Oregon Administrative Rules › Chapter 863 - REAL ESTATE AGENCY › Division 25 - PROPERTY MANAGEMENT › Section 863-025-0010 - Definitions

Current through Register Vol. 63, No. 7, July 1, 2024
In addition to the definitions used in ORS
				696.010 and OAR
				863-015-0120, as used in OAR 863-025-0015  to 863-025-0080, unless the context
				requires otherwise:
(1) "Agency" means
			 the Real Estate Agency.
(2) "Audit
			 trail" means a documented history of a financial transaction by which the
			 transaction can be traced to its source.
(3) "Bank" is defined in ORS
			 696.010.
(4) "Banking day" means each day a bank is
			 required to be open for the normal conduct of its business but does not include
			 Saturday, Sunday, or any legal holiday under ORS
			 187.010.
(5) "Business day" is defined in
			 ORS
			 696.010.
(6) "Clients' Trust Account" means a
			 federally insured bank account labeled as "Clients' Trust Account" or "Client
			 Trust Account" on all bank records and checks that is established and
			 maintained by a property manager, acting on behalf of an owner under a property
			 management agreement, for depositing, holding and disbursing funds received by
			 the property manager on behalf of an owner, including application fees and
			 application screening fees that is subject to the provisions of ORS
			 696.241.
(7) "Compliance review" means an Agency
			 review of a property manager's records and procedures for the purpose of
			 educating the property manager on statutes and rules.
(8) "Cure noncompliance" means a property
			 manager's acts that resolve the property manager's failure to comply with
			 statutory and rule requirements.
(9) "Employee" means a non-licensed
			 individual employed by a property manager for wages or a salary.
(10) "Identifying code" means a unique series
			 of letters and/or numbers assigned by a property manager to a property
			 management agreement at the time the agreement is signed by the parties and
			 used on all transactions and records to reference the agreement. A property
			 manager may use a supplemental unique series of letters and/or numbers on
			 transactions and records if the property manager establishes a clear audit
			 trail to a specific property management agreement and to the original
			 identifying code.
(11)
			 "Investigation" means an Agency-initiated investigation of a property manager
			 that may result in administrative actions against the licensee.
(12) "Licensed property manager" means
			 "licensed real estate property manager" as defined in ORS
			 696.010.
(13) "Owner" means a person or persons who
			 own rental real estate that is managed by a property manager.
(14) "Principal broker" means a "principal
			 real estate broker" as defined in ORS
			 696.010.
(15) "Property management agreement" is
			 defined in ORS
			 696.010.
(16) "Property manager" means a "Real estate
			 property manager" as defined in ORS
			 696.010.
(17) "Reconciliation review" means a review
			 of a property manager's clients' trust account reconciliation information and
			 documents for compliance with OAR 863-025-0028.
(18) "Records" and "property management
			 records" mean a complete and adequate documentation of the management of rental
			 real estate.
(19) "Security
			 Deposit" means a conditionally refundable payment or deposit of funds, however
			 designated, the primary function of which is to secure the performance of a
			 rental or lease agreement or any part of a rental or lease agreement.
(20) "Security Deposits Account"
			 means a federally insured clients' trust account labeled as "Clients' Trust
			 Account - Security Deposits" or "Client Trust Account SD" on all bank records
			 and checks that is established and maintained by a property manager, acting in
			 a fiduciary capacity on behalf of an owner under a property management
			 agreement, for depositing, holding and disbursing security deposit funds that
			 is subject to the provisions of ORS
			 696.241.
(21) "Sufficient funds" or
			 "sufficient credit balance" means an amount of funds on an owner's ledger or a
			 tenant's ledger that is equal to or greater than the amount of a planned
			 disbursement from a clients' trust account or a security deposits account but
			 which must not include any security deposits in a security deposits trust
			 account that are required to be held pending the termination of a rental
			 agreement. Only funds belonging to the owner or tenant on whose behalf the
			 disbursement is planned may be considered in determining if there are
			 sufficient funds or a sufficient credit balance.
Statutory/Other Authority: ORS
				  696.385
Statutes/Other Implemented: ORS
				  696.010