Oregon guide

Oregon Broker Compensation Disclosure: Sources and Conflicts

When you buy a home in Oregon, your broker must tell you about every dollar they will get from the deal, no matter who is paying them.

Reading as buyer.

TL;DR

When you buy a home in Oregon, your broker must tell you about every dollar they will get from the deal, no matter who is paying them. That includes what you agreed to pay in your buyer representation agreement, any amount the seller chips in toward your broker's fee, and any referral fees from lenders or title companies. After the August 17, 2024 changes, your broker cannot pocket more than what you and they agreed to in writing unless you say it is okay.

Before you start — 7 things to know

  • In Oregon, your broker must tell you every source and amount of money they will earn from your purchase, even if the cash is coming from the seller or a third party. This rule comes from ORS section 696.805 and the OAR 863-015 conduct rules.

  • Your buyer representation agreement sets the cap on what your broker can get paid for representing you in Oregon. If the listing side offers more than that cap, your broker can only keep the extra amount if you give your written consent.

  • Referral fees count as compensation that your Oregon broker must disclose to you. That includes payments your broker gets from a lender, title company, home warranty provider, or any other vendor they steered you toward.

  • Seller-paid concessions toward your broker's fee are still compensation to your broker and must be disclosed to you in Oregon. The seller cutting the check does not change your broker's duty to put it in writing for you.

  • Bonuses, incentives, or extra payments from the listing broker above the posted cooperative compensation must be disclosed to you under Oregon rules. Knowing about an extra bonus helps you spot if your broker is steering you toward a specific listing.

  • If your Oregon broker is affiliated with a title or mortgage company under common ownership, they must disclose that relationship and the benefit they get from sending you there. This piggybacks on federal RESPA rules that apply nationwide.

  • The duty to disclose compensation is affirmative in Oregon — your broker cannot wait for you to ask. Missing or hidden disclosures are one of the most common reasons brokers get cited by the Oregon Real Estate Agency.

The timeline — step by step

  1. Before you tour homes or sign anything, your Oregon broker should give you a written buyer representation agreement that spells out exactly how they get paid. Read the compensation section closely before signing.

  2. When you find a home you like, ask your broker in writing what the listing side is offering to pay them. Oregon brokers must disclose any cooperative compensation, bonus, or incentive tied to that specific listing.

  3. When you negotiate the offer, decide if you want the seller to chip in toward your broker's fee as a concession. Your broker has to disclose that concession to you in writing as part of the deal.

  4. If the listing side ends up paying your broker more than the cap in your buyer representation agreement, your broker must come back to you for written consent before keeping the extra. You can say no and have the excess go back to the deal.

  5. Before closing, ask for a final written summary of every dollar your broker is getting from the transaction, including referral fees. Oregon rules require this kind of full disclosure to be in your file.

  6. If you spot a payment that was never disclosed to you, you can file a complaint with the Oregon Real Estate Agency. Hidden compensation is one of the most frequently cited violations in OREA discipline cases.

Common questions

Who has to disclose broker compensation to me when I buy a home in Oregon?
Your own broker must disclose every source and amount of money they earn from your purchase under ORS section 696.805. That includes money paid by the seller, the listing broker, lenders, or any other party.
Can my Oregon buyer's broker keep a bonus the listing side offers without telling me?
No, your broker cannot keep extra pay above your buyer representation agreement without your written consent. The post-August 17, 2024 practice changes and OAR 863-015 both require disclosure and your sign-off.
Does my broker have to tell me about referral fees from a lender or title company?
Yes, referral fees from lenders, title companies, home warranty companies, and similar vendors are compensation under Oregon rules. Your broker must disclose them to you in writing.
What can I do if I find out my Oregon broker hid a payment from me?
You can file a complaint with the Oregon Real Estate Agency, which enforces the disclosure rules under ORS chapter 696. Missing compensation disclosures are one of the most frequently cited broker violations.
Should the disclosure be verbal or written when I buy in Oregon?
Written disclosure signed by you is the standard in Oregon and is required in many contexts by OREA's transaction documentation rules. Verbal disclosures are easy to dispute later and do not protect you the same way.

Glossary

2 terms
NAR — National Association of Realtors
The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.

Sources

  1. [1]
  2. [2]

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