Oregon’s real estate professionals are on the cusp of a sweeping regulatory overhaul. House Bill 3137, signed into law in June 2025 and taking effect January 1, 2026, introduces significant new responsibilities for brokers, tighter oversight of teams, and expanded education requirements—all aimed at enhancing accountability across the industry.

With final rules now in place, brokerages should begin preparing for operational changes and compliance reviews well ahead of the new year.

What’s Changing—and Why It Matters:

At the core of HB 3137 is the creation of the “managing principal broker”—a role tasked with ultimate responsibility for broker supervision, trust account maintenance, and legal compliance across a business. Alongside this, the law introduces new requirements around team structure, written supervisory agreements, and continuing education.

Key Updates Include:

  • Managing Principal Broker Role: Each registered business name (RBN) must have one designated managing principal broker responsible for oversight of all licensees and branch offices.
  • Supervisory Systems: Managing principal brokers must implement written policies for license management, contract use, trust funds, and more.
  • Written Agreements Required: Delegation of supervisory duties to principal brokers or property managers must be formalized through written agreements that define responsibilities and succession plans.
  • Team Regulations: The use of “real estate” or “realty” in team names is prohibited, though the legislature may revisit that prohibition in 2026.
  • Updated Education Requirements: All licensees must complete a standalone state and federal fair housing course; LARRC hours are reduced, and Advanced Practices requirements slightly adjusted.

Looking Ahead:
HB 3137 marks a fundamental shift in how real estate businesses in Oregon are structured and supervised. Firms and licensees should start evaluating internal systems, reviewing license renewal timelines, and updating training materials to ensure compliance before the law takes effect.

Read the full article for a detailed breakdown of HB 3137 and what it means for your business.