Senate passes HB 4058, consumer home sales protections

Oregon Senate Strengthens Consumer Protections in Real Estate Transactions

SALEM, Ore. – Today, the Oregon Senate passed HB 4058, a bill increasing transparency and strengthening consumer protections in real estate transactions. The measure was carefully crafted in partnership with industry experts.

“With over 30 years of experience in real estate, I know how important transparency in written agreements are. Oregonians deserve these common-sense consumer protections.” said Senator Dick Anderson (R-Lincoln City), a chief sponsor who carried the measure.

“When the industry shows up with a plan to promote greater transparency in their own industry, we need to show up for them and get it done,” said Representative Vikki Breese-Iverson (R-Prineville), who introduced the bill. “HB 4058 is good for all Oregonians. I’m proud of Oregon Realtors who continue to be a proactive leader in the industry.”

What the bill does:

1. HB 4058 regulates residential property wholesaling, which is where a person enters into a purchase contract with a property owner for one purchase price, then assigns the contract to another buyer for a profit without ever taking the title to the property. Wholesaling is currently unregulated in Oregon. HB 4058 follows the example set by other states and local governments across the country by implementing common-sense consumer protections.

2. HB 4058 prohibits future right to list contracts where some real estate firms have locked homeowners into contracts which require the homeowner to list their home with a particular firm if the homeowner decides to sell at any time in the next 40 years.

3.HB 4058 requires real estate licensees to use written agreements when representing buyers or sellers in real estate transactions and prohibits buyers’ agents and sellers’ agents from sharing compensation with each other without disclosure to their client. Consumers of real estate services should understand what services they can expect from their agent and how their agent is getting paid. HB 4058 ensures that will happen on both the listing and buying side of the transaction.