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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.

Accounting and Financial Records/Systems

6. General Recordkeeping Requirements

(b) Trading Services

Section 8-5 of the Rules requires that a brokerage providing trading services keeps copies of the following records:

  • the contracts for the acquisition or disposition of real estate;
  • any accounting statements prepared by or on behalf of the brokerage that are provided to a party by the brokerage in relation to the trade in real estate.

Additionally, section 8-5(2) of the Rules requires that in all cases where a brokerage or related licensee holds or receives money in relation to a trade in real estate, a Trade Record Sheet, in a form approved by RECBC, be prepared and retained by the brokerage. This is a sample of an approved Trade Record Sheet, however, as long as all the information as set out in the form is recorded, it is not necessary to use the approved Trade Record Sheet. Where an approved Trade Record Sheet is not used, it is important to note that all the information that is contained on that form must be set out in one document. The requirement to prepare a Trade Record Sheet is not satisfied by collecting a number of documents together that contain some of the information required in a Trade Record Sheet.

The Trade Record Sheet must include the following information:

  • the nature of the trade in real estate;
  • a description sufficient to identify the real estate involved in the trade in real estate;
  • a deal number for the purposes of identifying the trade in real estate;
  • the sale price or other consideration for the trade in real estate;
  • the name and address of every party to the trade in real estate;
  • the amount of money received that is required by section 27 of RESA to be paid into the brokerage’s trust account and details of every disbursement of that money;
  • the amount of remuneration paid or payable to any licensee or other person, the name of the party paying the remuneration and the name of the person who has received or is to receive it.

The Trade Record Sheet is not a substitute for a separate trust ledger for each trade in real estate.

Trade Record Sheet is required in every case where a brokerage holds or receives money in relation to a trade in real estate and not just in relation to completed trades in real estate.

For lease trades in real estate, the record sheet should be modified to provide the name of the lessor and lessee, the terms of the lease, lease rate, and the various security, pet or other deposits.

Additionally, as set out under the heading “General Record Requirements”, a brokerage providing trading services must retain written disclosures, written service agreements, annual financial reports and a list of all trades in real estate in which the brokerage is or was involved during the year, maintained separately for each year.