DOCUMENTATION REQUIREMENTS
Activities and Related Documents
In addition to accounting records, the Department of Real Estate requires that the broker maintain all documents
prepared or obtained in connection with any real estate transaction handled. Here is a list of typical activities and
the corresponding documentation.
Activity
1. Receiving trust funds in the form of:
Purchase deposits from buyers
Rents and security deposits from tenants
Other receipts
2. Depositing trust funds
3. Forwarding buyers’ checks to escrow
4. Returning buyers’ checks
5. Disbursing trust funds
6. Receiving offers and counteroffers from buyers
and sellers
7. Collecting management fees from the trust fund
bank account
8. Reconciling bank account record with separate
beneficiary records
Documentation
• Real estate purchase contract and receipt for
deposit, signed by the buyer
• Collection receipts
• Collection receipts
• Bank deposit slips
• Receipt from title/escrow company and copy
of check
• Copy of buyer’s check signed and dated by
buyer, signifying buyer’s receipt of check
• Checks issued
• Supporting papers for the checks, such as
invoices, escrow statements, billings,
receipts, etc.
• Real estate purchase contract and receipt for
deposit, signed by respective parties
• Agency disclosure statement
• Transfer disclosure statement
• Property management agreements between
broker and property owners. (Note: If only
one trust fund check is issued for
management fees charged to various
property owners, there should be a schedule
or listing on file showing each property and
amount charged, and the total amount, which
should agree with the check amount.)
• Cancelled checks
• Record of reconciliation