Oregon Administrative Rules
Chapter 863 - REAL ESTATE AGENCY
Division 50 - ESCROW AND ESCROW AGENT REGULATIONS
Section 863-050-0050 - Accounting Controls; Record Inspection
Universal Citation: OR Admin Rules 863-050-0050
Current through Register Vol. 63, No. 9, September 1, 2024
(1) An escrow agent must establish and maintain the escrow business records described in this rule as required records.
(a) Individual ledgers must be
established to record the accounting for each escrow.
(A) The ledgers must be identified by the
escrow number and the names of the principals.
(B) Entries must record each receipt and
disbursement of escrow funds and must be posted in date order on, or as of, the
date they occur.
(C) Entries must
show the amount of the entry, the date of the entry, the receipt number, and
the check number or wire identification number and must identify from or to
whom funds were received or disbursed.
(D) Each ledger must show and record a
running balance of funds held in the individual escrow, on a daily basis, as
entries occur.
(E) If an escrow
agent uses more than one escrow trust bank account, each ledger must identify
the account in which its escrow funds are deposited.
(b) A journal or register must be established
for each escrow trust bank account and must record all receipts and
disbursements of escrow funds.
(A) Entries
must be posted in date order and record a running book balance for total escrow
liability of the agent in each escrow trust account, on a daily
basis.
(B) If entries are posted in
batch totals, backup documentation adequate to identify the individual items in
the batch and verify the total must be maintained.
(2) An escrow agent must reconcile each escrow trust account within 30 days of the bank statement date pursuant to the requirements contained in this section.
(a) The reconciliation must have three
components, which must be contained in a single reconciliation document:
(A) The bank statement balance, adjusted for
outstanding checks and other reconciling bank items;
(B) The balance of the receipts and
disbursements journal or check book register as of the bank statement closing
date; and
(C) The sum of all the
balances of the individual escrow ledgers as of the bank statement closing
date.
(b) The balances of
each component of the reconciliation must be equal to and reconciled with each
other. If any adjustment is needed, the adjustment must be clearly identified
and explained on the reconciliation document;
(c) The escrow agent or an authorized officer
in direct control of the agent's escrow operations must date and sign the
reconciliation document upon completion, attesting to the accuracy and
completeness of the reconciliation;
(d) Outstanding checks must be listed by
check number, issue date, payee, and amount; and
(e) The escrow agent must preserve and file
in logical sequence the reconciliation document, bank statement, and all
supporting documentation including, but not limited to, copies of the receipts
and disbursements journal or check book register and a listing of each
individual escrow ledger with a balance as of the bank statement closing
date.
(3) An escrow agent must take corrective action to resolve all adjustments in a reconciliation before the next reconciliation or document the good faith efforts the escrow agent has taken to resolve the adjustment.
(4) In addition to the maintenance and production requirements contained in ORS 696.534, an escrow agent must comply with the following requirements:
(a) An
escrow agent using the computer services of another firm must file a continuing
authorization with the Real Estate Commissioner and the other firm authorizing
the Commissioner to examine or audit the escrow agent's records maintained at
the other firm's place of business.
(b) If an escrow agent uses a computerized
system for producing and maintaining the records and accounts required in the
escrow agent's licensed activity, the computerized system must have the
following capabilities:
(A) Be capable of
printing out any document used in the required accounting and record keeping
process that would otherwise be generated or maintained by hand, such as
receipt and check registers, receipt, and disbursement journals;
(B) Be capable of backing up its stored data.
At least once each month, the escrow agent must back up any data that is stored
in the computerized system that was not printed out and preserved under
subsection (a) of this section within the last month. The back up data must be
made available to the Commissioner or to the Commissioner's authorized
representatives upon demand;
(C)
The reconciliations and all required supporting data must be capable of being
printed out at the time of reconciliation and preserved as required records of
the licensed escrow activity.
Statutory/Other Authority: ORS 696.385 & 696.541
Statutes/Other Implemented: ORS 696.578 & 696.534
Disclaimer: These regulations may not be the most recent version. Oregon may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
