5.2 HB 3137, Advertising & Real Estate Teams
Key Takeaways
- House Bill 3137 (2025 session) takes effect January 1, 2026 and reshapes supervision, teams, and timeshare sales in Oregon
- It creates the 'Managing Principal Broker' designation: the principal broker who registers a business name and bears ultimate supervisory responsibility for all associated brokers and branches
- It creates a new 'Timeshare Sales Agent' license for selling timeshares without a full broker license, supervised by a Managing Principal Broker
- Real estate teams are now recognized and regulated: a team must give a written team disclosure before a listing or buyer agreement and cannot use 'realty'/'real estate' in its team name
- All advertising must clearly identify the registered business name (brokerage); a licensee may not advertise under a personal name alone in a way that hides the brokerage
HB 3137: The 2026 Overhaul
House Bill 3137, passed in the 2025 legislative session, takes effect January 1, 2026 and is the single biggest recent change to Oregon license law. Because the exam is refreshed for 2026, expect several state-portion items on it. Three pieces matter most.
1. The Managing Principal Broker (MPB)
HB 3137 creates a formal designation: the Managing Principal Broker is the principal broker who has registered or assumed responsibility for a registered business name (RBN) and who bears ultimate responsibility for the professional real estate activity of every associated broker and branch office.
| Feature of the MPB | Detail |
|---|---|
| Who | A principal broker tied to a registered business name |
| Responsibility | Ultimate supervision of all associated brokers and branches |
| Required documents | Written supervisory agreements with associated principal brokers |
| New planning duty | Plans must include a supervision/control plan and succession planning |
Exam point: Before HB 3137, a business name simply had "a" principal broker; now the law names a single Managing Principal Broker who is accountable for the whole RBN and must keep written supervisory and succession plans.
2. The Timeshare Sales Agent license
HB 3137 creates a new, limited license so a person can sell timeshares without earning a full broker license. Starting January 1, 2026, anyone selling or offering to sell timeshares in Oregon must hold a broker, principal broker, or timeshare sales agent license.
| Timeshare Sales Agent | Detail |
|---|---|
| Scope | May sell or offer to sell timeshares only |
| Supervision | Must be supervised by a Managing Principal Broker |
| Why created | Closes the gap where timeshare sellers operated without clear licensure |
Trap: A Timeshare Sales Agent cannot list homes, represent buyers, or do general brokerage — the license is narrow.
3. Real estate teams
HB 3137 for the first time recognizes and regulates "real estate teams" operating under a registered business name. Key rules:
- The Managing Principal Broker must approve the formation of a team.
- A team must give the client a written team disclosure before entering a listing agreement or a buyer representation agreement.
- A team may not name itself using "realty," "real estate," or a name already registered to another business — that prevents a team from masquerading as an independent brokerage.
Worked example: "Summit Realty Team" is not an allowed team name under HB 3137 because it uses "Realty." "The Summit Group at XYZ Brokerage" is acceptable because it avoids the prohibited words and ties the team to its brokerage.
Oregon Advertising Rules
Oregon's advertising rules sit in ORS 696 and OAR Chapter 863 and are tested every cycle. The single most important principle: advertising must make clear who the licensed brokerage is.
| Advertising rule | What it requires |
|---|---|
| Brokerage identification | All advertising must clearly identify the registered business name (the brokerage) |
| No blind ads | A "blind ad" that hides that a licensee/brokerage is involved is prohibited |
| Personal name use | A licensee may use their own name, but not in a way that conceals the supervising brokerage |
| Truthful claims | No false, misleading, or deceptive statements about property or services |
| Team names (2026) | Must follow HB 3137 team-naming limits (no "realty"/"real estate") |
Exam trap: An ad that lists only the agent's cell number and personal logo, with no brokerage name, violates the brokerage-identification rule. The fix is to add the registered business name to the advertisement.
Internet and social media
The same rules apply online. A licensee's website, social media listing posts, and online profiles must disclose the brokerage. Abbreviations are fine only if the brokerage is still identifiable; a logo-only post that hides the brokerage is a blind ad.
Who Supervises Whom After HB 3137
The supervision chain is a favorite exam topic, and HB 3137 sharpens it:
| Licensee | Supervised by | May supervise |
|---|---|---|
| Broker (entry level) | A principal broker | No one |
| Principal Broker | The Managing Principal Broker of the RBN (by written agreement) | Associated brokers |
| Managing Principal Broker | Ultimately accountable for the RBN | All associated brokers, principal brokers, branches |
| Timeshare Sales Agent | A Managing Principal Broker | No one |
Worked example: A brokerage with three branch offices designates one Managing Principal Broker. Each branch may have its own principal broker, but they operate under written supervisory agreements with the MPB, who holds ultimate responsibility and must maintain a succession plan in case they leave.
Putting HB 3137 on the Exam
When a 2026 fact pattern mentions a person responsible for an entire registered business name, the answer is Managing Principal Broker. When it mentions selling only timeshares under supervision, the answer is Timeshare Sales Agent. When it mentions a group of agents marketing under a shared name, apply the team disclosure and team-naming rules. And whenever advertising appears, check that the brokerage business name is disclosed.
Key principle: The three HB 3137 nouns — Managing Principal Broker, Timeshare Sales Agent, and real estate team — plus the brokerage-identification advertising rule cover the bulk of the 2026 update questions. Tie each scenario to the right noun and you will bank these points.
Under HB 3137 (effective January 1, 2026), what is a 'Managing Principal Broker' in Oregon?
Which team name would violate Oregon's HB 3137 team-naming rules?
An Oregon licensee runs a social media ad showing only their personal logo and cell number, with no mention of the brokerage. What is the problem?