Or. Admin. Code § 836-080-0310

Current through Register Vol. 63, No. 10, October 1, 2024

Section 836-080-0310 - Definitions

As used in OAR 836-080-0305 to 836-080-0370, unless the context requires otherwise:

(1) A person "affiliated" with a title company means a person who controls, is controlled by, or is under common control with the title company; or a person who is an owner, director, officer or employee of such a person and acts in such representative capacity. As used in this section, an owner is a person who owns or controls a ten percent or more interest.

(2) "Intermediary" means:

(a) A person who is engaged to any extent in any of the following business activities, other than a title company or a person affiliated with the title company giving the thing of value:

(A) Acting as an agent, broker, representative or attorney in fact or at law of a person who buys or sells an interest in real property, or who lends or borrows money secured by an interest in real property;

(B) Buying, selling or exchanging interests in real property;

(C) Developing or subdividing real property;

(D) Building residential or commercial structures on real property;

(E) Making loans secured by interests in real property;

(F) Auctioning the sale of real property;

(G) Accommodating or facilitating exchanges in real property; or

(H) Providing real property transaction settlement services.

(b) A person who is an owner, director, officer or employee of a person described in subsection (2)(a) of this rule;

(c) A individual who resides in the same household of an individual described in subsection (2)(a) of this rule; or

(d) A trade association of persons described in subsection (2)(a) of this rule.

(3) "Give" means to transfer to another person; or cause another person to receive, retain, use or otherwise benefit from; without receiving equivalent consideration in return.

(4) "Net cost to the title company" means the actual costs directly incurred by the title company to give a thing of value to an intermediary, less any money received by the title company from an intermediary as payment or reimbursement for the thing of value within 30 calendar days after the intermediary received the thing of value, except for the following costs:

(a) Fixed operating costs:

(b) Labor costs; and

(c) Reasonable compensation for the use of an employee's private motor vehicle.

(5) "Thing of value" means anything that has a monetary value including but not limited to any of the following:

(a) An advertisement, which for purposes of this section, without limitation:

(A) Means a representation about any product, service, equipment, facility or activity or any person who makes, distributes, sells, rents, leases or otherwise makes available such a product, service, equipment, facility or activity, when the representation:

(i) Is communicated to a person that, to any extent, by content or context, informs the recipient about such a product, service, equipment, facility or activity;

(ii) Recognizes, honors or otherwise promotes such a product, service, equipment, facility or activity; or

(iii) Invites, advises, recommends or otherwise solicits a person to participate in, inquire about, purchase, lease, rent or use such a product, service, equipment, facility or activity.

(B) Includes a representation promoting only an intermediary, promoting only a title company through the use of a testimony or endorsement by an intermediary, or promoting both an intermediary and a title company; and

(C) Includes a display of pictures of intermediaries purporting to identify intermediaries that have referred clients to the title company;

(b) The creation of a compensating balance, which for purposes of this section means the depositing of funds in a financial institution for the purpose of inducing the institution to extend credit or loan funds to any person other than the depositor;

(c) An extension of a line of credit, which for purposes of this section means the extension of any credit outside of an open account for the ordinary services of a title company, but does not include the acceptance of an indemnity as to unfiled construction liens that are insured against under a title insurance policy;

(d) A monetary advance, which for purposes of this section means the advance of funds for the purpose of paying an obligation of an intermediary or an obligation that a financial institution requires to be paid, other than payment of governmental recording, search or filing fees, and payment at the request of the escrow agent or financial institution of taxes and assessments prior to the completion of the related sale, lease or loan transaction;

(e) A product;

(f) A service; or

(g) The use of a facility.

(6) "Trade association" means an association of persons, a majority of whom are intermediaries. The term does not include a chamber of commerce or an economic development association.

(7) "Title company" means:

(a) A title insurer;

(b) A title insurance agent; or

(c) A person who is an owner, director, officer, or employee of a title insurer or title insurance agent and acts in such representative capacity. As used in this subsection, an owner means a person who owns or controls a ten percent or more interest in the title insurer or title insurance agent.

Or. Admin. Code § 836-080-0310

IC 3-1980, f. 7-7-80, ef. 8-1-80; ID 11-1988, f. & cert. ef. 6-14-88; ID 9-1996, f. 6-25-96, cert. ef. 7-1-96

Stat. Auth.: ORS 731.244

Stats. Implemented: ORS 746.045, 746.055, 746.160 & 746.240