Compliance Reviews

The Commission staff conducts compliance reviews to examine real estate brokerage transaction records including trust accounts. Auditors conduct these reviews virtually, however, the Commission maintains the authority to conduct compliance reviews in person at your office.

KREC auditors review contracts and other documents in the transaction files to monitor compliance with Kansas real estate statutes and regulations.

Compliance reviews are also conducted to determine if trust account funds in real estate transactions are handled properly.

Record Retention Requirements

K.A.R. 86-3-10 Retention of Records

All records relating to the broker's real estate business are required be retained in the broker's files for a minimum of three years. These records include but are not limited to:

• Real estate sales contracts, option agreements, and nonresidential (commercial) lease agreements
• Closing statements
• Receipts from an escrow agent required by K.S.A. 58-3062(d)
• Broker and client correspondence
• Trust account records required by K.A.R. 86-3-18

K.A.R. 86-3-22 – Transaction Identification Numbers

Brokers are required to assign a unique transaction number to each real estate sales contract, option agreement, and nonresidential lease agreement for which the broker acts as an employee of, or on behalf of, the owner, purchaser, lessor, or lessee.

K.A.R. 86-3-18 – Trust Account Records

If the broker maintains a trust account, a complete record of all monies received or escrowed on real estate transactions must be maintained. See trust account maintenance requirements.