Oregon Revised Statutes Chapter 696 § 696.241 — Clients’ trust accounts; commingling of funds; branch trust account; interest

Clients’ trust accounts; commingling of funds; branch trust account; interest earnings on trust account; when broker entitled to earnest money; funds not subject to execution; rules. (1) As used in this section, “trust funds” means money belonging to others that is received or handled by a licensed real estate property manager or principal real estate broker in the course of conducting professional real estate activity and in the real estate licensee’s fiduciary capacity. (2) A licensed real estate property manager, or a managing principal broker who engages in the management of rental real estate, shall open and maintain in this state one or more separate federally insured bank accounts that are designated clients’ trust accounts under ORS 696.245. A managing principal broker who engages in the management of rental real estate or a licensed real estate property manager shall deposit in a clients’ trust account all trust funds received or handled by the managing principal broker, licensed real estate property manager or real estate licensees, other than a timeshare sales agent, subject to the supervision of the managing principal broker. (3)(a) A managing principal broker who receives or handles trust funds and does not deposit the trust funds in a licensed neutral escrow depository as described in paragraph (b) of this subsection shall open and maintain in this state one or more separate federally insured bank accounts that are designated clients’ trust accounts under ORS 696.245. Pursuant to written agreement of all parties to a real estate transaction having an interest in the trust funds, the managing principal broker shall immediately place the trust funds in a clients’ trust account. (b) A managing principal broker may deposit trust funds in a licensed neutral escrow depository in this state. (4) A managing principal broker or licensed real estate property manager who opens a clients’ trust account under subsection (2) or (3) of this section, or to whom ownership of a clients’ trust account is transferred, is liable for all deposits and disbursements made using the clients’ trust account until the principal real estate broker or licensed real estate property manager closes the account or transfers ownership of the account. (5) A principal real estate broker or licensed real estate property manager may not commingle any other funds with the trust funds held in a clients’ trust account, except for: (a) Earned interest on a clients’ trust account as provided in subsections (7) and (8) of this section; and (b) Earned compensation as provided in subsection (9) of this section. (6) If a licensed real estate property manager or managing principal broker maintains a separate clients’ trust account in a branch office, a separate bookkeeping system must be maintained in the branch office and a copy of the records required under ORS