OAR 863-025-0065: Deposits and Funds Received

(1) When a property management agreement and a corresponding lease or rental agreement provide that the security deposit will be transferred to and held by the owner, the security deposit funds must be: (a) Deposited in the clients' trust account and disbursed to the owner in the month in which they are received; or (b) If the funds are a check made payable to the owner, delivered to the owner within five banking days. (2) When a property management agreement provides that any other checks made payable to the owner be transferred to the owner, the check must be delivered to the owner within five banking days. (3) For checks made payable to the owner and received under section (1) and (2) of this rule, the property manager must also keep the following information: (a) Date received, (b) Name of payor, (c) Purpose of payment, (d) Identifying code, (e) Date delivered to owner, and (f) Documentation of delivery to the owner. (4) All funds, whether in the form of money, checks, or money orders belonging to others and accepted by any property manager while engaged in property management activity, must be deposited prior to the close of business of the fifth banking day following the date of the receipt of the funds into a clients' trust account or security deposits account as defined in OAR 863-025-0010 and established by the property manager under ORS 696.241. The property manager must account for all funds received. (5) Any person employed by the property manager must promptly transmit to the property manager any money, checks, money orders, or other consideration and any documents received while engaged in property management activity. (6) A property manager may not deposit any funds received on behalf of an owner in the property manager's personal account or commingle any such funds received with personal funds of the property manager. (7) Except for funds received pursuant to OAR 863-025-0050(3) and 863-025-0027(7), for each deposit made under ORS 696.241, a property manager must obtain a deposit slip and make a written notation of the owner's identifying code assigned to the property management agreement on the deposit slip. As used in this rule, “deposit slip” means an independently verifiable third party document created by the third party at the time of the deposit. (8) A property manager must maintain a complete record of all funds or other consideration received in the property manager's property management activity. This record must show from whom the funds or other consideration was received, the date of the receipt, the place and date of deposit, and, the final disposition of the funds or other consideration.