estate News-Journal

3 New CE Requirements for Brokers, Property Managers Coming 2011 Passage of Senate Bill 640 (2009 Oregon Laws, Chapter 502) by the Oregon Legislature resulted in the most significant changes to real estate licensee continuing education requirements since Brokers, principal brokers and property managers renewing licenses after December 31, 2010 must meet these new educational requirements. The Agency is finalizing draft administrative rules to implement the law. Beginning July 1, 2010, certification for continuing education providers will be available even though the law does not become effective until January 1, Having the administrative rules available July 1, 2010 gives licensees plenty of time to complete the required three-hour law and rule update course prior to their license renewal date. Licensees who earn continuing education hours prior to January 1, 2011 will be able to use those hours to meet the requirements for active license renewals occurring January 1, 2011 through December 31, But all licensees will be required to complete the three-hour law and rule update course. Starting January 1, 2011, real estate licensees (brokers, principal brokers and property managers) renewing an active license must: Complete 30 hours of continuing education prior to license renewal (generally every two years) within the eligible course topics established by the Agency, including the three-hour law and rule update course; Take continuing education from certified course providers; and Maintain their own records of continuing education. Starting January 1, 2011, real estate brokers renewing active for the first time must: Complete a Real Estate Board-approved 30-hour Advanced Real Estate Practices course that includes the three-hour law and rule update; or Complete an Agency-approved 30- hour Advanced Real Estate Practices course prior to January 1, 2011 and the separate three-hour law and rule update before their first active license renewal. Starting January 1, 2011, continuing education providers must: Be certified by the Agency; Maintain records of each course offered and attendees; Ensure that instructors meet the required qualifications; and Issue a certificate of attendance to licensees that complete a course. More information will be posted on the Agency s website, as it becomes available, and in the June edition of the Oregon Real Estate News-Journal. Editor s Note: Watch for the June edition of the OREN-J for more information on the upcoming changes to continuing education requirements for brokers and property managers. Agency s Office Required to Close on Furlough Days The current recession has reduced state revenues and has forced the Oregon Legislature to make deep cuts in agency budgets. Coping with these cuts requires the Agency to close office on the days listed below. Employees will take unpaid time off on these days. The Agency apologizes for any inconvenience these closures may cause. Friday, April 16, 2010; Friday, June 18, 2010; Friday, August 20, 2010; Friday, September 17, 2010; and Friday, November 26, 2010 Oregon Real Estate News-Journal April

4 Foreclosure Fraud Symposium Organized by Department of Justice The Oregon Real Estate Agency co-sponsored the Foreclosure Fraud Symposium on March 10, 2010 with the Oregon Department of Justice, the Oregon Department of Consumer and Business Services, the Portland Housing Bureau, and the Oregon Association of Realtors. Approximately 550 real estate licensees attended the event at the Oregon Convention Center to learn about fraudulent activity occurring in today s real estate market. The session opened with Attorney General John Kroger. Mr. Kroger spoke on the importance of protecting consumers and homeowners from questionable and fraudulent activity in today s environment. He was followed by the featured speaker Richard Hagar of the Hagar Institute. Mr. Hagar talked about issues with foreclosures, loan modifications and short sales. He presented examples of deceptive schemes and scams involving real estate. He cautioned real estate licensees to understand the scope of their licenses and to know with whom they are dealing in real estate transactions. The afternoon session began with a presentation from the staff of Senator Jeff Merkley, followed by a discussion of foreclosure and mortgage fraud prosecutions by attorneys from the Department of Justice. Staff members of the Department of Consumer and Business Services provided information on the Making Home Affordable program. The Department of Justice then joined in to present Understanding HB 3630, HB 2191 and the Unlawful Trade Practices Act. The event concluded with a panel of experts answering questions submitted by the audience. The panel consisted of Richard Hager of the Hagar Institute; Lou Savage, Senior Policy Advisor from the Department of Consumer and Business Services; Simon Whang, Assistant Attorney General from the Department of Justice; Matt Farmer, counsel for the Oregon Association of Realtors ; and Dean Owens, Deputy Commissioner of the Oregon Real Estate Agency. Many of the questions focused on short sales negotiating. The general consensus from the panel is that there are many nuances to short sales, and real estate licensees should take precautions so as to protect their clients interests as well as their own. (Editor s Note: The Agency published an article in the December 2009 Oregon Real Estate News-Journal titled Foreclosure Consulting and Professional Real Estate Activity that briefl y addresses short sales. The Agency will also post new questions in the Frequent Questions section of the website at The opinions expressed at the symposium were not necessarily those of the Oregon Real Estate Agency or Agency staff. Specifically, Mr. Hagar s representations of Oregon real estate licensing regulations, foreclosure consulting and unlawful trade practices may not be the view of the Oregon Real Estate Agency. The Agency does not sanction classes or seminars presented by The Hagar Institute. The Agency encourages licensees that have questions about Oregon Real Estate License Law to contact the Agency. The Agency recognizes the efforts of Althea Rodgers, Assistant Attorney General and Consumer Outreach Coordinator with the Oregon Department of Justice, in coordinating this event. From promoting the event to arranging sponsors and the venue, Ms. Rodger s hard work was appreciated. 4 April 2010 Oregon Real Estate News-Journal

5 New Requirements for Escrow Agents New administrative rules, effective January 1, 2010, require escrow agents who are making changes in ownership or changes to individuals who are in charge of escrow operations to make application to the Oregon Real Estate Agency. This includes submitting fingerprint cards for the individuals who will have an ownership interest or who will be in charge of operations. The rule is in new division 49 of Oregon Administrative Rules (OAR) chapter 863, which includes all new licensing rules for escrow agents. The rule is included below in its entirety: Application for Approval of Changes to Ownership or Individuals in Charge of Escrow Operations (1) An escrow agent must apply to the Agency for approval of changes in ownership or changes to individuals in charge of escrow operations. The application must be submitted on an Agency-approved form and include resumes, criminal records check clearance applications, fingerprint cards, and fees required under OAR (2) The following changes are subject to this rule: (a) Any individual who will hold an own- ership interest in the escrow agent of more than five percent; (b) Corporate officers who will be in charge of escrow operations for an escrow agent; and (c) Other individuals who will be in charge of escrow operations for an escrow agent. (3) The licensee may not allow the proposed change in ownership interest in (2)(a) of this rule to occur until the Agency approves the criminal records check clearance and notifies the licensee in writing. (4) A licensee must submit an application for a change to corporate officers or individuals in charge of escrow operations under (2)(b) or (c) of this rule no later than five business days after the change. (5) If the Agency denies a criminal records check clearance application submitted under (4) of this rule, the Agency will submit written notice to the individual and to the licensee, and the licensee must immediately remove the individual who was denied clearance from any duties as a corporate officer or individual in charge of the licensee s escrow operations. Escrow Agent License Renewal and Training Requirements Due on June 30, 2010 The deadline for escrow agent license renewals is June 30, ORS sets out renewal requirements, including the certification of training. Each year, escrow licensees must provide an average of six or more hours of training per permanent, fulltime employee. This requirement only applies to escrow employees located in Oregon. Training must be in subjects that bear directly on the administration of escrows. The type and method of training is left at the discretion of the escrow licensee. The Agency does not specify topics, waive requirements, or approve classes. Please contact the Real Estate Agency at (503) with any questions about escrow license renewal. Oregon Real Estate News-Journal April

6 Views from the Board It Is the Little Things That Make the Difference Changes In the Real Estate Agency and the Real Estate Board In the Last Decade Michael R. Graeper, Real Estate Board Member Michael R. Graeper Views from the Board features the opinions of Real Estate Board members. The views expressed are not necessarily those of the Oregon Real Estate News- Journal, Oregon Real Estate Agency or Agency staff. I was appointed to the Real Estate Board by Governor Kitzhaber in August 2001 to complete the term of a resigning Board member. I had heard from several friends who had served on the Board that the function of the Board was solely to grant waivers to those licensees seeking a waiver of the three-year active license experience requirement to receive a Principal Broker or Sole Practitioner license. The statutory authority of the Board is outlined in ORS through The Board is an advisory body of nine members appointed by the Governor. Seven members of the Board are experienced real estate professionals; they serve with two public members. The Board members meet every other month and are paid $30 plus expenses to attend each meeting. The Real Estate Board is authorized to inquire into the needs of real estate licensees in Oregon, the functions of the Oregon Real Estate Agency and its business policy and to confer with and advise the Governor as to how the Agency may best serve the state and the licensees. The Board is also charged with making policy recommendations and suggestions to the Agency. The Board conducts all examinations of applicants applying for a real estate license. I discovered at my first Board meeting that the majority of the meeting was indeed spent approving or denying waivers of applicants; the balance of the meeting was the Commissioner s report on actions that had been taken at the Agency. Over the period of time that I have had the privilege of serving on the Board, several of those years as chairperson, I have witnessed a remarkable change in the Real Estate Agency and the Real Estate Board meetings. A lot of the changes are minor but several are very important as they relate to real estate brokers, the industry and the public. The opinion of the Board on most matters relating to the Agency is now eagerly sought and the Agency s budget is discussed in great detail. Agency policies are discussed and recommendations are made. The Agency s division managers provide updates to the Board at every meeting. The Board is still an advisory body, but the advice of the Board members is well valued. In the past, I recall only one Board meeting that was not held in Salem. In the last few years we have conducted meetings all over the state. This year every scheduled Board meeting will he held outside of Salem. This allows the real estate licensees and the public a greater opportunity to see the Board in action and see how the Board functions. Since 2005, a log has been kept of every waiver applicant. The log is available to existing and future Board members at Board meetings, as well as to applicants via publication of the Board meeting packets on the Agency s website. This log describes the actions taken in each waiver request, thereby creating a resource for Board members to use in evaluating current and future applicants. In other recent changes, Board members now attend the interviews for managerial candidates at the Agency. The Agency acted on the Board s requests to update the Agency with modern procedures and practices such as: Allowing licensees to renew their licenses online; Accepting FAX instructions and authorizations; Dedicating five 30-minute parking places in front of the Agency entrance Please see It Is the Little Things on Page 7 6 April 2010 Oregon Real Estate News-Journal

7 New Real Estate Board Members Appointed Governor Ted Kulongoski has appointed Marcia Edwards and Joann Hansen to the Oregon Real Estate Board. Ms. Edwards and Ms. Hansen will replace outgoing Board members Michael Graeper and Marianne Wood. Ms. Edwards is regional vice president of Prudential Real Estate Professionals in Eugene. She is the current chairperson for the Issues Mobilization Committee of the Oregon Association of Realtors and serves on the board of directors for Oregon Real Estate Forms, LLC. Ms. Edwards was appointed by Eugene Mayor Kitty Piercy for the Mayoral Committee on Homelessness which seeks financial support and strategies for ending homelessness. She most often spends her time free time with her two daughters in basketball gyms, on the water or in the snow. Ms. Edwards term began April 1, Ms. Hansen is a principal real estate broker in Coos Bay. She served as director for the Coos County Board of Realtors for 20 years and is president-elect of the Oregon Association of Realtors. Ms. Hansen is a member of the Government Affairs Committee of the Oregon Association of Realtors, a commissioner for the Coos County Planning Commission and a certified mediator. She is proud to be the mother of two, the grandmother of eight and a native Oregonian. Ms. Hansen s term began March 9, Mr. Graeper has been on the Board since 2001, serving as chairperson from 2004 to He is a principal broker with Windermere Cronin and Caplan Realty Group in Portland. Ms. Woods started serving on the Board She is a principal broker for Prudential Real Estate Professional in Eugene. The Agency congratulates Ms. Edwards and Ms. Hansen, and thanks Mr. Graeper and Ms. Wood for their service to the state of Oregon. The Oregon Real Estate Board consists of seven industry members and two public members. The Governor appoints Board members for four-year terms. The Board provides advice to the Real Estate Commissioner and Governor s office, reviews proposed rulemaking, approves experience waiver requests of real estate license applicants, and oversees the license examination process. Marcia Edwards Joann Hansen It Is the Little Things: Continued from Page 6 for use by licensees and the public to use while visiting the Agency Providing Board members use of the state parking lot in front of the Agency entrance to park during Board meetings, rather than parking at metered parking spaces on the street; and Providing box lunches for Board members during the four- to five-hour Board meetings. The changes at the Real Estate Agency and within the Real Estate Board may seem minor but they have helped to bring a sense of cooperation between the real estate industry and the Real Estate Agency. I believe that the changes help to fulfill the mission of the Agency to protect the consumer and provide a healthy professional environment conducive to a healthy real estate market. Oregon Real Estate News-Journal April

8 How To Avoid Disciplinary Action Donn Barrett, Regulation Division, Oregon Real Estate Agency Real estate licensees (principal brokers, brokers and property managers) must adhere to a wide variety of statutes and rules. They are responsible for familiarizing themselves with all of them. The excuse, I didn t know is not a defense when a client or colleague lodges a complaint with the Agency. Each time a complaint is lodged against a licensee, the licensee s license and reputation are at stake. It is hoped that a discussion of the following items will help a licensee avoid making mistakes that can lead to Agency investigations and possible disciplinary action. 1. A valuable trait of a real estate licensee is to have a working knowledge of the statutes and rules which govern their professional real estate activity. One way to ensure the statutes and rules are at your fingertips is to place the Agency s website, on the desktop of your PC or laptop. Just click on the Statutes and Rule link on the Agency s main webpage. 4. municating with your clients. Return their phone calls. Keep them informed about what you are doing for them and how the transaction is progressing. An informed client is less likely to complain to the Agency. [ORS , ORS ] There may be a time when a real estate licensee becomes involved in a real estate transaction under a disclosed limited agency agreement. The disclosed limited agency agreement is an inherent conflict of interest because the agent is representing both the buyer and the seller. The agent must be sure to disclose duties that are owed to each party. Disclosed limited agency agreement transactions can be fraught with potential issues. Licensees are recommended to tread very carefully when dealing with this type of agreement. [ORS (4), ORS , OAR , OAR ] Recordkeeping is a required duty of a real estate licensee. The lack of adequate and complete records may result in an unsuccessful transaction, which may cause client dissatisfaction and/or a complaint against the licensee. The records of each transaction shall be maintained by the licensee for a period of six years after the date the transaction closed or failed. [ORS (1) and (3), OAR , OAR ] Lack of communication between a licensee and client can cause unnecessary stress. Some complaints received by the Agency come from disgruntled clients. Complainants state that their agents will not return their phone calls or keep them updated on their transactions. Try to avoid this situation by com A real estate license expires if a licensee fails to renew the license on or before the license expiration date. A real estate licensee may not engage in any professional real estate activity after a license expires. The license expiration date is the last day of the month of the licensee s birth month, and must be renewed every two years. A late license renewal includes the renewal fee along with a late renewal fee. If the licensee continues to engage in professional real estate activity after their license has expired, they are in violation of ORS and are subject to civil penalties. [OAR , OAR , ORS (10), ORS ] Did you know if a real estate licensee has been convicted of a felony or misdemeanor substantially related to 8 April 2010 Oregon Real Estate News-Journal

9 7. the licensee s trustworthiness or competence to engage in professional real estate activity, the Agency may suspend or revoke the license of the licensee, reprimand the licensee or deny the issuance of a license to an applicant? [ORS (11)] Licensees must notify the Agency in writing within 20 calendar days after receiving written notification of an adverse judgment, award or decision. If a licensee does not notify the Agency the licensee is in violation of OAR On the license renewal application licensees are asked to certify they have completed the required 30 hours of real estate continuing education. It is the responsibility of the licensees to ensure that the information on the renewal form is true and complete and that their certificates of attendance are valid. Providing false information on an Agency license renewal form or certificate of attendance or falsely certifying such information is legally sufficient evidence of a violation of ORS (3). A good rule of thumb to follow regarding signing for continuing education certification: Don t sign if you haven t done the time! [ORS , OAR ] If a real estate licensee owes money to the Agency, including any unpaid civil penalties assessed under a final order, the applicant must make full payment in order to renew an active or inactive real estate license. [ORS ] Did you know if a real estate licensee is in arrears for child support payments, the licensee can have their license suspended? The Agency is notified by various family service agencies when a licensee is behind in child support payments. Upon notification the Agency immediately suspends the licensee s license. [ORS ] 10. Have you ever moved and forgotten to complete a change of address form with the post office? Having a delay in your mail delivery is an inconvenience. If you forget to notify the Agency of your new business address within 10 calendar days of the change of address, you will be in violation of Agency rule OAR The Agency s Education Division is available to answer questions related to statutes and rules the Agency regulates. The division can be reached at (503) , selection 3, or via orea.info@state.or.us. Oregon Real Estate Board 2010 Meeting Schedule The Oregon Real Estate Board has scheduled general meetings in venues across the state. Specific locations will be published on the Agency s website at Meetings start at 10:00 a.m. Time is set aside for members of the public to comment on matters not on the agenda. The Board may choose to place such matters on the agenda of future meetings. June 7 (Bend) August 2 (Wallowa County) October 4 (Florence) December 6 (Hood River) Oregon Real Estate News-Journal April

10 The Agency is required by Oregon Real Estate License Law to publish disciplinary actions. A list of those actions, a brief description of the situation, and the grounds for the Commissioner s action follows. Please note, there are individuals with real estate licenses that may have similar or the same names as those listed herein, or even work in the same market area. If you are in doubt if an individual listed here is someone you know or with whom you are dealing, please contact the Agency for verification. Finally, please note that stipulated settlements do not necessarily reflect all the factual violations initially alleged by the Agency, and the sanction(s) may have been adjusted as part of the negotiation process. Such settlements may not, therefore, directly compare in severity/ sanction with other cases. Administrative Actions November 1, 2009 through March 8, 2010 REVOCATIONS Barr, Dianna Lee (Corvallis) Property Manager # Stipulated order dated November 9, 2009, effective November 9, 2009, resulting in a revocation. Brooks, James Aulton (Beaverton) Broker # Default order dated December 3, 2009, effective December 3, Brooks was convicted of a crime that reflects adversely on his trustworthiness or competence to hold a real estate license; Brooks failed to notify the Agency of his criminal conviction. Violations: ORS (11); OAR Garron, Mike Donald (Bend) Broker # Stipulated order dated November 2, 2009, effective November 2, Garron partnered with Mike Curl, an unlicensed individual, to start a business program that offered prospective buyers, who may not otherwise qualify for a mortgage, an opportunity to purchase real estate, as well as the opportunity for investors to purchase homes to facilitate the lease/option program. One week prior to closing, the prospective buyers were directed by Garron and Curl to pay a deposit, usually between $5,000 and $7,000, directly into the business operating account. The prospective buyer deposits were then being used by Curl for his own personal use. Curl and Garron were unable to obtain investors for the program, but continued promoting the program and accepting client deposits instead of refunding the funds back to the buyers. Violation: ORS (12) and (14) Heil, Jon L. (Portland) Property Manager # Stipulated order dated January 4, 2010, effective January 1, Heil failed to timely renew his license for four consecutive renewal periods; Heil issued checks without a sufficient credit balance in a clients trust account to cover the checks; Heil failed to maintain accurate and complete records that could be provided to the Agency; Heil failed to identify each receipt or disbursement in the receipts and disbursements journal with an identifying code; Heil failed to identify each receipt of security deposits on the tenant ledgers; Heil used a check card to make debit purchases as well as set up automatic payments for a water bill on a clients trust account; Heil failed to retain all paid bills and receipts explaining the amount of and purpose for the receipt or disbursement entered in the owner ledger; Heil showed the check payee on the receipts and disbursements journal and owner ledger different than the actual payee written on the check; Heil failed to maintain records in a format that would allow the tracing or reconciliation of changes; Heil withdrew management fees from the operating clients trust account when sufficient funds were not available; Heil failed to provide the checks requested by the Agency; Heil failed to maintain adequate and complete records of his property management activity; and Heil failed to provide requested documents to the Agency; Heil failed to file the required form with the Agency identifying the existence of and authorizing the Commissioner to examine client trust accounts. Violations: ORS (2) and (3), (1) and (3), (12); OAR (1) and (3)(i), (2)(c) and (3)(f), (2), (2)(e) and (5), (4), (2)(f) Large, James D. (Springfield) Broker # Hearing order dated November 2, 2009, effective November 16, Large failed to provide buyer with an initial agency disclosure pamphlet at first contact; Large failed to disclose his licensed status on any of the documents he drafted in a personal transaction; Large included a closing date of May 5, 2005, 10 April 2010 Oregon Real Estate News-Journal

11 in an earnest money agreement drafted after that closing date, on October 5, 2005; Large failed to indicate a date or a time for buyer s signature on the October 5, 2005 earnest money agreement; Large failed to deal honestly and in good faith by: (a) giving the buyer the money for the down payment; (b) coercing buyer into signing multiple promissory notes, including one after closing, obligating buyer to pay Large more money than was owed, and; (c) by agreeing that buyer s rent payments would apply to the purchase price and then failing to abide by that agreement. Violations ORS (12), (2)(a), (2); OAR , (1) Smith, Sheryl Lynn (Redmond/Portland) Property Manager # Default order dated October 27, 2009, effective November 15, Smith failed to turn over funds belonging to four owners and provide final accountings within 60 days after termination of the property management agreement; and Smith failed to produce records and documentation requested by the Agency. Violations: ORS (12), OAR (2) SUSPENSIONS Belshee, Ryan C. (Beaverton) Broker # Hearing order dated January 11, 2010, suspending Belshee s license for 60 days effective January 30, Belshee failed to transmit professional real estate activity documents to his principal broker; Belshee failed to disclose his licensed status in an earnest money agreement; Belshee failed to disclose who he was representing in the earnest money agreement; Belshee failed to include a description of the security interest in the transaction; Belshee failed to transmit funds through his principal broker when he reinstated the mortgage; and Belshee s voic left for the seller was unprofessional and below the standard of care for real estate practice in Oregon. Violations: ORS (15); OAR (5), (1) and (3), (2) Paligo, Bryan Kim (Redmond) Property Manager # Default order dated October 14, 2009 suspending Paligo s property manager s license for four months effective October 14, Paligo failed to timely notify the Agency that his business address changed from Madras to Redmond; Paligo failed to maintain a record of the daily balance for the receipts and disbursement journal; Paligo failed to include identifying codes for receipts and disbursements; Paligo failed to reconcile his clients trust account monthly; Paligo disbursed funds from the clients trust account causing negative balances in the check register; and Paligo failed to include the words clients trust account on his clients trust account checks. Violations: ORS ; OAR (10)(c) and (d), (11) and (19)(b), (2)(g) (2007 Edition, ) REPRIMANDS Beard, Lawrence L. (Prineville) Broker # Stipulated order dated March 8, Beard failed to report two adverse judgments to the Agency. Violation: OAR Gunsolley, Lezlee S. (Hermiston) Broker # Stipulated order dated March 8, Gunsolley failed to disclose to a buyer that Gunsolley s principal broker was also writing an offer on the property; Gunsolley allowed a buyer to be present and listen to the phone conversation with the seller s bank which allowed the buyer to obtain confidential information regarding the accepted offer; and Gunsolley failed to promptly provide a buyer with a copy of buyer s offer. Violations: OAR (2)(c)(C) and (5)(a); OAR (1) Jones, Mark G. (Gresham) Broker # Stipulated order dated March 8, Jones allowed a buyer to have early possession of property three days before the transaction closed. Violation: ORS (3)(a) Please see Administrative Actions on Page 12 Oregon Real Estate News-Journal April

12 Administrative Actions: Continued from Page 11 Lee, Ronny J. (Portland) Broker # Default order dated February 2, Lee failed to report a Multnomah County Circuit Court judgment within 20 days after receipt of written notification of the judgment. Violation: OAR (2008 Edition, ) Leitch, Brenda Dalton (Warrenton) Property Manager # Stipulated order dated March 11, The order also requires Leitch to successfully complete the 60-hour property manager pre-license course within three months from the order date. Leitch failed to state in the property management agreement how the net owner proceeds would be dispersed; Leitch failed to produce a ledger that showed the total of all owner ledgers in a pooled clients trust account; Leitch failed to provide an owner with owner statements for November 2008 through January 2009; Leitch wrote a check to overdraw the owner ledger by $600; and Leitch failed to clarify a clerical error as to the actual amounts collected from a tenant. Violations: ORS (12); OAR (1)(a), (11), (19)(b) and (c), (2), (4) McCarty, Andrea L. (Grants Pass) Broker # Stipulated order dated March 8, Mc- Carty failed to disclose to the seller s agent and the seller that the buyer s original earnest money check had been returned for nonsufficient funds and the replacement earnest money check did not have sufficient funds on deposit at the bank. Violation: ORS (2)(c) Morrow, Norma J. (Port Orford) Broker # Stipulated order dated February 10, Morrow failed to include all the terms and conditions of the real estate transaction in a lease-option agreement; Morrow failed to disclose her licensed status as a principal on a transaction for the lease-option; Morrow failed to deposit a $5,000 deposit and the lease-option payments into a clients trust account; and Morrow failed to obtain written agreement to extend the agreement and change the terms of the agreement. Violations: ORS (1), (12); OAR (5), (1) Peccie, David W. (Bend) Broker # Stipulated order dated February 9, Peccie failed to maintain a current mailing address with the Agency and notify the Agency of a change of address; and Peccie failed to report an adverse judgment from a civil suit. Violations: OAR , (1)(c) Price, Sandy K. (Eugene) Broker # Stipulated order dated February 3, Price failed to transfer an offer to her principal broker; Price failed to maintain a copy of the subject offer for her records; and Price denied the existence of the subject offer. Violations: ORS (1), (12); OAR (3) Randall, Randy D. (Hermiston) Broker # Stipulated order dated March 8, As principal broker, Randall represented both the seller and the buyer as a disclosed limited agent; and Randall failed to disclose a conflict of interest in writing to all parties when Randall wrote his own personal offer on the subject property. Violations: ORS (5)(a) and (b) Scandalios, Alex N. (Corvallis) Broker # Stipulated order dated January 25, Scandalios advertised property for sale on craigslist.org without the permission of one of the owners to do so; Scandalios failed to file 12 April 2010 Oregon Real Estate News-Journal

13 the required form with the Agency identifying the existence of and authorizing the Commissioner to examine client trust accounts; Scandalios used an unregistered name, CyberFarm, in his advertising; Scandalios stated that he was associated with Coldwell Banker, but he has never been licensed with Coldwell Banker; Scandalios advertised on craigslist.org using an incomplete licensed name; and Scandalios failed to place a sign at his designated place of business. Violations: ORS (1), (2) and (3), (1); OAR (2)(b) and (e), and (3)(a) Shivers, Nickolas (Portland) Broker # Stipulated order dated February 23, Shivers made changes to a listing agreement after the seller signed it and without the seller s approval or knowledge; Shivers changed the listed price on a property without the seller s permission; Shivers advertised a property to include the washer and dryer when they were not meant to be included and failed to correct the advertising after it was brought to his attention; Shivers allowed the seller to sign a sale agreement that included blanks to be filled in later; and Shivers failed to prepare an addendum extending the closing date of the sale. Violations: ORS (12), (3)(a) and (c); OAR (2)(b), (1) Spies, Joe Douglas (Portland) Broker # Stipulated order dated March 8, Spies changed the listing price without the seller s written authorization. Violation: ORS (12) Stacey, Elecia (Clackamas) Broker # Stipulated order dated February 3, Stacey allowed the brokerage website to portray Ron Stacey as a licensed broker when he was not; and Stacey used customized real estate forms which showed Ron Boots Stacey as a principal broker with Promised Realty, Inc. after his license was revoked. Violations: ORS (4); OAR (6) Uriarte, Teresa M. (Baker City) Broker # Stipulated order dated March 8, Uriarte failed to have buyers sign or initial the changes made by the seller to an addendum; Uriarte failed to provide a copy of the altered addendum to the buyers; and Uriarte failed to locate and provide a bid for a roof replacement. Violations: ORS (2)(b), (3); OAR (1) CIVIL PENALTIES Expired - Late Renewals Civil penalties are computed using each 30-day period as a single offense. The civil penalty for the first 30-day period can range from $100-$500, with each subsequent 30- day period ranging from $500-$1,000. ORS Baber, Sheri L. (Albany) Broker # Stipulated order dated March 8, 2010 issuing a $100 civil penalty for one 30-day period of unlicensed activity. Vego, Michael (Salem) Broker # Stipulated order dated February 23, 2010 issuing a $100 civil penalty for one 30-day period of conducting professional real estate activity while license was expired. Zimmerman, Linda (Tigard) Broker # Stipulated order dated February 24, 2010 issuing a $2,600 civil penalty for six 30-day periods of unlicensed activity. Escrow Lawyers Title Insurance Company (Portland) Escrow Agent # Stipulated order dated February 17, 2010 issuing a $1,000 civil penalty. Lawyers Title did not prepare and retain an escrow statement specifying all receipts and disbursements of escrow funds for the principal. Violation: OAR (1) (2005 Edition, 7/15/05) The complete order for each administrative action can be found as a supplement to the electronic version of the OREN-J on the Agency s website. Visit and select News- Journal from the menu. Oregon Real Estate News-Journal April

14 The Oregon Real Estate Agency Division Reports Editor s note: This section provides updates from the managers of each of the Real Estate Agency s divisions, and appears regularly in the Oregon Real Estate News-Journal. Administrative Services Division Manager - Erica Kleiner Division Overview The Administrative Services Division acts as support to the Agency. This division manages budget/allotment preparation, accounting, purchasing and contracting, inventory control, facilities, payroll and special projects. Program Changes Erica Kleiner has joined the Agency as the Administrative Services Manager. Progress on Current and Future Projects The Agency continues to work on the Request for Proposal (RFP) for a new licensing database system. Both a procurement officer and an assistant attorney general have been assigned to the Agency for this project. TEK and Associates have been procured by the Agency to manage the RFP portion of this project. Education Division Report Manager - Stacey Harrison Division Overview The Education Division has four staff members and develops real estate educational guidelines, approves pre-license and post-license courses, develops and maintains exams and test items, develops informational publications and websites, provides customer service via phone and electronic mail, and conducts compliance reviews and mail-in audits. Workload and Activity Indicators Licensing exam year-to-date totals for 2009 showed a 32% decrease from the number of exams administered in The Division responds to an average of 500 inquiries each month including questions on licensing and continuing education requirements, real estate regulatory requirements and the Agency s complaint process. On January 5, 2010, clients trust account audits for the 4th quarter of 2009 were mailed to randomly selected licensees who maintain clients trust accounts. Principal brokers and property managers should notify the Agency in writing when a clients trust account is closed. Program changes The Division revised the format for compliance reviews for real estate brokerage. The compliance review is in an electronic format and will be self-administered. Currently, the compliance review is in the testing phase. Future plans include developing a property manager self-administered compliance review. Another major focus of the Division is the implementation of Senate Bill 640, which will become effective January 1, Senate Bill 640 changes the continuing education requirements of real estate licensees and principal broker licensing requirements. The Division will assist the Board in developing a principal broker examination and the required three-hour course on law and rules update. The estimated date for full implementation is July 1, Please check the Agency s website for updates. Land Development Division Manager - Laurie Skillman Division Overview The Land Development Division has two staff members. It reviews and approves land development filings, including condominiums, out-of-state subdivisions, timeshares, membership campgrounds, and manufactured dwelling subdivisions. The majority of the work of the Division is done for condominium filings. Workload and Activity Indicators A number of provisions in the Condominium Act (ORS chapter 100) were 14 April 2010 Oregon Real Estate News-Journal

15 amended effective January 1, The Division is working to update forms for attorneys who file condominium documents for Agency review and approval. The number of condominium developments filed with the division has decreased in 2009 from a comparable period in 2008 due to a general decline in new construction and the financing challenges faced by developers. Condominium Sale Requirements Real estate licensees must be aware of three special requirements for the first sale of a residential condominium unit by a developer. First, the developer must give the purchaser a condominium disclosure statement that has been issued by the Real Estate Agency. Second, the sales agreement must be a unit sales agreement specific to the condominium that the Agency has approved. A unit sales agreement has several requirements, including a notice to the purchase of the right to cancel the agreement within five business days (ORS ). A real estate licensee cannot use a standard form for the first sale of a residential unit by a developer. Finally, before a unit sales agreement is fully executed, the developer is required to provide the disclosure statement, declaration and bylaws to the purchaser. (ORS and ) Licensing Division Manager - Laurie Hall Division Overview The Licensing Division has five staff members who are responsible for public and real estate licensee information services, property management and escrow licensing transactions and the registration of real estate business names. Workload and Activity Indicators The elimination of the sole practitioner broker license created a large increase in workload for the Licensing Division. The Agency s database system required that each license record be changed individually. There were 3,168 new principal brokers in January To put that into perspective, the normal monthly average in 2009 was 16. All changes were completed in early February, and all new licenses were mailed on or before February 12, Your patience was appreciated during this daunting task. Information Technology Division Manager: Greg DeMaderios Section Overview The Information Technology Division is responsible for the management of the Agency s resources for communication, electronic commerce and user support. This includes managing the Agency s computer network, phone network, information assets, and security system for all technology resources. Regulation Division Report Manager Selina Barnes Division Overview The Regulation Division has twelve staff members. This Division receives complaints and determines validity and assignment for investigation. Investigators gather facts, complete report and submit to the Regulation Division Manager for review. The Manager determines whether the evidence supports charging a person with a violation of Agency statutes or administrative rules. Reminder Letters Sent to Escrow Agents Letters were mailed to all escrow agents reminding them of the following upcoming requirements: Annual Reports due by March 31, 2010 Financial Statements due no later than 150 days after the end of the agent s tax or accounting year License Renewals by June 30, 2010 Bonding requirements for license renewal When received, the annual reports and financial statements are reviewed by investigators to ensure the required level of bonding is in place, as well as to identify any problem issues, such as the financial stability of the agent. Statute and Administrative Rule Reviews Division staff have reviewed current statutes and administrative rules and provided input for developing legislative concepts and administrative rule changes. Oregon Real Estate News-Journal April