Oregon Agency Law Guide for the Real Estate Exam

Agency Law Is Heavily Tested in Oregon

Agency law questions appear in both the national and state sections of the Oregon broker exam. The national section tests universal agency principles — fiduciary duties, types of agency, termination. The Oregon state section tests how Oregon implements agency law through specific forms and requirements unique to the state.

Expect approximately 8–12 questions across both sections related to agency. Mastering both the universal principles and Oregon's specific requirements is essential.

Universal Agency Principles (National Section)

What is agency? Agency is a legal relationship in which one party (the agent) is authorized to act on behalf of another (the principal). In real estate, the broker is the agent; the buyer or seller is the principal.

Fiduciary duties — The acronym OLDCAR captures the six duties an agent owes a principal:

• Obedience — follow lawful instructions
• Loyalty — put the client's interests first
• Disclosure — disclose all material facts
• Confidentiality — protect confidential information
• Accountability — account for all funds
• Reasonable care — perform with professional competence

Types of agency relationships:

• Seller's agency (listing agent) — represents the seller; owes full fiduciary duties to seller, honesty to buyer
• Buyer's agency — represents the buyer; owes full fiduciary duties to buyer, honesty to seller
• Dual agency — represents both buyer and seller in the same transaction; requires informed consent from both parties; agent cannot fully advocate for either party
• Designated agency — different agents within the same brokerage represent buyer and seller separately; allowed in Oregon

Termination of agency — An agency relationship ends by completion of the purpose, expiration of the agreement, mutual agreement, death or incapacity of either party, or revocation.

Oregon-Specific Agency Requirements

Agency Relationship Disclosure Form

Oregon law (ORS 696.820) requires brokers to provide buyers and sellers with an Agency Relationship Disclosure form at first substantial contact. This is not the same as a buyer representation agreement — it is a written explanation of the agency options available in Oregon.

The disclosure must be given before any negotiation or offer writing begins. Failure to provide it is a licensing violation subject to OREA discipline.

What the Disclosure Covers

The Oregon Agency Relationship Disclosure explains:

• Seller's agency (listing broker represents seller)
• Buyer's agency (broker represents buyer)
• Dual agency (broker represents both with consent)
• Non-agent / transaction coordinator role (facilitates but represents neither party)

The form must be signed and retained in the transaction file.

Confirmed Agency

In Oregon, the agency relationship must be "confirmed" in writing — typically in the purchase and sale agreement or a separate confirmation document — before or at the time an offer is written. This is separate from the initial disclosure.

Dual Agency in Oregon

Oregon permits dual agency with informed written consent from both buyer and seller. The dual agent owes honesty and fairness to both parties but cannot share confidential information about price motivation or negotiating position. Dual agency must be disclosed and confirmed in writing.

Principal Broker Supervision

All Oregon brokers must work under a principal broker. The principal broker is responsible for supervising broker activities, maintaining transaction files, and ensuring compliance with OREA rules. The principal broker relationship must be established before a broker can practice.

Common Exam Mistakes

• Confusing the Agency Relationship Disclosure (given at first contact) with the confirmation (given before/at offer)
• Thinking Oregon allows brokers to practice independently — they must work under a principal broker
• Forgetting that dual agency requires written consent from both parties, not just verbal agreement
• Missing that Oregon uses "designated agency" as an alternative to dual agency when multiple clients are handled within one brokerage

For a complete Oregon study plan, visit [CARealestate.com/states/oregon](https://carealestate.com/states/oregon).