Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 2250 - Missouri Real Estate Commission › Chapter 8 - Business Conduct and Practice › Section 20 CSR 2250-8.220 - Escrow or Trust Account and a Separate Property Management Escrow Account Required

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule removes any uncertainty as to how
				  monies received in connection with the management or rental of real estate are
				  required to be maintained. A broker must establish and maintain a separate
				  escrow account as a property management escrow account to act as an operating
				  account for the rental property(ies) managed. A broker must deposit in this
				  account current rents and monies received for payments to third parties. A
				  broker may establish and maintain additional property management escrow
				  accounts as needed, provided the broker complies with this rule and section
				  339.105,
				  RSMo. A broker is also required to deposit into an escrow account, other than
				  the property management escrow account, security deposits and any rent, other
				  than current rent, and to maintain these funds intact. This rule also requires
				  a salesperson to immediately deliver to the broker money received in connection
				  with property management. This rule makes other specific requirements for the
				  handling of escrowed funds.
(1) A broker shall establish and maintain a
				separate escrow account(s), to be designated as a property management escrow
				account(s), for the deposit of current rents and money received from the
				owner(s) or on the owner's(s') behalf for payment of expenses related to
				property management. Before making disbursements from a property management
				escrow account, a broker shall ensure that the account balance for that
				owner's(s') property(ies) is sufficient to cover the disbursements.
(2) All security deposits held by a broker
				shall be maintained, intact, in an escrow account other than the property
				management account(s), pursuant to section
				339.105,
				RSMo, unless the owner(s) have agreed otherwise in writing.
(3) All money received by a broker in
				connection with any property management must be deposited within ten (10)
				banking days to the escrow or trust account maintained by the broker.
(4) A property manager shall immediately
				deliver to the supervising broker all money received in connection with any
				property management.
(5) The
				property management escrow account(s) maintained by the broker shall be an
				account in a bank, savings and loan, or credit union.
(6) Fees or commissions payable to a broker
				must be withdrawn from a property management escrow account at least once a
				month unless otherwise agreed in writing. Any rent paid in advance as a deposit
				for the last month's rent or as rent other than the current month's rent held
				by a broker shall be deposited in the property management escrow account unless
				otherwise agreed to in writing.
(7)
				In addition to the notification required by section 339.105.2, RSMo, each
				broker, upon the request of the commission or its agent, shall consent to the
				examination and audit of the broker's property management escrow account(s) by
				the commission or its agent. As part of the consent, each broker shall execute
				a form presented to him/her by the commission or its agent entitled Consent to
				Examine and Audit Escrow or Trust Account.
(8) Each check written on an escrow account,
				or each corresponding check stub, or other record of disbursement of funds from
				the account and each deposit ticket shall indicate the related transaction.
				Each check written on an escrow account for licensee fees or commission shall
				be made payable to the licensee who is owed the fee or commission or to the
				firm's general operating account.
*Original authority: 339.120, RSMo 1941, amended 1963,
					 1967, 1981, 1988, 1993, 1995, 1999, 2004, 2008 and 339.105, RSMo 1978, amended
					 1981, 1986, 1987, 2003, 2004.