R162-2f-403c. Property Management Trust Accounts

  (1) As of January 1, 2014, a trust account that is used exclusively for property management purposes shall be used to secure the following:

  (a) tenant security deposits;

  (b) rents; and

  (c) money tendered by a property owner as a reserve fund or for payment of unexpected expenses.

  (2) A principal broker violates Subsection 61-2f-401(4)(B) if the principal broker deposits into a property management trust account any funds belonging to the principal broker without:

  (a) maintaining records to clearly identify the total amount belonging to the principal broker; or

  (b) performing a monthly line-item reconciliation of all deposits and withdrawals of funds belonging to the principal broker.

  (3) A principal broker may disburse funds from a property management trust account only in accordance with:

  (a) specific language in the property management contract or tenant lease agreement, as applicable, authorizing disbursement;

  (b) other proper written authorization of the parties having an interest in the funds; or

  (c) court order.

  (4) A principal broker who transfers funds from a property management trust account for any purpose shall maintain records to clearly evidence that:

  (a) prior to making the transfer, the principal broker verified the money as belonging to the property owner for whose benefit, or on whose instruction, the funds are transferred;

  (b) any money transferred into an operating account as the principal broker's property management fee is earned according to the terms of the principal broker's contract with the property owner;

  (c) any transfer for maintenance, repair, or similar purpose is:

  (i) authorized according to the terms of the applicable property management contract, tenant lease agreement, or other instruction of the property owner; and

  (ii) used strictly for the purpose for which the transfer is authorized, with any excess returned to the trust account.