Qualifying brokers who offer property management services for others shall:

1. A. Execute and submit to the commission, on a form provided by the commission, a declaration of intent to offer such services. Such declaration will acknowledge the qualifying broker’s responsibility for all property management services provided by the brokerage including maintenance of the records described below.

2. B. Maintain records of such services as provided in 16.61.23 NMAC and 16.61.24 NMAC, including:

   1. (1) A list of all property management trust and custodial accounts maintained by the brokerage;
   2. (2) The name of the bank(s) at which such trust or custodial accounts are maintained;
   3. (3) Monthly trust or custodial account reconciliation(s) demonstrating a three-way reconciliation between the trust or custodial account, the bank statement, and the property ledger;
   4. (4) Trust or custodial account year-end balances.
3. C. Qualifying brokers who offer property management services for others shall review 16.61.23 NMAC and 16.61.24 NMAC of the commission rules with licensed and unlicensed personnel performing property management services at the brokerage.
4. D. Qualifying brokers offering property management services for others shall make the records and information delineated in this part available to the commission upon request.

5. E. Failure of a qualifying broker to comply with the provisions of 16.61.23.12 NMAC, shall subject the qualifying broker to disciplinary action.

   HISTORY OF 16.61.23 NMAC:

   Pre-NMAC History: The material in this part was derived from that previously filed with the state records center and archives under:

   Real Estate License Law Manual, filed 10/2/1973;

   Rule No. 15 Amendment No. 1, Trust Fund Accounts; Records to be Maintained, filed 6/15/1979;

   REC 70-14 Trust Fund Accounts; Records to be Maintained, filed 10/6/1981;

   REC 84-14, Trust Fund Accounts; Records to be Maintained, filed 10/25/1984;

   Rule No. 11 Trust Accounts, filed 12/18/1987.

   History of Repealed Material:

   16.61.23 NMAC, Special Trust Accounts, Custodial Accounts, and Other Accounts Containing Funds of Third Parties (filed 11/30/2001) repealed 1/1/2012.

   Other History:

   Rule No. 11 Trust Accounts (filed 12/18/1987) was reformatted, renumbered, amended, and replaced by 16 NMAC 61.23, Trust Accounts, effective 8/15/1997.

   16 NMAC 61.23, Trust Accounts (filed 6/25/1997) was reformatted, amended, renumbered, and replaced by 16.61.23 NMAC, Trust Accounts, effective 1/1/2002.

   16.61.23 NMAC, Special Trust Accounts, Custodial Accounts, and Other Accounts Containing Funds of Third Parties (filed 11/30/2001) was replaced by 16.61.23 NMAC, Trust Accounts, effective 1/1/2012.

[16.61.23.12 NMAC – N, 1/1/2019; A, 1/3/2021]