OAR 863-027-0020: Progressive Discipline of Licensees

(1) The goal of progressive discipline is to correct a licensee's inappropriate behavior, deter the licensee from repeating the conduct, and educate the licensee to improve compliance with applicable statutes and rules. Progressive discipline means the process the Real Estate Agency follows, which may include using increasingly severe steps or measures against a licensee when a licensee fails to correct inappropriate behavior or exhibits subsequent instances of inappropriate behavior. (2) The Real Estate Commissioner will evaluate all relevant factors to determine whether to issue a non-disciplinary educational letter of advice or to discipline a licensee through reprimand, suspension or revocation under ORS 696.301, including but not limited to: (a) The nature of the violation; (b) The harm caused, if any; (c) Whether the conduct was inadvertent or intentional; (d) The licensee's experience and education; (e) Whether the licensee's conduct is substantially similar to conduct or an act for which the licensee was disciplined previously; (f) Any mitigating or aggravating circumstances; (g) The licensee's cooperation with the investigation; (h) Any Agency hearing orders addressing similar circumstances; and (i) The licensee's volume of transactions. (3) An Agency manager or authorized Agency staff member may issue a non-disciplinary educational letter of advice to a licensee which includes, but is not limited to, the following statements: (a) The Commissioner has determined not to pursue disciplinary action against the licensee; and (b) The letter is the result of an investigation and closes the investigation; and (c) The letter is not disciplinary in nature and will not appear in the agency's disciplinary records; and (d) The purpose of the letter is to educate the licensee; and (e) The letter will be expunged from the agency's records six years from the date of issuance. (4) A reprimand is the maximum disciplinary action the commissioner may issue against a licensee unless the licensee has committed an act or conduct that constitutes grounds for discipline under ORS 696.301 and such act or conduct: (a) Results in significant damage or injury; (b) Exhibits incompetence in the performance of professional real estate activity; (c) Exhibits dishonesty or fraudulent conduct; or (d) Repeats conduct or an act that was substantially similar to conduct or an act for which the real estate licensee was disciplined previously. (5) The commissioner may impose suspension or revocation only if the licensee has committed an act that constitutes grounds for discipline under ORS 696.301 and such act also meets the requirements of 696.396(2)(c).