Or. Admin. R. 863-025-0070 - Termination, Transfer of Property Management

(1) If a property management agreement is terminated, the property manager must terminate property management activity pursuant to the terms of the property management agreement and this rule.

(2) Not later than 60 days after the effective date of the termination, the property manager must:

(a) Disburse all obligated funds to the party or parties entitled to the funds; and

(b) Provide the owner with the following:

(A) A final accounting of the owner's ledger account;

(B) All funds belonging to the owner as shown on the owner's ledger, unless the owner directs the property manager, in writing, to transfer the funds to another property manager, escrow agent or person;

(C) An accounting of all security deposits and fees held for tenants;

(D) All tenant security deposits and fees held for tenants, unless the owner directs the property manager, in writing, to transfer the security deposits and fees to another property manager, escrow agent or person;

(E) Copies of all current tenant rental or lease agreements, unless the owner waives such requirement in writing or directs the property manager, in writing, to provide such documents to another property manager, escrow agent or person; and

(F) A notice the property manager may destroy the required records of the property management activity performed after six years.

(3) No later than the next calendar day after the effective date of the termination, a property manager must notify each tenant for whom the property manager holds a security deposit that:

(a) The security deposit and all fees held for the tenant will be transferred to the owner or, if applicable, to another property manager, escrow agent or person; and

(b) The name and address of the owner, other property manager, escrow agent or person to whom these deposits will be transferred;

(4) A property manager may not expend any tenant security deposits for payment of any expenses or fees not otherwise allowed by the tenant's rental or lease agreement.

(5) If a tenant's termination of tenancy occurs simultaneously with or prior to the effective date of termination of the property management agreement, a property manager must complete any final accounting, inspection or other procedures within the time required by:

(a) The tenant rental or lease agreement;

(b) The Residential Landlord Tenant Act; and

(c) The property management agreement, unless the owner otherwise directs in writing.

(6) A property manager must transfer and assign by written agreement any interest of the property manager in a rental or lease agreement to the owner or to a new property manager.

Notes

Or. Admin. R. 863-025-0070

REA 3-1987, f. 12-3-87, ef. 1-1-88; REA 3-1989, f. 12-13-89, cert. ef. 2-1-90; REA 2-1991, f. 11-5-91, cert. ef. 1-1-92; REA 1-2002, f. 5-31-02, cert. ef. 7-1-02, Renumbered from 863-010-0225; 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

Stat. Auth.: ORS 183.335 & 696.385

Stats. Implemented: ORS 696.280 & 696.361