La. Admin. Code tit. 46 § LXVII-2605

Current through Register Vol. 50, No. 12, December 20, 2024

Section LXVII-2605 - Trust Funds, Deposits, and Accounts for Property Management

A. Licensees engaged in property management on behalf of another shall open and maintain accounts in accordance with Chapter 27 of the rules and regulations of the commission.

B. All security deposit and rental trust funds shall not be withdrawn for any purpose except:

1. upon the mutual written consent of all parties having an interest in the funds;

2. upon court order;

3. to deposit funds into the registry of the court in a concursus proceeding;

4. to disburse funds upon a reasonable interpretation of the contract that authorizes the broke to hold such funds, provided that the disbursement is not made until 10 days after the broker has notified all parties and licensees in writing;

5. to cover the payment of service charges on security deposit and rental trust accounts;

6. upon approval by the commission in connection with the sale or acquisition of a licensed entity;

7. to comply with the provision of 9:3251 or any other state or federal statute governing the transfer of rents, security deposits or other escrow funds.

C. Deposits shall be disbursed within 30 days of an agreement between the principles in a real estate transaction.

D. A licensee who receives funds on behalf of another for property management shall maintain a ledger for each property managed. This ledger must clearly document all funds received and disbursed to, and on behalf of, the property owner.

E. A licensee who accepts cash payments on behalf of an owner must retain written receipts. These receipts must include at minimum the date, the amount, the property address, the reason for the payment, the tenants name, and the name and signature of the licensee or employee who received the funds on behalf of the brokerage.

La. Admin. Code tit. 46, § LXVII-2605

Promulgated by the Office of the Governor, Real Estate Commission, LR 45422 (3/1/2019).

AUTHORITY NOTE: Promulgated in accordance with R.S. 37:1431 etseq.