Oregon Revised Statutes Chapter 696 § 696.290 — Sharing compensation with or paying finder’s fee to unlicensed person

Sharing compensation with or paying finder’s fee to unlicensed person prohibited; exceptions. (1)(a) Except as provided in this subsection, a real estate licensee may not offer, promise, allow, give, pay or rebate, directly or indirectly, any part or share of the licensee’s compensation arising or accruing from any real estate transaction or pay a finder’s fee to any person who is not a real estate licensee licensed under ORS 696.022, including a nonlicensed individual described in ORS 696.030. (b) A managing principal broker may pay a finder’s fee or a share of the real estate licensee’s compensation on a cooperative sale when the payment is made to a licensed real estate broker in another state or country, provided that: (A) The state or country in which the nonresident real estate broker is licensed has a law permitting real estate brokers to cooperate with managing principal brokers in this state; and (B) The nonresident real estate broker does not conduct in this state any acts constituting professional real estate activity and for which compensation is paid. If a country does not license real estate brokers, the payee must be a citizen or resident of the country and represent that the payee is in the business of real estate brokerage in the other country. (c) A real estate licensee may offer, promise, allow, give, pay or rebate, directly or indirectly, parts or shares of the licensee’s compensation, arising or accruing from any real estate transaction, to a charitable organization that is tax exempt under section 501(c)(3) of the Internal Revenue Code. (2) A real estate licensee, other than a timeshare sales agent, associated with a managing principal broker may not accept compensation from any person other than the managing principal broker with whom the real estate licensee is associated at the time. (3) A managing principal broker may not make payment to the real estate broker of another managing principal broker except through the managing principal broker with whom the real estate broker is associated. (4) Notwithstanding ORS 696.010 to 696.495, 696.600 to 696.785 and 696.800 to 696.870, a principal real estate broker or a real estate licensee, other than a timeshare sales agent, associated with a managing principal broker may create a corporation, limited liability company, limited liability partnership or other lawfully constituted business organization for the purpose of receiving compensation. The real estate licensee may not conduct professional real estate activity under a business organization created pursuant to this subsection. (5) Nothing in this section prevents payment of compensation earned by a real estate broker or principal real estate broker while licensed because of the real estate broker’s or principal real estate broker’s association with a different managing principal broker or because of inactivation of the real estate broker’s or principal real estate broker’s license. The compensation may be paid directly to the real estate licensee by the managing principal broker with whom the real estate licensee was associated at the time the professional real estate activity for which the compensation was earned was conducted. (6) Nothing in subsection (1) of this section prohibits a managing principal broker or licensed real estate property manager who has a property management agreement with the owner of a residential building or facility from authorizing the payment of a referral fee, rent credit or other compensation to an existing tenant of the owner or real estate licensee, or a former tenant if the former tenant resided in the building or facility within the previous six months, as compensation for referring new tenants to the real estate licensee. (7)(a) Nothing in subsection (1) of this section prevents an Oregon managing principal broker from sharing compensation on a cooperative nonresidential real estate transaction with a person who holds an active real estate license in another state or country, provided: (A) Before the out-of-state real estate licensee performs any act in this state that constitutes professional real estate activity, the real estate licensee and the cooperating Oregon managing principal broker agree in writing that the acts constituting professional real estate activity conducted in this state will be under the supervision and control of the cooperating Oregon managing principal broker and will comply with all applicable Oregon laws; (B) The cooperating Oregon managing principal broker or a real estate licensee, other than a timeshare sales agent, associated with the managing principal broker accompanies the out-of-state real estate licensee and the client during any property showings or negotiations conducted in this state; and (C) All property showings and negotiations regarding nonresidential real estate located in this state are conducted under the supervision and control of the coope