Or. Admin. Code § 863-025-0090

Current through Register Vol. 63, No. 11, November 1, 2024

Section 863-025-0090 - Reconciliation Review

(1) The Agency will conduct clients' trust account reconciliation reviews.

(2) The Agency will provide a property manager with written notice of a clients' trust account reconciliation review at least 10 business days before required information and documentation must be provided to the Agency.

(3) After the Agency reviews the information and documents provided in a reconciliation review, 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 property manager confirming compliance only as to the information and documents provided;

(b) If the information and documents indicate that the property manager may be subject to additional documentation and procedural requirements that were not part of the reconciliation review, the Agency will provide written notice to the property manager detailing the Agency's expectations for compliance on those matters;

(c) If the information and documents demonstrate that the property manager is not in compliance, the Agency will provide written notice to property manager that:

(A) The property manager 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:

(i) Issue an educational letter of advice;

(ii) Impose sanctions on the property manager; or

(iii) Initiate an investigation and not allow additional time for the principal 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 property manager's records are in such a condition that the property manager is placing funds belonging to others at risk, the Agency may immediately initiate an investigation without providing a principal broker with an opportunity to cure noncompliance.

(4) If a property manager does not respond to a reconciliation review within the time period required in the notice, the Agency may initiate an investigation.

(5) The Agency may conduct a reconciliation review:

(a) As part of a regular, routine, and random selection of property manager clients' trust accounts for reconciliation mail-in reviews;

(b) After a compliance review, when the Agency has determined that a property manager was not in compliance and provided the principal broker with an opportunity to cure the non-compliance; and

(c) After an investigation has been initiated.

Or. Admin. Code § 863-025-0090

REA 1-2017, adopt filed 11/17/2017, effective 01/01/2018; REA 1-2022, amend filed 04/27/2022, effective 5/1/2022

Statutory/Other Authority: ORS 696.385

Statutes/Other Implemented: ORS 696.280