O
n January 1 2026, Oregon’s real‑estate industry will be governed by House Bill 3137, signed into law in June 2025 and finalized by the Oregon Real Estate Agency (OREA) in October. The legislation introduces new oversight structures, education requirements, and operational rules for brokers, principal brokers, property managers, and teams.

    **1. Managing Principal Broker**

    HB 3137 creates the “managing principal broker” role. A principal broker who registers or assumes responsibility for a business name (RBN) becomes the managing principal broker, carrying ultimate responsibility for all associated brokers and branch offices. Each RBN may have only one managing principal broker. In addition to supervisory duties, the managing principal broker must maintain trust accounts, ensure state‑law compliance, and notify OREA of any changes in oversight.

    **2. Supervision and Compliance Systems**

    Managing principal brokers must establish written policies and procedures that cover broker activity, licensure status, disclosure forms, contracts, document handling, client trust funds, and unlicensed assistants. These systems must be enforced and regularly reviewed.

    **3. Written Supervisory Agreements**

    While the managing principal broker remains ultimately accountable, supervisory control can be delegated to principal brokers or property managers through written agreements. These agreements must detail supervisory duties, succession plans, and confirm that the managing principal broker retains responsibility for all licensees. Agreements must be updated whenever a new principal broker joins, a property manager transfers to the RBN, or a licensee departs and affects supervision or rental management.

    **4. Real‑Estate Teams**

    The bill defines a real‑estate team as one or more licensees operating under an RBN while using a team name distinct from the RBN. A managing principal broker must approve team formation, and only a managing principal broker or a principal broker under a written agreement may manage other team members. Teams must disclose the managing principal broker, the names and roles of all members, and their licensing status before any buyer representation or listing agreement. OREA will post a sample disclosure on its website before the law takes effect.

    The law also prohibits the use of “realty” or “real estate” in team names. Many stakeholders objected to this restriction, citing brand loss and rebranding costs. HB 3137 remains unchanged, but OREA is working with sponsors to remove the prohibition in the 2026 legislative session. Until March 9 2026, OREA will withhold complaints about the use of these terms.

    **5. Continuing Education**

    HB 3137 revises continuing‑education requirements to reduce malpractice risk. All brokers, principal brokers, and property managers must complete the state and federal fair‑housing (SAFFH) course before license renewal. The required law‑and‑rule course (LARRC) is shortened from three to two hours, and the fair‑housing component is removed. Licensees who finish a 2024‑2025 LARRC before the new rule takes effect and renew on or before January 1 2026 are exempt from the 2026‑2027 LARRC, though they still must complete the SAFFH course. Consequently, the mandatory Advanced Practices course hours drop from 27 to 26 starting January 1 2026. Course providers must submit updated materials to OREA for approval.

    **6. Compensation Sharing**

    Licensees may now share portions of transaction compensation with 501(c)(3) charitable organizations. Oregon law previously barred sharing compensation with non‑licensed persons; HB 3137 relaxes this restriction. Licensees should verify the charitable entity’s tax‑exempt status before donating.

    **Action Required**

    As the effective date approaches, firms and licensees should review their operations, renewal schedules, and education plans to ensure compliance with the new requirements.

    **Contact**

    Brian Aguilar, Stoel Rives LLP associate, real‑estate group – 503‑294‑9545, [email protected]

    Andy Mathews, Stoel Rives LLP attorney, real‑estate group – 206‑386‑7592, [email protected]