Broker and real estate agent: What is a principal broker in Oregon?

A principal broker is Oregon's senior-tier real estate license, authorizing the holder to supervise licensed brokers, operate a brokerage, and manage client trust accounts. Upgrading from an entry-level broker license to a principal broker license requires active broker experience, completion of the Brokerage Administration and Sales Supervision (BASS) course, and a passing score on the principal broker exam administered by PSI. The relationship between a broker and REALTOR® designations in Oregon is separate: a principal broker license is issued by the Oregon Real Estate Agency, while the REALTOR® designation comes from joining the National Association of REALTORS® (NAR).

What is a principal broker in Oregon?

A principal broker is the senior-level license holder authorized to supervise brokers, operate a brokerage, and oversee real estate transactions with greater authority than a broker. Oregon uses a two-tier real estate license structure: the broker license is the first tier, and the principal broker license is the supervisory tier above it.

An active broker must be associated with a managing principal broker to conduct professional real estate activity, according to the Oregon Secretary of State license directory^[1]. This supervision requirement means a broker cannot practice independently without principal broker oversight. A principal broker can own and operate a registered brokerage, recruit brokers, and serve as the managing principal broker for the firm.

Oregon's licensing framework differs from states that use "salesperson" or "agent" as official license categories. The principal broker license is the advanced tier for professionals who want to supervise others and operate a brokerage.

Oregon real estate license types and common titles

Oregon issues three real estate license types through the Oregon Real Estate Agency: broker, principal broker, and property manager. An individual can hold only one real estate license at a time, and each license type authorizes a different scope of professional activity.

The broker license is the starting point for real estate practice in Oregon. The principal broker license adds qualifying education and exam requirements beyond the broker license. The property manager license is a separate pathway with its own education and exam requirements.

Several common terms in real estate do not correspond to Oregon license types:

• Real estate agent is a general description for any licensed real estate professional, not an Oregon license category.
• Salesperson is used in other states' licensing frameworks but does not appear in Oregon's system.
• Realtor is a professional association designation, not a state license.
• Commercial transactions fall under the broker license in Oregon.

Oregon's use of the word "agency" in its regulatory title sometimes confuses new licensees.

Eligibility requirements for the principal broker license

You must hold an active Oregon broker license before applying for the principal broker license. Oregon does not allow candidates to skip the broker tier and apply directly for principal broker licensure. The PSI Candidate Information Bulletin^[2] confirms this progression by referencing "a current Oregon broker attempting to become a principal broker" as a distinct candidate category.

In addition to holding an active broker license, candidates must complete the Brokerage Administration and Sales Supervision (BASS) course from an Agency-approved provider. The Oregon Real Estate Agency's approved pre-license schools page^[3] lists BASS as a recognized course and directs candidates to the eLicense provider lookup to find certified providers.

After completing the BASS course, candidates must register for and pass the principal broker exam through PSI.

The Brokerage Administration and Sales Supervision course

The BASS course is the required education component for principal broker candidates, covering the knowledge needed to operate a brokerage and supervise brokers. Course topics include brokerage administration, sales supervision practices, client trust account management, record-keeping requirements, and advertising regulations.

The Oregon Real Estate Agency's approved pre-license schools page^[3] directs candidates to the eLicense provider lookup for certified BASS course providers. The Agency reviews and approves course content but does not guarantee course availability, so candidates should contact providers directly for schedules and enrollment.

Principal broker exam: format and passing score

The principal broker exam consists of two sections: a National section with 75 items scored up to 80 points in 120 minutes, and a State section with 50 items worth 50 points in 75 minutes. A score of 75% is required on both sections to pass, according to the PSI Candidate Information Bulletin^[2].

The principal broker exam differs from the broker exam in the National section. The broker exam has 80 items worth 80 points, while the principal broker exam has 75 items worth 80 points because some national questions are scored at up to two points each. The State section is identical in format across both exams.

The exam fee is $75 per attempt, and registration fees are not refundable or transferable. If you pass only one section, the passing score is valid for 12 months; if the other section is not passed within that time, both sections must be retaken. If you fail any portion, you must wait until the next day to schedule a retake.

How to apply for the principal broker license

The principal broker application process runs through Oregon's eLicense system, with a $300 application fee. This fee matches the broker license application fee listed on the Oregon Real Estate Agency broker licensing page^[4] and in the Secretary of State license directory^[1].

Current Oregon brokers upgrading to principal broker status are exempt from the fingerprinting requirement. The PSI Candidate Information Bulletin^[2] states that fingerprinting is not required for "a current Oregon broker attempting to become a principal broker."

After passing the exam, the license is issued when the background check clears (if applicable), the principal broker adds the new license to the registered business or a new registered business name application is approved, and the Agency completes a final review. The processing time listed in the Secretary of State license directory^[1] is 2 to 6 months.

Principal broker supervision responsibilities

A principal broker's core responsibility is supervising licensed brokers associated with the brokerage and ensuring compliance with Oregon real estate law. This includes overseeing transactions, maintaining proper records, and upholding agency disclosure and advertising requirements.

The Oregon Real Estate Agency's CE course topics page^[5] identifies the subject areas a principal broker must understand, including principal broker supervision responsibilities, clients' trust accounts, record-keeping, advertising regulations, and risk management. These topics reflect the day-to-day obligations of managing a brokerage under Oregon Revised Statute Chapter 696.

Becoming a real estate agent as a principal broker

REALTOR® membership is a voluntary professional designation separate from state licensure. A principal broker can practice real estate in Oregon without joining NAR, but membership provides access to the Multiple Listing Service (MLS), professional standards enforcement, and industry advocacy.

REALTOR® membership requires annual dues and is obtained through a local REALTOR® association.

Next steps after becoming a principal broker

After receiving the principal broker license, the licensee must complete 30 hours of continuing education at the first active renewal. The first renewal requires the 27-hour Principal Broker Advanced Practices (PBAP) course and the 3-hour Law and Rule Required Course (LARRC), according to the Oregon Real Estate Agency CE guide^[6]. Subsequent renewals require the 3-hour LARRC plus 27 hours of electives from certified providers.

The active renewal fee is $300, and the renewal cycle is 24 months for subsequent license periods. The first license period may be shorter, no less than 13 months, because the expiration date falls on the last day of the licensee's birth month, as stated on the Oregon Real Estate Agency broker licensing page^[4].

To begin the upgrade process, verify your active broker license status in eLicense, locate a certified BASS course provider through the eLicense system, and schedule the principal broker exam with PSI.