Real Estate Agency
Chapter 863
Division 25
PROPERTY MANAGEMENT
863-025-0025
Clients' Trust Account and Security Deposits Account Requirements
(1) All clients’ trust accounts and security deposits trust accounts must be labeled on all bank records and checks as:
(a) “Clients’ Trust Account” or “Client Trust Account”; or
(b) “Clients’ Trust Account – Security Deposits” or “Client Trust Account SD”.
(2) A property manager must open and maintain at least one clients' trust account as defined in OAR 863-025-0010.
(3) Within 10 business days from the date a clients’ trust account is opened, the property manager must notify the Agency using an online process established by the Agency. The notification will include the information required in ORS 696.245, including a copy of the completed and signed “Notice of Clients’ Trust Account and Authorization to Examine”.
(4) Within 10 business days from the date a clients’ trust account is closed or transferred, the property manager must notify the Agency using an online process established by the Agency.
(5) Only the following funds may be held in a clients' trust account:
(a) Funds received by a property manager on behalf of an owner; and
(b) Interest earned, but only if the account is a federally insured interest-bearing account and the property management agreement complies with OAR 863-025-0020(3).
(6) Except as provided in OAR 863-025-0065, a property manager who receives security deposits on behalf of an owner must open and maintain a security deposits account, as defined in OAR 863-025-0010, that is separate from the property manager's clients' trust account.
(7) Except as provided in OAR 863-025-0030 and 863-025-0065, a property manager who receives a security deposit on behalf of an owner must deposit the security deposit into the property manager's security deposits account within five banking days after receipt.
(8) Only the following funds may be held in a security deposits account:
(a) Security deposits as defined in OAR 863-025-0010; and
(b) Interest earned, but only if the account is a federally insured interest-bearing account and the property management agreement complies with OAR 863-025-0020(3) and the tenant has provided the property manager with written approval required in 863-025-0025(11).
(9) A property manager may not allow an owner to be an authorized signer on a clients' trust account or security deposit account and may not allow an owner to deposit, hold or disburse funds in a clients' trust account or security deposit account.
(10) A property manager must be an authorized signer on each clients’ trust account and each security deposits account and is solely responsible for the receipts and disbursements on each bank account.
(11) A property manager may place security deposits received by the property manager in a federally insured interest-bearing security deposits account if:
(a) The property management agreement includes a provision for such an account under OAR 863-025-0020(3);
(b) The tenant or tenants whose security deposits are deposited into such account have provided written approval for such an account; and
(c) The provisions in the property management agreement and the written approval of the tenant specify to whom and under what circumstances the interest earnings will accrue and be disbursed.
(12) A property manager may not utilize any form of debit card issued by financial institutions on a client trust account or security deposits account.
(13) The property manager's interest in or disbursement to the property manager of interest earnings from a clients' trust account or security deposits account is not a commingling of trust funds with a licensee's personal funds.
Statutory/Other Authority: ORS 696.385
Statutes/Other Implemented: ORS 696.241 & ORS 696.280
History:
REA 1-2017, amend filed 11/17/2017, effective 01/01/2018
REA 8-2008, f.12-15-08, cert. ef. 1-1-09
REA 1-2007, f. & cert. ef. 3-12-07
REA 2-2006(Temp), f. 9-11-06, cert. ef. 9-15-06 thru 3-12-07
REA 1-2005, f. 5-5-05, cert. ef. 5-6-05
REA 3-2003, f. 7-28-03, cert. ef. 8-1-03
REA 1-2003(Temp), f. 2-27-03, cert. ef. 2-28-03 thru 8-27-03
REA 1-2002, f. 5-31-02, cert. ef. 7-1-02