ORS 696.511
License requirement

  • licensing system
  • rules

(1)

A person may not directly or indirectly engage in or carry on, or purport to engage in or carry on, within this state, the business of an escrow agent, or act in the capacity of an escrow agent, unless the person holds an active license as an escrow agent under the provisions of ORS 696.505 (Definitions for ORS 696.505 to 696.590) to 696.590 (Penalty amounts).

(2)

Intentionally left blank —Ed.

(a)

The Real Estate Commissioner shall establish by rule a system for licensing escrow agents. The system shall establish, at a minimum, the following:

(A)

The form and content of applications for initial licensing and license renewal.

(B)

The requirements for submitting surety bonds under ORS 696.525 (Bond for escrow agents) or evidence of deposits in lieu of a bond under ORS 696.527 (Deposits in lieu of bond).

(C)

The form and content of applications for changes in any of the following:
(i)
Ownership interest in an escrow agent.
(ii)
Corporate officers in charge of escrow operations for an escrow agent.
(iii)
Other individuals in charge of escrow operations for an escrow agent.

(D)

Schedules and procedures for issuing and renewing licenses.

(E)

Schedules and procedures for approving changes in ownership interest in an escrow agent, changes in corporate officers in charge of escrow operations or changes in other individuals in charge of escrow operations.

(F)

The term of a license.

(G)

The requirements for an escrow agent to notify the Real Estate Agency of changes in the information contained in an application, including but not limited to office location changes, branch office establishment, office closure and business operations cessation.

(H)

The requirements for an applicant that is not an individual to provide a certificate of existence or similar documentation.

(b)

If an applicant for a license as an escrow agent is an individual, the applicant must be 18 years of age or older.

(3)

For the initial license of an escrow agent, the commissioner may require information and evidence the commissioner considers necessary to demonstrate the applicant’s qualifications to transact escrow business including, but not limited to, information regarding the applicant’s financial resources, the applicant’s escrow business in another state or the experience or training of employees in escrow business, or a testimonial of an escrow agent licensed in this state. Subject to subsection (4) of this section, an applicant:

(a)

Who is an individual must demonstrate a minimum of three years of experience in the administration of escrows within Oregon or a state with comparable escrow laws; or

(b)

Who is not an individual must demonstrate a minimum collective experience among its personnel of three years in the administration of escrows within Oregon or a state with comparable escrow laws.

(4)

The commissioner may waive the three-year experience requirement in subsection (3) of this section for an applicant who demonstrates other qualifications sufficient to ensure the protection of the public.

(5)

Intentionally left blank —Ed.

(a)

For the purpose of this subsection, an escrow agent that is not an individual may satisfy the requirements for fingerprints and a criminal records check by providing the fingerprints of and conducting a criminal records check on an individual who:

(A)

Has more than five percent ownership interest in the escrow agent;

(B)

Is a corporate officer in charge of escrow operations for the escrow agent; or

(C)

Is in charge of escrow operations for the escrow agent.

(b)

For an initial escrow agent license, the commissioner shall require fingerprints and a state or nationwide criminal records check under ORS 181A.195 (Criminal records check) of the applicant. The commissioner may require additional information from the applicant that the commissioner considers necessary for protecting the public.

(c)

For license renewal as an escrow agent, the commissioner may require fingerprints and a state or nationwide criminal records check under ORS 181A.195 (Criminal records check) of the applicant. The commissioner may require additional information from the applicant that the commissioner considers necessary for protecting the public.

(d)

For a change in individuals who will have ownership interest in an escrow agent, the individuals who will be corporate officers in charge of escrow operations or any other individuals who will be in charge of escrow operations, the commissioner shall require fingerprints and a state or nationwide criminal records check under ORS 181A.195 (Criminal records check) of the individuals who will have the ownership interest or who will be in charge. The commissioner may require additional information from the individuals that the commissioner considers necessary for protecting the public.

(6)

For license renewal, an applicant that is an escrow agent shall provide:

(a)

A certification of training, by which the applicant certifies that the applicant provides escrow agency staff within Oregon with an average of six hours or more of training per year per permanent, full-time employee in subjects that bear directly on the administration of escrows;

(b)

A statement identifying by name, address and telephone number one or more individuals who can respond to the inquiries of or referrals by the commissioner or the commissioner’s authorized representative regarding the applicant’s escrow business; and

(c)

Other documents and information that the commissioner may require by rule.

(7)

The commissioner shall issue or renew an escrow agent license, approve a change in ownership interest in an escrow agent, approve a change in corporate officers in charge of escrow operations of the escrow agent or approve a change in any other individuals in charge of escrow operations of the escrow agent for an applicant that complies with the requirements of ORS 696.505 (Definitions for ORS 696.505 to 696.590) to 696.590 (Penalty amounts) and the rules adopted under ORS 696.505 (Definitions for ORS 696.505 to 696.590) to 696.590 (Penalty amounts).

(8)

To qualify for issuance or renewal of an escrow agent license, an applicant shall pay any outstanding civil penalties or other moneys due and owing to the Real Estate Agency except civil penalties or other moneys due that are the subject of judicial or administrative review on the date of the application for license or license renewal. [1963 c.440 §§4,17; 1975 c.746 §29; 1977 c.351 §5; 1981 c.617 §21; 1991 c.874 §2; 2001 c.300 §36; 2003 c.427 §5; 2005 c.730 §§38,86; 2007 c.319 §15; 2009 c.174 §2]

Source: Section 696.511 — License requirement; licensing system; rules, https://www.­oregonlegislature.­gov/bills_laws/ors/ors696.­html.

Notes of Decisions

Person “acts in capacity of escrow agent” when, pursuant to written instructions from principals and for money or other consideration, person: 1) receives matters of value to which person has no right, title or interest; 2) holds matters received as neutral third party until occurrence of event or condition specified by principals; and 3) upon occurrence of event or condition, delivers matters to other person having right, title or interest. Coast Security Mortgage Corp. v. Real Estate Agency, 331 Or 348, 15 P3d 29 (2000)

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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