- Each principal real estate broker must maintain in the state one or more separate bank accounts that are designated a client trust account
- All trust funds received or handled by the broker and the real estate licensees subject to his/her supervision must be placed in a licensed neutral escrow depository unless otherwise provided by a written agreement signed by all persons with interest in the funds
- Principal real estate broker must file with Real Estate Agency statement identifying the name of the banks, account numbers, and names for each client trust account
- If principal real estate broker maintains a separate client trust account in a branch office, a separate bookkeeping system shall be maintained in the branch office provided a copy of the records must also be maintained in the main office of the broker.
- Earnings in an interest bearing account shall not inure to the benefit of the principal real estate broker unless expressly approved in writing before the deposit is made by all interested parties.
- If expressly approved in writing before the deposit is made by all interested parties, interest can be distributed to organizations and individuals for first time home buying assistance and for the development of affordable housing.
- Principal real estate broker is not entitled to any part of any interest until the transaction is completed or terminated. The question of the disposition of forfeited EM shall be negotiated between the principal real estate broker and the seller at the time of the execution of the listing agreement or the purchase agreement.
ORS 696.245 – Proscribes the form of notice to be given to a bank when opening a client trust account.
Principal broker must reconcile each clients’ trust account at least once each month. Reconciliation must comply with the following:
Reconciliation must have the following components:
- Bank statement balance, adjusted for outstanding checks and other reconciling bank items
- Balance of receipts and disbursements journal or check book register as of the bank statement closing date
- Sum of all balances of the individual trust account ledgers as of the bank statement closing date
- Balance of each component of the reconciliation must be equal to and reconciled with each other
- Principal broker must verify, sign and date the reconciliation when completed
- Outstanding checks must be listed by check number, issue date, payee and amount
- Principal broker must preserve and file in logical sequence the reconciliation worksheet, bank statement and all supporting documents