Contact Us Licensee Login

Brokerage Standards Manual

Notice of Change: Information in this manual changed when new agency and disclosure rules came into effect on June 15, 2018. Learn more about the new rules.Notice of Change: Information in this manual changed when new agency and disclosure rules came into effect on June 15, 2018. Learn more about the new rules.

Year End Reports and Office Inspections

6. Council Review Of Accounts And Other Brokerage Records

(a) Office and Records Inspection Information

In order to ensure that brokerages in BC are conducting their business in compliance with the applicable rules and legislation, RECBC staff auditors travel to brokerages throughout the province to carry out Office and Records Inspections (the “O&RI”).

office_recordsBefore a RECBC auditor visits each brokerage, they send the managing broker a letter advising them of the records and documents that will be required at the inspection. While other records may be requested at the time of the inspection, the letter identifies the key documents that are needed to confirm whether the brokerage is in compliance with the applicable rules and legislation.

The list below reproduces the list of documents that are itemized in the letter. Strata managing brokers may wish to use the list to confirm to their own satisfaction that their brokerage is meeting all required procedures and policies.

Brokerage and Commission Trust Funds

  • deposit slips and cheque stubs for all trust accounts for a stated period of time;
  • all trust account bank statements and cancelled cheques for a stated period of time;
  • trust journal and individual client ledgers showing deposits and withdrawals for each trust account and individual client trust ledger, respectively; and,
  • monthly trust account bank reconciliations and trust liability reconciliations (i.e. month-end listing of individual client trust ledgers).

General Accounts

  • bank statements and cancelled cheques; deposit slips and cheque stubs;
  • monthly bank reconciliation reconciling the bank balances to the cash journal month end balances; and,
  • a cash journal or synoptic, which consists of a listing of all deposits and withdrawals for general business purposes.
  • general ledger, trial balances, and internal financial statements.

Strata Property Management Services

  • a listing of all properties managed by the brokerage from (date), including sufficient information to identify the property;
  • strata property management files containing: strata property management services contracts, financial statements and bank statements sent to owners, strata council meeting minutes (regular, special and AGM), expenditure invoices, and any other correspondence relating to the management of strata; and,
  • bank statements, cancelled cheques, deposit books and monthly bank reconciliation for all operating, contingency, special levy, builder’s lien and other strata related accounts.

Other information that may be reviewed and collected by the auditor includes:

  • a summary of the brokerage’s profile and activities, including:
    • advertising
    • branch offices
    • ownership
    • personnel
  • managing broker responsibilities,
  • a summary of licensee’s activities, including:
    • disclosures
    • remuneration
    • personal acquisition and disposal of real estate
    • associated licensee or employment agreements
  • subordination agreements,
  • any other relevant documentation

RECBC requires licensees to complete educational requirements every licensing cycle as a condition of continued licensing. The auditor may require the brokerage to have available proof of licensees’ completion of the required REP courses.

Practice Tip: Stay Informed
The laws and rules affecting real estate are subject to constant and continuing change. Managing brokers have a duty to keep themselves up-to-date on such important changes. The best means of keeping up-to-date is by reading the Report from Council newsletter. Published six times a year, it includes reports on any major changes in regulations or policies. Licensees may also wish to refer to the PSM, now available online and fully searchable.