Oregon Real Estate Practice Test

What type of account must property managers or principal brokers maintain in Oregon for rental real estate?

1. Standard checking account

2. Designated clients trust account

3. Investment account

4. Secure savings account

The correct answer is: Designated clients trust account

In Oregon, property managers and principal brokers are required to maintain a designated client's trust account for rental real estate transactions. This type of account is specifically used to hold client funds, such as security deposits and rent payments, ensuring that these funds are kept separate from the property manager's or broker's personal or operational funds. Having a designated clients trust account is essential to protect the interests of tenants and property owners. This account is regulated to ensure that funds are used solely for their intended purposes, such as managing a specific property's funds without risk of commingling with business operational accounts. The use of this account helps ensure compliance with the state's real estate laws and provides an added layer of transparency and accountability in handling rental transactions. In contrast, standard checking accounts, investment accounts, and secure savings accounts do not fulfill the legal requirements or the protective measures intended for client funds in real estate transactions. Those accounts may not offer the same level of oversight or protections required under Oregon's real estate regulations.