Commission staff conduct compliance reviews to examine real estate brokerage transaction records including trust accounts. Commission staff conduct these reviews by e-mail and occasionally onsite visits.

Exams are conducted to determine if trust funds in real estate transactions are properly handled. Examiners also review contracts and other documents in the transaction files to monitor compliance with law and regulations.

Regulations

K.A.R. 86-3-10
All records relating to the broker's real estate business are to be retained in the broker's files for three years.

K.A.R. 86-3-22
Transaction numbers are to be assigned and placed on all applicable records in the form mandated by this regulation.

K.A.R. 86-3-18
If the broker maintains a trust account, a complete record of all monies received or escrowed on real estate transactions must be maintained.

Transaction Files

Each transaction file, whether Pending, Closed or Cancelled, should contain all the following records (if applicable) to the transaction:

• Agency Agreement with Seller
• Agency Agreement with Buyer
• Transaction Broker Agreement
• Transaction Broker Addendum
• Offers and Counteroffers
• Contract
• Lot Reservation Agreement
• Commercial Lease
• Option
• Receipt for Purchase Agreement and Earnest Money
• Closing Statements
• Authorization to disburse Earnest Money on Transaction which failed to close
• Any other record generated in connection with Transaction