Oregon 30-Hour Real Estate Law Practice Test

During an audit by OREA, which record must Jack, an Oregon property manager, provide to demonstrate compliance?

1. Tenant lease agreements

2. Location of the trust account

3. The reconciliation form

4. Tenant complaint records

The correct answer is: The reconciliation form

In the context of an audit by the Oregon Real Estate Agency (OREA), the requirement for a property manager is to maintain and provide accurate records that show financial accountability and compliance with state regulations. The reconciliation form is a crucial document that demonstrates how trust accounts are managed, showing that the funds are properly accounted for and that any discrepancies between the records and the bank statements are addressed. The reconciliation form must match the records kept by the property manager, ensuring that all tenant funds and operational expenses are correctly reported. This documentation is essential for the OREA to verify that the property manager is following the legal obligations regarding handling and accounting for client funds. While tenant lease agreements, the location of the trust account, and tenant complaint records may be relevant to various aspects of property management and resident relationships, they do not specifically address the financial compliance that is vital during an audit. Therefore, providing the reconciliation form is the most direct way to demonstrate adherence to financial management practices required by the regulations governing property management. Understanding the significance of the reconciliation form in the context of an audit highlights the importance of accurate financial documentation in real estate management in Oregon.