(1) Each property manager will maintain a separate bank account which will be designated a trust account wherein all downpayments, earnest money deposits, rent payments, security deposits or other trust funds received by the property manager on behalf of a principal, third-party or any other person shall be deposited. Such trust accounts may be maintained in interest-bearing accounts with the interest payable to the property manager, principal, third-party or any other person, as may be designated by agreement. Interest payable to the property manager must be identified by agreement as consideration for services performed. Offices or firms having more than one property manager may utilize a single property management trust account.
(2) Trust accounts must be maintained in a federally insured financial institution in Montana.
(3) All funds belonging to others and accepted by the property manager while acting in his capacity as a property manager must be deposited in an account separate from money belonging to the property manager.
(a) The name of such separate account must be identified by the words "trust account."
(b) Each property manager must only deposit trust funds received on property management transactions in his trust account and shall not commingle his personal funds or other funds in the trust account with the exception that a property manager may deposit and keep a sum not to exceed $1000 in said account from his personal funds, including the interest earned on the trust account if the trust account is maintained in an interest-bearing account and the interest accrues to the property manager, which sum shall be specifically identified and deposited to cover bank service charges relating to the trust account.
(4) A property manager may maintain more than one trust account, but must notify the board of each and every account by name and number.
(5) All security deposits for residential rental transactions and other trust account money must be deposited in the property manager's trust account within three business days of the receipt of the trust funds. All other security deposits and trust account money must be deposited into the property manager's trust account within three business days, unless otherwise provided in the lease agreement or rental agreement.
(a) If the agreement by which a licensee is managing a property for the owner is terminated for any reason while the licensee is holding funds deposited by a tenant, the licensee shall promptly and in writing advise the tenant that the funds will be transferred to the owner within 30 days of the notification. The notice shall also contain the name and address of the owner to whom the funds are to be transferred.
(6) Maintenance of the trust account will be the responsibility of the property manager. Property managers are responsible at all times for deposits accepted by them or their property management staff.
(7) No payments of personal indebtedness of the property manager shall be made from such trust account other than a withdrawal of earned commissions payable to such property manager or withdrawals made on behalf of the beneficiaries of such trust account.
(8) Money held in the trust account which is due and payable to the property manager must be withdrawn within five business days after such money becomes due and payable to the property manager except as exempted in (3) (c) of this section.
(9) A property manager must maintain in his office a completed record of all funds received on property management transactions, in the following manner:
(a) a bank deposit slip showing the date of deposit, amount, source of money and where deposited;
(b) monthly bank statements are to be retained and kept on file for five years;
(c) trust account checks must be numbered and all voided checks retained. The checks must denote the property manager's business name, address and must be designated as "trust account;"
(d) a record book which shows the chronological sequence in which funds are received and disbursed;
(i) for funds received, the journal must include the date, the name of the party who is giving the money, the name of the principal and the amount;
(ii) for disbursements, the checkbook journal must include the date, the payee and the amount;
(iii) a running balance must be shown after each transaction.
(10) A ledger must be kept to show the receipts and the disbursements as they affect a single, particular transaction or property as between the landlord and tenant, etc. The ledger must include the names of both parties to a transaction, the dates and the amounts received. When disbursing funds, the date, payee and the amount must be shown. A running balance must be shown after each transaction.
(11) The trust account must be reconciled monthly except in the case where there has been no activity during that month.
(12) Every property manager shall keep permanent records of all funds and property of others received by them for not less than five years from the date of receipt of any such funds or property.