Or. Admin. R. 863-015-0081

Current through Register Vol. 63, No. 6, June 1, 2024

Section 863-015-0081 - Compliance Reviews and Mail-in Audits

(1) The Agency will provide a principal real estate broker with written notice at least five business days before conducting a compliance review.

(2) A compliance review is completed when the Agency delivers a written notice of completion to the principal real estate broker.

(3) Except as provided in section (4) of this rule, if the Agency determines that a principal real estate broker is not in compliance with ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to 696.870, or OAR chapter 863 after the Agency completes a compliance review, the Agency will allow the principal real estate broker at least 30 days from the date the compliance review is completed to cure the noncompliance without sanction.

(4) Upon completion of a compliance review, if the Agency has reasonable grounds to believe that the funds belonging to others may be missing, funds may have been misappropriated, or that the principal real estate broker's records are in such a condition that the principal real estate broker is placing funds belonging to others at risk the Agency may immediately initiate an investigation without providing a principal real estate broker with an opportunity to cure noncompliance.

(5) The Agency will provide a principal real estate broker with written notice of a mail-in audit at least 30 days before required information and documentation must be provided to the Agency.

(6) After the Agency reviews the information and documents provided in a mail-in audit, the Agency will take one of the following actions:

(a) If the information and documents are in compliance with statutes and rules, the Agency will provide written notice to the principal real estate broker confirming compliance only as to the information and documents provided;

(b) If the information and documents indicate that the principal real estate broker may be subject to additional documentation and procedural requirements that were not part of the mail-in audit, the Agency will provide written notice to the principal real estate broker detailing the Agency's expectations for compliance on those matters;

(c) If the information and documents demonstrate that the principal real estate broker is not in compliance with ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to 696.870, or OAR chapter 863, the Agency will provide written notice to the principal real estate broker that includes:

(A) The principal real estate broker must cure all noncompliance issues and provide information and documentation to the Agency that the noncompliance has been cured within 30 days of the date of the notice; and

(B) If all noncompliance issues are not cured within 30 days, the Agency may impose sanctions on the principal real estate broker or may initiate an investigation and not allow additional time for the principal real estate broker to cure the noncompliance.

(d) If the Agency has reasonable grounds to believe that the funds belonging to others may be missing, funds may have been misappropriated, or that the principal real estate broker's records are in such a condition that the principal real estate broker is placing funds belonging to others at risk, the Agency may immediately initiate an investigation without providing a principal real estate broker with an opportunity to cure noncompliance.

(7) If a principal real estate broker does not respond to a mail-in audit within the time period required in the notice, the Agency may initiate an investigation.

(8) The Agency may conduct a mail-in audit of a principal real estate broker:

(a) As part of a regular, routine and random selection of principal real estate broker clients' trust accounts for mail-in audits;

(b) When the Agency has determined, after a compliance review, that the principal real estate broker was not in compliance and provided the principal real estate broker with an opportunity to cure the non-compliance; and

(c) After an investigation has been initiated.

Or. Admin. R. 863-015-0081

REA 7-2014, f. 4-14-14, cert. ef. 4-28-14

Stat. Auth.: ORS 183.335 & 696.385

Stats. Implemented: ORS 696.280