Oregon Property Management Practice Test 2025 – The All-in-One Guide to Master Your Certification!

The correct answer reflects the legal and ethical obligation of property managers regarding security deposits after a property management agreement ends. When the agreement is terminated, the property manager is required to disburse the security deposits to the appropriate parties, which typically means returning the deposits to the tenants or addressing any legitimate claims against the deposits as outlined in the rental agreement and state law.

This process ensures that tenants receive their funds back, minus any lawful deductions for damages or unpaid rent, thereby upholding their rights. In Oregon, property managers must adhere to specific statutes regarding the handling of security deposits, emphasizing the importance of transparency and fairness in these transactions.

Other options fail to recognize the legal framework governing security deposits. Returning them to the property manager, keeping them until further notice, or converting them to fees do not comply with typical practices and regulations that prioritize tenant rights and proper financial management. Therefore, the obligation to disburse the security deposits appropriately is not only a best practice but also a legal requirement in property management.