Current through Register Vol. 62, No. 11, November 1, 2023
Section 863-025-0020 - Property Management Agreements(1) A property manager must not engage in the management of rental real estate without a written, unexpired property management agreement between the owner and the property manager.(2) A property management agreement must include, but is not limited to: (a) The address or legal description of the owner's rental real estate;(b) The duties and responsibilities of the property manager and the owner; (c) The authority and powers given by the owner to the property manager;(d) The term of the agreement and the method for termination;(e) The terms and conditions of the agreement;(f) The management fees, application fees, screening fees, rebates, discounts, overrides and any other form of compensation to be received by the property manager for management of rental real estate including when such compensation is earned and when it will be paid;(g) A description of the monthly statements of accounting the property manager will provide to the owner;(h) The disposition of the property manager's records of the management of the owner's rental real estate after termination of the agreement;(i) Disclosure of the use of employees or a business in which the property manager has a pecuniary interest at the time of the execution of the property management agreement, that will provide services for the owner's property;(j) A statement that the property manager will disclose to the owner, in writing, the property manager's planned use of any employees or a business in which the property manager has a pecuniary interest to provide services for the owner's property, if such employees or business were not disclosed in the property management agreement pursuant to section (2)(i) of this rule;(L) Signatures of the property manager, or a person authorized in section (6) of this rule, and the owner; and(m) The date of the agreement.(3) If the property manager and owner agree to any of the following terms, the terms must be included in the property management agreement: (a) Payment of a referral fee, rent credit or other compensation to a tenant as allowed under ORS 696.290(5);(b) Placement of trust funds received by a property manager in a federally insured interest-bearing clients' trust account or security deposits account as allowed under ORS 696.241(7), including provisions specifying to whom the interest earnings inure as follows: (A) If the interest earnings inure to the benefit of the owner, when such interest earnings will be disbursed;(B) If the interest earnings inure to the benefit of the property manager, that such interest will be disbursed to the property manager within ten calendar days from the date of the bank statement on which such interest is first shown as required in OAR 863-025-0025(8) and (c) Specific charges that will be paid by the owner.(4) Any amendment or addendum to the property management agreement must be in writing and include the identifying code, the date of the amendment, the signature of the property manager and the signatures of all owners who signed the initial property management agreement.(5) Only a principal real estate broker or real estate broker may enter into an agreement, which must be separate from the property management agreement, authorizing the principal broker or real estate broker to represent an owner in the purchase, sale, lease-option or exchange of the rental real estate that must include: (a) The scope of the professional real estate activity;(b) The term of the agreement;(c) The compensation to be paid by the owner to the broker;(d) Signatures of the real estate broker and the owner; and(e) The date of the separate agreement.(6) Only a property manager may negotiate and sign a property management agreement, except that a principal real estate broker engaging in the management of rental real estate may delegate such authority under OAR 863-025-0015(5) to a real estate licensee who is under the supervision and control of the principal real estate broker. (7) The property manager must promptly deliver a legible copy of the fully executed property management agreement, and any addenda or amendments, to the owner.
Or. Admin. R. 863-025-0020REA 1-2002, f. 5-31-02, cert. ef. 7-1-02; REA 1-2003(Temp), f. 2-27-03, cert. ef. 2-28-03 thru 8-27-03; REA 3-2003, f. 7-28-03, cert. ef. 8-1-03; REA 1-2005, f. 5-5-05, cert. ef. 5-6-05; REA 1-2007, f. & cert. ef. 3-12-07; REA 8-2008, f.12-15-08, cert. ef. 1-1-09; REA 1-2017, amend filed 11/17/2017, effective 01/01/2018; REA 2-2022, minor correction filed 08/24/2022, effective 8/24/2022
Statutory/Other Authority: ORS 696.385 & ORS 183.335
Statutes/Other Implemented: ORS 696.280