Business Tax Passes Key Committee,
Heads to House Floor
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OAR secured an amendment that lessens the impact for real estate brokerages, but the legislation still has wide-ranging impacts for our industry and Oregon’s economy.
You may have seen in the news that the legislature’s Joint Committee on Student Success passed a sweeping business tax and education funding package (HB 3427) on Monday evening. The package now goes to the House Floor for a vote today.
The bill is a modified version of a gross receipts tax – a tax on gross revenues rather than profits. The proposed tax is similar to Measure 97 (2016), but also different in a few ways. Most notably, the proposed legislation applies to all business types (Measure 97 only applied to “C-corps”). And, rather than a 2.5% tax, HB 3427’s rate is.57 percent and includes some deductions.
This session, the very public goal for legislative leadership has been to increase taxes for education by roughly $2 billion (about a 10% increase in the General Fund), focusing on PreK-12 education. Critics, however, say that without substantial reform to the state’s pension system (PERS), most of the new tax dollars will be absorbed by PERS obligations over time.
Read more about HB 3427
and the amendments for the real estate industry.
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Additional Legislative News
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Land Supply for Housing: HB 2001
HB 2001 is currently in Ways and Means. Work will likely resume after the May Revenue Forecast (mid-May.) The bill has been modified substantially. Additional amendments are needed. But, the legislation could eventually be a vehicle for polices that will increase Oregon’s buildable lands inventory for housing stock.
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Independent Contractors: HB 2498
Early in the session we were promised amendments to explicitly exempt real estate brokers from alternative definitions of “independent contractors.” Currently the bill is in House Rules. While technically still active this session, the path the bill has taken so far is an illustration of the difficulty the sponsors will have to pass the bill; with, or without our amendments.
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Mortgage Interest Deduction: HB 3349
A hearing was held on April 15, where OAR testified against the legislation. Did you know, across income levels, 52% of Oregonians own their home outright? Oregon’s tax system has a rate that increased as earnings exceed $125,000 single, or $250,000 joint. While most consider a progressive income tax “fair,” why should any Oregonian ever pay an increased tax rate only because they have a mortgage loan?
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Are you interested in helping advocate for homeownership?
Text “REALTORS” to 30644!
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REALTOR® Day
Video Recap
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Tuesday, April 2nd was a busy day at the Oregon Capitol! Thank you to the 700+ REALTORS® from across the state who supported REALTOR® Day at the Capitol. Our group made a big impression with our Legislators. We showed that we have power in numbers and shared our current priorities. It was truly an incredible day filled with networking, education and advocating for homeownership and private property rights. We are very thankful for your commitment to the real estate industry. We look forward to seeing you at the next REALTOR® Day at the Capitol in 2021!
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Please see a recap of the day:
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Lead-Based Paint Inspection Reminder
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Oregon REALTORS® are seeing an increase in EPA inspections based on lead-based paint. The EPA is authorized under the Residential Lead-Based Paint Hazard Reduction Act of 1992 to conduct inspections of real estate companies to check compliance with the statute. As a reminder, such actions can occur at any time, with short or no notice by the EPA. We have received the following information from EPA and NAR General Counsel. It is advised to have the following documents and/or the information:
- Copies of one purchase contract for each real estate agent who sold pre-1978 properties within the last year. The EPA is not requesting copies of the whole sales contract, but rather only these pages for each real estate agent employed by the company.
- The first page and the signature page of the contract to sell the property
- The lead-based paint disclosure form provided to purchaser
- List of Real Estate agents that work for the company
- List of all pre-1978 properties sold by the company within 3-years
- Copy of Protect Your Family From Lead in Your Home Pamphlet
- Copy of Disclosure Form utilized by company
- Name of Company Owner
EPA is allowed to inspect the lead disclosure forms - that is why they are required to save that information in hard copy for 3 years.
The NAR website has lots of information related to this, and could be helpful in developing a refresher course:
https://www.nar.realtor/lead-based-paint#section-166042
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Asbestos Survey Requirements
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Oregon adopted new requirements in fall 2018 for handling asbestos. The Oregon Department of Environmental Quality requires property owners and contractors to identify asbestos and to properly handle, package and dispose of asbestos waste from demolition and renovation projects. OAR is hosting a webinar on Friday, May 17th at 9:30am to learn everything you need to know about the new asbestos rules.
REGISTER TODAY!
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There were many highlights from Spring Governance including honoring Debra Gisriel as OAR’s REALTOR® of the Year, electing Drew Coleman as the 2020 President-Elect, welcoming Michael Kozak into the RPAC Hall of Fame and awarding Legislators with American Dream Awards. In addition, the popular Principal Broker’s Forum opened discussion on many current issues including asbestos laws, leads sourcing, team rules, advertising rules and photo guidelines. OAR also rolled out several new opportunities for REALTORS®, including the new Principal Broker Academy,
Brokers’ Edge
and several new marketing pieces to share with all members
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2019 REALTOR® of the Year Debra Gisriel with 2018 REALTOR® of the Year Don Robertson
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2019 OAR President Nan Wimmers, 2020 OAR President-Elect Drew Coleman, 2019 OAR President-Elect Lori Palermo
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Full Room at the Principal Broker Forum
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Want to be on an
OAR Committee?
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The July 20, 2019 deadline to submit applications for OAR’s 2020 Committees is quickly approaching! There are positions available on all committees! Key Committees, Special Committees, Work Groups and Task Forces work continually on behalf of the membership to achieve OAR’S objectives as approved in the strategic plan. Your time, input and work is invaluable.
Please apply online today!
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OAR is excited to introduce you to members from around the state. Meet Amy Graham, Broker for Taylor & Taylor Real Estate on the Central Oregon Coast. Amy has been very active with OAR serving as committee chair of Government Affairs, RPAC Trustees and as President of OAR in 2014. Amy is married, has two girls, enjoys outdoor activities and cooking. Her bucket list includes eating her way through Italy, touring the USA in an RV and going hang-gliding. Her advice to new REALTORS®? Invest in yourself! She advises to get a business coach, surround yourself with positive influences, learn from other leaders and work harder on yourself than you do your job.
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May 13-18 - NAR Legislative Conference & Trade Show
Washington, DC
June 27- Broker's Edge
Embassy Suites- Washington Square
July 18 - Driving it Home Golf Tournament - Golfers & Sponsors Needed!
Langdon Farms - Aurora, Oregon
September 12- Taste of Oregon
Castaway - Portland, Oregon
October 1-3 - OAR Fall Convention & Trade Show
Salem Convention Center - Salem, Oregon
Registration Coming Soon!
November 8-11 - NAR Conference & Expo
San Francisco, California
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Registration is now open for NAR's fall conference in San Fransisco! This years theme, "Imagine the Possibilities," connects with the culture of the city and what attendees can expect at the
largest annual event for the most successful real estate professionals.
Learn more about the event and register online.
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Registration for the NAR Broker's Edge workshop at the Embassy Suites at Washington Square Mall in Beaverton is now open! On Thursday, June 27 join us for this one day education and networking event designed for managing brokers to stay on the cutting edge of industry topics and market trends.
All attendees can earn up to 4 CE hours by attending sessions at Broker's Edge!
Topics include:
- Marketing & Branding
- Fighting Wire Fraud and Cyber CrimeTechnology
- Legal Hot Topics
- Hiring the Right Agents
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Are you or someone you know doing great work serving the community? NAR wants to hear about it!
Submit your application by May 10, 2019
to be considered for a Good Neighbor Award. Good Neighbor Award winners receive $10,000 grants for their charities, as well as national and local publicity for their cause. Winners will also be flown to the National Association of REALTORS® annual conference where they will receive their award in front of thousands of fellow REALTORS®. Past winners all report that their charity benefited from additional donations and volunteers as a result of the exposure.
Learn more about the Good Neighbor Awards
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Question:
I have a situation where my buyer needs to come up with more funds to close than they have available. Can a buyers agent accept personal property as part of the commission, such as a ring or a car, instead of receiving cash payment from the offer of coop commission? I’m looking for creative ways to assist my buyers so they have more funds available to continue with the transaction.
Answer:
Do you mean that your brokerage will accept property from the buyer and reduce the coop commission to the listing brokerage who then reduces the total commission paid by the seller? If so, yes. Your client can pay your brokerage in any manner you agree to and you can reduce the coop commission to the listing brokerage with the agreement that they will reduce their commission to the seller. Do not burden the transaction with any of this commission stuff unless some term of the actual transaction between the buyer and seller changes. Remember that you are not owed a commission by the seller and any payment between your client and yourself is not part of the real estate transaction. The seller would not be a party to any agreement between you and your client just as the buyer is not a party to any agreement between the listing brokerage and the seller. Work out the commission arrangement with the proper parties and change the sale agreement only if the terms of the purchase are going to change.
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LEGAL HOTLINE SUBSCRIPTION
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Have you signed up for the Legal Hotline?
The Oregon Association of REALTORS® Legal Hotline provides subscribers the opportunity to ask real estate-related questions of an attorney specializing in real estate and contract law. OAR can advise member subscribers on a variety of topics including disclosure, license law, contracts and offers.
The cost for a one year Legal Hotline subscription is $125 per individual subscription. The Legal Hotline is open Monday – Friday, 9:00 a.m. to 12:00 p.m. (except during NAR & OAR conventions and holidays). Subscribers may e-mail questions to the Legal Hotline at any time and can expect an answer within 24 hours (excluding weekends and holidays). Changes in license status or brokerage will not affect an individual's subscription or access to the Legal Hotline.
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OAR is excited to bring you a new professional development program just for Principal Brokers. The first session is taking place this fall in Salem and is already sold out! Interested in participating in our next session being offered in Medford in January and February 2020?
Reserve your space today!
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Become the BEST Transaction Coordinator in the Business
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Transaction Coordinators are quickly becoming common place for successful real estate professionals looking to get more done and save considerable time. Our program is designed to help aspiring Transaction Coordinators ramp up quickly through our comprehensive courses that give you the knowledge and tools you need to be successful. Get started today to build and establish a successful transaction coordinator business.
Click here to get started today!
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NAR Designations/Certifications
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Special 2-Day Learning Event
Join OAR and RVAR for a 2-day learning event this May.
Earn your Military Relocation Professionals Certificate AND the At Home with Diversity Certificate in two consecutive days of learning. BONUS! Register for both classes by May 15 and get $50 off.
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Military Relocation Professionals Certification (MRP)
May 30, 2019
9:00 a.m. - 4:00 p.m.
Medford, OR
Special Member Price! $135
1-day course, Meals, 6 CE Hours, 6
GRI Elective Credits
AND NAR Certification!
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At Home with Diversity Certification (AHWD)
Friday, May 31, 2019
9:00 a.m. - 4:00 p.m.
Medford, OR
Special Member Price! $135
1-day course, Meals, 6 CE Hours, 6
GRI Elective Credits
AND NAR Certification!
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Seller Representative Specialist Designation (SRS)
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Tuesday - Wednesday, July 30-31, 2019 9:00 a.m. - 4:00 p.m. Both Days
Salem, OR
Special Member Price! $250
2-day course, Meals, 12 CE Hours, 12
GRI Elective Credits
AND NAR Designation!
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6 CE Hours | Gresham, OR
This course will teach you the basic concepts of negotiation and how to identify different approaches. You will also have the opportunity to try your hand at utilizing these negotiating techniques on actual real estate scenarios occurring in the market right now.
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6 CE Hours | Bend, OR
This course will teach you the basic concepts of negotiation and how to identify different approaches. You will also have the opportunity to try your hand at utilizing these negotiating techniques on actual real estate scenarios occurring in the market right now.
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6 CE Hours | Eugene, OR
“Working with Buyers” is designed to provide a solid foundation upon which to build an outstanding relationship of service to your buyer clients.
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May 17 | 9:00 a.m. - 4:00 p.m. |
GRI- Law
6 CE Hours | Medford, OR
Legislation in real estate can make or break your career. This course will cover critical aspects of Federal and State law including fair housing, license, risk management, records retention, agency, and includes an interactive discussion and debate of actual Oregon cases with practical based applications!
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6 CE Hours | Newport, OR
This course will cover various aspects of “The Transaction” including risk management, records retention, contracts, timelines and more. You will learn ways to use popular transaction management systems and platforms to reduce risk and create strategies to manage your business, contracts and contacts by using the tools that are discussed.
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6 CE Hours | Klamath Falls, OR
This course will teach you the basic concepts of negotiation and how to identify different approaches. You will also have the opportunity to try your hand at utilizing these negotiating techniques on actual real estate scenarios occurring in the market right now.
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6 CE Hours | Dundee, OR
This course will teach you the basic concepts of negotiation and how to identify different approaches. You will also have the opportunity to try your hand at utilizing these negotiating techniques on actual real estate scenarios occurring in the market right now.
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E&O Insurance Preferred Provider
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Contracts only go so far to protect real estate professionals from potential lawsuits. And often, clients don't hesitate to take legal action if services don't meet their expectations.
That's why obtaining E&O insurance that is tailored to your needs and budget is essential to running a successful business. Whether you're just starting out or you're a seasoned professional, securing coverage is a smart decision. Even if you're not at fault, E&O insurance can help you get back on your feet.
COVERAGE FOR: OREGON
- Agent-owned residential property transactions
- Subpoena assistance (no-cost legal assistance)
- Lockbox and open house coverage to full policy limits
- Mold coverage with limits beginning at $100,000
- Public relations advisory services
- Fair housing discrimination claims
- Environmental "Failure to Advise" coverage
Pearl Insurance has been protecting real estate agents since 1979 and are among the first companies to offer errors and omissions (E&O) insurance. They understand the ever-changing needs the real estate industry.
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In 2018, the HOME Foundation awarded almost $200,000 in grants to help home ownership opportunities for Oregonians at or below local median income. The funding is due mostly from the generosity of our sponsors and participants in our two large events, Driving it HOME Golf Tournament and the Taste of Oregon. Learn more about each event below and how you can get involved!
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The Driving it HOME Golf Tournament is a great way to network with other industry professionals while enjoying a fun afternoon of golf at the beautiful Langdon Farms. We have a few opportunities remaining to get involved! You can golf, purchase raffle tickets or support the HOME Foundation by becoming a sponsor.
Don't miss this great event! L
ast year, over 150 golfers helped make this tournament one of the most successful events EVER for the HOME Foundation!
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Registration is now open for most delicious event of the year, The Taste of Oregon set for Thursday, September 12, 2019 at Castaway in Portland. Over 25 vendors and booth sponsors serve up some of Oregon's best food and beverages all benefiting the HOME Foundation. Hundreds of industry professionals attend each year to gather and celebrate a special evening. The event also features a silent auction with incredible packages from sporting events to vacation bundles. Its super easy to participate and bidding is done through your cell phone!
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Oregon Association of REALTORS
®
2110 Mission Street SE, #230 Salem, OR 97302
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