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Architecture Guide
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Take a Quiz
30 under 30
Young Professionals
REALTOR® Emeritus | | Creating and Monitoring Business Systems Escrow and Trust Record Keeping | |
| Financial Management Is Your Company Profitable? Tax Record Keeping Escrow and Trust Record Keeping Personnel Management Compensation Policies Policies for Real Estate Operations More Resources | 6 Musts for Escrow Record Keeping Sound basic accounting procedures will often prevent problems with escrow accounts. 1. Keep detailed records of all deposits into the escrow account, including check numbers and dates of receipt and deposit. 2. Produce a monthly statement of all the brokerage’s escrow funds and reconcile the statement with the bank’s records. 3. Document any account inconsistencies you find and describe the actions you take to remedy the error. 4. Note any bank service charges or NSF fees assessed against the account. 5. List all checks that are still outstanding (have not cleared) at each reconciliation. 6. Preserve trust account records for as long as required by your state law. Adapted from “Escrow Account Record Keeping and Accounting”, Richard J. Roth, Florida REALTOR®, April 1992 TIP: Escrow mishandling is among the most common violations of real estate regulations, according to real estate commission officials in California, Florida, Illinois, New York, Texas, and Virginia. And brokers are more likely to violate escrow laws than salespeople (“Are You in Regulatory Hot Water?,” Robert Liparulo, REALTOR® Magazine, September 1996. Next Page: Personnel Files: What to Include, What Not to Include |