Or. Admin. R. 863-025-0010 - Definitions

In addition to the definitions used in ORS 696.010 and OAR 863-015-0120, as used in OAR 863-025-0015 to 863-025-0080, unless the context requires otherwise:

(1) "Agency" means the Real Estate Agency.

(2) "Audit trail" means a documented history of a financial transaction by which the transaction can be traced to its source.

(3) "Bank" is defined in ORS 696.010.

(4) "Banking day" means each day a bank is required to be open for the normal conduct of its business but does not include Saturday, Sunday, or any legal holiday under ORS 187.010.

(5) "Business day" is defined in ORS 696.010.

(6) "Clients' Trust Account" means a federally insured bank account labeled as "Clients' Trust Account" or "Client Trust Account" on all bank records and checks that is established and maintained by a property manager, acting on behalf of an owner under a property management agreement, for depositing, holding and disbursing funds received by the property manager on behalf of an owner, including application fees and application screening fees that is subject to the provisions of ORS 696.241.

(7) "Compliance review" means an Agency review of a property manager's records and procedures for the purpose of educating the property manager on statutes and rules.

(8) "Cure noncompliance" means a property manager's acts that resolve the property manager's failure to comply with statutory and rule requirements.

(9) "Employee" means a non-licensed individual employed by a property manager for wages or a salary.

(10) "Identifying code" means a unique series of letters and/or numbers assigned by a property manager to a property management agreement at the time the agreement is signed by the parties and used on all transactions and records to reference the agreement. A property manager may use a supplemental unique series of letters and/or numbers on transactions and records if the property manager establishes a clear audit trail to a specific property management agreement and to the original identifying code.

(11) "Investigation" means an Agency-initiated investigation of a property manager that may result in administrative actions against the licensee.

(12) "Licensed property manager" means "licensed real estate property manager" as defined in ORS 696.010.

(13) "Owner" means a person or persons who own rental real estate that is managed by a property manager.

(14) "Principal broker" means a "principal real estate broker" as defined in ORS 696.010.

(15) "Property management agreement" is defined in ORS 696.010.

(16) "Property manager" means a "Real estate property manager" as defined in ORS 696.010.

(17) "Reconciliation review" means a review of a property manager's clients' trust account reconciliation information and documents for compliance with OAR 863-025-0028.

(18) "Records" and "property management records" mean a complete and adequate documentation of the management of rental real estate.

(19) "Security Deposit" means a conditionally refundable payment or deposit of funds, however designated, the primary function of which is to secure the performance of a rental or lease agreement or any part of a rental or lease agreement.

(20) "Security Deposits Account" means a federally insured clients' trust account labeled as "Clients' Trust Account - Security Deposits" or "Client Trust Account SD" on all bank records and checks that is established and maintained by a property manager, acting in a fiduciary capacity on behalf of an owner under a property management agreement, for depositing, holding and disbursing security deposit funds that is subject to the provisions of ORS 696.241.

(21) "Sufficient funds" or "sufficient credit balance" means an amount of funds on an owner's ledger or a tenant's ledger that is equal to or greater than the amount of a planned disbursement from a clients' trust account or a security deposits account but which must not include any security deposits in a security deposits trust account that are required to be held pending the termination of a rental agreement. Only funds belonging to the owner or tenant on whose behalf the disbursement is planned may be considered in determining if there are sufficient funds or a sufficient credit balance.

Notes

Or. Admin. R. 863-025-0010

REA 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 1-2007, f. & cert. ef. 3-12-07; REA 8-2008, f.12-15-08, cert. ef. 1-1-09; REA 8-2014, f. 4-14-14, cert. ef. 4-28-14; REA 1-2017, amend 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 696.010