OREN-J_February_2015

Oregon Real Estate News-Journal Official Publication of the Oregon Real Estate Agency

Volume 69, Number 1, February 2015

The “Clients’ Trust Account” Issue Gene Bentley, Real Estate Commissioner T his month’s issue of the Oregon Real Estate News- Journal is focused on clients’

chance to fix the problem or forward it for investigation. The recordkeeping requirements for clients’ trust accounts are in place to help licensees meet their legal responsibility to their clients. The monies held in clients’ trust accounts belong to the clients. By maintaining accurate and up-to-date re- cords, licensees can at any time assure their clients, the Agency and themselves that all funds are accounted for. Hopefully, this issue of the Oregon Real Estate News-Journal will assist you in making sure your clients’ trust accounts are in compliance before you are chosen for a mail-in audit.

trust accounts. Some of the most common violations of law the Agency finds relate to clients’ trust accounts. Whether it’s as simple as a failure to name the bank account correctly, or if it’s more serious like conver- sion (in other words, stealing) of clients’ finds, problems with clients’ trust accounts keep our Regulation Division staff busy. A large number of the violations are found through random mail-in audits. De- pending on the severity of the violation, Agency staff will either give the licensee a

Commissioner Gene Bentley

Oregon Real Estate Board Meeting Monday, April 6, 2015, 10:00 a.m. in Salem at the Oregon Real Estate Agency Visit the Real Estate Board webpage for more information.

Oregon Real Estate Agency 1177 Center St. NE Salem, OR 97301 (503) 378-4170 (503) 378-2491 Fax www.oregon.gov/rea

IN THIS ISSUE

Clients’ Trust Account Questions and Answers.............................................. 5 Administrative Actions........................... 7 Reporting Outstanding Checks to Oregon Department of State Lands.... 8

The”Clients’ Trust Account” Issue.......... 1 The Real Estate Industry Should Reevaluate Current Practices ............. 2 Common Violations in Clients’ Trust Account Mail-In Audits......................... 4

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