Oregon Senate strengthens consumer protections in real estate transactions

Mar. 7—The Oregon Senate has passed HB 4058, a bill increasing transparency and strengthening consumer protections in real estate transactions. The measure was crafted in partnership with industry experts, according to supporters.

What the bill does

HB 4058 regulates residential property wholesaling, which is where a person enters into a purchase contract with a property owner for one purchase price, then assigns the contract to another buyer for a profit without ever taking the title to the property. Wholesaling is currently unregulated in Oregon. HB 4058 follows the example set by other states and local governments across the country by implementing common-sense consumer protections.

HB 4058 prohibits future right to list contracts where some real estate firms have locked homeowners into contracts that require the homeowner to list their home with a particular firm if the homeowner decides to sell at any time in the next 40 years.

HB 4058 requires real estate licensees to use written agreements when representing buyers or sellers in real estate transactions and prohibits buyers' agents and sellers' agents from sharing compensation with each other without disclosure to their client. Consumers of real estate services should understand what services they can expect from their agent and how their agent is getting paid. HB 4058 ensures that will happen on both the listing and buying side of the transaction.

Local legislators' reaction

Sen. Dick Anderson (R-Lincoln City), a chief sponsor of the legislation, carried the measure.

"With over 30 years of experience in real estate, I know how important transparency in written agreements are," Anderson said. "Oregonians deserve these common-sense consumer protections."

Rep. Vikki Breese-Iverson (R-Prineville) introduced the bill.

"When the industry shows up with a plan to promote greater transparency in their own industry, we need to show up for them and get it done," she said. "HB 4058 is good for all Oregonians. I'm proud of Oregon Realtors who continue to be a proactive leader in the industry."

Anderson said the governor needs to sign the bill and the Oregon Real Estate Agency needs to put it in play.