Any active licensee managing rental property that he or she owns must:
• disclose his/her licensure in rental agreements.
• include in any advertising of his/her own property the statement “landlord holds a real estate license” OR include in the advertisement his/her license number.• notify his/her broker in writing before renting properties to others.
• place money that belongs to others or that has the potential to be refunded
· (for example, security deposits, pet deposits, or last month’s rent) in a designated trust account that is:
o the broker’s designated trust account as registered with the Commission, or
o if not using the broker’s account, in a designated trust account set up by the
licensee, approved by the broker, and registered with the Commission. (The Broker must
notify the Commission of the name of bank of the account and the account number and the
licensee owning it.)
• if the licensee has his or her own account, the licensee:
o must maintain records in compliance with the license law (see particularly Rule 520-1-.08
520-1-.08 and Section 43-40-20 of the license law);
o must provide written account reconciliation statements to the broker at least quarterly;
and place all security deposits into the trust account.
• advertise in the broker’s name if the property is under a management contract with the broker.
• notify his/her broker in writing before advertising the property.
• have the broker’s written consent to any advertising and otherwise comply with advertising rules 520-1-.09 & 520-1-.11.
· Refer to license law references related to Licensees acting as principals in real estate transactions.
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