New laws in Oregon now define who can wholesale and what license is required

[Jay Hinrichs]

Oregon finally passed legislation to reel in unlicensed wholesaling its in this months publication from the state RE agency.

Highlights:

Goes into effect  July 1 2025

Requires:

On line application to become a licensed wholesaler  ( RE agents exempt from this of course they already have licenses)

Name of company and individuals who will be performing these services.

Each one needs a full criminal background check and approval prior to receiving the license.

300.00 annual fee for the license.

Written Disclosures in Bold 10 point.

These must be given to Buyer and Sellers prior to entering into a wholesale contract and signed for.

Also RE brokers assisting wholesalers need to give these to potential buyers and sellers.

This is a big one  this disclosure must also be in all advertising of the wholesaler including SM.

The disclosure must include:

1. that this is an equitable interest

2. if wholesalers does not have legal title and may NOT be able to transfer title.  ( keep buyers from wasting money on DD i suspect)

3. Is not a licensed appraisal specialists and therefore is not permitted to provide an opinion of value . ( keep wholesaler from telling seller their 500k prop is only worth 300k).

4. the disclosure goes on and on about how to terminate it who to file complaints with etc etc. complaints go to the DRE.

Right of recession:

Buyer and Seller may rescind within 3 days of signing contract all all EM must be returned this is a blanket rescission.

If Buyer or Seller never get the Disclosures and sign for them they can cancel right up until the day of closing with all EM returned.

this should level the playing field keep bad actors at bey and give Buyers and Sellers some rights if they think they have been hood winked.

Personally see these laws sweeping the nation..  Like Iowa , SC IL and more to follow..