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:
Terms Used In Arizona Laws 32-2174
- designated broker: means the natural person who is licensed as a broker under this chapter and who is either:
(a) Designated to act on behalf of an employing real estate, cemetery or membership camping entity. See Arizona Laws 32-2101
- fiduciary: A trustee, executor, or administrator.
- licensee: means a person to whom a license for the current license period has been granted under any provision of this chapter, and, for purposes of section 32-2153, subsection A, shall include original license applicants. See Arizona Laws 32-2101
- member: means a member of the real estate advisory board. See Arizona Laws 32-2101
- person: means any individual, corporation, partnership or company and any other form of multiple organization for carrying on business, foreign or domestic. See Arizona Laws 32-2101
- property: includes both real and personal property. See Arizona Laws 1-215
- property management firm: means any corporation, partnership or limited liability company licensed pursuant to section 32-2125, subsection A or a designated broker that by written agreement, manages rental property or properties for compensation. See Arizona Laws 32-2171
- rental agreement: means a lease or leasing agreement. See Arizona Laws 32-2171
- trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
- trustee: A person or institution holding and administering property in trust.
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.