Current through Register Vol. 63, No. 9, September 1, 2024
(1) A property manager must not engage in the
management of rental real estate without a written, unexpired property
management agreement between the owner and the property manager.
(2) A property management agreement must
include, but is not limited to:
(a) The
address or legal description of the owner's rental real estate;
(b) The duties and responsibilities of the
property manager and the owner;
(c) The authority and powers given by the
owner to the property manager;
(d)
The term of the agreement and the method for termination;
(e) The terms and conditions of the
agreement;
(f) The management fees,
application fees, screening fees, rebates, discounts, overrides and any other
form of compensation to be received by the property manager for management of
rental real estate including when such compensation is earned and when it will
be paid;
(g) A description of the
monthly statements of accounting the property manager will provide to the
owner;
(h) The disposition of the
property manager's records of the management of the owner's rental real estate
after termination of the agreement;
(i) Disclosure of the use of employees or a
business in which the property manager has a pecuniary interest at the time of
the execution of the property management agreement, that will provide services
for the owner's property;
(j) A
statement that the property manager will disclose to the owner, in writing, the
property manager's planned use of any employees or a business in which the
property manager has a pecuniary interest to provide services for the owner's
property, if such employees or business were not disclosed in the property
management agreement pursuant to section (2)(i) of this rule;
(k) An identifying code;
(L) Signatures of the property manager, or a
person authorized in section (6) of this rule, and the owner; and
(m) The date of the
agreement.
(3) If the
property manager and owner agree to any of the following terms, the terms must
be included in the property management agreement:
(a) Payment of a referral fee, rent credit or
other compensation to a tenant as allowed under ORS
696.290(5);
(b) Placement of trust funds received by a
property manager in a federally insured interest-bearing clients' trust account
or security deposits account as allowed under ORS
696.241(7),
including provisions specifying to whom the interest earnings inure as follows:
(A) If the interest earnings inure to the
benefit of the owner, when such interest earnings will be disbursed;
(B) If the interest earnings inure to the
benefit of the property manager, that such interest will be disbursed to the
property manager within ten calendar days from the date of the bank statement
on which such interest is first shown as required in OAR 863-025-0025(8) and
(c) Specific charges
that will be paid by the owner.
(4) Any amendment or addendum to the property
management agreement must be in writing and include the identifying code, the
date of the amendment, the signature of the property manager and the signatures
of all owners who signed the initial property management agreement.
(5) Only a principal real estate broker or
real estate broker may enter into an agreement, which must be separate from the
property management agreement, authorizing the principal broker or real estate
broker to represent an owner in the purchase, sale, lease-option or exchange of
the rental real estate that must include:
(a)
The scope of the professional real estate activity;
(b) The term of the agreement;
(c) The compensation to be paid by the owner
to the broker;
(d) Signatures of
the real estate broker and the owner; and
(e) The date of the separate
agreement.
(6) Only a
property manager may negotiate and sign a property management agreement, except
that a principal real estate broker engaging in the management of rental real
estate may delegate such authority under OAR 863-025-0015(5) to a real estate
licensee who is under the supervision and control of the principal real estate
broker.
(7) The property manager
must promptly deliver a legible copy of the fully executed property management
agreement, and any addenda or amendments, to the owner.
Statutory/Other Authority: ORS
696.385 & ORS
183.335
Statutes/Other Implemented: ORS
696.280
