O
n January 1 2026, Oregon’s real‑estate industry will operate under 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 real‑estate professionals.
**Managing Principal Broker**
HB 3137 creates the managing principal broker role. A managing principal broker is any licensed principal broker who has registered or assumed responsibility for a business name (RBN). Each RBN may have only one managing principal broker, who is ultimately accountable for all associated brokers and branch offices. Responsibilities include maintaining trust accounts, ensuring state‑law compliance, and notifying OREA of any oversight changes. Managing principal brokers must also establish written supervision and compliance policies covering broker activity, licensure, disclosure forms, contracts, document handling, client trust funds, and unlicensed assistants.
**Written Supervisory Agreements**
While the managing principal broker retains ultimate responsibility, supervisory duties can be delegated to principal brokers and property managers through written agreements. These agreements must detail supervisory duties, succession plans, and confirm that the managing principal broker remains liable for all licensees. Agreements must be updated when a new principal broker joins, a property manager transfers to the RBN, or a licensee departs in a way that affects supervision or rental‑real‑estate management.
**Real‑Estate Teams**
The bill defines a real‑estate team as one or more licensees operating under an RBN but 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 effective date. The law also prohibits the use of “realty” or “real estate” in team names. Many stakeholders opposed this restriction, citing brand recognition and financial burdens. HB 3137 retains the prohibition, but OREA is working with sponsors to remove it in the 2026 legislative session. Until March 9 2026, OREA will withhold decisions on complaints about prohibited team names.
**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. Advanced Practices course hours will drop from 27 to 26 starting January 1 2026; providers must submit updated materials to OREA for approval.
**Compensation Rules**
Licensees may now share portions of transaction compensation with 501(c)(3) charitable organizations. Oregon law generally prohibits sharing compensation with non‑licensed persons; HB 3137 relaxes this rule, but licensees should verify the recipient’s tax‑exempt status before donating.
**Implementation**
As the effective date approaches, licensees and firms should review operations, renewal schedules, and education plans to ensure compliance with the new requirements. The changes represent a substantial shift in Oregon’s real‑estate regulatory landscape.
