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Arizona Laws 32-2174. Property management accounts

A. All property management accounts shall be designated as trust accounts and shall include descriptive wording, substantially similar to one of the following, in the trust account title:

1. "Trust account".

2. "Fiduciary account".

3. "In trust for (individual or entity name)".

4. "Trustee for (individual or entity name)".

5. "Fiduciary for (individual or entity name)".

B. A broker's trust account is required for all of the owner's monies, except if the owner directs the broker to deposit the monies directly into the owner's account. The broker shall not have access to the owner's account. Trust accounts may be interest bearing.

C. The designated broker for a property management firm may authorize either a licensee or an unlicensed natural person in the direct employ of the broker to transfer monies or to be a signatory on the property management firm's trust accounts. If the person who is designated to sign on behalf of the designated property management broker is an unlicensed person, that person shall be a bona fide officer, member, principal or employee of the property management firm. The broker may require dual signatures on checks and may use a facsimile signature according to the broker's business policies and procedures. The designation of a licensed or unlicensed person to transfer monies or to be a signatory on trust accounts does not lessen the broker's responsibility or liability for any monies handled.

D. Within three banking days after receiving monies that are not subject to dispute or contingency, the property management firm shall deposit the monies in either the owner's direct account or the property management firm's trust account for the benefit of the owner. A property management firm may remit an owner's monies under its control to or for the owner by any lawful means available.

E. Each rental agreement executed by a property manager shall include a provision that clearly states the disposition of any tenant deposits.

Comments (1)add comment
Michelle : ...
I currently rent a house in Phoenix AZ. The property is managed by a guy that lives on the property. He calls himself the property manager. But this guy does not have any type of license to be a property manager. There is actually 6 sets of duplex's all with different addresses, so there is no unit or apt numbers. And he is living there collecting rent and deposits, showing the property, and setting rules and saying who and when people can park where. From my understanding because these units all have different addresses and no unit or apt numbers that he is breaking the law by managing all this properties as a unlicensed Property manager. Also I noticed on my bank statements he has been signing the owners name on the back of the check and depositing that as well under the owners account. but isn' that fraud, he is signing the check as if he is the owner in the owners name? Also When i request service on lets say the garbage disposal this guy comes knocking at my door at 8pm to fix it with no heads up that he is coming over just a random knock on the door at a late hour.. Now isnt that against the rules of a property manager. and another thing that I thought was out of the norm was when I had a issue with my fridge, he brought his 19 year old daughter over to help do the repair, well he claims he was teaching her so she knows how to repair a fridge in the future. Also notice he has his son in high school doing alot of repairs around the complex... isnt there some rules about having unauthorized, unlicensed people doing repairs to the property. So now we aren't allowed to have any visitors stay parked past 2am in our front visitor parking section. So when the holidays are here and family in town they have to park down the street on the other side. So I wanted to speak to the owner regarding some issue and this being one of them and this so called property manager tells me he is unreachable and lives out of the country. So I started to do my own homework and have tracked down this owner living in California, just a different state not out of the country. I have found a contact number for him and would like to place a call to him and let him know how good of a job his so called Property manager is doing. Also Im feed up with this guy and all his crap and want out of my lease. I'm writing this to see if these are really laws that this so called property manager are breaking? Just the fact he is collecting rent and deposits as if he is the property manager and him being unlicensed should be against the law. Please help me understand if I have any rights here. Thanks!

February 12, 2013

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