Understanding Oregon’s Rule on Working Within Your Expertise

Q: I’ve heard that Oregon statute requires agents not to work outside their area of expertise. What does that mean?

A: It means that all of an agent’s work must be performed in a competent manner. ORS 696.301(12) says that an agent’s license may be suspended, revoked, or reprimanded if the agent demonstrates incompetence in performing their licensed work. ORS 696.396 lists incompetence as one of the factors that specifically justifies the most serious types of discipline: suspensions and revocations. And, for agents who are REALTORS®, Article 11 of NAR’s Code of Ethics requires agents to “conform to the standards of practice and competence which are reasonably expected in the specific real estate disciplines in which they engage….” It goes to say that agents must not “provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage in the assistance of one who is competent on such types of property or service unless the facts are fully disclosed to the client.”

Competence is another word for your area of expertise. Your area of expertise refers to both a geographical area and a type of transaction you’re familiar with. So, for example, if you work in the Lake Oswego market but were contacted by a seller in Madras to list their property, unless you had previous sales experience in Madras, listing that property would be outside your area of expertise. Similarly, if you have traditionally listed and sold residential property and were contacted by a seller who wanted to sell their 15-unit apartment complex, that would be outside your area of expertise. In both cases, you would want to either refer the client to a real estate agent with expertise in that area or enlist the help of an agent with that expertise to co-list the property with you to guide you through the unfamiliar process.

For more information, check out this recent article published by the Oregon Real Estate Agency.

All comments and responses from OREF or its staff, managers, and volunteers are non-legal opinions made for general purposes. Each Forms subscriber must rely solely upon their Principal broker or personal legal counsel for specific advice and instruction. You and your client should independently confirm that the Form(s) you use are legally suitable for the purposes intended and that they are current with respect to all laws and regulations.